Valens (VLN) AI Stock Analysis

• Market Cap: $200.87M
• Dividend Yield: N/A
• Average Volume (3M): 686.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: 8.70%
• EPS Growth: -13.95%
• Country: US
• Employees: 256
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.04
• Shares Outstanding: 105,718,660
• 10 Day Avg. Volume: 675,402
• 30 Day Avg. Volume: 686,425
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: -5.47
• 1Y Price Target: $3.67
• Price Target Upside: 93.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $2.00 ▲(5.26% Upside)

Valens Semiconductor faces significant financial and operational challenges, reflected in its low financial performance and valuation scores. Despite positive developments in product growth and market presence, ongoing losses and revised revenue forecasts due to global tariffs weigh heavily on the stock's outlook.

Positive Factors

Strong Revenue Growth

Consistent revenue growth over multiple quarters indicates strong market demand and effective sales strategies, enhancing long-term business prospects.

Strategic Partnerships

The partnership with Samsung strengthens Valens' position in the automotive industry, potentially leading to technological advancements and increased market share.

Product Innovation

Innovative products like the MIPI A-PHY platform can drive adoption in new markets, enhancing Valens' competitive edge and revenue potential.

Negative Factors

Ongoing Financial Losses

Continued financial losses indicate challenges in achieving profitability, which may impact long-term financial health and investment capacity.

Impact of Global Tariffs

Tariff-related revenue forecast reductions highlight external risks that could hinder growth and operational planning.

Negative Cash Flow

Negative cash flow reflects operational inefficiencies and may constrain the company's ability to invest in growth opportunities or weather economic downturns.

Valens Business Overview & Revenue Model

Company Description

Valens Semiconductor Ltd. engages in the provision of semiconductor products that enables high-speed video and data transmission for the audio-video and automotive industries. It offers HDBaseT technology, which enables the simultaneous delivery of ultra-high-definition digital video and audio, Ethernet, USB, control signals, and power through a single long-reach cable. The company offers audio-video solutions for the enterprise, education, digital signage, medical and residential, and industrial markets; and automotive solutions, which provide chipsets that support advanced driver-assistance systems, automated driving systems, infotainment, telecommunications, and basic connectivity. It serves customers through distributors and representatives in Israel, China, Hong Kong, the United States, Mexico, Japan, and internationally. The company was incorporated in 2006 and is headquartered in Hod Hasharon, Israel.

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 faces a challenging financial environment with declining revenues and negative profitability metrics. The balance sheet is strong with low leverage, but declining equity is concerning. Cash flows are negative, indicating operational inefficiencies.

Income Statement

Valens' income statement reveals a challenging financial period. The revenue growth is declining significantly, with a drop from $90.7M in 2022 to $63.1M in TTM. Profitability metrics such as the gross profit margin (60.3% TTM) are healthy, but the company faces substantial losses, indicated by a negative net profit margin (-55.2% TTM) and EBIT margin (-62.1% TTM). Negative EBITDA further highlights operational challenges.

Balance Sheet

The balance sheet shows a robust equity position with a high equity ratio of 83.2% TTM. Debt levels are low, resulting in a favorable debt-to-equity ratio of 0.06. However, there is declining stockholders' equity from $167.4M in 2022 to $128.6M in TTM, which points to financial erosion despite a solid asset base.

Cash Flow

Valens' cash flow statement highlights stability in operating cash flow, although it remains negative at -$5.2M TTM. Free cash flow is also negative, with a modest improvement compared to prior years. The operating cash flow to net income ratio is negative, suggesting operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.59M	57.86M	84.16M	90.72M	70.68M	56.91M
Gross Profit	40.53M	34.28M	52.59M	63.39M	50.58M	43.48M
EBITDA	-32.28M	-33.96M	-25.29M	-26.99M	-25.04M	-18.39M
Net Income	-33.16M	-36.58M	-19.66M	-27.67M	-26.54M	-19.65M
Balance Sheet
Total Assets	144.79M	172.15M	180.56M	195.66M	202.60M	79.17M
Cash, Cash Equivalents and Short-Term Investments	103.89M	130.96M	142.02M	148.39M	174.36M	61.57M
Total Debt	8.25M	7.62M	1.96M	3.44M	0.00	0.00
Total Liabilities	28.30M	29.46M	16.25M	28.22M	20.40M	161.39M
Stockholders Equity	116.50M	142.69M	164.30M	167.44M	182.20M	-82.22M
Cash Flow
Free Cash Flow	-7.27M	-848.00K	-7.54M	-23.20M	-23.05M	-20.47M
Operating Cash Flow	-5.13M	1.02M	-6.36M	-22.09M	-21.61M	-19.61M
Investing Cash Flow	47.15M	17.78M	1.35M	-11.73M	-84.16M	28.31M
Financing Cash Flow	-20.17M	-155.00K	1.50M	822.00K	135.43M	406.00K

Valens Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLN, the sentiment is Positive. The current price of 1.9 is above the 20-day moving average (MA) of 1.87, below the 50-day MA of 2.07, and below the 200-day MA of 2.33, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 34.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VLN.

Valens Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRAM	68 Neutral	$257.70M	149.87	2.76%	―	-11.27%	-9.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AXTI	56 Neutral	$236.62M	―	-12.56%	―	-2.63%	-78.66%
ATOM	55 Neutral	$156.78M	―	-100.22%	―	-92.34%	8.99%
ASYS	54 Neutral	$131.26M	40.38	-47.86%	―	-20.20%	-58.57%
MX	48 Neutral	$114.96M	―	-7.81%	―	4.09%	9.30%
VLN	48 Neutral	$200.87M	―	-24.56%	―	8.70%	-13.95%

Valens Corporate Events

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.

Valens Semiconductor Reports Increased Revenues in Mid-2025 Financial Update

Valens Semiconductor Ltd. released its unaudited condensed consolidated interim financial statements for the period ending June 30, 2025, showing a significant increase in revenues compared to the previous year. The company’s total assets decreased from December 2024 to June 2025, while liabilities slightly decreased, and shareholders’ equity saw a reduction, reflecting operational challenges and strategic adjustments.

Valens Semiconductor Exceeds Q2 2025 Revenue Guidance Amid Tariff Challenges

Valens Semiconductor reported its second quarter 2025 financial results, showing revenues of $17.1 million, which exceeded their guidance. The company experienced strong demand in the ProAV market and positive momentum in industrial machine vision, with strategic partnerships leading to new product designs. Despite the impact of tariffs, Valens adjusted its full-year revenue guidance to $66 million to $71 million, still reflecting a significant increase from 2024. The company remains confident in its long-term strategy and market opportunities, particularly in automotive where the MIPI A-PHY standard is gaining industry support.

Valens Semiconductor Launches Groundbreaking MIPI A-PHY Platform for Embedded Vision

On July 15, 2025, Valens Semiconductor announced its chipsets power the first market-ready MIPI A-PHY platform for embedded vision by D3 Embedded. This platform, featuring Nvidia processors and Sony sensors, offers significant benefits such as enhanced EMI resilience and long-distance operation over low-cost cabling. This collaboration is expected to drive widespread adoption of A-PHY, transforming embedded vision and AI systems deployment across industries. The A-PHY standard’s ability to transmit high-speed data over long distances with excellent electromagnetic compatibility is a breakthrough, addressing connectivity challenges in harsh environments and simplifying system design.