COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:COV - CA22282D3022 - Common Stock
1.73 CAD
+0.01 (+0.58%)
Taking everything into account, COV scores 6 out of 10 in our fundamental rating. COV was compared to 23 industry peers in the Biotechnology industry. COV has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
The Return On Equity of COV (6.70%) is better than 100.00% of its industry peers.
COV's Return On Invested Capital of 3.92% is amongst the best of the industry. COV outperforms 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
Looking at the Profit Margin, with a value of 6.27%, COV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
COV's Operating Margin of 5.37% is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
COV's Gross Margin of 53.24% is amongst the best of the industry. COV outperforms 86.96% of its industry peers.
In the last couple of years the Gross Margin of COV has grown nicely.
| 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
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 6.00 indicates that COV is not in any danger for bankruptcy at the moment.
COV has a Altman-Z score of 6.00. This is amongst the best in the industry. COV outperforms 91.30% of its industry peers.
COV has a debt to FCF ratio of 1.56. This is a very positive value and a sign of high solvency as it would only need 1.56 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.56, COV belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that COV is not too dependend on debt financing.
The Debt to Equity ratio of COV (0.05) is better than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 6 |
ROIC/WACC0.5
WACC7.78%
2.3 Liquidity
A Current Ratio of 8.36 indicates that COV has no problem at all paying its short term obligations.
The Current ratio of COV (8.36) is better than 86.96% of its industry peers.
A Quick Ratio of 6.40 indicates that COV has no problem at all paying its short term obligations.
COV has a Quick ratio of 6.40. This is amongst the best in the industry. COV outperforms 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.36 | ||
| Quick Ratio | 6.4 |
3. Growth
3.1 Past
COV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.70%.
Looking at the last year, COV shows a small growth in Revenue. The Revenue has grown by 5.29% in the last year.
The Revenue has been growing by 19.43% on average over the past years. This is quite good.
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
COV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.33% yearly.
The Revenue is expected to grow by 9.41% on average over the next years. This is quite good.
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.71, which indicates a rather expensive current valuation of COV.
Based on the Price/Earnings ratio, COV is valued cheaper than 100.00% of the companies in the same industry.
COV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.00, 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 91.30% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. COV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.71 | ||
| Fwd PE | 14 |
4.2 Price Multiples
95.65% of the companies in the same industry are more expensive than COV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, COV is valued cheaper than 95.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.13 | ||
| EV/EBITDA | 12.02 |
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
COV has a Yearly Dividend Yield of 8.67%, which is a nice return.
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 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
5.3 Sustainability
DPN/A
EPS Next 2Y43.53%
EPS Next 3Y35.75%
TSX-V:COV (12/24/2025, 7:00:00 PM)
1.73
+0.01 (+0.58%)
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 Cap47.78M
Revenue(TTM)32.82M
Net Income(TTM)2.06M
Analysts84.44
Price Target2.96 (71.1%)
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-Date
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 | 24.71 | ||
| Fwd PE | 14 | ||
| P/S | 1.46 | ||
| P/FCF | 33.13 | ||
| P/OCF | 20.87 | ||
| P/B | 1.56 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 12.02 |
EPS(TTM)0.07
EY4.05%
EPS(NY)0.12
Fwd EY7.14%
FCF(TTM)0.05
FCFY3.02%
OCF(TTM)0.08
OCFY4.79%
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 |
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 of COVALON TECHNOLOGIES LTD (COV.CA) 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 earnings growth outlook for COVALON TECHNOLOGIES LTD?
The Earnings per Share (EPS) of COVALON TECHNOLOGIES LTD (COV.CA) is expected to grow by 76.57% in the next year.