COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada • TSX Venture Exchange • TSX-V:COV • CA22282D3022
1.7 CAD
+0.05 (+3.03%)
Last: Jan 30, 2026, 07:00 PM
COV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 23 industry peers in the Biotechnology industry. While COV has a great health rating, its profitability is only average at the moment. COV may be a bit undervalued, certainly considering the very reasonable score on growth 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.
- In the past year COV had a positive cash flow from operations.
- 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 better Return On Assets (5.70%) than 95.65% of its industry peers.
- COV's Return On Equity of 6.70% is amongst the best of the industry. COV outperforms 95.65% of its industry peers.
- The Return On Invested Capital of COV (3.92%) is better than 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's Profit Margin of 6.27% is amongst the best of the industry. COV outperforms 95.65% of its industry peers.
- COV's Operating Margin of 5.37% is amongst the best of the industry. COV outperforms 95.65% of its industry peers.
- COV has a better Gross Margin (53.24%) than 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 5.75 indicates that COV is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.75, 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.
- With an excellent Debt to FCF ratio value of 1.56, COV belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
- 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 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 5.75 |
ROIC/WACC0.49
WACC7.99%
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 has a better Current ratio (8.36) 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.
- COV's Quick ratio of 6.40 is amongst the best of 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
- The earnings per share for COV have decreased strongly by -29.70% in the last year.
- 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
- 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
- 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 24.29, which indicates a rather expensive current valuation of COV.
- Based on the Price/Earnings ratio, COV is valued cheaper than 95.65% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, COV is valued at the same level.
- With a Price/Forward Earnings ratio of 13.75, COV is valued correctly.
- COV's Price/Forward Earnings ratio is rather cheap when compared to the industry. COV is cheaper than 86.96% of the companies in the same industry.
- COV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.29 | ||
| Fwd PE | 13.75 |
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 91.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.56 | ||
| EV/EBITDA | 11.2 |
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 8.82%, COV is a good candidate for dividend investing.
- In the last 3 months the price of COV has falen by -25.76%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 0.49, COV pays a better dividend. On top of this COV pays more dividend than 100.00% of the companies listed in the same industry.
- COV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.82% |
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%
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.