Covista Inc. (CVSA) stock analysis

P/E below its 5-year median

Covista's P/E of 16.3 is below its own 5-year median of 19.2.

P/E above the industry

Covista's P/E of 16.3 is above the Services-educational services median of 13.0.

EV/EBITDA below its 5-year median

Covista's EV/EBITDA of 10.7 is below its 5-year median of 15.0.

P/B above the industry

Covista's price-to-book of 2.80 is above the Services-educational services median of 2.30.

Trading below fair value

The share price of $119.55 is below our fair value estimate of $120.38.

Margin of safety under 20%

The price is 0.7% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 10.4% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 50.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 1.8% over the last twelve months, against a 5-year average of 29.1% a year.

Growing faster than the industry

Revenue grew 9.3% over the last twelve months; the Services-educational services median is 2.7%.

Guidance raised

Covista raised its fiscal year 2026 Revenue outlook on May 7, 2026.

Gross margin improving

Gross margin was 57.4% over the last twelve months, against 57.1% a year earlier.

Return on equity under 15%

Return on equity was 17.9% over the last twelve months and averaged 14.5% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 17.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Covista's return on equity of 17.9% is above the Services-educational services median of 0.6%.

Earnings grew over 5 years

Net income grew 29.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.8% over the last twelve months, against a 5-year average of 12.7%.

Net margin above the industry

Covista's net margin of 12.8% is above the Services-educational services median of -3.7%.

Low debt

Debt is 35.2% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 82.8% five years ago to 35.2%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 90.7% of total debt.

Interest well covered

Operating income covers interest expense 8.9 times.

Short-term assets don't cover short-term debts

Current assets are 0.81 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.14; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Covista has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.