COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:COV - CA22282D3022 - Common Stock
1.75 CAD
-0.04 (-2.23%)
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. These ratings would make COV suitable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year COV was profitable.
- 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 5.70%, COV belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- COV has a Return On Equity of 6.70%. This is amongst the best in the industry. COV outperforms 95.65% of its industry peers.
- COV has a Return On Invested Capital of 3.92%. This is amongst the best in the industry. COV outperforms 95.65% 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 better Profit Margin (6.27%) than 95.65% of its industry peers.
- Looking at the Operating Margin, with a value of 5.37%, COV belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- COV has a Gross Margin of 53.24%. This is amongst the best in 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
- COV has an Altman-Z score of 6.06. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
- COV's Altman-Z score of 6.06 is amongst the best of the industry. COV outperforms 91.30% of its industry peers.
- 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.
- The Debt to FCF ratio of COV (1.56) is better than 91.30% 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 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 6.06 |
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.
- 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.
- With an excellent Quick ratio value of 6.40, COV belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
| 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.
- COV shows a small growth in Revenue. In the last year, the Revenue has grown by 5.29%.
- 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
- The Earnings Per Share is expected to grow by 27.61% on average over the next years. This is a very strong growth
- COV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.79% yearly.
EPS Next Y76.57%
EPS Next 2Y43.53%
EPS Next 3Y35.75%
EPS Next 5Y27.61%
Revenue Next Year6.67%
Revenue Next 2Y6.81%
Revenue Next 3Y6.78%
Revenue Next 5Y6.79%
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
- Based on the Price/Earnings ratio of 25.00, the valuation of COV can be described as rather expensive.
- 95.65% of the companies in the same industry are more expensive than COV, based on the Price/Earnings ratio.
- COV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 14.16, COV is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of COV indicates a rather cheap valuation: COV is cheaper than 86.96% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of COV to the average of the S&P500 Index (24.04), we can say COV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of COV indicates a rather cheap valuation: COV is cheaper than 95.65% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, COV is valued cheaper than 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.51 | ||
| EV/EBITDA | 12.22 |
4.3 Compensation for Growth
- The 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)0.33
PEG (5Y)N/A
EPS Next 2Y43.53%
EPS Next 3Y35.75%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.38%, COV is a good candidate for dividend investing.
- COV's Dividend Yield is rather good when compared to the industry average which is at 0.48. 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.38% |
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 (1/13/2026, 7:00:00 PM)
1.75
-0.04 (-2.23%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)12-11 2025-12-11/bmo
Earnings (Next)01-22 2026-01-22
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners5.08%
Ins Owner ChangeN/A
Market Cap48.34M
Revenue(TTM)32.82M
Net Income(TTM)2.06M
Analysts84.44
Price Target2.96 (69.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.38% |
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 | 25 | ||
| Fwd PE | 14.16 | ||
| P/S | 1.47 | ||
| P/FCF | 33.51 | ||
| P/OCF | 21.11 | ||
| P/B | 1.57 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 12.22 |
EPS(TTM)0.07
EY4%
EPS(NY)0.12
Fwd EY7.06%
FCF(TTM)0.05
FCFY2.98%
OCF(TTM)0.08
OCFY4.74%
SpS1.19
BVpS1.11
TBVpS1.06
PEG (NY)0.33
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 | 6.06 |
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 5Y27.61%
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 5Y6.79%
EBIT growth 1Y-18.02%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year924.16%
EBIT Next 3Y139.18%
EBIT Next 5Y77.66%
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.