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COV

Covalon Technologies TSXV:COV Stock Report

Last Price

CA$2.60

Market Cap

CA$67.4m

7D

-1.5%

1Y

73.3%

Updated

27 Jun, 2022

Data

Company Financials
COV fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

COV Stock Overview

Covalon Technologies Ltd. researches, develops, manufactures, commercializes, and licenses medical technologies and products in the United States, Canada, Europe, the Middle East, Asia, Latin America, and internationally.

Covalon Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Covalon Technologies
Historical stock prices
Current Share PriceCA$2.60
52 Week HighCA$3.15
52 Week LowCA$1.41
Beta1.98
1 Month Change24.40%
3 Month Change13.04%
1 Year Change73.33%
3 Year Change-40.23%
5 Year Change8.33%
Change since IPO-13.33%

Recent News & Updates

Shareholder Returns

COVCA BiotechsCA Market
7D-1.5%-0.5%0.3%
1Y73.3%-24.3%-4.0%

Return vs Industry: COV exceeded the Canadian Biotechs industry which returned -24.3% over the past year.

Return vs Market: COV exceeded the Canadian Market which returned -4% over the past year.

Price Volatility

Is COV's price volatile compared to industry and market?
COV volatility
COV Average Weekly Movement9.7%
Biotechs Industry Average Movement11.6%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: COV is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: COV's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aBrian Pedlarhttps://www.covalon.com

Covalon Technologies Ltd. researches, develops, manufactures, commercializes, and licenses medical technologies and products in the United States, Canada, Europe, the Middle East, Asia, Latin America, and internationally. The company has 3 proprietary platform technologies, including collagen matrix platform that is used to manufacture a family of products to treat chronic and infected wounds, including diabetic ulcers, pressure ulcers, venous ulcers, donor and graft sites, traumatic wounds healing by secondary intention, dehisced surgical wounds, and first and second degree burns; antimicrobial silicone adhesive platform that is used for family of pre and post-surgical, and vascular access products that are designed to kill bacteria or yeast that comes into contact with the antimicrobial silicone providing broad-spectrum antimicrobial activity; and medical coating platform, a proprietary process that utilizes photo-polymerization to create active grafting sites where new polymer chains are initiated and propagated from the surface of an existing medical device. Its products include wound care dressings; surgical and peri-operative products; and infection management products.

Covalon Technologies Fundamentals Summary

How do Covalon Technologies's earnings and revenue compare to its market cap?
COV fundamental statistics
Market CapCA$67.41m
Earnings (TTM)-CA$1.83m
Revenue (TTM)CA$20.88m

3.2x

P/S Ratio

-36.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COV income statement (TTM)
RevenueCA$20.88m
Cost of RevenueCA$10.53m
Gross ProfitCA$10.35m
Other ExpensesCA$12.18m
Earnings-CA$1.83m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.071
Gross Margin49.57%
Net Profit Margin-8.76%
Debt/Equity Ratio0%

How did COV perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is COV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for COV?

Other financial metrics that can be useful for relative valuation.

COV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA-35.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does COV's PS Ratio compare to its peers?

COV PS Ratio vs Peers
The above table shows the PS ratio for COV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average84.5x
SBM Sirona Biochem
252.5xn/aCA$62.8m
EDT Spectral Medical
56.2x88.4%CA$100.6m
MBX Microbix Biosystems
3x23.7%CA$61.8m
MPH Medicure
0.5xn/aCA$10.8m
COV Covalon Technologies
3.2xn/aCA$67.4m

Price-To-Sales vs Peers: COV is good value based on its Price-To-Sales Ratio (3.2x) compared to the peer average (84.5x).


Price to Earnings Ratio vs Industry

How does COV's PE Ratio compare vs other companies in the CA Biotechs Industry?

Price-To-Sales vs Industry: COV is good value based on its Price-To-Sales Ratio (3.2x) compared to the Canadian Biotechs industry average (18.2x)


Price to Sales Ratio vs Fair Ratio

What is COV's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

COV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate COV's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of COV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate COV's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate COV's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate COV's PEG Ratio to determine if it is good value.


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Future Growth

How is Covalon Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


41.3%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Covalon Technologies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine Covalon Technologies's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Covalon Technologies competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Covalon Technologies performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-28.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: COV is currently unprofitable.

Growing Profit Margin: COV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: COV is unprofitable, and losses have increased over the past 5 years at a rate of 28.1% per year.

Accelerating Growth: Unable to compare COV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: COV is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (95.6%).


Return on Equity

High ROE: COV has a negative Return on Equity (-6.26%), as it is currently unprofitable.


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Financial Health

How is Covalon Technologies's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: COV's short term assets (CA$31.5M) exceed its short term liabilities (CA$3.5M).

Long Term Liabilities: COV's short term assets (CA$31.5M) exceed its long term liabilities (CA$1.9M).


Debt to Equity History and Analysis

Debt Level: COV is debt free.

Reducing Debt: COV had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: COV has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: COV has sufficient cash runway for 1.8 years if free cash flow continues to grow at historical rates of 5% each year.


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Dividend

What is Covalon Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate COV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate COV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if COV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if COV's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as COV has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

Brian Pedlar

12.17yrs

Tenure

CA$897,500

Compensation

Mr. Brian E. Pedlar has been the Chief Executive Officer and President of Covalon Technologies Ltd. since April 3, 2010. Mr. Pedlar had been the Chief Executive Officer and President of Pedlar Ventures sin...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD697.10K) is above average for companies of similar size in the Canadian market ($USD175.18K).

Compensation vs Earnings: Brian's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: COV's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: COV's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: COV insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Covalon Technologies Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Covalon Technologies Ltd.
  • Ticker: COV
  • Exchange: TSXV
  • Founded: NaN
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: CA$67.415m
  • Shares outstanding: 25.93m
  • Website: https://www.covalon.com

Location

  • Covalon Technologies Ltd.
  • 1660 Tech Avenue
  • Unit 5
  • Mississauga
  • Ontario
  • L4W 5S7
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.