VELAN INC(TSX:VLN) stock Fundamental Analysis

Fundamental Rating

Overall VLN gets a fundamental rating of 3 out of 10. We evaluated VLN against 21 industry peers in the Machinery industry. The financial health of VLN is average, but there are quite some concerns on its profitability. VLN has a expensive valuation and it also scores bad on growth.

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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.

1.2 Ratios

VLN has a worse Return On Assets (-12.98%) than 66.67% of its industry peers.

The Return On Equity of VLN (-57.19%) is worse than 71.43% of its industry peers.

VLN has a Return On Invested Capital of 8.23%. This is in the better half of the industry: VLN outperforms 71.43% of its industry peers.

VLN had an Average Return On Invested Capital over the past 3 years of 4.92%. This is significantly below the industry average of 9.95%.

The 3 year average ROIC (4.92%) for VLN is below the current ROIC(8.23%), indicating increased profibility in the last year.

		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

With a decent Operating Margin value of 5.94%, VLN is doing good in the industry, outperforming 66.67% of the companies in the same industry.

Looking at the Gross Margin, with a value of 31.24%, VLN is in the better half of the industry, outperforming 61.90% of the companies in the same industry.

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

		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%

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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.

Compared to 1 year ago, VLN has about the same amount of shares outstanding.

The number of shares outstanding for VLN remains at a similar level compared to 5 years ago.

The debt/assets ratio for VLN is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.78, we must say that VLN is in the distress zone and has some risk of bankruptcy.

Looking at the Altman-Z score, with a value of 1.78, VLN is in line with its industry, outperforming 47.62% of the companies in the same industry.

The Debt to FCF ratio of VLN is 1.07, which is an excellent value as it means it would take VLN, only 1.07 years of fcf income to pay off all of its debts.

Looking at the Debt to FCF ratio, with a value of 1.07, VLN belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.

A Debt/Equity ratio of 0.21 indicates that VLN is not too dependend on debt financing.

VLN has a Debt to Equity ratio of 0.21. This is in the better half 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/WACC0.97

WACC8.52%

2.3 Liquidity

A Current Ratio of 1.34 indicates that VLN should not have too much problems paying its short term obligations.

VLN has a worse Current ratio (1.34) than 80.95% of its industry peers.

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.

VLN has a Quick ratio of 0.83. This is comparable to the rest of the industry: VLN outperforms 42.86% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.34
Quick Ratio	0.83

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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 slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.82%.

VLN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.41%.

VLN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.12% yearly.

EPS 1Y (TTM)-1.82%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-754.42%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for VLN. In the last year negative earnings were reported.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VLN is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.

85.71% of the companies in the same industry are more expensive than VLN, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	9.29
EV/EBITDA	6.91

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

With a yearly dividend of 0.77%, VLN is not a good candidate for dividend investing.

Compared to an average industry Dividend Yield of 25.35, VLN pays a bit more dividend than its industry peers.

With a Dividend Yield of 0.77, VLN pays less dividend than the S&P500 average, which is at 2.51.

		Industry Rank	Sector Rank
Dividend Yield	0.77%

5.2 History

The dividend of VLN decreases each year by -30.84%.

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

VLN has decreased its dividend 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

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VELAN INC

TSX:VLN (4/21/2025, 7:00:00 PM)

15.78

+0.28 (+1.81%)

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupCapital Goods

GICS IndustryMachinery

Earnings (Last)01-14 2025-01-14

Earnings (Next)05-15 2025-05-15

Inst Owners13.02%

Inst Owner ChangeN/A

Ins Owners0.44%

Ins Owner ChangeN/A

Market Cap340.69M

Analysts0

Price TargetN/A

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	0.77%

Yearly Dividend0.03

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 Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S	0.6
P/FCF	9.29
P/OCF	6.21
P/B	2.12
P/tB	2.27
EV/EBITDA	6.91

EPS(TTM)-4.25

EYN/A

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)1.7

FCFY10.76%

OCF(TTM)2.54

OCFY16.11%

SpS26.2

BVpS7.45

TBVpS6.96

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

WACC8.52%

ROIC/WACC0.97

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)-1.82%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-754.42%

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

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

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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