COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
TSX-V:COV - TSX Venture Exchange - CA22282D3022 - Common Stock - Currency: CAD
Taking everything into account, COV scores 7 out of 10 in our fundamental rating. COV was compared to 21 industry peers in the Biotechnology industry. COV gets an excellent profitability rating and is at the same time showing great financial health properties. COV is not valued too expensively and it also shows a decent growth rate. 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.
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 (13.58%) is better than 90.48% of its industry peers.
COV has a Return On Equity of 15.42%. This is amongst the best in the industry. COV outperforms 95.24% of its industry peers.
The Return On Invested Capital of COV (11.52%) is better than 95.24% 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
COV has a Profit Margin of 13.64%. This is amongst the best in the industry. COV outperforms 95.24% of its industry peers.
COV's Profit Margin has declined in the last couple of years.
COV has a Operating Margin of 14.24%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of COV has grown nicely.
COV's Gross Margin of 60.80% is amongst the best of the industry. COV outperforms 95.24% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), COV 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
COV has an Altman-Z score of 10.33. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
COV's Altman-Z score of 10.33 is amongst the best of the industry. COV outperforms 95.24% 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.
COV has a better Debt to FCF ratio (0.26) than 95.24% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that COV is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.01, COV belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 10.33 |
ROIC/WACC1.32
WACC8.72%
2.3 Liquidity
A Current Ratio of 8.12 indicates that COV has no problem at all paying its short term obligations.
With an excellent Current ratio value of 8.12, COV belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
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 Quick ratio of 5.94. This is amongst the best in the industry. COV outperforms 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.12 | ||
| Quick Ratio | 5.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 192.53% over the past year.
The earnings per share for COV have been decreasing by -50.83% on average. This is quite bad
Looking at the last year, COV shows a very strong growth in Revenue. The Revenue has grown by 38.28%.
COV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.73% yearly.
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
COV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.62% yearly.
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.
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
With a Price/Earnings ratio of 13.82, COV is valued correctly.
Based on the Price/Earnings ratio, COV is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of COV to the average of the S&P500 Index (28.22), we can say COV is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 22.82, the valuation of COV can be described as rather expensive.
COV's Price/Forward Earnings ratio is rather cheap when compared to the industry. COV is cheaper than 90.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of COV to the average of the S&P500 Index (20.86), we can say COV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 22.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COV is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, COV is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.58 | ||
| EV/EBITDA | 8.03 |
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 (5/2/2025, 7:00:00 PM)
2.35
+0.07 (+3.07%)
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 Cap64.44M
Analysts84.44
Price Target4.49 (91.06%)
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)-66.67%
EPS NY rev (1m)0%
EPS NY rev (3m)125%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 22.82 | ||
| P/S | 1.86 | ||
| P/FCF | 21.58 | ||
| P/OCF | 18.4 | ||
| P/B | 2.1 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 8.03 |
EPS(TTM)0.17
EY7.23%
EPS(NY)0.1
Fwd EY4.38%
FCF(TTM)0.11
FCFY4.63%
OCF(TTM)0.13
OCFY5.44%
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 | 10.33 |
F-Score6
WACC8.72%
ROIC/WACC1.32
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