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Velan Inc. SV (TSE:VLN)
TSX:VLN
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Velan Inc. SV
(TSX:VLN)
62Neutral
Velan Inc. SV (VLN) vs. S&P 500 (SPY)
Market Cap
C$351.84M
Dividend Yield0.19%
Average Volume (3M)6.82K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth7.64%
EPS Growth-2.26%
CountryCA
Employees1,617
SectorIndustrials
Sector Strength81
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-3.96
Shares Outstanding6,019,000
10 Day Avg. Volume7,229
30 Day Avg. Volume6,819
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.65
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.46
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Velan Inc. SV Business Overview & Revenue Model
Company DescriptionVelan Inc. designs, manufactures, and markets industrial valves worldwide. It offers cryogenic valves comprising cast steel cryogenic, small forged cryogenic, cryogenic triple-offset, memoryseal ball, and cryogenic control valves; gate, globe, and check valves, including pressure seal, cast steel, small forged, dual-plate check, bolted bonnet high pressure, cast stainless steel corrosion resistant, bonnetless, and knife gate valves, as well as maintenance valves for nuclear service; and quarter-turn valves, such as ball, metal-seated ball, high performance three-piece ball, general purpose ball, triple-offset, high performance cryogenic butterfly, coker ball, and cap-tight batch digester capping valves. The company also provides cast and small forged hydrofluoric acid valves; and bellows seal bolted bonnet high pressure, seal cast steel, and seal API small forged valves. In addition, it offers bimetallic and thermodynamic steam traps. The company serves nuclear power, power, oil and gas, refining, chemical, pulp and paper, marine, mining, LNG and cryogenics, and water and wastewater sectors. It primarily sells its products through independent third-party distributors and sales agents. The company was formerly known as Velan Engineering Ltd. and changed its name to Velan Inc. in February 1981. Velan Inc. was founded in 1950 and is headquartered in Montréal, Canada.
How the Company Makes MoneyVelan Inc. generates revenue primarily through the sale of its industrial valve products to various industries worldwide. The company's revenue streams are primarily composed of product sales to end-users, distributors, and through direct contracts with significant players in sectors like oil and gas and power generation. Velan also benefits from long-term supply agreements and strategic partnerships with major industrial companies, which ensure steady demand for its products. Additionally, the company invests in research and development to continuously innovate and improve its product offerings, helping to maintain a competitive edge in the market.
Velan Inc. SV Financial Statement Overview
Summary
Velan Inc. SV is facing financial challenges with declining profitability and operational inefficiencies. The income statement shows negative margins, the balance sheet indicates moderate leverage with poor profitability, and cash flow shows some improvement but with volatility risks. Overall, the financial outlook is mixed with potential risks and some optimism from improved cash flow generation.Income Statement
Velan Inc. SV's income statement shows declining revenue and profitability. The TTM data indicates a negative gross margin and net profit margin, suggesting significant cost challenges and inefficiencies. Revenue has seen a minor increase from the previous year, but profitability remains a concern with negative EBIT and EBITDA margins.―
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio, indicating some leverage but not excessively high. However, the return on equity is negative, reflecting poor profitability relative to shareholder equity. The equity ratio signals a stable capital structure but highlights reduced equity over time.55
Cash Flow
Velan's cash flow shows improvement in operating cash flow compared to net income, indicating better operational efficiency. Free cash flow is positive in the TTM, a favorable sign for liquidity. However, the volatility in free cash flow growth rate poses risks to future cash reserves.―
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 346.82M | 370.43M | 411.24M | 302.06M | 371.63M | Gross Profit |
| 93.21M | 112.47M | 134.97M | 80.54M | 88.13M | EBIT |
| -5.99M | 24.28M | 38.58M | -652.00K | 4.12M | EBITDA |
| 5.64M | -34.65M | 50.61M | 11.83M | 7.53M | Net Income Common Stockholders |
| -19.74M | -55.46M | -10.26M | 2.20M | -16.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 41.72M | 50.55M | 62.74M | 74.97M | 75.95M | Total Assets |
| 479.39M | 477.86M | 508.43M | 580.83M | 538.50M | Total Debt |
| 41.42M | 40.91M | 44.02M | 84.05M | 80.34M | Net Debt |
| 4.97M | -9.60M | -9.99M | 9.37M | 5.01M | Total Liabilities |
| 296.13M | 277.02M | 242.92M | 280.61M | 253.63M | Stockholders Equity |
| 182.18M | 199.89M | 264.82M | 297.08M | 281.18M |
| Cash Flow | Free Cash Flow | |||
| -4.94M | -6.07M | 9.25M | -20.00M | -2.44M | Operating Cash Flow |
| 4.30M | 522.00K | 17.87M | -9.10M | 9.64M | Investing Cash Flow |
| -14.13M | 1.76M | -26.00K | 2.90M | -11.68M | Financing Cash Flow |
| -4.66M | -2.62M | -23.52M | 33.10M | -6.30M |
Velan Inc. SV Technical Analysis
Positive
16.30
Price Trends
15.54
Positive
14.62
Positive
11.61
Positive
Market Momentum
0.27
Positive
53.65
Neutral
18.94
Positive
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 16.3 is above the 20-day moving average (MA) of 16.04, above the 50-day MA of 15.54, and above the 200-day MA of 11.61, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 53.65 is Neutral, neither overbought nor oversold. The STOCH value of 18.94 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Performance Comparison
TSE:VLN
Velan Inc. SV
16.13
10.13
168.83%
PDS
Precision Drilling
39.78
-33.14
-45.45%
CESDF
CES Energy Solutions
4.33
0.11
2.61%
GBNXF
Gibson Energy
16.05
0.82
5.38%
TSE:PSI
Pason Systems
10.97
-4.37
-28.49%
TOLWF
Trican Well Service
2.98
0.13
4.56%
Velan Inc. SV Earnings Call Summary
Earnings Call Date:Jan 15, 2025
(Q3-2025)
| % Change Since: 38.84%|
Next Earnings Date:May 21, 2025
Earnings Call Sentiment Positive
The earnings call presented strong sales growth, improved profitability, and strategic initiatives to unlock value. However, it also highlighted significant restructuring expenses and a reported loss from continuing operations. Despite these challenges, the positive developments appear to outweigh the negatives.Q3-2025 Updates
Positive Updates
Strong Sales Growth
Sales from continuing operations grew more than 18% year-over-year, reaching $73.4 million, driven by increased shipments from activities in Italy and China.
