COVALON TECHNOLOGIES LTD (COV.CA) Stock Fundamental Analysis
Canada - TSX-V:COV - CA22282D3022 - Common Stock
2.08 CAD
+0.06 (+2.97%)
Taking everything into account, COV scores 6 out of 10 in our fundamental rating. COV was compared to 22 industry peers in the Biotechnology industry. COV gets an excellent profitability rating and is at the same time showing great financial health properties. COV has a correct valuation and a medium growth rate. These ratings would make COV suitable 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.
In multiple years COV reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of COV (6.60%) is better than 100.00% of its industry peers.
COV's Return On Equity of 7.70% is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
COV has a Return On Invested Capital of 5.18%. This is amongst the best in 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
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.
COV's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 6.58%, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
COV's Operating Margin has improved in the last couple of years.
COV's Gross Margin of 55.68% is amongst the best of the industry. COV outperforms 90.91% of its industry peers.
In the last couple of years the Gross Margin of COV has remained more or less at the same level.
| 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
COV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
COV has more shares outstanding than it did 5 years ago.
2.2 Solvency
COV has an Altman-Z score of 6.87. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
COV has a Altman-Z score of 6.87. This is amongst the best in the industry. COV outperforms 90.91% of its industry peers.
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 Debt to Equity ratio of 0.02. This is in the better half of the industry: COV outperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 6.87 |
ROIC/WACC0.6
WACC8.57%
2.3 Liquidity
A Current Ratio of 6.63 indicates that COV has no problem at all paying its short term obligations.
COV has a Current ratio of 6.63. This is amongst the best in the industry. COV outperforms 86.36% of its industry peers.
A Quick Ratio of 4.96 indicates that COV has no problem at all paying its short term obligations.
COV has a Quick ratio of 4.96. This is amongst the best in the industry. COV outperforms 86.36% of its industry peers.
| 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
COV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.98% yearly.
COV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.84% yearly.
EPS Next Y-92.31%
EPS Next 2Y-3.92%
EPS Next 3Y9.35%
EPS Next 5Y14.98%
Revenue Next Year7.74%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.84%
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 26.00, which means the current valuation is very expensive for COV.
Based on the Price/Earnings ratio, COV is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, COV is valued at the same level.
With a Price/Forward Earnings ratio of 16.83, COV is valued correctly.
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.
COV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 16.83 |
4.2 Price Multiples
COV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. COV is 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 95.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.02 | ||
| EV/EBITDA | 12.89 |
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 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:COV (10/20/2025, 7:00:00 PM)
2.08
+0.06 (+2.97%)
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 Cap57.03M
Analysts84.44
Price Target3.83 (84.13%)
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)-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)-80%
EPS NY rev (3m)-88.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 16.83 | ||
| P/S | 1.73 | ||
| P/FCF | 13.02 | ||
| P/OCF | 11.23 | ||
| P/B | 1.94 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 12.89 |
EPS(TTM)0.08
EY3.85%
EPS(NY)0.12
Fwd EY5.94%
FCF(TTM)0.16
FCFY7.68%
OCF(TTM)0.19
OCFY8.91%
SpS1.2
BVpS1.07
TBVpS1.03
PEG (NY)N/A
PEG (5Y)N/A
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
ROICexcg growth 3Y199.31%
ROICexcg 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 | 6.87 |
F-Score5
WACC8.57%
ROIC/WACC0.6
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 5Y14.98%
Revenue 1Y (TTM)13%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-8.67%
Revenue Next Year7.74%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.84%
EBIT growth 1Y258.18%
EBIT growth 3Y289.09%
EBIT growth 5YN/A
EBIT Next Year-50.79%
EBIT Next 3Y21.1%
EBIT Next 5Y21.26%
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