Velan Inc. SV (VLN) AI Stock Analysis

• Market Cap: C$411.21M
• Dividend Yield: 3.06%
• Average Volume (3M): 7.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -18.71%
• EPS Growth: -845.27%
• Country: CA
• Employees: 1,617
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.15
• Shares Outstanding: 6,019,000
• 10 Day Avg. Volume: 9,119
• 30 Day Avg. Volume: 7,261
• PEG Ratio: -0.01
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 14.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$19.00 ▲(2.59% Upside)

Velan Inc.'s stock score reflects significant financial challenges, particularly in cash flow and profitability, despite a stable balance sheet. Positive technical indicators and strategic progress in the nuclear sector provide some optimism, but valuation concerns due to negative earnings weigh heavily on the score.

Positive Factors

Strategic Expansion

The new plant in Saudi Arabia positions Velan to tap into the largest market for oilfield valves, enhancing its market presence and growth potential in the Middle East.

Nuclear Sector Growth

Strong positioning in the nuclear sector with key contracts supports long-term growth prospects, leveraging industry trends towards clean energy.

Order Backlog Growth

A growing order backlog indicates sustained demand and potential revenue stability, providing a buffer against short-term market fluctuations.

Negative Factors

Declining Revenue

Declining sales due to rescheduled deliveries and tariffs suggest challenges in maintaining revenue growth, impacting long-term financial health.

Decreased Profitability

A decrease in gross profit highlights issues with cost management and product mix, affecting the company's ability to sustain margins.

Net Loss Increase

An increasing net loss reflects ongoing profitability challenges, which could strain financial resources and limit future investment capacity.

Velan Inc. SV Business Overview & Revenue Model

Company Description

Velan Inc. SV (VLN) is a leading manufacturer and supplier of high-performance valves and valve automation products for industrial applications. The company operates primarily in the energy, water, and industrial sectors, providing solutions designed for critical applications in oil and gas, power generation, and water treatment. Velan's core product offerings include a wide range of valves such as gate, globe, check, and ball valves, along with valve automation solutions that enhance operational efficiency and safety.

How the Company Makes Money

Velan Inc. generates revenue through the sale of its valve products and related services. The company's primary revenue streams include direct sales of valves to end-users in various industries, aftermarket services that include maintenance, repair, and replacement parts, and valve automation solutions that cater to the growing demand for automated systems in industrial processes. Additionally, Velan has established partnerships with distributors and engineering firms, which help to expand its market reach and increase sales. The company also benefits from long-term contracts with major industrial clients, providing a stable revenue base.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	321.59M	295.20M	346.82M	370.43M	411.24M	371.63M
Gross Profit	90.27M	84.92M	93.21M	112.47M	134.97M	88.13M
EBITDA	-74.34M	-72.80M	5.64M	-34.65M	50.61M	7.53M
Net Income	249.00K	-75.50M	-19.74M	-55.46M	-10.26M	-16.60M
Balance Sheet
Total Assets	315.79M	501.97M	479.39M	477.86M	508.43M	538.50M
Cash, Cash Equivalents and Short-Term Investments	50.09M	35.23M	41.72M	50.55M	62.74M	75.95M
Total Debt	28.55M	24.88M	41.42M	40.91M	44.02M	80.34M
Total Liabilities	141.84M	403.23M	296.13M	277.02M	242.92M	253.63M
Stockholders Equity	173.14M	97.86M	182.18M	199.89M	264.82M	281.18M
Cash Flow
Free Cash Flow	-180.17M	15.85M	-4.94M	-6.07M	9.25M	-2.44M
Operating Cash Flow	-170.48M	26.52M	4.30M	522.00K	17.87M	9.64M
Investing Cash Flow	168.76M	-10.28M	-14.13M	1.76M	-26.00K	-11.68M
Financing Cash Flow	-14.40M	-9.81M	-4.66M	-2.62M	-23.52M	-6.30M

Velan Inc. SV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.52
• 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 18.52 is below the 20-day moving average (MA) of 18.55, above the 50-day MA of 17.84, and above the 200-day MA of 15.75, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 64.67 is Neutral, neither overbought nor oversold. The STOCH value of 93.15 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
ATS	66 Neutral	C$3.88B	-729.50	-0.27%	―	-5.59%	-104.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VLN	56 Neutral	C$411.21M	-3.09	-27.70%	3.06%	-18.71%	-845.27%
REKO	52 Neutral	C$21.53M	16.38	3.19%	―	0.38%	―
ENW	49 Neutral	C$47.49M	-93.02	-14.33%	―	69.04%	80.18%
BLDP	47 Neutral	$1.13B	-6.80	-18.07%	―	1.18%	62.71%
PYR	46 Neutral	C$60.64M	-5.92	―	―	-6.83%	46.97%

Velan Inc. SV Corporate Events

Velan Sets January 14 Date to Release Q3 2025 Results and Hold Analyst Call

Velan Inc. will release its financial results for the third quarter ended November 30, 2025, on January 14, 2026, followed by an analyst conference call on January 15 to discuss the performance. The company is providing multiple access options for investors and analysts, including phone dial-in, instant phone registration, and a webcast with replay availability, underscoring its ongoing efforts to maintain transparent communications with the financial community and other stakeholders.

The most recent analyst rating on (TSE:VLN) stock is a Hold with a C$16.50 price target. To see the full list of analyst forecasts on Velan Inc. SV stock, see the TSE:VLN Stock Forecast page.

Velan Inc. Secures Major Valve Order for Pickering Nuclear Station

Velan Inc. has secured a significant order exceeding $20 million CAD from Ontario Power Generation to supply Emergency Cooling Injection valves for the refurbishment of three reactors at the Pickering Nuclear Generation Station. This order underscores Velan’s longstanding commitment to safety and reliability in the nuclear industry, reinforcing its position as a trusted supplier and supporting global efforts to expand clean energy capacity.

The most recent analyst rating on (TSE:VLN) stock is a Hold with a C$16.50 price target. To see the full list of analyst forecasts on Velan Inc. SV stock, see the TSE:VLN Stock Forecast page.

Velan Inc. Reports Second Quarter Fiscal 2026 Results Amid Strategic Adjustments

Velan Inc. reported its financial results for the second quarter of fiscal 2026, showing a decrease in sales to $67.6 million due to rescheduled orders and global tariff changes. Despite a net loss of $1.7 million, the company achieved a positive operating income and maintains a strong financial position with $29.5 million in net cash and a solid backlog of $285.8 million. The company is actively exploring capital structure options to support its growth ambitions and maximize shareholder value, following the resolution of asbestos-related liabilities and the sale of its French assets.

The most recent analyst rating on (TSE:VLN) stock is a Hold with a C$14.50 price target. To see the full list of analyst forecasts on Velan Inc. SV stock, see the TSE:VLN Stock Forecast page.