COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:COV - CA22282D3022 - Common Stock
1.92 CAD
-0.05 (-2.54%)
Overall COV gets a fundamental rating of 7 out of 10. We evaluated COV against 23 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 would make COV suitable 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
Looking at the Return On Assets, with a value of 6.56%, COV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 7.78%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
COV has a Return On Invested Capital of 5.16%. This is amongst the best in the industry. COV outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 7.78% | ||
| ROIC | 5.16% |
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 7.00%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of COV has declined.
COV's Operating Margin of 6.60% is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of COV has grown nicely.
With an excellent Gross Margin value of 55.68%, COV belongs to the best of the industry, outperforming 91.30% 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 | 6.6% | ||
| PM (TTM) | 7% | ||
| GM | 55.68% |
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 below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for COV has been increased compared to 5 years ago.
2.2 Solvency
An Altman-Z score of 6.58 indicates that COV is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.58, COV belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
The Debt to FCF ratio of COV is 0.29, which is an excellent value as it means it would take COV, only 0.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.29, COV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
COV has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
COV has a better Debt to Equity ratio (0.02) than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 6.58 |
ROIC/WACC0.67
WACC7.73%
2.3 Liquidity
A Current Ratio of 6.57 indicates that COV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 6.57, COV belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
COV has a Quick Ratio of 4.91. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
COV has a Quick ratio of 4.91. This is amongst the best in the industry. COV outperforms 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.57 | ||
| Quick Ratio | 4.91 |
3. Growth
3.1 Past
COV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 350.62%, 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 13.00% in the past year. This is quite good.
The Revenue has been decreasing by -1.73% on average over the past years.
EPS 1Y (TTM)350.62%
EPS 3Y-50.83%
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
Based on estimates for the next years, COV will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.89% on average per year.
Based on estimates for the next years, COV will show a quite strong growth in Revenue. The Revenue will grow by 9.88% on average per year.
EPS Next Y-92.31%
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
EPS Next 5Y15.89%
Revenue Next Year12.07%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.88%
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
The Price/Earnings ratio is 24.00, which indicates a rather expensive current valuation of COV.
Compared to the rest of the industry, the Price/Earnings ratio of COV indicates a rather cheap valuation: COV is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, COV is valued at the same level.
COV is valuated correctly with a Price/Forward Earnings ratio of 15.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of COV indicates a rather cheap valuation: COV is cheaper than 91.30% of the companies listed in the same industry.
COV is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COV is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
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 | 12.11 | ||
| EV/EBITDA | 12.01 |
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-3.92%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
COV has a Yearly Dividend Yield of 7.73%, which is a nice return.
Compared to an average industry Dividend Yield of 7.73, COV pays a better dividend. On top of this COV pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, COV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.73% |
5.2 History
COV does not have a reliable dividend history as it only pays dividend since a couple or years.
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 (12/5/2025, 7:00:00 PM)
1.92
-0.05 (-2.54%)
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 Cap53.03M
Revenue(TTM)32.99M
Net Income(TTM)2.31M
Analysts84.44
Price Target3.83 (99.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.73% |
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)-80%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.86%
Revenue NY rev (1m)4.02%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 15.53 | ||
| P/S | 1.61 | ||
| P/FCF | 12.11 | ||
| P/OCF | 10.45 | ||
| P/B | 1.79 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 12.01 |
EPS(TTM)0.08
EY4.17%
EPS(NY)0.12
Fwd EY6.44%
FCF(TTM)0.16
FCFY8.26%
OCF(TTM)0.18
OCFY9.57%
SpS1.19
BVpS1.07
TBVpS1.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 7.78% | ||
| ROCE | 7.16% | ||
| ROIC | 5.16% | ||
| ROICexc | 12.73% | ||
| ROICexgc | 14.27% | ||
| OM | 6.6% | ||
| PM (TTM) | 7% | ||
| GM | 55.68% | ||
| FCFM | 13.27% |
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 3Y199.36%
ROICexgc growth 5YN/A
ROICexc growth 3Y198.52%
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-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.29 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 73.17% | ||
| Cap/Sales | 2.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 162.18% | ||
| Profit Quality | 189.61% | ||
| Current Ratio | 6.57 | ||
| Quick Ratio | 4.91 | ||
| Altman-Z | 6.58 |
F-Score5
WACC7.73%
ROIC/WACC0.67
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)350.62%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y-92.31%
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
EPS Next 5Y15.89%
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 5Y9.88%
EBIT growth 1Y258.74%
EBIT growth 3Y289.15%
EBIT growth 5YN/A
EBIT Next Year-50.79%
EBIT Next 3Y21.1%
EBIT Next 5Y21.3%
FCF growth 1Y225.56%
FCF growth 3Y-51.66%
FCF growth 5YN/A
OCF growth 1Y353.8%
OCF growth 3Y-49.67%
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.