COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada - TSX-V:COV - CA22282D3022 - Common Stock
2.19 CAD
+0.01 (+0.46%)
We assign a fundamental rating of 6 out of 10 to COV. COV was compared to 24 industry peers in the Biotechnology industry. COV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. COV is not valued too expensively and it also shows a decent growth rate. These ratings could make COV a good candidate for quality 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.
The reported operating cash flow has been mixed in the past 5 years: COV reported negative operating cash flow in multiple years.
1.2 Ratios
COV has a Return On Assets of 10.52%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 11.87%, COV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of COV (8.61%) is better than 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 11.87% | ||
| ROIC | 8.61% |
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
The Profit Margin of COV (10.92%) is better than 100.00% of its industry peers.
COV's Profit Margin has declined in the last couple of years.
COV's Operating Margin of 11.04% is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of COV has grown nicely.
The Gross Margin of COV (58.82%) is better than 91.67% of its industry peers.
COV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.04% | ||
| PM (TTM) | 10.92% | ||
| GM | 58.82% |
OM growth 3Y233.18%
OM growth 5YN/A
PM growth 3Y-58.52%
PM growth 5YN/A
GM growth 3Y7.01%
GM growth 5Y-1.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 9.95 indicates that COV is not in any danger for bankruptcy at the moment.
The Altman-Z score of COV (9.95) is better than 91.67% of its industry peers.
The Debt to FCF ratio of COV is 0.13, which is an excellent value as it means it would take COV, only 0.13 years of fcf income to pay off all of its debts.
COV has a Debt to FCF ratio of 0.13. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that COV is not too dependend on debt financing.
COV has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. COV outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 9.95 |
ROIC/WACC0.96
WACC9.01%
2.3 Liquidity
COV has a Current Ratio of 8.39. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
COV has a better Current ratio (8.39) than 87.50% of its industry peers.
COV has a Quick Ratio of 6.09. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 6.09, COV belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.39 | ||
| Quick Ratio | 6.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 225.38% over the past year.
The earnings per share for COV have been decreasing by -50.83% on average. This is quite bad
The Revenue has grown by 28.97% in the past year. This is a very strong growth!
COV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.73% yearly.
EPS 1Y (TTM)225.38%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-63.41%
Revenue 1Y (TTM)28.97%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-10.75%
3.2 Future
The Earnings Per Share is expected to grow by 14.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.49% on average over the next years. This is quite good.
EPS Next Y-61.54%
EPS Next 2Y-8.01%
EPS Next 3Y7.17%
EPS Next 5Y14.6%
Revenue Next Year7.74%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.49%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.85, which indicates a correct valuation of COV.
100.00% of the companies in the same industry are more expensive than COV, based on the Price/Earnings ratio.
COV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 19.33, the valuation of COV can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of COV indicates a rather cheap valuation: COV is cheaper than 91.67% 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 (22.71), we can say COV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 19.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of COV indicates a rather cheap valuation: COV is cheaper than 100.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, COV is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.52 | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
COV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.01%
EPS Next 3Y7.17%
5. Dividend
5.1 Amount
No dividends for COV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:COV (9/16/2025, 7:00:00 PM)
2.19
+0.01 (+0.46%)
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 Owners5.11%
Ins Owner ChangeN/A
Market Cap60.05M
Analysts84.44
Price Target3.83 (74.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)2
Avg EPS beat(2)161.81%
Min EPS beat(2)94.17%
Max EPS beat(2)229.45%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)1
Avg Revenue beat(2)14.08%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)32.12%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-42.86%
EPS NY rev (1m)-44.44%
EPS NY rev (3m)-44.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.05%
Revenue NY rev (1m)-2.72%
Revenue NY rev (3m)-5.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 19.33 | ||
| P/S | 1.77 | ||
| P/FCF | 12.52 | ||
| P/OCF | 11.62 | ||
| P/B | 1.93 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 9.02 |
EPS(TTM)0.13
EY5.94%
EPS(NY)0.11
Fwd EY5.17%
FCF(TTM)0.17
FCFY7.99%
OCF(TTM)0.19
OCFY8.61%
SpS1.23
BVpS1.14
TBVpS1.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 11.87% | ||
| ROCE | 11.95% | ||
| ROIC | 8.61% | ||
| ROICexc | 20.33% | ||
| ROICexgc | 22.79% | ||
| OM | 11.04% | ||
| PM (TTM) | 10.92% | ||
| GM | 58.82% | ||
| FCFM | 14.17% |
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y233.18%
OM growth 5YN/A
PM growth 3Y-58.52%
PM growth 5YN/A
GM growth 3Y7.01%
GM growth 5Y-1.09%
F-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 37.7% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.37% | ||
| Profit Quality | 129.74% | ||
| Current Ratio | 8.39 | ||
| Quick Ratio | 6.09 | ||
| Altman-Z | 9.95 |
F-Score7
WACC9.01%
ROIC/WACC0.96
Cap/Depr(3y)94.27%
Cap/Depr(5y)67.08%
Cap/Sales(3y)4.08%
Cap/Sales(5y)2.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)225.38%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-63.41%
EPS Next Y-61.54%
EPS Next 2Y-8.01%
EPS Next 3Y7.17%
EPS Next 5Y14.6%
Revenue 1Y (TTM)28.97%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-10.75%
Revenue Next Year7.74%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.49%
EBIT growth 1Y208.63%
EBIT growth 3Y289.15%
EBIT growth 5YN/A
EBIT Next Year17.64%
EBIT Next 3Y19.17%
EBIT Next 5Y20.87%
FCF growth 1Y169.43%
FCF growth 3Y-51.66%
FCF growth 5YN/A
OCF growth 1Y192.47%
OCF growth 3Y-49.67%
OCF growth 5YN/A