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 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 decent growth rate and is not valued too expensively. 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
Looking at the Return On Assets, with a value of 13.58%, COV belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.42%, COV belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
COV has a better Return On Invested Capital (11.52%) than 95.45% 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 95.45% of its industry peers.
In the last couple of years the Profit Margin of COV has declined.
COV has a better Operating Margin (14.24%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of COV has grown nicely.
Looking at the Gross Margin, with a value of 60.80%, COV belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
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 | 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 11.71. This indicates that COV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.71, COV belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
COV has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.26, COV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that COV is not too dependend on debt financing.
COV has a better Debt to Equity ratio (0.01) than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 11.71 |
ROIC/WACC1.34
WACC8.62%
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 90.91% of the companies in the same industry.
A Quick Ratio of 5.94 indicates that COV has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.94, COV belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.12 | ||
| Quick Ratio | 5.94 |
3. Growth
3.1 Past
COV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 192.53%, which is quite impressive.
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 38.28%.
The Revenue has been decreasing by -1.73% on average over the past years.
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.
Based on estimates for the next years, COV will show a quite strong growth in Revenue. The Revenue will grow by 9.33% on average per year.
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
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.
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
The Price/Earnings ratio is 15.88, which indicates a correct 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 90.91% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. COV is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 26.21, which means the current valuation is very expensive for COV.
Based on the Price/Forward Earnings ratio, COV is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, COV is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 26.21 |
4.2 Price Multiples
COV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. COV is cheaper than 100.00% 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 | 24.79 | ||
| EV/EBITDA | 9.65 |
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 (5/23/2025, 7:00:00 PM)
2.7
-0.01 (-0.37%)
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 Cap74.03M
Analysts84.44
Price Target4.49 (66.3%)
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 | 15.88 | ||
| Fwd PE | 26.21 | ||
| P/S | 2.14 | ||
| P/FCF | 24.79 | ||
| P/OCF | 21.14 | ||
| P/B | 2.42 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)0.17
EY6.3%
EPS(NY)0.1
Fwd EY3.81%
FCF(TTM)0.11
FCFY4.03%
OCF(TTM)0.13
OCFY4.73%
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 | 11.71 |
F-Score6
WACC8.62%
ROIC/WACC1.34
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