VELAN INC (VLN.CA) Stock Fundamental Analysis
TSX:VLN - Toronto Stock Exchange - CA9229321083 - Common Stock - Currency: CAD
Overall VLN gets a fundamental rating of 3 out of 10. We evaluated VLN against 21 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year VLN has reported negative net income.
VLN had a positive 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 Return On Assets of -12.98%. This is in the lower half of the industry: VLN underperforms 71.43% of its industry peers.
With a Return On Equity value of -57.19%, VLN is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 8.23%, VLN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
VLN had an Average Return On Invested Capital over the past 3 years of 4.92%. This is significantly below the industry average of 10.25%.
The last Return On Invested Capital (8.23%) for VLN is above the 3 year average (4.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.98% | ||
| ROE | -57.19% | ||
| ROIC | 8.23% |
ROA(3y)-6.63%
ROA(5y)-4.49%
ROE(3y)-15.52%
ROE(5y)-10.28%
ROIC(3y)4.92%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of VLN (5.94%) is comparable to the rest of the industry.
VLN has a better Gross Margin (31.24%) than 61.90% of its industry peers.
In the last couple of years the Gross Margin of VLN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.94% | ||
| PM (TTM) | N/A | ||
| GM | 31.24% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.37%
GM growth 5Y2.87%
2. Health
2.1 Basic Checks
VLN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
2.2 Solvency
VLN has an Altman-Z score of 1.78. This is a bad value and indicates that VLN is not financially healthy and even has some risk of bankruptcy.
VLN has a Altman-Z score (1.78) which is in line with its industry peers.
VLN has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
VLN has a better Debt to FCF ratio (1.07) than 95.24% of its industry peers.
VLN has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
VLN's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. VLN outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.9
WACC9.16%
2.3 Liquidity
VLN has a Current Ratio of 1.34. 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 Current ratio value of 1.34, VLN is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
VLN has a Quick Ratio of 1.34. This is a bad value and indicates that VLN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of VLN (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for VLN have decreased by -1.83% in the last year.
The Revenue has grown by 18.41% in the past year. This is quite good.
Measured over the past years, VLN shows a decrease in Revenue. The Revenue has been decreasing by -1.12% on average per year.
EPS 1Y (TTM)-1.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-754.5%
Revenue 1Y (TTM)18.41%
Revenue growth 3Y4.71%
Revenue growth 5Y-1.12%
Sales Q2Q%-9.32%
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
VLN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VLN indicates a rather cheap valuation: VLN is cheaper than 85.71% of the companies listed in the same industry.
VLN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VLN is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 6.85 |
4.3 Compensation for Growth
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 of 0.77%, VLN is not a good candidate for dividend investing.
VLN's Dividend Yield is a higher than the industry average which is at 1.71.
Compared to an average S&P500 Dividend Yield of 2.27, VLN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
5.3 Sustainability
DP0%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:VLN (2/21/2025, 7:00:00 PM)
16
+0.49 (+3.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners13.02%
Inst Owner ChangeN/A
Ins Owners0.44%
Ins Owner ChangeN/A
Market Cap345.44M
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend0.02
Dividend Growth(5Y)-30.84%
DP0%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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 | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.6 | ||
| P/FCF | 9.21 | ||
| P/OCF | 6.16 | ||
| P/B | 2.1 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 6.85 |
EPS(TTM)-4.34
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)1.74
FCFY10.85%
OCF(TTM)2.6
OCFY16.25%
SpS26.79
BVpS7.62
TBVpS7.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.98% | ||
| ROE | -57.19% | ||
| ROCE | 11.59% | ||
| ROIC | 8.23% | ||
| ROICexc | 9.88% | ||
| ROICexgc | 10.33% | ||
| OM | 5.94% | ||
| PM (TTM) | N/A | ||
| GM | 31.24% | ||
| FCFM | 6.48% |
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-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 134.1% | ||
| Cap/Sales | 3.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.78 |
F-Score6
WACC9.16%
ROIC/WACC0.9
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)-1.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-754.5%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.41%
Revenue growth 3Y4.71%
Revenue growth 5Y-1.12%
Sales Q2Q%-9.32%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y144.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y281%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y597.45%
OCF growth 3YN/A
OCF growth 5YN/A