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Valens (VLN)
NYSE:VLN
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Valens
(NYSE:VLN)
55Neutral
Valens (VLN) vs. S&P 500 (SPY)
Market Cap
$280.15M
Dividend YieldN/A
Average Volume (3M)317.27K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-31.25%
EPS Growth-79.47%
CountryUS
Employees256
SectorTechnology
Sector Strength64
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.35
Shares Outstanding105,718,660
10 Day Avg. Volume356,923
30 Day Avg. Volume317,269
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 Cap0.55
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.46
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.67Price Target Upside38.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Valens Business Overview & Revenue Model
Company DescriptionValens 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 MoneyValens makes money primarily through the sale of its proprietary chipsets and related technologies to original equipment manufacturers (OEMs) and other companies in the automotive, audio-video, and industrial sectors. These products are integrated into end-user devices, facilitating high-speed data transfer and connectivity. Additionally, Valens may earn revenue through licensing agreements and partnerships with other technology companies, which can involve joint development projects or technology sharing that further leverages its core competencies.
Valens Financial Statement Overview
Summary
Valens faces significant challenges with declining revenue and profitability, as evidenced by negative revenue growth and net losses. While the balance sheet shows a strong equity position and low leverage, consistent losses and negative free cash flow highlight operational inefficiencies and financial instability. The company must focus on cost control and revenue recovery to enhance its financial standing.Income Statement
Valens experienced a decline in revenue and gross profit over the past year, with a significant decrease in total revenue from $84.16M in 2023 to $57.86M in 2024, leading to a negative revenue growth rate. The company also faced considerable net losses, with a net income of -$36.58M in 2024, causing a negative net profit margin. While the gross profit margin remains positive, the negative EBIT and EBITDA margins indicate operational challenges and a need for cost control.45
Neutral
Balance Sheet
Valens maintains a strong equity position with stockholders' equity of $142.69M against total assets of $172.15M, resulting in an equity ratio of 82.89%. The debt-to-equity ratio is low at 0.05, indicating limited leverage and reduced financial risk. However, the company has been experiencing declining equity year-over-year, reflecting ongoing financial challenges. The ROE is negative due to net losses, highlighting profitability issues.60
Neutral
Cash Flow
The cash flow situation at Valens shows some improvement in operating cash flow, from a negative $6.36M in 2023 to a positive $1.02M in 2024. However, free cash flow remains negative at -$0.85M. The operating cash flow to net income ratio is positive, suggesting better cash generation relative to its net losses. Despite these improvements, consistent negative free cash flow poses a concern for long-term sustainability.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 57.86M | 84.16M | 90.72M | 70.68M | 56.91M | Gross Profit |
| 34.28M | 52.59M | 63.39M | 50.58M | 43.48M | EBIT |
| -41.34M | -26.92M | -28.37M | -27.07M | -22.79M | EBITDA |
| -33.91M | -25.29M | -26.99M | -25.04M | -18.39M | Net Income Common Stockholders |
| -36.58M | -19.66M | -27.68M | -26.54M | -19.65M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 130.96M | 142.02M | 148.39M | 174.36M | 61.57M | Total Assets |
| 172.15M | 180.56M | 195.66M | 202.60M | 79.17M | Total Debt |
| 7.62M | 1.96M | 3.44M | 0.00 | 0.00 | Net Debt |
| -27.80M | -15.30M | -16.59M | -56.79M | -26.32M | Total Liabilities |
| 29.46M | 16.25M | 28.22M | 20.40M | 161.39M | Stockholders Equity |
| 142.69M | 164.30M | 167.44M | 182.20M | -82.22M |
| Cash Flow | Free Cash Flow | |||
| -848.00K | -7.54M | -23.20M | -23.05M | -20.47M | Operating Cash Flow |
| 1.02M | -6.36M | -22.09M | -21.61M | -19.61M | Investing Cash Flow |
| 17.78M | 1.35M | -11.73M | -84.16M | 28.31M | Financing Cash Flow |
| -155.00K | 1.50M | 822.00K | 135.43M | 406.00K |
Valens Technical Analysis
Positive
2.65
Price Trends
2.19
Positive
2.36
Positive
2.25
Positive
Market Momentum
0.12
Negative
65.13
Neutral
77.96
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 2.65 is above the 20-day moving average (MA) of 2.24, above the 50-day MA of 2.19, and above the 200-day MA of 2.25, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 65.13 is Neutral, neither overbought nor oversold. The STOCH value of 77.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VLN.
