Coveo Solutions (CVO) AI Stock Analysis

• Market Cap: C$703.27M
• Dividend Yield: N/A
• Average Volume (3M): 173.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 10.09%
• EPS Growth: -8.79%
• Country: CA
• Employees: 743
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.22
• Shares Outstanding: 55,794,000
• 10 Day Avg. Volume: 192,042
• 30 Day Avg. Volume: 173,021
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: C$12.33
• Price Target Upside: 61.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: C$9.00 ▲(17.65% Upside)

Coveo Solutions' overall stock score is primarily influenced by its financial performance, which shows strong revenue growth and gross profit margins but is hindered by profitability challenges. Technical analysis indicates bearish momentum, and valuation metrics highlight concerns due to the negative P/E ratio. The absence of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust demand for Coveo's AI-powered solutions, suggesting a strong market position and potential for future expansion.

Cash Flow Improvements

Improving cash flow enhances financial flexibility, allowing Coveo to invest in growth opportunities and manage operations effectively, supporting long-term sustainability.

Low Leverage

Low leverage indicates a conservative financial strategy, reducing risk and providing a solid foundation for future growth and investment without heavy debt burdens.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder reinvestment and growth, requiring strategic adjustments to improve operational efficiency and shareholder returns.

Negative Net Profit Margins

Sustained negative profit margins suggest inefficiencies that could impact long-term viability unless addressed, potentially limiting competitive edge and investor confidence.

Return on Equity Concerns

Low returns on equity may deter investment, signaling that the company is not effectively utilizing shareholder capital to generate profits, affecting long-term growth prospects.

Coveo Solutions Business Overview & Revenue Model

Company Description

Coveo Solutions (CVO) is a leading provider of AI-powered search and relevance solutions, primarily catering to enterprises across various sectors including e-commerce, customer service, and knowledge management. The company specializes in enhancing user experiences by delivering personalized search results and recommendations, leveraging advanced machine learning and natural language processing technologies. Coveo's core products include its AI-driven search platform, analytics tools, and integration capabilities with popular content management systems and CRM platforms, which help organizations improve customer engagement and operational efficiency.

How the Company Makes Money

Coveo generates revenue primarily through a subscription-based model, offering various licensing options for its software solutions. Key revenue streams include recurring subscription fees from clients who utilize its cloud-based platform, as well as professional services such as implementation, training, and ongoing support. The company also benefits from strategic partnerships with technology providers and integrators, enhancing its market reach and enabling cross-selling opportunities. Additionally, Coveo may engage in performance-based pricing arrangements, where fees are tied to the success metrics achieved by their clients using Coveo's solutions.

Coveo Solutions Financial Statement Overview

Summary

Coveo Solutions demonstrates strong revenue growth and gross profit margins, which are positive indicators for future potential. However, the company faces challenges with profitability and return on equity, which need to be addressed to enhance financial health. The balance sheet remains stable with low leverage, and cash flow improvements are promising, but further alignment with profitability is needed.

Income Statement

Coveo Solutions shows a consistent revenue growth trend with a TTM growth rate of 2.5%. Gross profit margins are strong at approximately 78%, indicating efficient cost management. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins, reflecting ongoing operational challenges.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.06, suggesting conservative leverage. However, the negative return on equity indicates that the company is not generating sufficient returns on shareholders' investments, which could be a concern for investors.

Cash Flow

Coveo Solutions has shown significant improvement in free cash flow growth, with a TTM growth rate of 44.8%. The operating cash flow to net income ratio is positive, indicating some level of cash generation from operations. However, the free cash flow to net income ratio suggests that cash flow is not yet fully aligned with profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	136.60M	133.27M	126.09M	112.00M	86.49M	64.86M
Gross Profit	107.06M	104.88M	98.45M	85.33M	65.03M	48.45M
EBITDA	-8.04M	-5.06M	-12.20M	-30.32M	249.60M	-468.47M
Net Income	-22.70M	-13.75M	-23.61M	-39.73M	418.28M	-600.02M
Balance Sheet
Total Assets	222.60M	230.36M	275.88M	308.82M	345.50M	194.04M
Cash, Cash Equivalents and Short-Term Investments	128.47M	124.75M	166.59M	198.45M	223.07M	131.87M
Total Debt	7.28M	7.46M	9.04M	10.87M	13.09M	209.84M
Total Liabilities	100.39M	103.45M	97.36M	90.28M	90.06M	1.19B
Stockholders Equity	122.21M	126.91M	178.52M	218.53M	255.44M	-999.08M
Cash Flow
Free Cash Flow	13.81M	9.54M	3.08M	-7.85M	-37.57M	2.19M
Operating Cash Flow	15.14M	11.07M	4.20M	-6.26M	-35.42M	5.78M
Investing Cash Flow	-1.33M	-1.53M	-1.12M	-2.27M	36.62M	30.71M
Financing Cash Flow	-53.74M	-50.81M	-35.59M	-2.43M	163.40M	2.18M

Coveo Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CVO, the sentiment is Neutral. The current price of 7.65 is below the 20-day moving average (MA) of 8.18, below the 50-day MA of 8.67, and above the 200-day MA of 7.26, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 45.57 is Neutral, neither overbought nor oversold. The STOCH value of 40.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CVO.

Coveo Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STC	60 Neutral	C$224.64M	―	-1.99%	―	-1.46%	40.89%
CVO	57 Neutral	C$703.27M	―	-17.77%	―	10.09%	-8.79%
DND	55 Neutral	C$444.00M	―	―	1.73%	2.47%	19.37%
TIXT	55 Neutral	$1.69B	―	-20.44%	―	5.06%	-638.59%
PLUR	40 Underperform	C$16.49M	―	―	―	5.61%	72.77%

Coveo Solutions Corporate Events

Coveo Solutions Confirms Board Elections and Auditor Appointment at 2025 AGM

Coveo Solutions announced the results of its 2025 Annual General Meeting of Shareholders, where all seven nominees for the board of directors were elected with overwhelming support. Additionally, PricewaterhouseCoopers LLP was appointed as the auditor for the upcoming year. This announcement reinforces Coveo’s stable governance structure and its commitment to maintaining strong operational oversight, which is crucial for its continued leadership in the AI-Relevance industry.

The most recent analyst rating on (TSE:CVO) stock is a Hold with a C$9.50 price target. To see the full list of analyst forecasts on Coveo Solutions stock, see the TSE:CVO Stock Forecast page.

Coveo Solutions Reports Strong Start to Fiscal 2026 with AI-Driven Growth

Coveo Solutions has reported a robust start to its fiscal year 2026, with a notable reacceleration in growth driven by its core platform and generative AI solutions. The company achieved a 16% growth rate for its core platform and saw generative AI solutions contribute to approximately 50% of new business. Coveo’s strategic relationship with SAP has been significantly expanded, positioning it as a key AI partner and enhancing its market leadership. Despite a net loss of $15.1 million, Coveo’s cash flow from operating activities improved significantly, reflecting strong business momentum and customer adoption across diverse regions and use cases.

The most recent analyst rating on (TSE:CVO) stock is a Buy with a C$10.00 price target. To see the full list of analyst forecasts on Coveo Solutions stock, see the TSE:CVO Stock Forecast page.