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VELAN INC (VLN.CA) Stock Fundamental Analysis

TSX:VLN - Toronto Stock Exchange - CA9229321083 - Common Stock - Currency: CAD

14.27  -0.66 (-4.42%)

Fundamental Rating

3

Overall VLN gets a fundamental rating of 3 out of 10. We evaluated VLN against 22 industry peers in the Machinery industry. VLN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VLN has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

VLN had negative earnings in the past year.
In the past year VLN had a positive cash flow from operations.
VLN had negative earnings in 4 of the past 5 years.
VLN had a positive operating cash flow in 4 of the past 5 years.
VLN.CA Yearly Net Income VS EBIT VS OCF VS FCFVLN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M

1.2 Ratios

Looking at the Return On Assets, with a value of -2.07%, VLN is in line with its industry, outperforming 40.91% of the companies in the same industry.
The Return On Equity of VLN (-5.69%) is comparable to the rest of the industry.
VLN has a Return On Invested Capital (0.76%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for VLN is significantly below the industry average of 11.38%.
The last Return On Invested Capital (0.76%) for VLN is well below the 3 year average (4.92%), which needs to be investigated, but indicates that VLN had better years and this may not be a problem.
Industry RankSector Rank
ROA -2.07%
ROE -5.69%
ROIC 0.76%
ROA(3y)-6.63%
ROA(5y)-4.49%
ROE(3y)-15.52%
ROE(5y)-10.28%
ROIC(3y)4.92%
ROIC(5y)N/A
VLN.CA Yearly ROA, ROE, ROICVLN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -10 -20

1.3 Margins

VLN's Operating Margin of 0.97% is in line compared to the rest of the industry. VLN outperforms 45.45% of its industry peers.
VLN has a Gross Margin (28.07%) which is in line with its industry peers.
In the last couple of years the Gross Margin of VLN has grown nicely.
Industry RankSector Rank
OM 0.97%
PM (TTM) N/A
GM 28.07%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.37%
GM growth 5Y2.87%
VLN.CA Yearly Profit, Operating, Gross MarginsVLN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VLN is destroying value.
Compared to 1 year ago, VLN has about the same amount of shares outstanding.
Compared to 5 years ago, VLN has about the same amount of shares outstanding.
Compared to 1 year ago, VLN has a worse debt to assets ratio.
VLN.CA Yearly Shares OutstandingVLN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
VLN.CA Yearly Total Debt VS Total AssetsVLN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.2 Solvency

An Altman-Z score of 2.17 indicates that VLN is not a great score, but indicates only limited risk for bankruptcy at the moment.
VLN has a Altman-Z score of 2.17. This is in the better half of the industry: VLN outperforms 68.18% of its industry peers.
The Debt to FCF ratio of VLN is 1.89, which is an excellent value as it means it would take VLN, only 1.89 years of fcf income to pay off all of its debts.
VLN has a better Debt to FCF ratio (1.89) than 77.27% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that VLN is not too dependend on debt financing.
VLN has a better Debt to Equity ratio (0.18) than 72.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1.89
Altman-Z 2.17
ROIC/WACC0.08
WACC9.12%
VLN.CA Yearly LT Debt VS Equity VS FCFVLN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 2.55 indicates that VLN has no problem at all paying its short term obligations.
VLN has a better Current ratio (2.55) than 81.82% of its industry peers.
A Quick Ratio of 1.13 indicates that VLN should not have too much problems paying its short term obligations.
VLN has a Quick ratio of 1.13. This is in the better half of the industry: VLN outperforms 72.73% of its industry peers.
Industry RankSector Rank
Current Ratio 2.55
Quick Ratio 1.13
VLN.CA Yearly Current Assets VS Current LiabilitesVLN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

1

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 81.19% over the past year.
VLN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.64%.
The Revenue has been decreasing by -1.12% on average over the past years.
EPS 1Y (TTM)81.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%105.71%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y4.71%
Revenue growth 5Y-1.12%
Sales Q2Q%22.82%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
VLN.CA Yearly Revenue VS EstimatesVLN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
VLN.CA Yearly EPS VS EstimatesVLN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2

4. Valuation

4.1 Price/Earnings Ratio

VLN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
VLN.CA Price Earnings VS Forward Price EarningsVLN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0 0 0 0 0 0 0

4.2 Price Multiples

VLN's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VLN indicates a rather cheap valuation: VLN is cheaper than 81.82% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.6
EV/EBITDA 13.19
VLN.CA Per share dataVLN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

3

5. Dividend

5.1 Amount

VLN has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 20.81, VLN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.79, VLN pays less dividend than the S&P500 average, which is at 2.30.
Industry RankSector Rank
Dividend Yield 0.79%

5.2 History

The dividend of VLN decreases each year by -30.84%.
VLN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of VLN decreased recently.
Dividend Growth(5Y)-30.84%
Div Incr Years0
Div Non Decr Years1
VLN.CA Yearly Dividends per shareVLN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 2023 2025 0 0 0 0 0

5.3 Sustainability

DP0%
EPS Next 2YN/A
EPS Next 3YN/A
VLN.CA Yearly Income VS Free CF VS DividendVLN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M -40M

VELAN INC

TSX:VLN (2/11/2025, 7:00:00 PM)

14.27

-0.66 (-4.42%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-14 2025-01-14
Earnings (Next)05-14 2025-05-14
Inst Owners15.95%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap308.09M
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.79%
Yearly Dividend0.02
Dividend Growth(5Y)-30.84%
DP0%
Div Incr Years0
Div Non Decr Years1
Ex-Date02-14 2025-02-14 (0.03)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.57
P/FCF 10.6
P/OCF 7.21
P/B 1.19
P/tB 1.3
EV/EBITDA 13.19
EPS(TTM)-0.68
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)1.35
FCFY9.44%
OCF(TTM)1.98
OCFY13.86%
SpS24.88
BVpS12.04
TBVpS10.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.07%
ROE -5.69%
ROCE 1.07%
ROIC 0.76%
ROICexc 0.89%
ROICexgc 0.94%
OM 0.97%
PM (TTM) N/A
GM 28.07%
FCFM 5.41%
ROA(3y)-6.63%
ROA(5y)-4.49%
ROE(3y)-15.52%
ROE(5y)-10.28%
ROIC(3y)4.92%
ROIC(5y)N/A
ROICexc(3y)5.88%
ROICexc(5y)N/A
ROICexgc(3y)6.23%
ROICexgc(5y)N/A
ROCE(3y)6.85%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.37%
GM growth 5Y2.87%
F-Score4
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1.89
Debt/EBITDA 2.25
Cap/Depr 84.54%
Cap/Sales 2.54%
Interest Coverage 250
Cash Conversion 200.4%
Profit Quality N/A
Current Ratio 2.55
Quick Ratio 1.13
Altman-Z 2.17
F-Score4
WACC9.12%
ROIC/WACC0.08
Cap/Depr(3y)72.72%
Cap/Depr(5y)79.71%
Cap/Sales(3y)2.18%
Cap/Sales(5y)2.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)81.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%105.71%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.64%
Revenue growth 3Y4.71%
Revenue growth 5Y-1.12%
Sales Q2Q%22.82%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y108.01%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y430.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3403.17%
OCF growth 3YN/A
OCF growth 5YN/A