COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:COV - CA22282D3022 - Common Stock
1.74 CAD
+0.14 (+8.75%)
Taking everything into account, COV scores 6 out of 10 in our fundamental rating. COV was compared to 23 industry peers in the Biotechnology industry. While COV has a great health rating, its profitability is only average at the moment. A decent growth rate in combination with a cheap valuation! Better keep an eye on COV. This makes COV very considerable for value investing!
1. Profitability
1.1 Basic Checks
COV had positive earnings in the past year.
COV had a positive operating cash flow in the past year.
In multiple years COV reported negative net income over the last 5 years.
In multiple years COV reported negative operating cash flow during the last 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.70%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
COV has a Return On Equity of 6.70%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
COV has a better Return On Invested Capital (3.92%) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 6.7% | ||
| ROIC | 3.92% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
COV has a better Profit Margin (6.27%) than 100.00% of its industry peers.
With an excellent Operating Margin value of 5.37%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
COV's Gross Margin of 53.24% is amongst the best of the industry. COV outperforms 86.96% of its industry peers.
COV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.37% | ||
| PM (TTM) | 6.27% | ||
| GM | 53.24% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.84%
GM growth 5Y9.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COV is destroying value.
COV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 6.03 indicates that COV is not in any danger for bankruptcy at the moment.
COV's Altman-Z score of 6.03 is amongst the best of the industry. COV outperforms 91.30% of its industry peers.
The Debt to FCF ratio of COV is 1.56, which is an excellent value as it means it would take COV, only 1.56 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.56, COV belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that COV is not too dependend on debt financing.
The Debt to Equity ratio of COV (0.05) is better than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 6.03 |
ROIC/WACC0.5
WACC7.78%
2.3 Liquidity
A Current Ratio of 8.36 indicates that COV has no problem at all paying its short term obligations.
COV has a better Current ratio (8.36) than 86.96% of its industry peers.
COV has a Quick Ratio of 6.40. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
COV has a Quick ratio of 6.40. This is amongst the best in the industry. COV outperforms 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.36 | ||
| Quick Ratio | 6.4 |
3. Growth
3.1 Past
COV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.70%.
Looking at the last year, COV shows a small growth in Revenue. The Revenue has grown by 5.29% in the last year.
COV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.43% yearly.
EPS 1Y (TTM)-29.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)5.29%
Revenue growth 3Y21.83%
Revenue growth 5Y19.43%
Sales Q2Q%-1.98%
3.2 Future
COV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.33% yearly.
The Revenue is expected to grow by 9.41% on average over the next years. This is quite good.
EPS Next Y76.57%
EPS Next 2Y43.53%
EPS Next 3Y35.75%
EPS Next 5Y37.33%
Revenue Next Year6.67%
Revenue Next 2Y6.81%
Revenue Next 3Y6.78%
Revenue Next 5Y9.41%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.86 indicates a rather expensive valuation of COV.
COV's Price/Earnings ratio is rather cheap when compared to the industry. COV is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of COV to the average of the S&P500 Index (26.51), we can say COV is valued inline with the index average.
With a Price/Forward Earnings ratio of 14.08, COV is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of COV indicates a rather cheap valuation: COV is cheaper than 91.30% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of COV to the average of the S&P500 Index (23.13), we can say COV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 14.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COV is valued cheaper than 95.65% of the companies in the same industry.
COV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. COV is cheaper than 95.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.32 | ||
| EV/EBITDA | 12.12 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of COV may justify a higher PE ratio.
A more expensive valuation may be justified as COV's earnings are expected to grow with 35.75% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y43.53%
EPS Next 3Y35.75%
5. Dividend
5.1 Amount
COV has a Yearly Dividend Yield of 8.67%, which is a nice return.
Compared to an average industry Dividend Yield of 0.38, COV pays a better dividend. On top of this COV pays more dividend than 100.00% of the companies listed in the same industry.
COV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.67% |
5.2 History
COV does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y43.53%
EPS Next 3Y35.75%
TSX-V:COV (12/31/2025, 7:00:00 PM)
1.74
+0.14 (+8.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners5.08%
Ins Owner ChangeN/A
Market Cap48.06M
Revenue(TTM)32.82M
Net Income(TTM)2.06M
Analysts84.44
Price Target2.96 (70.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.67% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.14%
Min EPS beat(2)-100%
Max EPS beat(2)124.27%
EPS beat(4)3
Avg EPS beat(4)86.97%
Min EPS beat(4)-100%
Max EPS beat(4)229.45%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-16.25%
Min Revenue beat(2)-19.53%
Max Revenue beat(2)-12.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-19.53%
Max Revenue beat(4)32.12%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-22.67%
PT rev (3m)-22.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.14%
Revenue NY rev (3m)-3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 14.08 | ||
| P/S | 1.46 | ||
| P/FCF | 33.32 | ||
| P/OCF | 20.99 | ||
| P/B | 1.56 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 12.12 |
EPS(TTM)0.07
EY4.02%
EPS(NY)0.12
Fwd EY7.1%
FCF(TTM)0.05
FCFY3%
OCF(TTM)0.08
OCFY4.76%
SpS1.19
BVpS1.11
TBVpS1.06
PEG (NY)0.32
PEG (5Y)N/A
Graham Number1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 6.7% | ||
| ROCE | 5.45% | ||
| ROIC | 3.92% | ||
| ROICexc | 8.47% | ||
| ROICexgc | 9.31% | ||
| OM | 5.37% | ||
| PM (TTM) | 6.27% | ||
| GM | 53.24% | ||
| FCFM | 4.39% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.84%
GM growth 5Y9.13%
F-Score4
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 88.69% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.21% | ||
| Profit Quality | 70.07% | ||
| Current Ratio | 8.36 | ||
| Quick Ratio | 6.4 | ||
| Altman-Z | 6.03 |
F-Score4
WACC7.78%
ROIC/WACC0.5
Cap/Depr(3y)88.92%
Cap/Depr(5y)79.37%
Cap/Sales(3y)2.96%
Cap/Sales(5y)3.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-29.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y76.57%
EPS Next 2Y43.53%
EPS Next 3Y35.75%
EPS Next 5Y37.33%
Revenue 1Y (TTM)5.29%
Revenue growth 3Y21.83%
Revenue growth 5Y19.43%
Sales Q2Q%-1.98%
Revenue Next Year6.67%
Revenue Next 2Y6.81%
Revenue Next 3Y6.78%
Revenue Next 5Y9.41%
EBIT growth 1Y-18.02%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year924.16%
EBIT Next 3Y139.18%
EBIT Next 5Y89.88%
FCF growth 1Y-52.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.09%
OCF growth 3YN/A
OCF growth 5YN/A
COVALON TECHNOLOGIES LTD / COV.CA FAQ
Can you provide the ChartMill fundamental rating for COVALON TECHNOLOGIES LTD?
ChartMill assigns a fundamental rating of 6 / 10 to COV.CA.
What is the valuation status for COV stock?
ChartMill assigns a valuation rating of 8 / 10 to COVALON TECHNOLOGIES LTD (COV.CA). This can be considered as Undervalued.
Can you provide the profitability details for COVALON TECHNOLOGIES LTD?
COVALON TECHNOLOGIES LTD (COV.CA) has a profitability rating of 6 / 10.
What is the financial health of COVALON TECHNOLOGIES LTD (COV.CA) stock?
The financial health rating of COVALON TECHNOLOGIES LTD (COV.CA) is 8 / 10.