COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:COV - CA22282D3022 - Common Stock
1.81 CAD
-0.02 (-1.09%)
Overall COV gets a fundamental rating of 6 out of 10. We evaluated COV against 22 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on COV. These ratings would make COV suitable for value investing!
1. Profitability
1.1 Basic Checks
COV had positive earnings in the past year.
COV had a positive operating cash flow in the past year.
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 100.00% 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 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 3.92%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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's Profit Margin of 6.27% is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
COV has a better Operating Margin (5.37%) than 100.00% of its industry peers.
COV has a Gross Margin of 53.24%. This is amongst the best in the industry. COV outperforms 90.91% 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
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 6.25 indicates that COV is not in any danger for bankruptcy at the moment.
COV has a better Altman-Z score (6.25) than 90.91% 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.
COV has a better Debt to FCF ratio (1.56) than 95.45% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that COV is not too dependend on debt financing.
COV has a better Debt to Equity ratio (0.05) than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 6.25 |
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.
With an excellent Current ratio value of 8.36, COV belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
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 90.91% 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
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.
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 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
The Price/Earnings ratio is 25.86, which means the current valuation is very expensive for COV.
Based on the Price/Earnings ratio, COV is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
COV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.00.
The Price/Forward Earnings ratio is 14.64, which indicates a correct valuation of COV.
Based on the Price/Forward Earnings ratio, COV is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, COV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 14.64 |
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 100.00% of the companies listed in the same industry.
95.45% 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 | 34.66 | ||
| EV/EBITDA | 12.83 |
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.
A more expensive valuation may be justified as COV's earnings are expected to grow with 35.75% in the coming years.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y43.53%
EPS Next 3Y35.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.02%, COV is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.36, COV pays a better dividend. On top of this COV pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, COV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
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 (1/8/2026, 7:00:00 PM)
1.81
-0.02 (-1.09%)
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 Cap49.99M
Revenue(TTM)32.82M
Net Income(TTM)2.06M
Analysts84.44
Price Target2.96 (63.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
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 | 25.86 | ||
| Fwd PE | 14.64 | ||
| P/S | 1.52 | ||
| P/FCF | 34.66 | ||
| P/OCF | 21.84 | ||
| P/B | 1.63 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)0.07
EY3.87%
EPS(NY)0.12
Fwd EY6.83%
FCF(TTM)0.05
FCFY2.88%
OCF(TTM)0.08
OCFY4.58%
SpS1.19
BVpS1.11
TBVpS1.06
PEG (NY)0.34
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 | 6.25 |
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.