COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
TSX-V:COV - TSX Venture Exchange - CA22282D3022 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to COV. COV was compared to 24 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 decent growth rate and is not valued too expensively. This makes COV very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year COV was profitable.
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.
The reported operating cash flow has been mixed in the past 5 years: COV reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of COV (10.52%) is better than 95.83% of its industry peers.
COV has a Return On Equity of 11.87%. 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 8.61%, COV belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 11.87% | ||
| ROIC | 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
1.3 Margins
COV's Profit Margin of 10.92% is amongst the best of the industry. COV outperforms 95.83% of its industry peers.
COV's Profit Margin has declined in the last couple of years.
COV's Operating Margin of 11.04% is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
COV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 58.82%, COV belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
COV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.04% | ||
| PM (TTM) | 10.92% | ||
| GM | 58.82% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COV is destroying value.
There is no outstanding debt for COV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
COV has an Altman-Z score of 10.98. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of COV (10.98) is better than 95.83% of its industry peers.
COV has a debt to FCF ratio of 0.13. This is a very positive value and a sign of high solvency as it would only need 0.13 years to pay back of all of its debts.
COV has a better Debt to FCF ratio (0.13) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that COV is not too dependend on debt financing.
COV's Debt to Equity ratio of 0.00 is amongst the best of the industry. COV outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 10.98 |
ROIC/WACC0.85
WACC10.18%
2.3 Liquidity
COV has a Current Ratio of 8.39. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
COV's Current ratio of 8.39 is amongst the best of the industry. COV outperforms 87.50% of its industry peers.
A Quick Ratio of 6.09 indicates that COV has no problem at all paying its short term obligations.
COV's Quick ratio of 6.09 is amongst the best of the industry. COV outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.39 | ||
| Quick Ratio | 6.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 225.38% 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 -50.83% on average per year.
Looking at the last year, COV shows a very strong growth in Revenue. The Revenue has grown by 28.97%.
COV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.73% yearly.
EPS 1Y (TTM)225.38%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-63.41%
Revenue 1Y (TTM)28.97%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-10.75%
3.2 Future
COV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.69% yearly.
COV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.57% yearly.
EPS Next Y-30.77%
EPS Next 2Y-12.29%
EPS Next 3Y4.89%
EPS Next 5Y14.69%
Revenue Next Year10.76%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.57%
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.
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
COV is valuated rather expensively with a Price/Earnings ratio of 18.85.
95.83% of the companies in the same industry are more expensive than COV, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of COV to the average of the S&P500 Index (26.48), we can say COV is valued slightly cheaper.
The Price/Forward Earnings ratio is 23.79, which indicates a rather expensive current valuation of COV.
87.50% of the companies in the same industry are more expensive than COV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, COV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 23.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COV is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, COV is valued cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.01 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
COV has a very decent profitability rating, which 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 (8/8/2025, 7:00:00 PM)
2.45
+0.01 (+0.41%)
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 Cap67.18M
Analysts84.44
Price Target3.83 (56.33%)
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)2
Avg EPS beat(2)161.81%
Min EPS beat(2)94.17%
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)14.08%
Min Revenue beat(2)-3.96%
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)-14.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-42.86%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.05%
Revenue NY rev (1m)-3.07%
Revenue NY rev (3m)-3.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 23.79 | ||
| P/S | 1.98 | ||
| P/FCF | 14.01 | ||
| P/OCF | 13 | ||
| P/B | 2.16 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 10.47 |
EPS(TTM)0.13
EY5.31%
EPS(NY)0.1
Fwd EY4.2%
FCF(TTM)0.17
FCFY7.14%
OCF(TTM)0.19
OCFY7.69%
SpS1.23
BVpS1.14
TBVpS1.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 11.87% | ||
| ROCE | 11.95% | ||
| ROIC | 8.61% | ||
| ROICexc | 20.33% | ||
| ROICexgc | 22.79% | ||
| OM | 11.04% | ||
| PM (TTM) | 10.92% | ||
| GM | 58.82% | ||
| FCFM | 14.17% |
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-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 37.7% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.37% | ||
| Profit Quality | 129.74% | ||
| Current Ratio | 8.39 | ||
| Quick Ratio | 6.09 | ||
| Altman-Z | 10.98 |
F-Score7
WACC10.18%
ROIC/WACC0.85
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)225.38%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-63.41%
EPS Next Y-30.77%
EPS Next 2Y-12.29%
EPS Next 3Y4.89%
EPS Next 5Y14.69%
Revenue 1Y (TTM)28.97%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-10.75%
Revenue Next Year10.76%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.57%
EBIT growth 1Y208.63%
EBIT growth 3Y289.15%
EBIT growth 5YN/A
EBIT Next Year17.64%
EBIT Next 3Y19.17%
EBIT Next 5Y20.74%
FCF growth 1Y169.43%
FCF growth 3Y-51.66%
FCF growth 5YN/A
OCF growth 1Y192.47%
OCF growth 3Y-49.67%
OCF growth 5YN/A