COVALON TECHNOLOGIES LTD (COV.CA) Fundamental Analysis & Valuation

TSX-V:COV • CA22282D3022

Current stock price

1.8 CAD
+0.08 (+4.65%)
Last:

This COV.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. COV.CA Profitability Analysis

1.1 Basic Checks

  • COV had positive earnings in the past year.
  • In the past year COV had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: COV reported negative net income in multiple years.
  • In multiple years COV reported negative operating cash flow during the last 5 years.
COV.CA Yearly Net Income VS EBIT VS OCF VS FCFCOV.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10M 20M

1.2 Ratios

  • COV's Return On Assets of 2.98% is amongst the best of the industry. COV outperforms 95.83% of its industry peers.
  • COV's Return On Equity of 3.70% is amongst the best of the industry. COV outperforms 95.83% of its industry peers.
  • COV's Return On Invested Capital of 1.29% is amongst the best of the industry. COV outperforms 95.83% of its industry peers.
Industry RankSector Rank
ROA 2.98%
ROE 3.7%
ROIC 1.29%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
COV.CA Yearly ROA, ROE, ROICCOV.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

1.3 Margins

  • With an excellent Profit Margin value of 3.10%, COV belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
  • COV has a better Operating Margin (1.59%) than 95.83% of its industry peers.
  • COV has a Gross Margin of 52.27%. This is amongst the best in the industry. COV outperforms 87.50% of its industry peers.
  • COV's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 1.59%
PM (TTM) 3.1%
GM 52.27%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.84%
GM growth 5Y9.13%
COV.CA Yearly Profit, Operating, Gross MarginsCOV.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 100

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8

2. COV.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so COV is destroying value.
  • There is no outstanding debt for COV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
COV.CA Yearly Shares OutstandingCOV.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2024 5M 10M 15M 20M 25M
COV.CA Yearly Total Debt VS Total AssetsCOV.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2024 10M 20M 30M 40M

2.2 Solvency

  • COV has an Altman-Z score of 4.69. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of COV (4.69) is better than 87.50% of its industry peers.
  • COV has a debt to FCF ratio of 0.32. This is a very positive value and a sign of high solvency as it would only need 0.32 years to pay back of all of its debts.
  • COV has a better Debt to FCF ratio (0.32) than 100.00% of its industry peers.
  • A Debt/Equity ratio of 0.06 indicates that COV is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.06, COV is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.32
Altman-Z 4.69
ROIC/WACC0.16
WACC8.21%
COV.CA Yearly LT Debt VS Equity VS FCFCOV.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10M 20M 30M

2.3 Liquidity

  • A Current Ratio of 5.69 indicates that COV has no problem at all paying its short term obligations.
  • COV has a Current ratio of 5.69. This is amongst the best in the industry. COV outperforms 87.50% of its industry peers.
  • COV has a Quick Ratio of 4.29. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of COV (4.29) is better than 83.33% of its industry peers.
Industry RankSector Rank
Current Ratio 5.69
Quick Ratio 4.29
COV.CA Yearly Current Assets VS Current LiabilitesCOV.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2024 10M 20M 30M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. COV.CA Growth Analysis

3.1 Past

  • COV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -82.26%.
  • The Revenue has decreased by -9.04% in the past year.
  • The Revenue has been growing by 19.43% on average over the past years. This is quite good.
EPS 1Y (TTM)-82.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)-9.04%
Revenue growth 3Y21.83%
Revenue growth 5Y19.43%
Sales Q2Q%-15.64%

3.2 Future

  • Based on estimates for the next years, COV will show a very strong growth in Earnings Per Share. The EPS will grow by 27.60% on average per year.
  • COV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.78% yearly.
EPS Next Y3%
EPS Next 2Y43.53%
EPS Next 3Y35.75%
EPS Next 5Y27.6%
Revenue Next Year0.99%
Revenue Next 2Y6.81%
Revenue Next 3Y6.78%
Revenue Next 5Y6.78%

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.
COV.CA Yearly Revenue VS EstimatesCOV.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10M 20M 30M 40M 50M
COV.CA Yearly EPS VS EstimatesCOV.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 2028 2029 2030 0.05 0.1 0.15 0.2

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6

4. COV.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 60.00, which means the current valuation is very expensive for COV.
  • Based on the Price/Earnings ratio, COV is valued cheaper than 95.83% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.35. COV is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 12.48, which indicates a correct valuation of COV.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of COV indicates a rather cheap valuation: COV is cheaper than 87.50% of the companies listed in the same industry.
  • COV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.61.
Industry RankSector Rank
PE 60
Fwd PE 12.48
COV.CA Price Earnings VS Forward Price EarningsCOV.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • COV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. COV is cheaper than 95.83% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of COV indicates a rather cheap valuation: COV is cheaper than 95.83% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.6
EV/EBITDA 21.98
COV.CA Per share dataCOV.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.2 0.4 0.6 0.8 1

