Logo image of VLN.CA

VELAN INC (VLN.CA) Stock Fundamental Analysis

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

14.96  -0.05 (-0.33%)

Fundamental Rating

4

VLN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Machinery industry. VLN has only an average score on both its financial health and profitability. VLN does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

Quickly go to:

5

1. Profitability

1.1 Basic Checks

VLN had positive earnings in the past year.
In the past year VLN has reported a negative 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 2025 0 20M -20M 40M -40M -60M

1.2 Ratios

VLN's Return On Assets of 0.51% is fine compared to the rest of the industry. VLN outperforms 75.00% of its industry peers.
With a decent Return On Equity value of 0.95%, VLN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.51%, VLN is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Industry RankSector Rank
ROA 0.51%
ROE 0.95%
ROIC 6.51%
ROA(3y)-10.25%
ROA(5y)-6.88%
ROE(3y)-38.58%
ROE(5y)-24.55%
ROIC(3y)N/A
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 2025 0 -20 -40 -60

1.3 Margins

Looking at the Profit Margin, with a value of 0.46%, VLN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
VLN's Operating Margin of 5.37% is fine compared to the rest of the industry. VLN outperforms 70.00% of its industry peers.
In the last couple of years the Operating Margin of VLN has grown nicely.
With a Gross Margin value of 28.73%, VLN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
VLN's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 5.37%
PM (TTM) 0.46%
GM 28.73%
OM growth 3Y-14.43%
OM growth 5Y51.1%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.03%
GM growth 5Y3.94%
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 2025 0 10 -10 20 -20 30

More info and screens

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VLN is destroying value.
VLN has about the same amout of shares outstanding than it did 1 year ago.
VLN has about the same amout of shares outstanding than it did 5 years ago.
VLN has a better debt/assets ratio than last year.
VLN.CA Yearly Shares OutstandingVLN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 100M 200M 300M 400M 500M

2.2 Solvency

VLN has an Altman-Z score of 3.31. This indicates that VLN is financially healthy and has little risk of bankruptcy at the moment.
VLN has a better Altman-Z score (3.31) than 90.00% of its industry peers.
VLN has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.13, VLN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF N/A
Altman-Z 3.31
ROIC/WACC0.75
WACC8.68%
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 2025 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 2.25 indicates that VLN has no problem at all paying its short term obligations.
VLN has a Current ratio of 2.25. This is amongst the best in the industry. VLN outperforms 85.00% of its industry peers.
VLN has a Quick Ratio of 1.10. This is a normal value and indicates that VLN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.10, VLN perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.25
Quick Ratio 1.1
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 2025 100M 200M 300M 400M

More info and screens

1

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 115.47% over the past year.
VLN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.02%.
The Revenue has been decreasing by -4.50% on average over the past years.
EPS 1Y (TTM)115.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%7072.66%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-10.46%
Revenue growth 5Y-4.5%
Sales Q2Q%-6.8%

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 2025 100M 200M 300M 400M

More info and screens

1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 124.67, the valuation of VLN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as VLN.
When comparing the Price/Earnings ratio of VLN to the average of the S&P500 Index (27.93), we can say VLN is valued expensively.
Industry RankSector Rank
PE 124.67
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

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VLN is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.92
VLN.CA Per share dataVLN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

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

More info and screens

5

5. Dividend

5.1 Amount

VLN has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.83, VLN pays a better dividend. On top of this VLN pays more dividend than 95.00% of the companies listed in the same industry.
VLN's Dividend Yield is comparable with the S&P500 average which is at 2.32.
Industry RankSector Rank
Dividend Yield 2.67%

5.2 History

The dividend of VLN decreases each year by -25.09%.
VLN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-25.09%
Div Incr Years0
Div Non Decr Years0
VLN.CA Yearly Dividends per shareVLN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 2023 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

27.10% of the earnings are spent on dividend by VLN. This is a low number and sustainable payout ratio.
DP27.1%
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 2025 0 20M -20M -40M -60M
VLN.CA Dividend Payout.VLN.CA Dividend Payout, showing the Payout Ratio.VLN.CA Dividend Payout.PayoutRetained Earnings

More info and screens

VELAN INC

TSX:VLN (7/28/2025, 7:00:00 PM)

14.96

-0.05 (-0.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)07-10 2025-07-10
Earnings (Next)10-08 2025-10-08
Inst Owners20.85%
Inst Owner ChangeN/A
Ins Owners0.44%
Ins Owner ChangeN/A
Market Cap322.99M
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.67%
Yearly Dividend0.03
Dividend Growth(5Y)-25.09%
DP27.1%
Div Incr Years0
Div Non Decr Years0
Ex-Date08-15 2025-08-15 (0.1)
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 124.67
Fwd PE N/A
P/S 0.64
P/FCF N/A
P/OCF N/A
P/B 1.31
P/tB 1.36
EV/EBITDA 6.92
EPS(TTM)0.12
EY0.8%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-9.43
FCFYN/A
OCF(TTM)-8.8
OCFYN/A
SpS23.35
BVpS11.4
TBVpS10.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.51%
ROE 0.95%
ROCE 9.18%
ROIC 6.51%
ROICexc 8.95%
ROICexgc 9.33%
OM 5.37%
PM (TTM) 0.46%
GM 28.73%
FCFM N/A
ROA(3y)-10.25%
ROA(5y)-6.88%
ROE(3y)-38.58%
ROE(5y)-24.55%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y11.55%
ROICexcg growth 5Y80.85%
ROICexc growth 3Y11.36%
ROICexc growth 5Y80.71%
OM growth 3Y-14.43%
OM growth 5Y51.1%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.03%
GM growth 5Y3.94%
F-Score5
Asset Turnover1.1
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF N/A
Debt/EBITDA 0.79
Cap/Depr 112.54%
Cap/Sales 2.72%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.25
Quick Ratio 1.1
Altman-Z 3.31
F-Score5
WACC8.68%
ROIC/WACC0.75
Cap/Depr(3y)90.27%
Cap/Depr(5y)86.44%
Cap/Sales(3y)2.87%
Cap/Sales(5y)2.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)115.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%7072.66%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-10.46%
Revenue growth 5Y-4.5%
Sales Q2Q%-6.8%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1075.69%
EBIT growth 3Y-23.38%
EBIT growth 5Y44.31%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2181.9%
FCF growth 3Y19.67%
FCF growth 5YN/A
OCF growth 1Y-1069.07%
OCF growth 3Y14.08%
OCF growth 5Y22.44%