In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Covalon Technologies's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $0.48.
The industry rank for Covalon Technologies's Net-Net Working Capital or its related term are showing as below:
CVALF's Price-to-Net-Net-Working-Capital is ranked better than 75.47% of 424
companies
in the Medical Devices & Instruments industry
Industry Median: 6.76
vs CVALF: 3.21
Covalon Technologies (OTCPK:CVALF) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Covalon Technologies Net-Net Working Capital Related Terms
Covalon Technologies Net-Net Working Capital Historical Data
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The historical data trend for Covalon Technologies's Net-Net Working Capital can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Covalon Technologies Net-Net Working Capital Chart
CVALF vs ISRG, BDX, MDLN: Net-Net Working Capital Comparison
For the Medical Instruments & Supplies subindustry, Covalon Technologies's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Covalon Technologies Price-to-Net-Net-Working-Capital vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Covalon Technologies's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Covalon Technologies's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $0.48 mean?
Covalon Technologies (CVALF) has a Net-Net Working Capital of $0.48 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Covalon Technologies According to the industry distribution chart, Covalon Technologies ranks #104 out of 424 companies in the Medical Devices & Instruments industry, placing it in the top 24.5%.
Is Covalon Technologies' Net-Net Working Capital too high?
Covalon Technologies' current Net-Net Working Capital is $0.48. The Medical Devices & Instruments industry median Net-Net Working Capital is 6.76. Covalon Technologies' value of $0.48 is 92.9% below this industry median. Based on the distribution chart, Covalon Technologies ranks #104 out of 424 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Covalon Technologies has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Covalon Technologies' Net-Net Working Capital compare to ISRG and BDX?
According to the Medical Devices & Instruments industry distribution chart, Covalon Technologies ranks #104 out of 424 companies for Net-Net Working Capital. This places Covalon Technologies in the top 25% of its industry — outperforming the majority of peers. The industry median Net-Net Working Capital is 6.76. Covalon Technologies' value of $0.48 is 92.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Medical Devices & Instruments company?
The median Net-Net Working Capital among Medical Devices & Instruments companies is 6.76, based on 424 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Covalon Technologies's current Net-Net Working Capital of $0.48 is 92.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Covalon Technologies For the Medical Devices & Instruments industry, the median Net-Net Working Capital is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covalon Technologies's current Net-Net Working Capital is $0.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covalon Technologies stock overvalued right now?
Based on GuruFocus' analysis, Covalon Technologies (CVALF) is currently considered Fairly Valued. The stock's GF Value™ is $1.53, compared to a current price of $1.51 — trading 1.3% below its estimated fair value. The current Net-Net Working Capital is $0.48 and 92.9% below the Medical Devices & Instruments industry median of 6.76. Covalon Technologies' overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Covalon Technologies (CVALF), the current Net-Net Working Capital is $0.48 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Covalon Technologies (CVALF) Overvalued in 2026?
Based on GuruFocus' analysis, Covalon Technologies stock appears to be undervalued.
The current stock price of $1.51 is trading 1.3% below its estimated GF Value™ of $1.53.
GuruFocus considers Covalon Technologies to be Fairly Valued.
Key valuation signals for CVALF:
Net-Net Working Capital: $0.48
GF Value™: $1.53 vs. price of $1.51 (1.3% below fair value)
Industry Position: 92.9% below the Medical Devices & Instruments median (#104 of 424)
No single metric tells the full story. See the CVALF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Covalon Technologies Ltd is engaged in the business of researching, developing, manufacturing, and marketing patent-protected medical products that improve patient outcomes in the areas of infection management, wound care, and surgical procedures. The company generates revenue through development contracts, licensing agreements, distribution contracts, and sales. Its products include IV dressings, surgical site protection products, vascular access protection products, and others, and its solutions include primary dressing cover, vascular access technologies, advanced wound care, sensitive skin solutions, custom medical coatings, and patient resource support.
83GF Score
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