Velan Inc. SV (VLN) AI Stock Analysis

• Market Cap: C$324.00M
• Dividend Yield: 0.01%
• Average Volume (3M): 12.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -5.20%
• EPS Growth: -658.62%
• Country: CA
• Employees: 1,617
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): -1.21
• Shares Outstanding: 6,019,000
• 10 Day Avg. Volume: 7,570
• 30 Day Avg. Volume: 12,823
• PEG Ratio: 0.10
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.78
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 21.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: C$14.50 ▼(-3.07%Downside)

Velan Inc. faces ongoing financial and valuation challenges, with declining profitability and a negative P/E ratio being significant concerns. Technical indicators show a lack of strong momentum, contributing to a cautious outlook. While corporate events indicate positive strategic moves, they do not sufficiently outweigh fundamental weaknesses.

Velan Inc. SV Business Overview & Revenue Model

Company Description

Velan Inc. SV (VLN) is a leading industrial manufacturer specializing in the design and production of a wide range of valves for various applications. With a strong presence in the industrial sector, Velan Inc. serves industries such as oil and gas, power generation, chemical processing, and water treatment. The company's core products include gate, globe, check, ball, butterfly, and engineered severe service valves, which are renowned for their durability and reliability in critical service environments.

How the Company Makes Money

Velan Inc. generates revenue primarily through the sale of its valve products to a diverse clientele across multiple industries. The company's revenue model is based on direct sales to industrial customers, as well as distribution through a network of authorized dealers and distributors. Key revenue streams include the sale of standard and custom-engineered valve solutions, aftermarket services such as maintenance and repair, and long-term contracts with major industrial operators. Significant partnerships with engineering, procurement, and construction (EPC) firms, as well as strategic alliances with global distributors, also contribute to Velan Inc.'s earnings by expanding its market reach and enhancing its service offerings.

Velan Inc. SV Financial Statement Overview

Summary

Velan Inc. SV faces challenges in revenue growth and profitability, as shown by declining margins and negative net income. While the balance sheet shows reduced leverage, the company's financial stability is weakened by lower equity. Cash flow improvements are a positive sign, yet overall performance is hindered by inconsistent financial metrics and operational challenges.

Income Statement

Velan Inc. SV has faced declining revenues over recent years, with a drop from $411 million in 2022 to $295 million in 2025. The gross profit margin has decreased from 32.8% in 2022 to 28.8% in 2025. EBIT and EBITDA margins have significantly declined, indicating operational challenges. The net profit margin is negative, highlighting ongoing profitability issues.

Balance Sheet

The company's debt-to-equity ratio has improved due to reduced total debt and lower stockholders' equity, suggesting less leverage. However, the equity ratio has decreased, indicating reduced financial stability. Return on Equity (ROE) is negative, reflecting the company's ongoing net losses.

Cash Flow

Free cash flow has turned positive in 2025, improving from negative figures in previous years. The operating cash flow to net income ratio is positive, suggesting some operational efficiency despite net losses. However, fluctuations in free cash flow growth rate pose a risk.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	295.20M	346.82M	370.43M	411.24M	302.06M
Gross Profit	84.92M	93.21M	112.47M	134.97M	80.54M
EBITDA	-72.80M	5.64M	-34.65M	50.61M	11.83M
Net Income	-75.50M	-19.74M	-55.46M	-10.26M	2.20M
Balance Sheet
Total Assets	501.97M	479.39M	477.86M	508.43M	580.83M
Cash, Cash Equivalents and Short-Term Investments	35.23M	41.72M	50.55M	62.74M	74.97M
Total Debt	24.88M	41.42M	40.91M	44.02M	84.05M
Total Liabilities	403.23M	296.13M	277.02M	242.92M	280.61M
Stockholders Equity	97.86M	182.18M	199.89M	264.82M	297.08M
Cash Flow
Free Cash Flow	15.85M	-4.94M	-6.07M	9.25M	-20.00M
Operating Cash Flow	26.52M	4.30M	522.00K	17.87M	-9.10M
Investing Cash Flow	-10.28M	-14.13M	1.76M	-26.00K	2.90M
Financing Cash Flow	-9.81M	-4.66M	-2.62M	-23.52M	33.10M

Velan Inc. SV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VLN, the sentiment is Positive. The current price of 14.96 is above the 20-day moving average (MA) of 14.60, above the 50-day MA of 14.66, and above the 200-day MA of 13.67, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 55.33 is Neutral, neither overbought nor oversold. The STOCH value of 80.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VLN.

Velan Inc. SV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$11.14B	15.76	5.26%	2.01%	3.16%	-25.01%
ENW	60 Neutral	C$49.49M	404.55	-10.19%	―	89.54%	―
REKO	59 Neutral	C$20.38M	―	-7.92%	―	-12.65%	-838.74%
BLDP	58 Neutral	$872.51M	―	-37.81%	―	-29.66%	-67.02%
DYA	49 Neutral	C$68.69M	―	-1898.77%	―	408.78%	-20.74%
VLN	47 Neutral	C$324.00M	―	-26.06%	0.01%	-5.20%	-658.62%
PYR	39 Underperform	C$76.80M	―	-5701.32%	―	14.45%	76.75%

Velan Inc. SV Corporate Events

Velan Inc. Announces Successful Election of Directors

Velan Inc. announced the successful election of its director nominees during the Annual Meeting of Shareholders held in Montréal, Québec. The election results showed overwhelming support for the nominees, with all directors receiving over 98% of the votes in favor. This outcome reflects strong shareholder confidence in the company’s leadership and strategic direction, which is crucial for maintaining its competitive position in the industrial valve manufacturing sector.

Velan Inc. Reports Robust First Quarter Results and Strategic Financial Positioning

Velan Inc. reported a strong first quarter for fiscal 2026, with an 18.6% increase in sales and a significant improvement in gross profit margin. The company achieved a net income of $17.8 million and a consolidated net income of $77.2 million, bolstered by the sale of its French subsidiaries. With cash reserves at a five-year high and a growing backlog, Velan is reassessing its capital allocation strategy to support growth and maximize shareholder returns, reflected in a higher quarterly dividend.

Velan Inc. to Announce Q1 2025 Financial Results

Velan Inc. has announced that it will release its financial results for the first quarter ended May 31, 2025, on July 10, 2025. The company will host an analyst call the following day to discuss these results, providing stakeholders with insights into its financial performance and strategic direction.

Velan Inc. Strengthens Financial Position with Robust Fiscal 2025 Results

Velan Inc. reported significant improvements in its fiscal 2025 financial results, with a 14.1% increase in sales from continuing operations and a notable rise in gross profit and adjusted EBITDA. The company has strengthened its balance sheet by divesting French assets and asbestos-related liabilities, enhancing its financial position to support long-term growth and strategic acquisitions. The announcement of a special dividend underscores its commitment to shareholder value, while its focus on clean energy markets positions it for continued success.