Valens Risk Analysis
Valens disclosed 62 risk factors in its most recent earnings report. Valens reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Valens Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $253.95M | 10.99 | 21.69% | ― | -14.48% | 46.79% | |
61 Neutral | $281.09M | 18.77 | 23.13% | 6.86% | -27.68% | -30.47% | |
59 Neutral | $10.65B | 10.45 | -6.56% | 3.01% | 7.31% | -12.18% | |
55 Neutral | $280.15M | ― | -23.83% | ― | -31.25% | -79.47% | |
47 Neutral | $552.28M | ― | -128.47% | ― | -10.77% | -27.51% | |
45 Neutral | $382.96M | ― | -23.22% | ― | 4.84% | 48.52% | |
37 Underperform | $276.15M | ― | -483.48% | ― | 7.56% | 16.16% |
* Technology Sector Average
Performance Comparison
VLN
Valens
2.65
0.30
12.77%
AEHR
Aehr Test Systems
8.53
-3.23
-27.47%
WOLF
Wolfspeed
3.55
-20.01
-84.93%
NVEC
NVE
60.28
-15.34
-20.29%
NVTS
Navitas Semiconductor
1.93
-2.41
-55.53%
AIP
Arteris
6.66
0.73
12.31%
Valens Earnings Call Summary
Earnings Call Date:Feb 26, 2025
(Q4-2024)
| % Change Since: 18.30%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Neutral
Valens Semiconductor Ltd.'s earnings call highlighted some strategic advancements and financial achievements, such as new design wins in the automotive sector and strong balance sheet management. However, the call also revealed significant challenges, including a notable decline in revenue and increased operating losses, pointing to ongoing market difficulties and internal cost pressures.Q4-2024 Updates
Positive Updates
Automotive Industry Design Wins
Valens Semiconductor Ltd. announced three design wins in the automotive industry for ADAS platforms, providing a strong foothold for A-PHY within the OEM community.
Acquisition of AkerLane
Successfully completed the acquisition of AkerLane, which is expected to expand Valens' position in the industrial market with a holistic USB-focused offering.
Release of VS6320 Chipset
Introduced the VS6320 chipset, the first 8-gigabyte USB 3.2 high-performance extension solution on the market, showing potential for growth in video conferencing and other markets.
Financial Performance Exceeding Guidance
Reported Q4 revenues of $16.7 million, exceeding the top end of the guidance, and a gross margin of 60.4%, above the midpoint of the guidance.
Strong Balance Sheet
Valens ended 2024 with $131 million in cash and cash equivalents, maintaining a robust financial position with no debt.
Negative Updates
Revenue Decline
Total revenue for 2024 was $57.9 million, a decrease from $84.2 million in 2023, primarily due to inventory digestion and market weakness.
Automotive Revenue Decrease
Automotive business revenue was $21.6 million, down 19.4% from $26.8 million in 2023, affected by price erosion and reduced sales to Mercedes Benz.
Operating Losses
GAAP net loss for 2024 increased to $36.6 million from $19.7 million in 2023, with an adjusted EBITDA loss of $21.1 million for the full year.
SG&A and R&D Expense Increases
SG&A expenses increased by $3.4 million year-over-year, partly due to a $2.2 million expense relating to a production incident.
Company Guidance
During Valens Semiconductor Ltd.'s fourth-quarter and full-year 2024 earnings call, the company provided guidance and key metrics for the upcoming year. For the first quarter of 2025, Valens expects revenue to be between $16.3 million and $16.6 million, with a gross margin ranging from 60.8% to 61.3%, and an adjusted EBITDA loss between $4.5 million and $4.2 million. Looking at the full year 2025, the company anticipates annual revenue to reach $71 million to $76 million, reflecting a 23% to 31% year-over-year growth. The company highlighted its robust balance sheet with $131 million in cash and no debt, which will support its growth and acquisition strategy. Valens also outlined its five-year plan, targeting revenue between $220 million and $300 million by 2029, with a gross margin of 50% to 60% and an EBITDA margin of 15% to 20%.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.