Covista Inc. (CVSA)
Valuation Overview•Is Covista Inc. Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
Moderate quality score of 69/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
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Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
CVSA demonstrates strong business quality with robust profitability and healthy margins. This is paired with a moderately leveraged but stable balance sheet.
The company demonstrates solid revenue growth (10.4% 3Y CAGR) paired with highly explosive earnings growth (49.8% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 19.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $511.5M | +9.3% | +10.4% | +16.6% | +0.6% | |
| EBITDA | $110.3M | — | +5.1% | — | — | |
| Net Income | $67.4M | +8.1% | +37.4% | — | — | |
| EPS (Diluted) | $1.95 | +23.4% | +49.8% | +38.1% | — | |
| Free Cash Flow | $76.4M | +36.6% | +33.3% | +20.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 57.4% | 56.7% | 54.1% | 52.6% |
| Operating Margin | 19.9% | 17.5% | 15.9% | 16.0% |
| Net Margin | 12.8% | 11.5% | 5.9% | 8.3% |
| FCF Margin | 17.7% | 17.3% | 12.3% | 13.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | $2.19 | $2.43 | +11.0% | ||
| Q4'25 | $1.57 | $1.75 | +11.5% | ||
| Q3'25 | $1.51 | $1.66 | +9.9% | ||
| Q2'25 | $1.63 | $1.92 | +17.8% | ||
| Q1'25 | $1.39 | $1.81 | +30.2% | ||
| Q4'24 | $1.14 | $1.29 | +13.2% | ||
| Q3'24 | $1.28 | $1.37 | +7.0% | ||
| Q2'24 | $1.16 | $1.50 | +29.3% |
Total return is +34.8% (1Y), outperforming the benchmark by +25.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +22.7% | +15.1% | — |
| 1Y | +34.8% | +25.1% | — |
| 3YCAGR | +32.4% | +13.4% | — |
| 5YCAGR | +31.3% | +21.9% | — |
| 10YCAGR | +18.9% | +5.7% | — |
The S&P 500 is at 29.9x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Covista Inc. (CVSA) valuation, health, and returns.
Covista Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +100.1% upside to DCF intrinsic value of $256.58)
Covista Inc. has multiple valuation anchors: DCF Intrinsic Value: $256.58 | Peer Relative Fair Value: $120.81 | Wall Street Analyst Target: $92.86 (implying -27.6% upside). A convergence of these signals offers higher conviction.
Covista Inc. displays good financial health with a composite quality score of 69/100, supported by a Altman Z-Score of 4.1 (safe zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 14.5%.
Covista Inc. returns capital via buybacks instead of dividends, carrying a 6.5% buyback yield and reducing outstanding shares by -6.8% in the last 12 months.
Covista Inc.'s current growth trajectory is Stable. The company achieved +9.3% 1Y revenue growth and +23.4% 1Y EPS growth, compared to its 3Y revenue CAGR of +10.4%.
Wall Street consensus is Buy based on 3 analysts, beating EPS expectations in 100% of recent quarters with a 16-quarter streak. The consensus price target represents a -27.6% change from current levels.
Investment risks for Covista Inc. include: -23.6% 1-year max drawdown. Volatility risk is characterized by a beta of -0.05x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.