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 7 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 correct valuation and a medium growth rate. With these ratings, COV could be worth investigating further 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
COV has a Return On Assets of 10.52%. This is amongst the best in the industry. COV outperforms 95.83% of its industry peers.
COV has a better Return On Equity (11.87%) than 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.
In the last couple of years the Profit Margin of COV has declined.
COV has a better Operating Margin (11.04%) than 95.83% 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 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
COV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 10.61. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of COV (10.61) 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's Debt to FCF ratio of 0.13 is amongst the best of the industry. COV outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that COV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, COV belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 10.61 |
ROIC/WACC1.11
WACC7.75%
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.
With an excellent Current ratio value of 8.39, COV belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
COV has a Quick Ratio of 6.09. This indicates that COV is financially healthy and has no problem in meeting its short term obligations.
COV has a better Quick ratio (6.09) than 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.
The earnings per share for COV have been decreasing by -50.83% on average. This is quite bad
COV shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.97%.
The Revenue has been decreasing by -1.73% on average over the past years.
EPS 1Y (TTM)225.38%
EPS 3Y-50.83%
EPS 5YN/A
EPS Q2Q%-74.72%
Revenue 1Y (TTM)28.97%
Revenue growth 3Y16.8%
Revenue growth 5Y-1.73%
Sales Q2Q%-14.16%
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 14.69% on average per year.
The Revenue is expected to grow by 9.58% on average over the next years. This is quite good.
EPS Next Y-30.77%
EPS Next 2Y-12.29%
EPS Next 3Y4.89%
EPS Next 5Y14.69%
Revenue Next Year14.26%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.58%
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
Based on the Price/Earnings ratio of 18.08, the valuation of COV can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of COV indicates a rather cheap valuation: COV is cheaper than 95.83% of the companies listed in the same industry.
COV is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
COV is valuated rather expensively with a Price/Forward Earnings ratio of 22.82.
Based on the Price/Forward Earnings ratio, COV is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of COV to the average of the S&P500 Index (22.41), we can say COV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 22.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COV is valued cheaper than 95.83% of the companies in the same industry.
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 | 13.44 | ||
| EV/EBITDA | 9.95 |
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
No dividends for COV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:COV (6/16/2025, 7:00:00 PM)
2.35
+0.02 (+0.86%)
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 Cap64.44M
Analysts84.44
Price Target3.83 (62.98%)
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)131.81%
Min EPS beat(2)34.17%
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)12.25%
Min Revenue beat(2)-7.63%
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)-14.77%
PT rev (3m)-14.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)125%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 22.82 | ||
| P/S | 1.9 | ||
| P/FCF | 13.44 | ||
| P/OCF | 12.47 | ||
| P/B | 2.07 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 9.95 |
EPS(TTM)0.13
EY5.53%
EPS(NY)0.1
Fwd EY4.38%
FCF(TTM)0.17
FCFY7.44%
OCF(TTM)0.19
OCFY8.02%
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 | 10.61 |
F-Score7
WACC7.75%
ROIC/WACC1.11
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%-74.72%
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%-14.16%
Revenue Next Year14.26%
Revenue Next 2Y11.1%
Revenue Next 3Y10.54%
Revenue Next 5Y9.58%
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