Covalon Technologies Ltd. (COV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Perimeter Medical Imaging AI, Inc.

Nanalysis Scientific Corp.

Covalon Technologies Ltd.

Profound Medical Corp.

Theralase Technologies, Inc.

Spectral Medical, Inc.

MedMira, Inc.

Ocumetics Technology Corp.

FuelPositive Corp.

VentriPoint Diagnostics Ltd.

Opsens, Inc.

Why is Covalon Technologies Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.51% and Operating profit at 17.47% over the last 5 years

With ROE of 8.30%, it has a very attractive valuation with a 2.01 Price to Book Value

Over the past year, while the stock has generated a return of -49.09%, its profits have risen by 272% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -49.09% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Covalon Technologies Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Covalon Technologies Ltd.

-48.16%

0.56

53.24%

S&P/TSX 60

19.1%

1.23

15.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.51%

EBIT Growth (5y)

17.47%

EBIT to Interest (avg)

-2.65

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

1.19

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.49%

ROE (avg)

2.47%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.01

EV to EBIT

19.35

EV to EBITDA

13.44

EV to Capital Employed

3.48

EV to Sales

1.28

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

17.99%

ROE (Latest)

8.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

NET PROFIT(HY)

At CAD 1.78 MM has Grown at 157,635.3%

OPERATING CASH FLOW(Y)

Highest at CAD 5.17 MM

ROCE(HY)

Highest at 14.51%

-17What is not working for the Company

INTEREST(9M)

At CAD 0.05 MM has Grown at 30.56%

RAW MATERIAL COST(Y)

Grown by 14.72% (YoY

NET SALES(Q)

Lowest at CAD 7.59 MM

OPERATING PROFIT(Q)

Lowest at CAD 0.52 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.79 %

PRE-TAX PROFIT(Q)

Lowest at CAD 0.43 MM

NET PROFIT(Q)

Lowest at CAD 0.43 MM

EPS(Q)

Lowest at CAD 0.02

Here's what is working for Covalon Technologies Ltd.

Operating Cash Flow

Highest at CAD 5.17 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Here's what is not working for Covalon Technologies Ltd.

Pre-Tax Profit

At CAD 0.43 MM has Fallen at -64.8%

over average net sales of the previous four periods of CAD 1.22 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 0.43 MM has Fallen at -64.8%

over average net sales of the previous four periods of CAD 1.22 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 0.05 MM has Grown at 30.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

Lowest at CAD 7.59 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

At CAD 7.59 MM has Fallen at -12.48%

over average net sales of the previous four periods of CAD 8.67 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 0.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 6.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 0.43 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 0.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Raw Material Cost

Grown by 14.72% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales