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Velan Inc. SV (VLN) AI Stock Analysis
Velan Inc. SV
(TSX:VLN)
The score is held down primarily by weak financial performance (declining revenue, negative profitability, and ongoing free-cash-flow burn). Technical signals are also subdued with the stock below key short-term averages. Valuation gets modest support from the reported yield but is constrained by losses and the announced dividend suspension, while the earnings call is balanced by near-term weakness offset by backlog/liquidity and longer-term pipeline opportunities.
Velan Inc. SV (VLN) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 374.29M
- Dividend Yield
- 3.23%
- Average Volume (3M)
- 5,890
- Price to Earnings (P/E)
- -10.5
- Beta (1Y)
- 0.58
- Revenue Growth
- -9.05%
- EPS Growth
- 73.48%
- Country
- Canada
- Employees
- 1,300
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Industrial - Machinery
Velan Inc. SV Business Overview & Revenue Model
Company Description
Velan Inc. designs, manufactures, and markets industrial valves worldwide. The company offers quarter-turn valves; gate, globe, and check valves; API 600 cast steel gate, globe, and check valves; corrosion-resistant steel gate, globe, and check valve...
How the Company Makes Money
Velan makes money primarily by selling engineered valves and related flow-control products (and associated components) to industrial customers and project contractors. Revenue is generated from: (1) Original equipment sales: supplying valves for new...
Velan Inc. SV Earnings Call Summary
The call presented a mixed outlook. Near-term financial performance was weak, with sales, bookings, backlog, gross profit, adjusted EBITDA, and net income all declining, alongside shipment delays, restructuring activity, and the suspension of dividends. These challenges were balanced by solid underlying demand in core markets, a substantial nuclear, defense, and power opportunity pipeline, resilient aftermarket activity, improved operating cash use, and increased liquidity. Management remained confident in the long-term outlook, but the combination of current financial pressure and positive strategic positioning results in a balanced sentiment.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Management expects near term order activity to remain mixed across regions, with a portion of pipeline opportunities converting in the near term and a meaningful portion of nuclear opportunities converting into bookings; several defense opportunities could translate into orders and execution activity over the next 2 years. The company’s focus for the second half is on growing bookings and optimizing its cost structure, with restructuring costs currently estimated at approximately $2 million to $3 million to be recognized in the third quarter. Management cited a $262.5 million backlog, 76.2% deliverable within 12 months, $28.2 million in cash and cash equivalents, a new $80 million revolving credit facility, and $95.8 million of liquidity, and the board determined that the company will not pay a dividend for the remainder of fiscal 27.
Velan Inc. SV Financial Statement Overview
Summary
Overall financial quality is weak: TTM revenue declined (~-3.5%), profitability is negative (EBIT loss, ~-9.3% net margin), and cash generation is a major issue with negative operating cash flow (~-$15.4M) and negative free cash flow (~-$22.4M). The balance sheet is a relative bright spot with manageable leverage (debt-to-equity ~0.33) and sizable equity, but ongoing losses and cash burn weigh heavily on the score.
Income Statement
38NegativeBalance Sheet
62PositiveCash Flow
24Negative| Breakdown | TTM | Feb 2026 | Feb 2024 | Feb 2022 | Feb 2021 | Feb 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 272.60M | 301.28M | 346.82M | 370.43M | 411.24M | 302.06M |
| Gross Profit | 68.89M | 78.49M | 93.21M | 112.47M | 134.97M | 80.54M |
| EBITDA | 1.73M | 20.12M | 5.64M | -34.65M | 50.61M | 11.83M |
| Net Income | -25.39M | 172.52M | -19.74M | -55.46M | -10.26M | 2.20M |
Balance Sheet | ||||||
| Total Assets | 319.46M | 346.30M | 479.39M | 477.86M | 508.43M | 580.83M |
| Cash, Cash Equivalents and Short-Term Investments | 29.52M | 53.68M | 41.72M | 50.55M | 62.74M | 74.97M |
| Total Debt | 49.92M | 35.62M | 41.42M | 40.91M | 44.02M | 84.05M |
| Total Liabilities | 166.49M | 164.36M | 296.13M | 277.02M | 242.92M | 280.61M |
| Stockholders Equity | 152.41M | 181.32M | 182.18M | 199.89M | 264.82M | 297.08M |
Cash Flow | ||||||
| Free Cash Flow | -22.37M | -169.97M | -4.94M | -6.07M | 9.25M | -20.00M |
| Operating Cash Flow | -15.45M | -162.77M | 4.30M | 522.00K | 17.87M | -9.10M |
| Investing Cash Flow | -10.22M | 187.04M | -14.13M | 1.76M | -26.00K | 2.90M |
| Financing Cash Flow | -15.01M | -8.65M | -4.66M | -2.62M | -23.52M | 33.10M |
Velan Inc. SV Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VLN, the sentiment is Negative. The current price of 17.34 is below the 20-day moving average (MA) of 17.53, below the 50-day MA of 17.99, and above the 200-day MA of 16.56, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 88.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VLN.
Velan Inc. SV Peers Comparison
Overall Rating
TSE:REKO64.8Neutral
TSE:PYR56Neutral
TSE:ATS47Neutral
TSE:ENW46Neutral- TSE:VLN45Neutral
TSE:BLDP44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:REKO | 65Neutral | CAD 27.42M | 8.73 | 6.20% | 4.00% | 7.21% | ― |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| TSE:PYR | 56Neutral | CAD 45.27M | -4.07 | 112.32% | ― | 11.62% | 16.81% |
| TSE:ATS | 47Neutral | CAD 2.51B | 52.64 | 2.66% | ― | 13.75% | ― |
| TSE:ENW | 46Neutral | CAD 22.56M | -11.46 | -16.94% | ― | 9.31% | -124.29% |
| TSE:VLN | 45Neutral | CAD 374.29M | -10.52 | -14.80% | 3.23% | -9.05% | 73.48% |
| TSE:BLDP | 44Neutral | CAD 768.89M | -6.13 | -13.16% | ― | 45.07% | 73.98% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:VLN | Velan Inc. SV | 17.34 | 0.61 | 3.62% | |
| TSE:BLDP | Ballard Power | 2.19 | -2.82 | -56.29% | |
| TSE:ATS | Ats Corporation | 25.63 | -12.30 | -32.43% | |
| TSE:ENW | Enwave Corp | 0.19 | -0.16 | -45.71% | |
| TSE:PYR | PyroGenesis Canada | 0.20 | -0.03 | -13.04% | |
| TSE:REKO | Reko International | 5.00 | 1.27 | 34.05% |
Velan Inc. SV Corporate Events
Velan’s profits slide as sales, bookings fall amid tariffs and timing issues
NegativeVelan Inc. reported a sharp drop in second-quarter sales to $57.5 million from $67.6 million, as complex production orders slipped to later periods and customer demand was disrupted by tariff uncertainty and geopolitical tensions. Gross margin narrow...
Velan Inc. Sets Date for Q2 2026 Results and Analyst Call
NeutralVelan Inc., based in Montreal and traded on the TSX as VLN, is a Canadian industrial manufacturer specializing in valve and flow-control products for global industrial markets. The company maintains a structured investor relations program, using regu...
Velan Inc. Confirms Board Elections and Appoints New Chair and Lead Director
PositiveVelan Inc. reported that all director nominees presented in its July 2026 Management Proxy Circular were elected to the board at the shareholders’ annual meeting held in Montréal on August 25, 2026. Each nominee received strong majority su...
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.
Date of analysis: Oct 09, 2026