COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:COV - CA22282D3022 - Common Stock
1.92 CAD
-0.05 (-2.54%)
Taking everything into account, COV scores 7 out of 10 in our fundamental rating. COV was compared to 23 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making COV a very profitable company, without any liquidiy or solvency issues. COV has a correct valuation and a medium growth rate. With these ratings, COV could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
COV had positive earnings in the past year.
In the past year COV had a positive cash flow from operations.
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 6.56%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
The Return On Equity of COV (7.78%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 5.16%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 7.78% | ||
| ROIC | 5.16% |
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 (7.00%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of COV has declined.
With an excellent Operating Margin value of 6.60%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
COV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 55.68%, COV belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
In the last couple of years the Gross Margin of COV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.6% | ||
| PM (TTM) | 7% | ||
| GM | 55.68% |
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
COV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
COV has more shares outstanding than it did 5 years ago.
2.2 Solvency
COV has an Altman-Z score of 6.43. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
COV's Altman-Z score of 6.43 is amongst the best of the industry. COV outperforms 86.96% of its industry peers.
COV has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
COV's Debt to FCF ratio of 0.29 is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
COV has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
COV's Debt to Equity ratio of 0.02 is fine compared to the rest of the industry. COV outperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 6.43 |
ROIC/WACC0.67
WACC7.73%
2.3 Liquidity
A Current Ratio of 6.57 indicates that COV has no problem at all paying its short term obligations.
COV has a Current ratio of 6.57. This is amongst the best in the industry. COV outperforms 86.96% of its industry peers.
COV has a Quick Ratio of 4.91. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of COV (4.91) is better than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.57 | ||
| Quick Ratio | 4.91 |
3. Growth
3.1 Past
COV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 350.62%, which is quite impressive.
COV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -50.83% yearly.
Looking at the last year, COV shows a quite strong growth in Revenue. The Revenue has grown by 13.00% in the last year.
Measured over the past years, COV shows a decrease in Revenue. The Revenue has been decreasing by -1.73% on average per year.
EPS 1Y (TTM)350.62%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)13%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-8.67%
3.2 Future
Based on estimates for the next years, COV will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.89% on average per year.
COV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.88% yearly.
EPS Next Y-92.31%
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
EPS Next 5Y15.89%
Revenue Next Year12.07%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.00 indicates a rather expensive valuation of COV.
100.00% of the companies in the same industry are more expensive than COV, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of COV to the average of the S&P500 Index (26.49), we can say COV is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 15.53, the valuation of COV can be described as correct.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, COV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
COV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. COV is cheaper than 95.65% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than COV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.11 | ||
| EV/EBITDA | 11.57 |
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-3.92%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
COV has a Yearly Dividend Yield of 7.81%, which is a nice return.
Compared to an average industry Dividend Yield of 7.81, 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 2.31, COV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.81% |
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 2Y-3.92%
EPS Next 3Y9.35%
TSX-V:COV (12/5/2025, 7:00:00 PM)
1.92
-0.05 (-2.54%)
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 Cap53.03M
Revenue(TTM)32.99M
Net Income(TTM)2.31M
Analysts84.44
Price Target3.83 (99.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.81% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.91%
Min EPS beat(2)-100%
Max EPS beat(2)94.17%
EPS beat(4)2
Avg EPS beat(4)40.61%
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)-8.47%
Min Revenue beat(2)-12.98%
Max Revenue beat(2)-3.96%
Revenue beat(4)1
Avg Revenue beat(4)0.71%
Min Revenue beat(4)-12.98%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-80%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 15.53 | ||
| P/S | 1.61 | ||
| P/FCF | 12.11 | ||
| P/OCF | 10.45 | ||
| P/B | 1.79 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)0.08
EY4.17%
EPS(NY)0.12
Fwd EY6.44%
FCF(TTM)0.16
FCFY8.26%
OCF(TTM)0.18
OCFY9.57%
SpS1.19
BVpS1.07
TBVpS1.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 7.78% | ||
| ROCE | 7.16% | ||
| ROIC | 5.16% | ||
| ROICexc | 12.73% | ||
| ROICexgc | 14.27% | ||
| OM | 6.6% | ||
| PM (TTM) | 7% | ||
| GM | 55.68% | ||
| FCFM | 13.27% |
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 3Y199.36%
ROICexgc growth 5YN/A
ROICexc growth 3Y198.52%
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-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.29 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 73.17% | ||
| Cap/Sales | 2.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 162.18% | ||
| Profit Quality | 189.61% | ||
| Current Ratio | 6.57 | ||
| Quick Ratio | 4.91 | ||
| Altman-Z | 6.43 |
F-Score5
WACC7.73%
ROIC/WACC0.67
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)350.62%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y-92.31%
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
EPS Next 5Y15.89%
Revenue 1Y (TTM)13%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-8.67%
Revenue Next Year12.07%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.88%
EBIT growth 1Y258.74%
EBIT growth 3Y289.15%
EBIT growth 5YN/A
EBIT Next Year-50.79%
EBIT Next 3Y21.1%
EBIT Next 5Y21.3%
FCF growth 1Y225.56%
FCF growth 3Y-51.66%
FCF growth 5YN/A
OCF growth 1Y353.8%
OCF growth 3Y-49.67%
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 7 / 10 to COV.CA.
What is the valuation status of COVALON TECHNOLOGIES LTD (COV.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to COVALON TECHNOLOGIES LTD (COV.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for COVALON TECHNOLOGIES LTD?
COVALON TECHNOLOGIES LTD (COV.CA) has a profitability rating of 7 / 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 decline by -92.31% in the next year.