Significant Improvement in Profitability
Adjusted net income from continuing operations was $8.5 million compared to a $7 million loss a year ago, with gross profit rising to $28.3 million from $8.2 million last year.
Strategic Initiatives Announced
Divestiture of asbestos-related liabilities and negotiations for the sale of French subsidiaries, expected to unlock significant value and improve financial stability.
Strong Order Backlog
Order backlog reached nearly $300 million, up 5.3% since the beginning of the fiscal year, with 83% deliverable within the next 12 months.
Cash Flow and Financial Position
Significant cash flow from operations of nearly $20 million after 9 months, with a solid cash balance of $35.1 million and reinstated dividend payment.
Negative Updates
Restructuring Expenses
Restructuring expenses of $74.5 million for the quarter and $81.3 million year-to-date, primarily due to asbestos-related provisions.
Loss from Continuing Operations
A reported loss from continuing operations of $47.8 million for the quarter and $50.6 million for the first 9 months.
Slight Reduction in Bookings
Bookings totaled $59.1 million versus $60.1 million last year, with delays in large projects targeted by Italian operations.
Company Guidance
During the Q3 2025 earnings call for VLN.TO, the company discussed several key metrics and strategic initiatives aimed at enhancing shareholder value and improving financial stability. Velan reported a robust performance, with sales from continuing operations rising by over 18% and achieving an adjusted net income of $8.5 million from a $7 million loss the previous year. The company also generated nearly $20 million in cash flow from operations over nine months, reflecting improved cash generation strategies. Velan's order backlog reached nearly $300 million, with over 83% expected to be delivered within 12 months. Two major strategic initiatives were highlighted: the divestiture of asbestos-related liabilities and exclusive negotiations for selling French subsidiaries, expected to yield significant cash proceeds and streamline operations. The company maintained a solid financial position with $35.1 million in cash and equivalents and reinstated its dividend, emphasizing its commitment to maximizing profitable growth and shareholder returns.Velan Inc. SV Corporate Events
M&A TransactionsBusiness Operations and Strategy
Velan Inc. Completes Sale of French Subsidiaries to Framatome
Positive
Mar 31, 2025
Velan Inc. announced the completion of the sale of its French subsidiaries, Segault SAS and Velan S.A.S., to Framatome SAS for a total consideration of $208.4 million. The proceeds from this transaction will be used to fund the permanent divestiture of Velan’s asbestos-related liabilities, enhancing the company’s financial position and potentially impacting its market strategy.
M&A TransactionsShareholder Meetings
Velan Inc. Shareholders Approve Sale of French Subsidiaries
Neutral
Mar 20, 2025
Velan Inc. announced that its shareholders have approved the sale of its French subsidiaries, Segault and Velan S.A.S., to Framatome SAS for a total consideration of US$201.1 million. This transaction is part of Velan’s strategy to use the proceeds to divest its asbestos-related liabilities. The approval was unanimous among voting shareholders, and the transaction is expected to close in the coming weeks, pending customary closing conditions.
Velan Inc. Reports Strong Q3 Results and Strategic Divestitures
Jan 15, 2025
Velan Inc. reported strong financial results for its fiscal 2025 third quarter, driven by effective management of a robust order backlog. The company has entered into an agreement to divest its asbestos-related liabilities, enhancing its balance sheet by transferring these liabilities to a new subsidiary and selling its U.S. subsidiary, Velan Valve Corp. Additionally, Velan’s subsidiary, Velan UK, has signed a memorandum of understanding to sell its French subsidiaries to Framatome SAS, a leader in nuclear energy, for $198.4 million. This transaction has been reflected in the company’s balance sheet as assets held for sale, streamlining its operations and focusing on continuing operations.
Velan Inc. Unveils Strategic Initiatives to Strengthen Financial Position
Jan 15, 2025
Velan Inc. announced significant strategic initiatives aimed at reducing operational and financial risks while strengthening its financial standing. The company has agreed to divest its asbestos-related liabilities to Global Risk Capital for $143 million and entered exclusive negotiations with Framatome to sell its French subsidiaries for $175.2 million. These transactions are expected to make Velan nearly debt-free, enabling greater investment in growth opportunities and enhancing shareholder value. Velan remains focused on executing its strategic plan to drive sustained profitable growth and capitalize on the momentum in the clean energy sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.