Covalon Technologies (COV) AI Stock Analysis

• Market Cap: C$47.71M
• Dividend Yield: N/A
• Average Volume (3M): 17.17K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.14
• Revenue Growth: 5.29%
• EPS Growth: -29.02%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.01
• Shares Outstanding: 27,418,077
• 10 Day Avg. Volume: 12,083
• 30 Day Avg. Volume: 17,167
• PEG Ratio: -0.88
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 34.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: C$2.00 ▲(14.29% Upside)

The score is driven primarily by mixed financial performance: a strong, low-debt balance sheet is offset by steep revenue and free-cash-flow declines. Technicals add caution with a price below key moving averages and negative MACD, while valuation is only middling with a P/E around 24 and no dividend support.

Positive Factors

Low Financial Leverage

Extremely low leverage and a high equity ratio provide durable financial flexibility. With minimal debt service the company can invest in R&D, support commercialization, or endure reimbursement cycles without refinancing pressure, lowering long‑term solvency risk.

Strong Gross Margin

A 53% gross margin signals product-level pricing power and differentiated technology in wound care. Sustained high gross margins allow the firm to cover fixed costs and fund innovation as volumes recover, underpinning longer-term profitability potential despite revenue volatility.

Structural Market Tailwinds

Covalon operates in advanced wound care and infection management—areas with secular growth from aging populations and tighter infection-control standards. These structural trends support persistent product demand and partner/distributor uptake over multiple years.

Negative Factors

Steep Revenue Decline

A >50% revenue drop is a durable operational concern: it erodes scale economics, reduces ability to fund commercialization, and suggests lost market share or demand shifts. Recovering top-line traction may take many quarters, constraining strategic execution and growth.

Weak Cash Generation

A sharp FCF decline and sub‑unity cash conversion ratio limit self‑funding of R&D, manufacturing scale-up, or distribution expansion. Even with low debt, persistent cash weakness forces reliance on external funding, increasing dilution risk or hindering long‑term investments.

Modest Returns and Margins

Relatively low EBITDA margin and modest ROE indicate limited return on invested capital versus peers. This constrains the company’s ability to generate attractive shareholder returns and may limit resources available for scaling commercial efforts or absorbing competitive pricing pressure.

Covalon Technologies Business Overview & Revenue Model

Company Description

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. The company offers its products under the Covalon brand name through third-party distribution networks and company's direct sales force. It serves hospitals, wound care centers, burn centers, extended/alternate care and acute care facilities, home health care agencies, and physicians' offices. The company is headquartered in Mississauga, Canada.

How the Company Makes Money

Covalon generates revenue through the sale of its medical products and technologies, primarily targeting hospitals, clinics, and healthcare providers. Its revenue model is based on the direct sale of products, as well as licensing agreements and partnerships with other medical organizations. Key revenue streams include sales of antimicrobial dressings and other wound care products, which are in high demand due to the growing emphasis on infection control in healthcare settings. Significant partnerships with healthcare institutions and distributors also contribute to its earnings, as these collaborations often lead to increased adoption of Covalon's products in various medical environments.

Covalon Technologies Financial Statement Overview

Summary

Covalon Technologies has demonstrated strong financial health with robust revenue growth, improved profitability, and solid cash flow management. The company's low debt levels and strong equity base provide financial stability and flexibility.

Income Statement

Covalon Technologies has shown strong financial performance in its income statement. The company achieved a Gross Profit Margin of 60.24% and Net Profit Margin of 13.63% in the TTM (Trailing-Twelve-Months) period. There was a significant Revenue Growth Rate of 32.11% from 2023 to 2024, indicating robust top-line growth. The EBIT Margin improved markedly to 8.53% from a negative margin in previous periods, demonstrating better operational efficiency. EBITDA Margin also showed a healthy increase to 17.25%, reflecting improved profitability.

Balance Sheet

The balance sheet of Covalon Technologies is stable with a strong Equity Ratio of 88.05% in the TTM period, indicating a solid equity base compared to total assets. The Debt-to-Equity Ratio is low at 0.03, suggesting minimal leverage and reduced financial risk. The Return on Equity (ROE) stood at 15.42%, which reflects decent profitability for equity holders. The company's low debt levels provide financial flexibility.

Cash Flow

Covalon Technologies' cash flow statement shows considerable improvement. The Free Cash Flow Growth Rate from 2023 to 2024 was substantial, and the Operating Cash Flow to Net Income Ratio was 0.74, indicating efficient cash generation relative to net income. The Free Cash Flow to Net Income Ratio was 0.63, demonstrating adequate cash available after capital expenditures. These metrics suggest solid cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.82M	32.82M	31.17M	26.60M	18.15M	19.56M
Gross Profit	17.47M	17.47M	18.93M	14.36M	7.49M	9.70M
EBITDA	3.01M	3.01M	3.14M	-3.56M	-8.11M	1.54M
Net Income	2.06M	2.06M	2.67M	-4.46M	-9.66M	23.48M
Balance Sheet
Total Assets	36.12M	36.12M	31.81M	24.90M	30.38M	40.58M
Cash, Cash Equivalents and Short-Term Investments	17.37M	17.37M	16.75M	8.79M	14.06M	22.95M
Total Debt	2.25M	2.25M	901.67K	1.56M	2.17M	2.59M
Total Liabilities	5.40M	5.40M	4.30M	6.11M	6.15M	7.21M
Stockholders Equity	30.73M	30.73M	27.50M	18.79M	24.23M	33.37M
Cash Flow
Free Cash Flow	1.51M	1.65M	3.06M	-4.50M	-9.08M	443.71K
Operating Cash Flow	2.29M	2.29M	3.47M	-3.18M	-7.99M	621.37K
Investing Cash Flow	-847.02K	-847.02K	-281.63K	-81.02K	-843.02K	-278.53K
Financing Cash Flow	-529.35K	-529.35K	4.97M	-2.16M	-2.19M	-8.25M

