VLN Fundamental Analysis - VELAN INC

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to VLN. VLN was compared to 22 industry peers in the Machinery industry. Both the profitability and the financial health of VLN get a neutral evaluation. Nothing too spectacular is happening here. VLN is valued expensive and it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year VLN was profitable.

VLN had a negative operating cash flow in the past year.

In the past 5 years VLN reported 4 times negative net income.

Of the past 5 years VLN 4 years had a positive operating cash flow.

1.2 Ratios

VLN has a better Return On Assets (0.51%) than 77.27% of its industry peers.

With a decent Return On Equity value of 0.95%, VLN is doing good in the industry, outperforming 77.27% of the companies in the same industry.

With a decent Return On Invested Capital value of 6.51%, VLN is doing good in the industry, outperforming 72.73% of the companies in the same industry.

		Industry Rank	Sector 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

1.3 Margins

The Profit Margin of VLN (0.46%) is better than 77.27% of its industry peers.

VLN has a Operating Margin of 5.37%. This is in the better half of the industry: VLN outperforms 72.73% of its industry peers.

VLN's Operating Margin has improved in the last couple of years.

VLN has a Gross Margin of 28.73%. This is comparable to the rest of the industry: VLN outperforms 54.55% of its industry peers.

VLN's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VLN is destroying value.

VLN has about the same amout of shares outstanding than it did 1 year ago.

Compared to 5 years ago, VLN has about the same amount of shares outstanding.

Compared to 1 year ago, VLN has an improved debt to assets ratio.

2.2 Solvency

VLN has an Altman-Z score of 3.30. This indicates that VLN is financially healthy and has little risk of bankruptcy at the moment.

Looking at the Altman-Z score, with a value of 3.30, VLN is in the better half of the industry, outperforming 77.27% of the companies in the same industry.

VLN has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.

Looking at the Debt to Equity ratio, with a value of 0.13, VLN is in the better half of the industry, outperforming 72.73% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.13
Debt/FCF	N/A
Altman-Z	3.3

ROIC/WACC0.72

WACC8.98%

2.3 Liquidity

VLN has a Current Ratio of 2.25. This indicates that VLN is financially healthy and has no problem in meeting its short term obligations.

VLN has a Current ratio of 2.25. This is in the better half of the industry: VLN outperforms 77.27% 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.

Looking at the Quick ratio, with a value of 1.10, VLN is in the better half of the industry, outperforming 68.18% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.25
Quick Ratio	1.1

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

VLN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 115.47%, which is quite impressive.

Looking at the last year, VLN shows a small growth in Revenue. The Revenue has grown by 3.02% in the last year.

Measured over the past years, VLN shows a decrease in Revenue. The Revenue has been decreasing by -4.50% on average per year.

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 123.33, which means the current valuation is very expensive for VLN.

The rest of the industry has a similar Price/Earnings ratio as VLN.

The average S&P500 Price/Earnings ratio is at 27.03. VLN is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	123.33
Fwd PE	N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VLN is valued cheaper than 95.45% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	6.77

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2YN/A

EPS Next 3YN/A

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5. Dividend

5.1 Amount

VLN has a Yearly Dividend Yield of 2.75%.

Compared to an average industry Dividend Yield of 9.01, VLN pays a better dividend. On top of this VLN pays more dividend than 95.45% of the companies listed in the same industry.

Compared to an average S&P500 Dividend Yield of 2.34, VLN has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.75%

5.2 History

The dividend of VLN decreases each year by -25.09%.

VLN has paid a dividend for at least 10 years, which is a reliable track record.

Dividend Growth(5Y)-25.09%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

VLN pays out 27.10% of its income as dividend. This is a sustainable payout ratio.

DP27.1%

EPS Next 2YN/A

EPS Next 3YN/A

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VELAN INC

TSX:VLN (8/22/2025, 7:00:00 PM)

14.8

+0.25 (+1.72%)

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 Cap319.53M

Analysts0

Price TargetN/A

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.75%

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 Rank	Sector Rank
PE	123.33
Fwd PE	N/A
P/S	0.63
P/FCF	N/A
P/OCF	N/A
P/B	1.29
P/tB	1.34
EV/EBITDA	6.77

EPS(TTM)0.12

EY0.81%

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)-9.5

FCFYN/A

OCF(TTM)-8.86

OCFYN/A

SpS23.53

BVpS11.49

TBVpS11.08

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector 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 Rank	Sector 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	3.3

F-Score5

WACC8.98%

ROIC/WACC0.72

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%

VELAN INC (VLN.CA) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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