COVEO SOLUTIONS INC-SUB VTG (CVO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CVO - CA22289D1078 - Common Stock
5.7 CAD
+0.08 (+1.42%)
Taking everything into account, CVO scores 4 out of 10 in our fundamental rating. CVO was compared to 63 industry peers in the Software industry. CVO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CVO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CVO had negative earnings in the past year.
In the past year CVO had a positive cash flow from operations.
CVO had negative earnings in 4 of the past 5 years.
In multiple years CVO reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of -10.07%, CVO perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of -19.18%, CVO is in line with its industry, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.07% | ||
| ROE | -19.18% | ||
| ROIC | N/A |
ROA(3y)-9.13%
ROA(5y)-43.11%
ROE(3y)-14.08%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CVO has a Gross Margin of 78.31%. This is amongst the best in the industry. CVO outperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of CVO has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for CVO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 78.31% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.53%
GM growth 5Y0.5%
2. Health
2.1 Basic Checks
CVO does not have a ROIC to compare to the WACC, probably because it is not profitable.
CVO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CVO has been reduced compared to 5 years ago.
The debt/assets ratio for CVO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -1.52, we must say that CVO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -1.52, CVO is doing worse than 69.84% of the companies in the same industry.
The Debt to FCF ratio of CVO is 7.42, which is on the high side as it means it would take CVO, 7.42 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CVO (7.42) is better than 65.08% of its industry peers.
CVO has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
CVO's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. CVO outperforms 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 7.42 | ||
| Altman-Z | -1.52 |
ROIC/WACCN/A
WACC10.04%
2.3 Liquidity
A Current Ratio of 1.69 indicates that CVO should not have too much problems paying its short term obligations.
CVO has a Current ratio (1.69) which is comparable to the rest of the industry.
CVO has a Quick Ratio of 1.69. This is a normal value and indicates that CVO is financially healthy and should not expect problems in meeting its short term obligations.
CVO has a Quick ratio (1.69) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.33% over the past year.
The Revenue has grown by 9.20% in the past year. This is quite good.
CVO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.16% yearly.
EPS 1Y (TTM)33.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%240%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y15.5%
Revenue growth 5Y19.16%
Sales Q2Q%14.04%
3.2 Future
The Earnings Per Share is expected to grow by 48.56% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 32.53% on average over the next years. This is a very strong growth
EPS Next Y-185.46%
EPS Next 2Y57.68%
EPS Next 3Y48.56%
EPS Next 5YN/A
Revenue Next Year10.73%
Revenue Next 2Y12.66%
Revenue Next 3Y13.53%
Revenue Next 5Y32.53%
3.3 Evolution
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
CVO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 62.61, the valuation of CVO can be described as expensive.
Based on the Price/Forward Earnings ratio, CVO is valued a bit cheaper than the industry average as 60.32% of the companies are valued more expensively.
CVO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 62.61 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CVO is valued a bit cheaper than the industry average as 60.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 289.56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CVO's earnings are expected to grow with 48.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y57.68%
EPS Next 3Y48.56%
5. Dividend
5.1 Amount
CVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CVO (11/21/2025, 7:00:00 PM)
5.7
+0.08 (+1.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners27.27%
Inst Owner ChangeN/A
Ins Owners0.42%
Ins Owner ChangeN/A
Market Cap567.32M
Revenue(TTM)141.20M
Net Income(TTM)-21.71M
Analysts73.33
Price Target10.76 (88.77%)
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)-285.63%
Min EPS beat(2)-1087.53%
Max EPS beat(2)516.26%
EPS beat(4)2
Avg EPS beat(4)-175.82%
Min EPS beat(4)-1088.12%
Max EPS beat(4)956.11%
EPS beat(8)5
Avg EPS beat(8)-60.6%
EPS beat(12)8
Avg EPS beat(12)-12.69%
EPS beat(16)12
Avg EPS beat(16)1.88%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)0.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)0.4%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.14%
Revenue beat(16)9
Avg Revenue beat(16)0.93%
PT rev (1m)-12.7%
PT rev (3m)-12.7%
EPS NQ rev (1m)-25%
EPS NQ rev (3m)-40%
EPS NY rev (1m)21.43%
EPS NY rev (3m)-150%
Revenue NQ rev (1m)-1.77%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 62.61 | ||
| P/S | 2.85 | ||
| P/FCF | 289.56 | ||
| P/OCF | 138.18 | ||
| P/B | 3.56 | ||
| P/tB | 4.79 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.02
EYN/A
EPS(NY)0.09
Fwd EY1.6%
FCF(TTM)0.02
FCFY0.35%
OCF(TTM)0.04
OCFY0.72%
SpS2
BVpS1.6
TBVpS1.19
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.07% | ||
| ROE | -19.18% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 78.31% | ||
| FCFM | 0.99% |
ROA(3y)-9.13%
ROA(5y)-43.11%
ROE(3y)-14.08%
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 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.53%
GM growth 5Y0.5%
F-Score4
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 7.42 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 21.2% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | -1.52 |
F-Score4
WACC10.04%
ROIC/WACCN/A
Cap/Depr(3y)12.77%
Cap/Depr(5y)21.5%
Cap/Sales(3y)1.15%
Cap/Sales(5y)2.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%240%
EPS Next Y-185.46%
EPS Next 2Y57.68%
EPS Next 3Y48.56%
EPS Next 5YN/A
Revenue 1Y (TTM)9.2%
Revenue growth 3Y15.5%
Revenue growth 5Y19.16%
Sales Q2Q%14.04%
Revenue Next Year10.73%
Revenue Next 2Y12.66%
Revenue Next 3Y13.53%
Revenue Next 5Y32.53%
EBIT growth 1Y-12.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year102.22%
EBIT Next 3Y70.24%
EBIT Next 5Y120.7%
FCF growth 1Y127.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y183.12%
OCF growth 3YN/A
OCF growth 5YN/A
COVEO SOLUTIONS INC-SUB VTG / CVO.CA FAQ
What is the fundamental rating for CVO stock?
ChartMill assigns a fundamental rating of 4 / 10 to CVO.CA.
What is the valuation status for CVO stock?
ChartMill assigns a valuation rating of 2 / 10 to COVEO SOLUTIONS INC-SUB VTG (CVO.CA). This can be considered as Overvalued.
Can you provide the profitability details for COVEO SOLUTIONS INC-SUB VTG?
COVEO SOLUTIONS INC-SUB VTG (CVO.CA) has a profitability rating of 2 / 10.
What is the earnings growth outlook for COVEO SOLUTIONS INC-SUB VTG?
The Earnings per Share (EPS) of COVEO SOLUTIONS INC-SUB VTG (CVO.CA) is expected to decline by -185.46% in the next year.