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%)
Overall COV gets a fundamental rating of 6 out of 10. We evaluated COV against 24 industry peers in the Biotechnology industry. COV gets an excellent profitability rating and is at the same time showing great financial health properties. COV is cheap, but on the other hand it scores bad on growth. These ratings would make COV suitable 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.
In multiple years COV reported negative operating cash flow during the last 5 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.
COV has a better Return On Equity (7.78%) than 100.00% of its industry peers.
COV has a Return On Invested Capital of 5.16%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 7.00%, COV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
COV's Profit Margin has declined in the last couple of years.
COV has a Operating Margin of 6.60%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
COV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 55.68%, COV belongs to the top of the industry, outperforming 86.96% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COV is destroying value.
There is no outstanding debt for COV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
COV has an Altman-Z score of 5.83. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.83, COV belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
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 has a better Debt to FCF ratio (0.29) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that COV is not too dependend on debt financing.
The Debt to Equity ratio of COV (0.02) is better than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 5.83 |
ROIC/WACC0.66
WACC7.78%
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 better Current ratio (6.57) than 86.96% of its industry peers.
A Quick Ratio of 4.91 indicates that COV has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.91, COV belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.57 | ||
| Quick Ratio | 4.91 |
3. Growth
3.1 Past
EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
Based on estimates for the next years, COV will show a quite strong growth in Revenue. The Revenue will grow by 9.41% on average per year.
EPS Next Y76.57%
EPS Next 2Y58.16%
EPS Next 3Y45.95%
EPS Next 5Y37.33%
Revenue Next Year10.13%
Revenue Next 2Y9.78%
Revenue Next 3Y9.4%
Revenue Next 5Y9.41%
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.71, COV is valued on the expensive side.
Based on the Price/Earnings ratio, COV is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. COV is around the same levels.
COV is valuated correctly with a Price/Forward Earnings ratio of 14.00.
Based on the Price/Forward Earnings ratio, COV is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
COV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.71 | ||
| Fwd PE | 14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COV is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, COV is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.91 | ||
| EV/EBITDA | 9.81 |
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.
The decent profitability rating of COV may justify a higher PE ratio.
A more expensive valuation may be justified as COV's earnings are expected to grow with 45.95% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y58.16%
EPS Next 3Y45.95%
5. Dividend
5.1 Amount
COV has a Yearly Dividend Yield of 8.77%, which is a nice return.
COV's Dividend Yield is rather good when compared to the industry average which is at 0.37. 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.77% |
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 2Y58.16%
EPS Next 3Y45.95%
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)N/A
Net Income(TTM)2.31M
Analysts84.44
Price Target3.83 (121.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.77% |
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)4.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.71 | ||
| Fwd PE | 14 | ||
| P/S | 1.45 | ||
| P/FCF | 10.91 | ||
| P/OCF | 9.41 | ||
| P/B | 1.61 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)0.07
EY4.05%
EPS(NY)0.12
Fwd EY7.14%
FCF(TTM)0.16
FCFY9.17%
OCF(TTM)0.18
OCFY10.62%
SpS1.19
BVpS1.07
TBVpS1.03
PEG (NY)0.32
PEG (5Y)N/A
Graham Number1.3
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 | 5.83 |
F-Score5
WACC7.78%
ROIC/WACC0.66
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)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y76.57%
EPS Next 2Y58.16%
EPS Next 3Y45.95%
EPS Next 5Y37.33%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.98%
Revenue Next Year10.13%
Revenue Next 2Y9.78%
Revenue Next 3Y9.4%
Revenue Next 5Y9.41%
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 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 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 grow by 76.57% in the next year.