COVEO SOLUTIONS INC-SUB VTG (CVO.CA) Stock Fundamental Analysis
TSX:CVO - Toronto Stock Exchange - CA22289D1078 - Common Stock - Currency: CAD
CVO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 66 industry peers in the Software industry. CVO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CVO is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
CVO had positive earnings in the past year.
In the past year CVO had a positive cash flow from operations.
CVO had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: CVO reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of -5.04%, CVO perfoms like the industry average, outperforming 50.75% of the companies in the same industry.
CVO's Return On Equity of -8.92% is in line compared to the rest of the industry. CVO outperforms 56.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.04% | ||
| ROE | -8.92% | ||
| ROIC | N/A |
ROA(3y)33.21%
ROA(5y)-48.97%
ROE(3y)44.11%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CVO has a Gross Margin of 78.60%. This is amongst the best in the industry. CVO outperforms 82.09% of its industry peers.
In the last couple of years the Gross Margin of CVO has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for CVO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 78.6% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.48%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
CVO does not have a ROIC to compare to the WACC, probably because it is not profitable.
CVO has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, CVO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -1.13, we must say that CVO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CVO (-1.13) is worse than 61.19% of its industry peers.
CVO has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
The Debt to FCF ratio of CVO (0.87) is better than 83.58% of its industry peers.
CVO has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
CVO's Debt to Equity ratio of 0.04 is fine compared to the rest of the industry. CVO outperforms 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | -1.13 |
ROIC/WACCN/A
WACC12.85%
2.3 Liquidity
CVO has a Current Ratio of 1.85. This is a normal value and indicates that CVO is financially healthy and should not expect problems in meeting its short term obligations.
CVO has a better Current ratio (1.85) than 70.15% of its industry peers.
CVO has a Quick Ratio of 1.85. This is a normal value and indicates that CVO is financially healthy and should not expect problems in meeting its short term obligations.
CVO's Quick ratio of 1.85 is fine compared to the rest of the industry. CVO outperforms 70.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 105.00% over the past year.
Looking at the last year, CVO shows a small growth in Revenue. The Revenue has grown by 7.24% in the last year.
The Revenue has been growing by 23.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)105%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%164.33%
Revenue 1Y (TTM)7.24%
Revenue growth 3Y24.81%
Revenue growth 5Y23.25%
Sales Q2Q%6.94%
3.2 Future
The Earnings Per Share is expected to grow by 123.14% on average over the next years. This is a very strong growth
Based on estimates for the next years, CVO will show a very strong growth in Revenue. The Revenue will grow by 28.84% on average per year.
EPS Next Y337.63%
EPS Next 2Y110.81%
EPS Next 3Y123.14%
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y9.02%
Revenue Next 3Y11.51%
Revenue Next 5Y28.84%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 564.00, the valuation of CVO can be described as expensive.
61.19% of the companies in the same industry are more expensive than CVO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. CVO is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 88.52, which means the current valuation is very expensive for CVO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVO indicates a somewhat cheap valuation: CVO is cheaper than 67.16% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CVO to the average of the S&P500 Index (22.10), we can say CVO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 564 | ||
| Fwd PE | 88.52 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CVO is valued a bit cheaper than the industry average as 62.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.72 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CVO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CVO's earnings are expected to grow with 123.14% in the coming years.
PEG (NY)1.67
PEG (5Y)N/A
EPS Next 2Y110.81%
EPS Next 3Y123.14%
5. Dividend
5.1 Amount
No dividends for CVO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CVO (3/7/2025, 7:00:00 PM)
5.64
-0.22 (-3.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners48.4%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap540.93M
Analysts75
Price Target9.72 (72.34%)
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)-0.16%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)0.16%
Revenue beat(8)3
Avg Revenue beat(8)-0.23%
Revenue beat(12)7
Avg Revenue beat(12)0.87%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.99%
PT rev (3m)-5.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)549.63%
EPS NY rev (3m)549.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 564 | ||
| Fwd PE | 88.52 | ||
| P/S | 2.87 | ||
| P/FCF | 47.72 | ||
| P/OCF | 42.37 | ||
| P/B | 2.93 | ||
| P/tB | 4.39 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.01
EY0.18%
EPS(NY)0.06
Fwd EY1.13%
FCF(TTM)0.12
FCFY2.1%
OCF(TTM)0.13
OCFY2.36%
SpS1.97
BVpS1.92
TBVpS1.29
PEG (NY)1.67
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.04% | ||
| ROE | -8.92% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 78.6% | ||
| FCFM | 6.01% |
ROA(3y)33.21%
ROA(5y)-48.97%
ROE(3y)44.11%
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 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.48%
GM growth 5Y0.21%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 8.8% | ||
| Cap/Sales | 0.76% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | -1.13 |
F-Score7
WACC12.85%
ROIC/WACCN/A
Cap/Depr(3y)12.77%
Cap/Depr(5y)40.05%
Cap/Sales(3y)1.6%
Cap/Sales(5y)4.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%164.33%
EPS Next Y337.63%
EPS Next 2Y110.81%
EPS Next 3Y123.14%
EPS Next 5YN/A
Revenue 1Y (TTM)7.24%
Revenue growth 3Y24.81%
Revenue growth 5Y23.25%
Sales Q2Q%6.94%
Revenue Next Year5.96%
Revenue Next 2Y9.02%
Revenue Next 3Y11.51%
Revenue Next 5Y28.84%
EBIT growth 1Y21.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year128.51%
EBIT Next 3Y46.63%
EBIT Next 5Y73.55%
FCF growth 1Y164.17%
FCF growth 3Y12.06%
FCF growth 5YN/A
OCF growth 1Y180.93%
OCF growth 3Y-10.09%
OCF growth 5YN/A