Covalon Technologies

COV.V

Biotechnology · Healthcare

Exchange

Toronto Stock Exchange Ventures

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Exceptional

Stability

Good

Valuation

Good

Dividends

Good

Track this stock — start free trial

Winston Score History

The full picture

Covalon Technologies is a Canadian medical device company that makes advanced wound care and infection prevention products. Its core offerings include antimicrobial wound dressings, IV site care products, and medical-grade silicone-based coatings used in hospitals and healthcare facilities. The company sells primarily to healthcare providers, with a significant portion of revenue coming from large contracts with the U.S. military and government health agencies.

Covalon earns money by selling its medical products directly to hospitals, government agencies, and distributors, rather than through subscriptions or licensing. It operates mainly in North America but has some international reach. With a gross margin around 53%, the business has reasonable pricing power built on proprietary coating and antimicrobial technologies, which act as a modest competitive barrier. The main growth driver is expanding its government and institutional contracts, while the key risk is its small size and dependence on a limited number of large customers, which can make revenue unpredictable from year to year.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

59.1%

Premium pricing power — 59.1% gross margin

Profit after running costs

Operating Margin

10.5%

Modest — 10.5% operating margin

Return on the money invested

ROCE

4.1%

Weak — 4.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth

Sales YoY

-3.4%

Shrinking sales (-3.4% YoY)

Profit growth

EPS YoY

-56.9%

Earnings shrinking (-56.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

371%

Turns 371% of profit into real cash

Spare cash per sale

FCF Margin

14.3%

Converts sales into free cash efficiently (14.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

100.00x

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

38.5x

no trend

Pricey — P/E 38.5

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+23.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (38.5 → 15.3)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend

Dividend Yield

6.52%

no trend

Healthy income — 6.52% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

N/A

no trend

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial