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%)
COV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 23 industry peers in the Biotechnology industry. COV is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. COV scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, COV could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year COV was profitable.
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
The Return On Assets of COV (5.70%) is better than 100.00% of its industry peers.
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 Profit Margin of 6.27%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
COV has a Operating Margin of 5.37%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
With an excellent Gross Margin value of 53.24%, COV belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
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
COV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
COV has an Altman-Z score of 6.03. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.03, COV belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
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.
COV has a Debt to FCF ratio of 1.56. This is amongst the best in the industry. COV outperforms 95.65% of its industry peers.
COV has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
COV has a Debt to Equity ratio of 0.05. This is in the better half of the industry: COV outperforms 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
COV has a Current Ratio of 8.36. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
COV's Current ratio of 8.36 is amongst the best of the industry. COV outperforms 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.
The Quick ratio of COV (6.40) is better than 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.36 | ||
| Quick Ratio | 6.4 |
3. Growth
3.1 Past
The earnings per share for COV have decreased strongly by -29.70% in the last year.
The Revenue has been growing slightly by 5.29% in the past 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
Based on estimates for the next years, COV will show a very strong growth in Earnings Per Share. The EPS will grow by 37.33% on average per year.
COV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.41% yearly.
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
Based on the Price/Earnings ratio of 24.86, the valuation of COV can be described as rather expensive.
Based on the Price/Earnings ratio, COV is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
COV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.08, COV is valued correctly.
91.30% of the companies in the same industry are more expensive than COV, based on the Price/Forward Earnings ratio.
COV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| 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 cheaply inside the industry as 95.65% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of COV indicates a rather cheap valuation: COV is cheaper than 95.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.32 | ||
| EV/EBITDA | 12.12 |
4.3 Compensation for Growth
COV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
COV has a very decent profitability rating, which may justify a higher PE ratio.
COV's earnings are expected to grow with 35.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y43.53%
EPS Next 3Y35.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.67%, COV is a good candidate for dividend investing.
COV's Dividend Yield is rather good when compared to the industry average which is at 0.38. COV pays more dividend than 100.00% of the companies 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.