COVEO SOLUTIONS INC-SUB VTG (CVO.CA) Stock Fundamental Analysis
TSX:CVO - Toronto Stock Exchange - CA22289D1078 - Common Stock - Currency: CAD
Overall CVO gets a fundamental rating of 5 out of 10. We evaluated CVO 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 is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year CVO was profitable.
In the past year CVO had a positive cash flow from operations.
CVO had negative earnings in 4 of the past 5 years.
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
CVO has a Return On Assets (-5.04%) which is in line with its industry peers.
CVO has a Return On Equity of -8.92%. This is comparable to the rest of the industry: CVO outperforms 50.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.04% | ||
| ROE | -8.92% | ||
| ROIC | N/A |
ROA(3y)33.21%
ROA(5y)-48.97%
ROE(3y)44.11%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CVO's Gross Margin of 78.60% is amongst the best of the industry. CVO outperforms 82.54% of its industry peers.
In the last couple of years the Gross Margin of CVO has remained more or less at the same level.
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 | 78.6% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.48%
GM growth 5Y0.21%
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.
Compared to 1 year ago, CVO has an improved debt to assets ratio.
2.2 Solvency
CVO has an Altman-Z score of -0.82. This is a bad value and indicates that CVO is not financially healthy and even has some risk of bankruptcy.
CVO has a worse Altman-Z score (-0.82) than 63.49% of its industry peers.
CVO has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
CVO has a Debt to FCF ratio of 0.87. This is amongst the best in the industry. CVO outperforms 80.95% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that CVO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.04, CVO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | -0.82 |
ROIC/WACCN/A
WACC9.23%
2.3 Liquidity
CVO has a Current Ratio of 1.85. 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 1.85, CVO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CVO has a Quick Ratio of 1.85. 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 better Quick ratio (1.85) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
CVO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 320.00%, which is quite impressive.
CVO shows a small growth in Revenue. In the last year, the Revenue has grown by 7.24%.
CVO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.25% yearly.
EPS 1Y (TTM)320%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%900%
Revenue 1Y (TTM)7.24%
Revenue growth 3Y24.81%
Revenue growth 5Y23.25%
Sales Q2Q%6.94%
3.2 Future
Based on estimates for the next years, CVO will show a very strong growth in Earnings Per Share. The EPS will grow by 123.14% on average per year.
The Revenue is expected to grow by 28.84% on average over the next years. This is a very strong growth
EPS Next Y337.63%
EPS Next 2Y110.81%
EPS Next 3Y123.14%
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y9.02%
Revenue Next 3Y11.51%
Revenue Next 5Y28.84%
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
A Price/Earnings ratio of 69.33 indicates a quite expensive valuation of CVO.
Compared to the rest of the industry, the Price/Earnings ratio of CVO indicates a somewhat cheap valuation: CVO is cheaper than 65.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.85, CVO is valued quite expensively.
The Price/Forward Earnings ratio is 101.53, which means the current valuation is very expensive for CVO.
Based on the Price/Forward Earnings ratio, CVO is valued a bit cheaper than 63.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CVO to the average of the S&P500 Index (20.77), we can say CVO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.33 | ||
| Fwd PE | 101.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVO indicates a somewhat cheap valuation: CVO is cheaper than 60.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.02 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CVO's earnings are expected to grow with 123.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y110.81%
EPS Next 3Y123.14%
5. Dividend
5.1 Amount
CVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CVO (5/1/2025, 7:00:00 PM)
6.24
+0.1 (+1.63%)
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 Cap601.66M
Analysts75
Price Target9.72 (55.77%)
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)462.05%
Min EPS beat(2)-32.01%
Max EPS beat(2)956.11%
EPS beat(4)3
Avg EPS beat(4)281.02%
Min EPS beat(4)-32.01%
Max EPS beat(4)956.11%
EPS beat(8)7
Avg EPS beat(8)194.13%
EPS beat(12)10
Avg EPS beat(12)136.98%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)0.16%
Revenue beat(8)3
Avg Revenue beat(8)-0.23%
Revenue beat(12)7
Avg Revenue beat(12)0.87%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-3.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-112.5%
EPS NY rev (1m)0%
EPS NY rev (3m)549.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.33 | ||
| Fwd PE | 101.53 | ||
| P/S | 3.31 | ||
| P/FCF | 55.02 | ||
| P/OCF | 48.86 | ||
| P/B | 3.38 | ||
| P/tB | 5.06 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.09
EY1.44%
EPS(NY)0.06
Fwd EY0.98%
FCF(TTM)0.11
FCFY1.82%
OCF(TTM)0.13
OCFY2.05%
SpS1.89
BVpS1.85
TBVpS1.23
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.04% | ||
| ROE | -8.92% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 78.6% | ||
| FCFM | 6.01% |
ROA(3y)33.21%
ROA(5y)-48.97%
ROE(3y)44.11%
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 3Y1.48%
GM growth 5Y0.21%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 8.8% | ||
| Cap/Sales | 0.76% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | -0.82 |
F-Score7
WACC9.23%
ROIC/WACCN/A
Cap/Depr(3y)12.77%
Cap/Depr(5y)40.05%
Cap/Sales(3y)1.6%
Cap/Sales(5y)4.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)320%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%900%
EPS Next Y337.63%
EPS Next 2Y110.81%
EPS Next 3Y123.14%
EPS Next 5YN/A
Revenue 1Y (TTM)7.24%
Revenue growth 3Y24.81%
Revenue growth 5Y23.25%
Sales Q2Q%6.94%
Revenue Next Year5.96%
Revenue Next 2Y9.02%
Revenue Next 3Y11.51%
Revenue Next 5Y28.84%
EBIT growth 1Y21.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year112.39%
EBIT Next 3Y52.92%
EBIT Next 5Y73.55%
FCF growth 1Y164.17%
FCF growth 3Y12.06%
FCF growth 5YN/A
OCF growth 1Y180.93%
OCF growth 3Y-10.09%
OCF growth 5YN/A