WinstonWınston
Back
Stock

Covalon Technologies

CVALF
69
Medical - Instruments & Supplies · Healthcare
Price
$2.55
+0.16 (+6.69%)
Market Cap
$70.4M
Exchange
Other OTC
Winston Score
69
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Sep 9, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
Growth
Good
Cash Flow
Exceptional
Stability
Exceptional
Valuation
Good
Dividends
Good
Track this stock — start free trial

Share count rising — dilution

+8.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 25.8M (2021) → 27.9M (2025)

§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 products include antimicrobial wound dressings, IV site coverings, and surgical incise drapes used mainly in hospitals and healthcare facilities. The company is known for its patented coating technologies that help reduce infections in patients.

Covalon earns revenue by selling its medical products to hospitals, distributors, and government health agencies, primarily in North America and select international markets. It is a small-cap company with a market capitalization around $100 million, and its proprietary antimicrobial platform gives it a niche competitive position in infection prevention. Growth depends on expanding hospital adoption and winning new distribution contracts, though the company faces risks from larger competitors with deeper resources and broader product lines.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+20.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

>+1,000% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

C$1M/ year

↓ Declining (-17% vs prior year)

4.0% of revenue

Below sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

45.9%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

C$19M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Covalon Technologies is a rare growth stock that's already generating positive cash flow while growing at 20%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

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
65.1%
Premium pricing power — 65.1% gross margin
Profit after running costs
Operating Margin
27.2%
Excellent — 27.2% operating margin
Return on the money invested
ROCE
12.4%
Good — 12.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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
+4.2%
Slow sales growth (+4.2% YoY)
Profit growth
EPS YoY
+63.7%
Earnings growing fast (+63.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

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
158%
Turns 158% of profit into real cash
Spare cash per sale
FCF Margin
16.8%
Converts sales into free cash efficiently (16.8%)

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
0.01
Conservative — low debt load (0.01)
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)
16.2x
Fair value — P/E 16.2

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+1.7
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

Full breakdown available with your free trial

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

Try free

Dividends

Dividend
Dividend Yield
4.25%
Healthy income — 4.25% yield

Generous yield. Worth checking whether the payout is sustainable.

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