VELAN INC (VLN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:VLN - CA9229321083 - Common Stock
15.33 CAD
+0.32 (+2.13%)
Taking everything into account, VLN scores 4 out of 10 in our fundamental rating. VLN was compared to 22 industry peers in the Machinery industry. VLN has only an average score on both its financial health and profitability. VLN has a expensive valuation and it also scores bad on growth.
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.
- VLN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 0.08%, VLN belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- VLN's Return On Equity of 0.14% is amongst the best of the industry. VLN outperforms 86.36% of its industry peers.
- VLN has a Return On Invested Capital of 5.10%. This is in the better half of the industry: VLN outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.08% | ||
| ROE | 0.14% | ||
| ROIC | 5.1% |
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
- VLN has a better Profit Margin (0.08%) than 86.36% of its industry peers.
- With a decent Operating Margin value of 5.15%, VLN is doing good in the industry, outperforming 68.18% of the companies in the same industry.
- In the last couple of years the Operating Margin of VLN has grown nicely.
- The Gross Margin of VLN (28.48%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of VLN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.15% | ||
| PM (TTM) | 0.08% | ||
| GM | 28.48% |
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%
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.
- VLN has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for VLN has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.23 indicates that VLN is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.23, VLN belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- A Debt/Equity ratio of 0.15 indicates that VLN is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.15, VLN belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.23 |
ROIC/WACC0.58
WACC8.8%
2.3 Liquidity
- VLN has a Current Ratio of 2.37. This indicates that VLN is financially healthy and has no problem in meeting its short term obligations.
- VLN has a Current ratio of 2.37. This is in the better half of the industry: VLN outperforms 77.27% of its industry peers.
- VLN has a Quick Ratio of 1.08. This is a normal value and indicates that VLN is financially healthy and should not expect problems in meeting its short term obligations.
- VLN has a Quick ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 103.82% over the past year.
- The Revenue for VLN has decreased by -28.56% in the past year. This is quite bad
- The Revenue has been decreasing by -4.50% on average over the past years.
EPS 1Y (TTM)103.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-175%
Revenue 1Y (TTM)-28.56%
Revenue growth 3Y-10.46%
Revenue growth 5Y-4.5%
Sales Q2Q%-51.22%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 511.00, which means the current valuation is very expensive for VLN.
- VLN's Price/Earnings ratio is in line with the industry average.
- VLN is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 511 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- VLN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VLN is cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
- VLN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.03%, VLN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.96, VLN pays a better dividend. On top of this VLN pays more dividend than 95.45% of the companies listed in the same industry.
- VLN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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
- 2898.39% of the earnings are spent on dividend by VLN. This is not a sustainable payout ratio.
DP2898.39%
EPS Next 2YN/A
EPS Next 3YN/A
VELAN INC / VLN.CA FAQ
Can you provide the ChartMill fundamental rating for VELAN INC?
ChartMill assigns a fundamental rating of 4 / 10 to VLN.CA.
What is the valuation status for VLN stock?
ChartMill assigns a valuation rating of 2 / 10 to VELAN INC (VLN.CA). This can be considered as Overvalued.
Can you provide the profitability details for VELAN INC?
VELAN INC (VLN.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for VLN stock?
The Price/Earnings (PE) ratio for VELAN INC (VLN.CA) is 511 and the Price/Book (PB) ratio is 1.38.
Is the dividend of VELAN INC sustainable?
The dividend rating of VELAN INC (VLN.CA) is 4 / 10 and the dividend payout ratio is 2898.39%.