COVEO SOLUTIONS INC-SUB VTG (CVO.CA) Stock Fundamental Analysis
TSX:CVO - Toronto Stock Exchange - CA22289D1078 - Common Stock - Currency: CAD
CVO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 industry peers in the Software industry. The financial health of CVO is average, but there are quite some concerns on its profitability. CVO shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
CVO had positive 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
CVO has a Return On Assets (-5.97%) which is in line with its industry peers.
CVO's Return On Equity of -10.84% is in line compared to the rest of the industry. CVO outperforms 49.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.97% | ||
| ROE | -10.84% | ||
| 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's Gross Margin of 78.70% is amongst the best of the industry. CVO outperforms 84.13% of its industry peers.
CVO's Gross Margin has been stable in the last couple of years.
CVO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 78.7% |
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.
Compared to 1 year ago, CVO has less shares outstanding
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
CVO has an Altman-Z score of -0.34. This is a bad value and indicates that CVO is not financially healthy and even has some risk of bankruptcy.
CVO has a Altman-Z score of -0.34. This is in the lower half of the industry: CVO underperforms 61.90% of its industry peers.
The Debt to FCF ratio of CVO is 0.78, which is an excellent value as it means it would take CVO, only 0.78 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.78, CVO is doing good in the industry, outperforming 79.37% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that CVO is not too dependend on debt financing.
CVO has a better Debt to Equity ratio (0.04) than 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | -0.34 |
ROIC/WACCN/A
WACC9.84%
2.3 Liquidity
CVO has a Current Ratio of 1.81. This is a normal value and indicates that CVO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.81, CVO is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
CVO has a Quick Ratio of 1.81. This is a normal value and indicates that CVO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.81, CVO is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 160.00% over the past year.
The Revenue has been growing slightly by 5.69% in the past year.
The Revenue has been growing by 19.16% on average over the past years. This is quite good.
EPS 1Y (TTM)160%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-400%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y15.5%
Revenue growth 5Y19.16%
Sales Q2Q%5.43%
3.2 Future
CVO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.54% yearly.
The Revenue is expected to grow by 32.53% on average over the next years. This is a very strong growth
EPS Next Y70.92%
EPS Next 2Y106.71%
EPS Next 3Y41.54%
EPS Next 5YN/A
Revenue Next Year12.17%
Revenue Next 2Y14.39%
Revenue Next 3Y13.1%
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
The Price/Earnings ratio is 186.75, which means the current valuation is very expensive for CVO.
CVO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CVO to the average of the S&P500 Index (26.60), we can say CVO is valued expensively.
With a Price/Forward Earnings ratio of 122.82, CVO can be considered very expensive at the moment.
CVO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CVO is cheaper than 61.90% of the companies in the same industry.
CVO is valuated expensively when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 186.75 | ||
| Fwd PE | 122.82 |
4.2 Price Multiples
CVO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CVO is cheaper than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.25 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as CVO's earnings are expected to grow with 41.54% in the coming years.
PEG (NY)2.63
PEG (5Y)N/A
EPS Next 2Y106.71%
EPS Next 3Y41.54%
5. Dividend
5.1 Amount
No dividends for CVO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CVO (6/11/2025, 7:00:00 PM)
7.47
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners48.4%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap721.15M
Analysts75
Price Target9.98 (33.6%)
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)-66.01%
Min EPS beat(2)-1088.12%
Max EPS beat(2)956.11%
EPS beat(4)2
Avg EPS beat(4)-35.81%
Min EPS beat(4)-1088.12%
Max EPS beat(4)956.11%
EPS beat(8)6
Avg EPS beat(8)53.69%
EPS beat(12)9
Avg EPS beat(12)42.94%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.48%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)0.16%
Revenue beat(8)3
Avg Revenue beat(8)-0.33%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.62%
PT rev (3m)2.62%
EPS NQ rev (1m)-200%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 186.75 | ||
| Fwd PE | 122.82 | ||
| P/S | 3.95 | ||
| P/FCF | 55.25 | ||
| P/OCF | 47.61 | ||
| P/B | 4.15 | ||
| P/tB | 6.08 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.04
EY0.54%
EPS(NY)0.06
Fwd EY0.81%
FCF(TTM)0.14
FCFY1.81%
OCF(TTM)0.16
OCFY2.1%
SpS1.89
BVpS1.8
TBVpS1.23
PEG (NY)2.63
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.97% | ||
| ROE | -10.84% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 78.7% | ||
| FCFM | 7.16% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.78 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 10.77% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | -0.34 |
F-Score7
WACC9.84%
ROIC/WACCN/A
Cap/Depr(3y)10.15%
Cap/Depr(5y)19.92%
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)160%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-400%
EPS Next Y70.92%
EPS Next 2Y106.71%
EPS Next 3Y41.54%
EPS Next 5YN/A
Revenue 1Y (TTM)5.69%
Revenue growth 3Y15.5%
Revenue growth 5Y19.16%
Sales Q2Q%5.43%
Revenue Next Year12.17%
Revenue Next 2Y14.39%
Revenue Next 3Y13.1%
Revenue Next 5Y32.53%
EBIT growth 1Y14.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year108.6%
EBIT Next 3Y72.78%
EBIT Next 5Y120.7%
FCF growth 1Y209.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y163.52%
OCF growth 3YN/A
OCF growth 5YN/A