COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
TSX-V:COV - TSX Venture Exchange - CA22282D3022 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to COV. COV was compared to 25 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 has a decent growth rate and is not valued too expensively. This makes COV very considerable 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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.39%, COV belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.71%, COV belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.57%, COV belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 9.71% | ||
| ROIC | 5.57% |
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 (8.57%) is better than 95.00% of its industry peers.
In the last couple of years the Profit Margin of COV has declined.
COV has a Operating Margin of 6.90%. This is amongst the best in the industry. COV outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of COV has grown nicely.
The Gross Margin of COV (60.74%) is better than 90.00% of its industry peers.
COV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.9% | ||
| PM (TTM) | 8.57% | ||
| GM | 60.74% |
OM growth 3Y233.12%
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
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 11.28 indicates that COV is not in any danger for bankruptcy at the moment.
COV's Altman-Z score of 11.28 is amongst the best of the industry. COV outperforms 95.00% of its industry peers.
COV has a debt to FCF ratio of 0.30. This is a very positive value and a sign of high solvency as it would only need 0.30 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.30, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
COV has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
COV's Debt to Equity ratio of 0.01 is amongst the best of the industry. COV outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.3 | ||
| Altman-Z | 11.28 |
ROIC/WACC0.68
WACC8.18%
2.3 Liquidity
A Current Ratio of 7.27 indicates that COV has no problem at all paying its short term obligations.
COV's Current ratio of 7.27 is amongst the best of the industry. COV outperforms 90.00% of its industry peers.
COV has a Quick Ratio of 5.34. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
COV has a better Quick ratio (5.34) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.27 | ||
| Quick Ratio | 5.34 |
3. Growth
3.1 Past
COV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 159.48%, which is quite impressive.
The earnings per share for COV have been decreasing by -50.83% on average. This is quite bad
Looking at the last year, COV shows a quite strong growth in Revenue. The Revenue has grown by 17.20% in the last year.
COV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.73% yearly.
EPS 1Y (TTM)159.48%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%120.31%
Revenue 1Y (TTM)17.2%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%28.61%
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 10.12% on average per year.
Based on estimates for the next years, COV will show a quite strong growth in Revenue. The Revenue will grow by 9.80% on average per year.
EPS Next Y-69.23%
EPS Next 2Y-26.62%
EPS Next 3Y-2.63%
EPS Next 5Y10.12%
Revenue Next Year11.77%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.8%
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
With a Price/Earnings ratio of 25.45, COV can be considered very expensive at the moment.
Based on the Price/Earnings ratio, COV is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, COV is valued at the same level.
A Price/Forward Earnings ratio of 67.96 indicates a quite expensive valuation of COV.
Based on the Price/Forward Earnings ratio, COV is valued cheaper than 85.00% of the companies in the same industry.
COV is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 67.96 |
4.2 Price Multiples
90.00% of the companies in the same industry are more expensive than COV, based on the Enterprise Value to EBITDA ratio.
95.00% 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 | 25.1 | ||
| EV/EBITDA | 19.4 |
4.3 Compensation for Growth
COV has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as COV's earnings are expected to decrease with -2.63% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.62%
EPS Next 3Y-2.63%
5. Dividend
5.1 Amount
No dividends for COV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:COV (2/21/2025, 7:00:00 PM)
2.8
-0.38 (-11.95%)
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 Owners4.93%
Ins Owner ChangeN/A
Market Cap76.72M
Analysts84.44
Price Target4.49 (60.36%)
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.99%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 67.96 | ||
| P/S | 2.46 | ||
| P/FCF | 25.1 | ||
| P/OCF | 22.09 | ||
| P/B | 2.79 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 19.4 |
EPS(TTM)0.11
EY3.93%
EPS(NY)0.04
Fwd EY1.47%
FCF(TTM)0.11
FCFY3.98%
OCF(TTM)0.13
OCFY4.53%
SpS1.14
BVpS1
TBVpS0.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 9.71% | ||
| ROCE | 7.73% | ||
| ROIC | 5.57% | ||
| ROICexc | 14% | ||
| ROICexgc | 15.99% | ||
| OM | 6.9% | ||
| PM (TTM) | 8.57% | ||
| GM | 60.74% | ||
| FCFM | 9.81% |
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 3Y233.12%
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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.3 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 42.26% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.69% | ||
| Profit Quality | 114.47% | ||
| Current Ratio | 7.27 | ||
| Quick Ratio | 5.34 | ||
| Altman-Z | 11.28 |
F-Score7
WACC8.18%
ROIC/WACC0.68
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)159.48%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%120.31%
EPS Next Y-69.23%
EPS Next 2Y-26.62%
EPS Next 3Y-2.63%
EPS Next 5Y10.12%
Revenue 1Y (TTM)17.2%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%28.61%
Revenue Next Year11.77%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.8%
EBIT growth 1Y147.5%
EBIT growth 3Y289.08%
EBIT growth 5YN/A
EBIT Next Year-17.5%
EBIT Next 3Y15.32%
EBIT Next 5Y18.62%
FCF growth 1Y197.65%
FCF growth 3Y-51.66%
FCF growth 5YN/A
OCF growth 1Y291.53%
OCF growth 3Y-49.67%
OCF growth 5YN/A