Valens (VLN) AI Stock Analysis

• Market Cap: $169.15M
• Dividend Yield: N/A
• Average Volume (3M): 832.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: 7.53%
• EPS Growth: -15.00%
• Country: US
• Employees: 256
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.04
• Shares Outstanding: 105,718,660
• 10 Day Avg. Volume: 634,413
• 30 Day Avg. Volume: 832,229
• PEG Ratio: -0.09
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 4.74
• P/FCF Ratio: -323.40
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: -6.91
• 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: 51 Neutral
• Price Target: $2.00 ▲(25.00% Upside)

Valens' overall stock score is driven by its challenging financial performance and weak technical indicators. Despite positive earnings call sentiment and revenue growth, persistent losses and negative cash flows weigh heavily on the score. The valuation is also unattractive due to a negative P/E ratio and no dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand in key markets, enhancing Valens' market position and supporting long-term expansion.

New Product Launches

Entering the medical imaging market with innovative products diversifies Valens' revenue streams and leverages its technology across industries.

Strategic Partnerships

Partnership with Samsung enhances Valens' position in automotive connectivity, promising advancements in ADAS and autonomous driving technologies.

Negative Factors

Negative Cash Flow

Persistent negative cash flow suggests operational inefficiencies, which could hinder Valens' ability to invest in growth and innovation.

Sustained Net Loss

Ongoing net losses reflect challenges in achieving profitability, which may impact Valens' financial stability and investor confidence.

Declining Cash Reserves

A decline in cash reserves limits financial flexibility, potentially affecting Valens' ability to fund strategic initiatives and manage risks.

Valens Business Overview & Revenue Model

Company Description

Valens (VLN) is a leading provider of high-speed data connectivity solutions for the audio-visual, consumer electronics, and automotive industries. The company specializes in developing advanced semiconductor technologies that enable the seamless transmission of data over various mediums, including copper and fiber optics. Valens' core products include chipset solutions for HDMI, DisplayPort, and USB, as well as proprietary technologies for automotive applications, catering to the growing demand for high-resolution video and data integrity in modern electronics.

How the Company Makes Money

Valens generates revenue primarily through the sale of its semiconductor products, including integrated circuits and chipsets that facilitate high-speed data transmission. Key revenue streams include direct sales to manufacturers in the consumer electronics and automotive sectors, as well as licensing agreements for its proprietary technologies. The company also benefits from strategic partnerships with industry leaders, which enhance its market reach and provide opportunities for co-development of innovative solutions. Additionally, Valens may engage in the provision of technical support and consultancy services, further contributing to its earnings.

Valens Financial Statement Overview

Summary

Valens shows some positive signs such as revenue growth and low leverage, but persistent losses and negative cash flows highlight the need for operational improvements. The company must enhance profitability and cash flow generation to strengthen its financial position.

Income Statement

Valens has shown a slight improvement in revenue growth with a TTM growth rate of 1.95%, but it still faces significant challenges with profitability. The gross profit margin remains healthy at 60.87%, indicating efficient production, but the net profit margin is negative at -49.80%, reflecting ongoing losses. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio of 0.07, indicating low leverage, which is a positive sign of financial stability. However, the return on equity is negative at -24.81%, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is relatively strong, indicating a solid capital structure.

Cash Flow

Valens has experienced a significant improvement in free cash flow growth at 98.89%, but the operating cash flow remains negative, which is concerning. The free cash flow to net income ratio is positive at 1.42, indicating that the company is generating cash relative to its net losses, but the negative operating cash flow to net income ratio suggests challenges in core operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	67.89M	57.86M	84.16M	90.72M	70.68M	56.91M
Gross Profit	42.41M	34.28M	52.59M	63.39M	50.58M	43.48M
EBITDA	-25.57M	-33.91M	-17.93M	-25.86M	-25.01M	-18.36M
Net Income	-30.13M	-36.58M	-19.66M	-27.67M	-26.53M	-19.64M
Balance Sheet
Total Assets	136.69M	172.15M	180.56M	195.66M	202.60M	79.17M
Cash, Cash Equivalents and Short-Term Investments	93.55M	130.96M	142.02M	148.39M	174.36M	61.57M
Total Debt	6.66M	7.62M	1.96M	3.44M	0.00	0.00
Total Liabilities	27.86M	29.46M	16.25M	28.22M	20.40M	161.39M
Stockholders Equity	108.83M	142.69M	164.30M	167.44M	182.20M	-82.22M
Cash Flow
Free Cash Flow	-14.45M	-848.00K	-7.54M	-23.20M	-23.05M	-20.47M
Operating Cash Flow	-12.81M	1.02M	-6.36M	-22.09M	-21.61M	-19.61M
Investing Cash Flow	33.34M	17.78M	1.35M	-11.73M	-84.16M	28.31M
Financing Cash Flow	-23.78M	-155.00K	1.50M	822.00K	135.43M	406.00K

Valens Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLN, the sentiment is Negative. The current price of 1.6 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.78, and below the 200-day MA of 2.18, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 31.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VLN.

