COVEO SOLUTIONS INC-SUB VTG (CVO.CA) Stock Fundamental Analysis
TSX:CVO - Toronto Stock Exchange - CA22289D1078 - Common Stock - Currency: CAD
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 valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year CVO was profitable.
CVO had a positive operating cash flow in the past year.
In the past 5 years CVO reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: CVO reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of -5.97%, CVO perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
CVO has a Return On Equity of -10.84%. This is comparable 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
Looking at the Gross Margin, with a value of 78.70%, CVO belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
CVO's Gross Margin has been stable in the last couple of years.
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 | 78.7% |
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.
The number of shares outstanding for CVO has been reduced compared to 1 year ago.
CVO has less shares outstanding than it did 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 -0.32. This is a bad value and indicates that CVO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CVO (-0.32) is worse than 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.
The Debt to FCF ratio of CVO (0.78) is better than 79.37% of its industry peers.
CVO has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CVO (0.04) is better than 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | -0.32 |
ROIC/WACCN/A
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.81 indicates that CVO should not have too much problems paying its short term obligations.
The Current ratio of CVO (1.81) is better than 65.08% of its industry peers.
A Quick Ratio of 1.81 indicates that CVO should not have too much problems paying its short term obligations.
CVO has a Quick ratio of 1.81. This is in the better half of the industry: CVO outperforms 65.08% of its industry peers.
| 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.
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)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
Based on the Price/Earnings ratio of 184.75, the valuation of CVO can be described as expensive.
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 (26.31), we can say CVO is valued expensively.
With a Price/Forward Earnings ratio of 121.97, CVO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVO indicates a somewhat cheap valuation: CVO is cheaper than 61.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, CVO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 184.75 | ||
| Fwd PE | 121.97 |
4.2 Price Multiples
CVO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CVO is cheaper than 60.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.86 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CVO does not grow enough to justify the current Price/Earnings ratio.
CVO's earnings are expected to grow with 41.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.6
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 (6/13/2025, 7:00:00 PM)
7.39
-0.11 (-1.47%)
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 Cap713.43M
Analysts75
Price Target9.98 (35.05%)
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 | 184.75 | ||
| Fwd PE | 121.97 | ||
| P/S | 3.93 | ||
| P/FCF | 54.86 | ||
| P/OCF | 47.28 | ||
| P/B | 4.12 | ||
| P/tB | 6.04 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.04
EY0.54%
EPS(NY)0.06
Fwd EY0.82%
FCF(TTM)0.13
FCFY1.82%
OCF(TTM)0.16
OCFY2.12%
SpS1.88
BVpS1.79
TBVpS1.22
PEG (NY)2.6
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 | -0.32 |
F-Score7
WACC7.7%
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