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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)20
PEG (5Y)N/A
EPS Next 2Y43.53%
EPS Next 3Y35.75%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. COV.CA Dividend Analysis

5.1 Amount

  • COV has a Yearly Dividend Yield of 8.72%, which is a nice return.
  • Compared to an average industry Dividend Yield of 0.46, COV pays a better dividend. On top of this COV pays more dividend than 100.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, COV pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.72%

5.2 History

  • COV is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
COV.CA Yearly Dividends per shareCOV.CA Yearly Dividends per shareYearly Dividends per share 2025 0.05 0.1

5.3 Sustainability

DPN/A
EPS Next 2Y43.53%
EPS Next 3Y35.75%
COV.CA Yearly Income VS Free CF VS DividendCOV.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10M 20M

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COV.CA Fundamentals: All Metrics, Ratios and Statistics

COVALON TECHNOLOGIES LTD

TSX-V:COV (3/31/2026, 7:00:00 PM)

1.8

+0.08 (+4.65%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-25
Earnings (Next)05-26
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners5.08%
Ins Owner ChangeN/A
Market Cap49.72M
Revenue(TTM)31.54M
Net Income(TTM)977.40K
Analysts84.44
Price Target2.96 (64.44%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 8.72%
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)2
Avg EPS beat(4)4.61%
Min EPS beat(4)-100%
Max EPS beat(4)124.27%
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)-22.34%
Min Revenue beat(2)-25.15%
Max Revenue beat(2)-19.53%
Revenue beat(4)0
Avg Revenue beat(4)-15.41%
Min Revenue beat(4)-25.15%
Max Revenue beat(4)-3.96%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-41.67%
EPS NY rev (3m)-41.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-5.33%
Revenue NY rev (3m)-5.33%
Valuation
Industry RankSector Rank
PE 60
Fwd PE 12.48
P/S 1.58
P/FCF 7.6
P/OCF 6.28
P/B 1.88
P/tB 1.98
EV/EBITDA 21.98
EPS(TTM)0.03
EY1.67%
EPS(NY)0.14
Fwd EY8.01%
FCF(TTM)0.24
FCFY13.16%
OCF(TTM)0.29
OCFY15.92%
SpS1.14
BVpS0.96
TBVpS0.91
PEG (NY)20
PEG (5Y)N/A
Graham Number0.8
Profitability
Industry RankSector Rank
ROA 2.98%
ROE 3.7%
ROCE 1.79%
ROIC 1.29%
ROICexc 3.59%
ROICexgc 4.14%
OM 1.59%
PM (TTM) 3.1%
GM 52.27%
FCFM 20.75%
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-Score3
Asset Turnover0.96
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.32
Debt/EBITDA 1.06
Cap/Depr 146.06%
Cap/Sales 4.35%
Interest Coverage 250
Cash Conversion 549.16%
Profit Quality 669.45%
Current Ratio 5.69
Quick Ratio 4.29
Altman-Z 4.69
F-Score3
WACC8.21%
ROIC/WACC0.16
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)-82.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y3%
EPS Next 2Y43.53%
EPS Next 3Y35.75%
EPS Next 5Y27.6%
Revenue 1Y (TTM)-9.04%
Revenue growth 3Y21.83%
Revenue growth 5Y19.43%
Sales Q2Q%-15.64%
Revenue Next Year0.99%
Revenue Next 2Y6.81%
Revenue Next 3Y6.78%
Revenue Next 5Y6.78%
EBIT growth 1Y-89.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year670.66%
EBIT Next 3Y139.18%
EBIT Next 5Y77.64%
FCF growth 1Y271.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y395.19%
OCF growth 3YN/A
OCF growth 5YN/A

COVALON TECHNOLOGIES LTD / COV.CA Fundamental Analysis 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 6 / 10 to COVALON TECHNOLOGIES LTD (COV.CA). This can be considered as Fairly Valued.


What is the profitability of COV stock?

COVALON TECHNOLOGIES LTD (COV.CA) has a profitability rating of 6 / 10.


Can you provide the financial health for COV stock?

The financial health rating of COVALON TECHNOLOGIES LTD (COV.CA) is 8 / 10.


What is the earnings growth outlook for COVALON TECHNOLOGIES LTD?

The Earnings per Share (EPS) of COVALON TECHNOLOGIES LTD (COV.CA) is expected to grow by 3% in the next year.