Valens Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AXTI	57 Neutral	$477.89M	―	-12.00%	―	-4.54%	-119.39%
MRAM	54 Neutral	$205.82M	―	-0.91%	―	-0.41%	-134.49%
VLN	51 Neutral	$169.15M	―	-23.56%	―	7.53%	-15.00%
ASYS	48 Neutral	$101.63M	―	-47.86%	―	-20.20%	-58.57%
MX	44 Neutral	$84.56M	―	-8.46%	―	-7.79%	10.04%
ATOM	39 Underperform	$89.97M	-4.20	-116.86%	―	-94.26%	3.20%

Valens Corporate Events

Valens Semiconductor Reports Q3 2025 Financial Results

Valens Semiconductor Ltd. released its unaudited condensed consolidated interim financial statements for the nine months ending September 30, 2025. The company reported revenues of $51.2 million, a significant increase from $41.2 million in the same period in 2024, indicating growth in its operations. Despite the increase in revenues, the company continues to face a comprehensive loss, reflecting ongoing challenges in managing costs and achieving profitability. The financial results highlight Valens’ efforts to strengthen its market position and the potential implications for its stakeholders.

Valens Semiconductor Surpasses Q3 2025 Expectations and Appoints New CEO

Valens Semiconductor reported strong financial results for the third quarter of 2025, with revenues of $17.3 million, surpassing their guidance. The company experienced significant growth in the industrial machine vision and medical markets, with new product launches and partnerships enhancing their market position. The Board of Directors announced the appointment of Yoram Salinger as the new CEO, effective November 13, 2025, indicating a strategic move to further accelerate growth and strengthen Valens’ leadership in the connectivity industry.

Valens Semiconductor Announces Annual General Meeting for December 2025

Valens Semiconductor Ltd. has announced its upcoming Annual General Meeting of Shareholders scheduled for December 16, 2025. The meeting will address several key proposals, including the re-election of directors, approval of employment terms for the new CEO, and the re-appointment of the company’s accounting firm. The board recommends voting in favor of all proposals, which are crucial for the company’s governance and operational continuity.

Valens Semiconductor Enters Medical Imaging Market with VA7000-Powered Endoscopes

On November 10, 2025, Valens Semiconductor announced the launch of the first endoscopes using its VA7000 chipset by three OEMs, marking a significant entry into the medical imaging market. These products include a laparoscope, a 3D imaging solution for robotic surgeries, and a single-use colonoscope with 4K video resolution. The VA7000 chipset, known for its electrosurgical noise cancellation and high-resolution video capabilities, is repurposed from automotive to medical applications, showcasing Valens’ strategic expansion and strengthening its market position.

Valens Semiconductor Appoints Yoram Salinger as New CEO

Valens Semiconductor announced on November 3, 2025, the appointment of Yoram Salinger as the new CEO, effective November 13, 2025. Salinger, who has a strong track record in leading tech companies to growth, will succeed Gideon Ben-Zvi, who will remain on the board. Under Ben-Zvi’s leadership, Valens went public and expanded its market presence. Salinger’s leadership is expected to further accelerate Valens’ growth in high-performance connectivity across various industries. Additionally, changes in the board of directors were announced, with Dr. Eyal Kishon and Dror Jerushalmi stepping down.

Valens Semiconductor and Samsung Collaborate on MIPI A-PHY Standard

On September 9, 2025, Valens Semiconductor announced a partnership with Samsung to enhance the MIPI A-PHY standard ecosystem and develop next-generation products. This collaboration aims to meet the growing demand from global OEMs for advanced automotive connectivity solutions. Samsung’s support of the MIPI A-PHY standard and its advanced automotive process technology will bolster Valens’ position in the industry, promising significant advancements in ADAS and autonomous driving technologies.

Valens Semiconductor Appoints Igal Rotem to Board of Directors

On August 26, 2025, Valens Semiconductor announced the appointment of Igal Rotem to its Board of Directors, replacing Michael Linse, who served since 2018. Rotem, a seasoned high-tech executive and entrepreneur, is expected to bring valuable insights to Valens due to his extensive experience in scaling businesses and driving strategic growth, which aligns with Valens’ goals of expanding its technology leadership across various industries.