COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
TSX-V:COV - TSX Venture Exchange - CA22282D3022 - Common Stock - Currency: CAD
COV gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 22 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making COV a very profitable company, without any liquidiy or solvency issues. COV has a decent growth rate and is not valued too expensively. These ratings could make COV a good candidate for quality 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
The Return On Assets of COV (13.58%) is better than 90.91% of its industry peers.
COV's Return On Equity of 15.42% is amongst the best of the industry. COV outperforms 95.45% of its industry peers.
COV has a better Return On Invested Capital (11.52%) than 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.58% | ||
| ROE | 15.42% | ||
| ROIC | 11.52% |
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
With an excellent Profit Margin value of 13.64%, COV belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
COV's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.24%, COV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of COV has grown nicely.
COV has a better Gross Margin (60.80%) than 90.91% of its industry peers.
COV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.24% | ||
| PM (TTM) | 13.64% | ||
| GM | 60.8% |
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
COV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 10.17 indicates that COV is not in any danger for bankruptcy at the moment.
COV has a better Altman-Z score (10.17) than 95.45% of its industry peers.
The Debt to FCF ratio of COV is 0.26, which is an excellent value as it means it would take COV, only 0.26 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.26, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
COV has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
COV's Debt to Equity ratio of 0.01 is amongst the best of the industry. COV outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 10.17 |
ROIC/WACC1.29
WACC8.92%
2.3 Liquidity
COV has a Current Ratio of 8.12. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
COV's Current ratio of 8.12 is amongst the best of the industry. COV outperforms 90.91% of its industry peers.
COV has a Quick Ratio of 5.94. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
COV has a better Quick ratio (5.94) than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.12 | ||
| Quick Ratio | 5.94 |
3. Growth
3.1 Past
COV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 192.53%, which is quite impressive.
COV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -50.83% yearly.
The Revenue has grown by 38.28% in the past year. This is a very strong growth!
The Revenue has been decreasing by -1.73% on average over the past years.
EPS 1Y (TTM)192.53%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%224.64%
Revenue 1Y (TTM)38.28%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%75.1%
3.2 Future
The Earnings Per Share is expected to grow by 12.62% on average over the next years. This is quite good.
COV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.33% yearly.
EPS Next Y-30.77%
EPS Next 2Y-12.29%
EPS Next 3Y4.89%
EPS Next 5Y12.62%
Revenue Next Year14.26%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.59, COV is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of COV indicates a rather cheap valuation: COV is cheaper than 90.91% of the companies listed in the same industry.
COV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
The Price/Forward Earnings ratio is 22.43, which indicates a rather expensive current 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 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, COV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 22.43 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than COV, based on the Enterprise Value to EBITDA ratio.
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 | 21.21 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
The decent profitability rating of COV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.29%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
COV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:COV (4/25/2025, 7:00:00 PM)
2.31
+0.02 (+0.65%)
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 Owners4.93%
Ins Owner ChangeN/A
Market Cap63.34M
Analysts84.44
Price Target4.49 (94.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)84.14%
Min EPS beat(2)-61.16%
Max EPS beat(2)229.45%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)1
Avg Revenue beat(2)9.89%
Min Revenue beat(2)-12.35%
Max Revenue beat(2)32.12%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)122.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 22.43 | ||
| P/S | 1.83 | ||
| P/FCF | 21.21 | ||
| P/OCF | 18.08 | ||
| P/B | 2.07 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 7.85 |
EPS(TTM)0.17
EY7.36%
EPS(NY)0.1
Fwd EY4.46%
FCF(TTM)0.11
FCFY4.71%
OCF(TTM)0.13
OCFY5.53%
SpS1.26
BVpS1.12
TBVpS1.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.58% | ||
| ROE | 15.42% | ||
| ROCE | 15.99% | ||
| ROIC | 11.52% | ||
| ROICexc | 26.59% | ||
| ROICexgc | 29.73% | ||
| OM | 14.24% | ||
| PM (TTM) | 13.64% | ||
| GM | 60.8% | ||
| FCFM | 8.61% |
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
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-Score6
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 51.46% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.96% | ||
| Profit Quality | 63.16% | ||
| Current Ratio | 8.12 | ||
| Quick Ratio | 5.94 | ||
| Altman-Z | 10.17 |
F-Score6
WACC8.92%
ROIC/WACC1.29
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)192.53%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%224.64%
EPS Next Y-30.77%
EPS Next 2Y-12.29%
EPS Next 3Y4.89%
EPS Next 5Y12.62%
Revenue 1Y (TTM)38.28%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%75.1%
Revenue Next Year14.26%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.33%
EBIT growth 1Y187.48%
EBIT growth 3Y289.15%
EBIT growth 5YN/A
EBIT Next Year17.64%
EBIT Next 3Y19.17%
EBIT Next 5Y19.87%
FCF growth 1Y141.65%
FCF growth 3Y-51.66%
FCF growth 5YN/A
OCF growth 1Y159.15%
OCF growth 3Y-49.67%
OCF growth 5YN/A