COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada - TSX-V:COV - CA22282D3022 - Common Stock
1.99 CAD
+0.1 (+5.29%)
Overall COV gets a fundamental rating of 7 out of 10. We evaluated COV against 21 industry peers in the Biotechnology industry. COV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. COV has a correct valuation and a medium growth rate. These ratings could make COV a good candidate for quality 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
COV has a better Return On Assets (6.60%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 7.70%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
COV's Return On Invested Capital of 5.18% is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 7.7% | ||
| ROIC | 5.18% |
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
The Profit Margin of COV (7.00%) is better than 100.00% of its industry peers.
COV's Profit Margin has declined in the last couple of years.
The Operating Margin of COV (6.58%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of COV has grown nicely.
COV has a better Gross Margin (55.68%) 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 | 6.58% | ||
| PM (TTM) | 7% | ||
| GM | 55.68% |
OM growth 3Y233.13%
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so COV is destroying value.
Compared to 5 years ago, COV has more shares outstanding
2.2 Solvency
COV has an Altman-Z score of 6.61. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.61, COV belongs to the best of the industry, outperforming 86.36% 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 Debt to FCF ratio of 0.29. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
COV has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
COV's Debt to Equity ratio of 0.02 is fine compared to the rest of the industry. COV outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 6.61 |
ROIC/WACC0.66
WACC7.83%
2.3 Liquidity
A Current Ratio of 6.63 indicates that COV has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.63, COV belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
COV has a Quick Ratio of 4.96. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.96, COV belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.63 | ||
| Quick Ratio | 4.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 348.45% over the past year.
Measured over the past years, COV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -50.37% on average per year.
COV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.00%.
The Revenue has been decreasing by -1.73% on average over the past years.
EPS 1Y (TTM)348.45%
EPS 3Y-50.37%
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)13%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-8.67%
3.2 Future
The Earnings Per Share is expected to grow by 15.83% on average over the next years. This is quite good.
Based on estimates for the next years, COV will show a quite strong growth in Revenue. The Revenue will grow by 9.82% on average per year.
EPS Next Y-92.31%
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
EPS Next 5Y15.83%
Revenue Next Year12.07%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.82%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.88, the valuation of COV can be described as rather expensive.
COV's Price/Earnings ratio is rather cheap when compared to the industry. COV is cheaper than 100.00% of the companies in the same industry.
COV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 16.10, which indicates a correct valuation of COV.
COV's Price/Forward Earnings ratio is rather cheap when compared to the industry. COV is cheaper than 90.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, COV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 16.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COV is valued cheaper than 95.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, COV is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.46 | ||
| EV/EBITDA | 12.1 |
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-3.92%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
COV has a Yearly Dividend Yield of 7.54%, which is a nice return.
The stock price of COV dropped by -24.33% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 7.54, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.54% |
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 2Y-3.92%
EPS Next 3Y9.35%
TSX-V:COV (11/14/2025, 7:00:00 PM)
1.99
+0.1 (+5.29%)
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 Owners5.11%
Ins Owner ChangeN/A
Market Cap54.57M
Revenue(TTM)32.99M
Net Income(TTM)2.31M
Analysts84.44
Price Target3.83 (92.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.54% |
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)-88.89%
Revenue NQ rev (1m)4.86%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)4.02%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 16.1 | ||
| P/S | 1.65 | ||
| P/FCF | 12.46 | ||
| P/OCF | 10.74 | ||
| P/B | 1.85 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 12.1 |
EPS(TTM)0.08
EY4.02%
EPS(NY)0.12
Fwd EY6.21%
FCF(TTM)0.16
FCFY8.03%
OCF(TTM)0.19
OCFY9.31%
SpS1.2
BVpS1.07
TBVpS1.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 7.7% | ||
| ROCE | 7.19% | ||
| ROIC | 5.18% | ||
| ROICexc | 12.93% | ||
| ROICexgc | 14.54% | ||
| OM | 6.58% | ||
| PM (TTM) | 7% | ||
| GM | 55.68% | ||
| FCFM | 13.28% |
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 3Y199.31%
ROICexgc growth 5YN/A
ROICexc growth 3Y198.47%
ROICexc growth 5YN/A
OM growth 3Y233.13%
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 | 73.68% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 162.82% | ||
| Profit Quality | 189.61% | ||
| Current Ratio | 6.63 | ||
| Quick Ratio | 4.96 | ||
| Altman-Z | 6.61 |
F-Score5
WACC7.83%
ROIC/WACC0.66
Cap/Depr(3y)94.43%
Cap/Depr(5y)67.18%
Cap/Sales(3y)4.09%
Cap/Sales(5y)2.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)348.45%
EPS 3Y-50.37%
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y-92.31%
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
EPS Next 5Y15.83%
Revenue 1Y (TTM)13%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-8.67%
Revenue Next Year12.07%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.82%
EBIT growth 1Y258.18%
EBIT growth 3Y289.09%
EBIT growth 5YN/A
EBIT Next Year-50.79%
EBIT Next 3Y21.1%
EBIT Next 5Y21.23%
FCF growth 1Y225.57%
FCF growth 3Y-51.7%
FCF growth 5YN/A
OCF growth 1Y353.98%
OCF growth 3Y-49.68%
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 7 / 10 to COV.CA.
What is the valuation status of COVALON TECHNOLOGIES LTD (COV.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to COVALON TECHNOLOGIES LTD (COV.CA). This can be considered as Fairly Valued.
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 decline by -92.31% in the next year.