Covalon Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:COV, the sentiment is Negative. The current price of 1.75 is below the 20-day moving average (MA) of 1.76, below the 50-day MA of 1.88, and below the 200-day MA of 2.14, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 41.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:COV.

Covalon Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COV	53 Neutral	C$47.71M	23.17	7.07%	―	5.29%	-29.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DTC	45 Neutral	C$32.84M	-8.47	―	―	―	72.92%
MDNA	44 Neutral	C$64.60M	-5.54	-91.21%	―	―	54.74%
SVA	44 Neutral	C$48.82M	-3.03	―	―	―	54.38%
MIR	42 Neutral	C$48.84M	-12.07	―	―	-41.70%	-35.42%

Covalon Technologies Corporate Events

Covalon Technologies Achieves Record Revenue and Pays First-Ever Dividend

Covalon Technologies reported its highest revenue quarter for fiscal year 2025, marking its third consecutive year of revenue growth. Despite challenges in the market, the company achieved a 5% increase in global revenue to $32.8 million and maintained a strong financial position with $17 million in cash and no debt. Covalon paid its first-ever special dividend, reflecting its robust financial performance. The company also announced the appointment of Katie Martinovich as Chief Financial Officer and secured a new strategic partner for its US Advanced Wound Care sales channel. A recent clinical study on Covalon’s VALGuard® technology demonstrated significant reductions in bloodstream infections, further supporting the adoption of its products.

The most recent analyst rating on (TSE:COV) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Covalon Technologies stock, see the TSE:COV Stock Forecast page.

Covalon Technologies Achieves Record Revenue and Strategic Milestones in 2025

Covalon Technologies Ltd. reported its highest revenue quarter of fiscal year 2025, marking its third consecutive year of revenue growth despite global economic challenges. The company achieved a 5% increase in global revenue, totaling $32.8 million, and maintained a strong financial position with $17 million in cash and no debt. Covalon’s strategic advancements include the appointment of a new CFO, securing a significant partnership in the US market, and paying its first-ever dividend, reflecting its robust financial health. Additionally, a peer-reviewed study highlighted the efficacy of Covalon’s VALGuard® technology, contributing to increased adoption and revenue growth in its US sales channels.

The most recent analyst rating on (TSE:COV) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Covalon Technologies stock, see the TSE:COV Stock Forecast page.

Covalon Technologies to Announce Fiscal 2025 Financial Results

Covalon Technologies Ltd. has announced that it will release its fourth quarter and year-end fiscal 2025 financial results on December 11, 2025, before the market opens. The company will host a conference call and webcast on the same day to discuss these results, allowing stakeholders to engage with management through a Q&A session. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and future outlook.

The most recent analyst rating on (TSE:COV) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Covalon Technologies stock, see the TSE:COV Stock Forecast page.

Covalon Technologies Declares First-Ever Dividend Amid Financial Growth

Covalon Technologies Ltd. has announced the payment of its first-ever dividend, a special cash dividend of C$0.15 per common share, marking a milestone in the company’s financial strength and commitment to shareholder value. This achievement reflects Covalon’s strong financial performance, with significant revenue growth and improved profitability, driven by the successful adoption of its patented medical technologies in healthcare facilities worldwide.

The most recent analyst rating on (TSE:COV) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Covalon Technologies stock, see the TSE:COV Stock Forecast page.

Covalon Technologies Declares First-Ever Special Cash Dividend

Covalon Technologies Ltd. has announced its first-ever special cash dividend of $0.15 CAD per common share, totaling $4,112,711.55 CAD, to be paid to shareholders on November 18, 2025. This decision reflects the company’s strong financial performance, having been profitable for the last six quarters, and its robust cash position of $18.9 million CAD with no debt. The dividend is intended to reward shareholders and underscores Covalon’s financial health and commitment to shareholder value.

The most recent analyst rating on (TSE:COV) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Covalon Technologies stock, see the TSE:COV Stock Forecast page.

Covalon Technologies to Showcase at Planet MicroCap Event in Toronto

Covalon Technologies Ltd. announced its participation in the Planet MicroCap Showcase: TORONTO 2025, highlighting its position as a profitable, debt-free, and undervalued healthcare company. CEO Brent Ashton will discuss the company’s ability to outperform larger medical device companies, recent clinical evidence supporting its products, and strategies for leveraging its strong financial position to drive shareholder value and future business success.

The most recent analyst rating on (TSE:COV) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Covalon Technologies stock, see the TSE:COV Stock Forecast page.