Want to see TSE:VLN full AI Analyst Report?
Top Page
Velan Inc. SV
(TSX:VLN)
Select Model
Select Model
Rating:57Neutral
Price Target:
C$19.50
▲(4.84% Upside)
Action:Reiterated
Date:07/11/26
The score is held back primarily by weak recent operating results and, most importantly, negative operating and free cash flow, despite a relatively conservative balance sheet. Technicals are supportive with the stock trading above key moving averages and a positive MACD. Valuation is a notable positive given the very low P/E and a mid-single-digit dividend yield, while the earnings call suggests near-term pressure but potential improvement if backlog conversion, shipment recapture, and transformation efforts execute as planned.
Positive Factors
Backlog visibility
The sizable backlog provides meaningful revenue visibility and a base for future production utilization. Its scale can support recovery if Velan converts orders efficiently and recaptures deferred shipments.
Negative Factors
Weak order and revenue momentum
Lower bookings and revenue indicate weaker customer activity and delayed project conversion. If regional disruptions and reduced MRO demand persist, the backlog may not translate into near-term growth or efficient factory utilization.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog visibility
The sizable backlog provides meaningful revenue visibility and a base for future production utilization. Its scale can support recovery if Velan converts orders efficiently and recaptures deferred shipments.
Read all positive factors
Velan Inc. SV (VLN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$393.94M
Dividend Yield3.07%
Average Volume (3M)4.11K
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth-14.82%
EPS Growth86.51%
CountryCA
Employees1,273
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.56
Shares Outstanding6,019,000
10 Day Avg. Volume5,406
30 Day Avg. Volume4,105
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.40
Price to Sales (P/S)0.84
P/FCF Ratio-1.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 va...
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 n...
Velan Inc. SV Earnings Call Summary
Earnings Call Date:Jul 09, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 08, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: material near-term financial weakness (sharp declines in bookings and sales, compressed gross margins, negative adjusted EBITDA and an adjusted net loss) driven largely by external geopolitical and regional disruptions and timing/deferral of shipments, contrasted with clear strategic positives — a solid $275M backlog with 70% deliverable in 12 months, an attractive pipeline in nuclear and defense, strengthened liquidity via a new $80M credit facility, corporate governance and leadership changes, and an active transformation plan to improve operations and cost structure. Management expects many pipeline opportunities to convert over the next 24 months and shipment deferrals to be recaptured, but near-term financial metrics are under pressure.Positive Updates
Strategic ownership milestone
Birch Hill closed its acquisition of Velan Holdings' majority interest, marking a major corporate milestone and prompting board refresh with new Chair and additional directors, supporting a new chapter and strategic focus.
Negative Updates
Significant decline in bookings
Q1 bookings fell to $48.0 million from $78.2 million a year ago, a decrease of approximately 38.7%, driven by geopolitical/regional conflicts and reduced MRO activity.
Read all updates
Q1-2027 Updates
Positive
Negative
Strategic ownership milestone
Birch Hill closed its acquisition of Velan Holdings' majority interest, marking a major corporate milestone and prompting board refresh with new Chair and additional directors, supporting a new chapter and strategic focus.
Read all positive updates
Company Guidance
The company guided that near-term performance will be driven by converting its $275.1 million backlog (about 70% deliverable over the next 12 months) and pipeline opportunities expected to convert into bookings in the near term with execution largely within the next 24 months and revenue beginning during that period; Q1 bookings were $48.0 million (vs. $78.2M prior year) and sales $57.8 million (vs. $72.2M), with many shipments deferred but the majority expected to be recaptured by the end of the fiscal year. Financial metrics cited include cash of $34.6 million, long‑term debt $16.8 million, bank indebtedness $17.6 million, a new five‑year $80 million revolving facility, Q1 gross profit $11.4 million (19.6% of sales; ~22% excluding a $1.3M provision), admin costs $15.7 million, adjusted EBITDA of -$2.1 million, adjusted net loss $6.9 million, and cash used by operations before provisions of $17.4 million; management emphasized cost discipline, a transformation program, and increased liquidity to support growth across nuclear, defense and energy markets.Velan Inc. SV Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
74
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Feb 2026 | Feb 2024 | Feb 2022 | Feb 2021 | Feb 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 282.62M | 301.28M | 295.20M | 370.43M | 411.24M | 302.06M |
| Gross Profit | 77.78M | 78.49M | 84.92M | 112.47M | 134.97M | 80.54M |
| EBITDA | 7.14M | 20.12M | -72.80M | -34.65M | 50.61M | 11.83M |
| Net Income | -12.76M | 172.52M | -75.50M | -55.46M | -10.26M | 2.20M |
Balance Sheet | ||||||
| Total Assets | 317.43M | 346.30M | 501.97M | 477.86M | 508.43M | 580.83M |
| Cash, Cash Equivalents and Short-Term Investments | 35.93M | 53.68M | 35.23M | 50.55M | 62.74M | 74.97M |
| Total Debt | 36.81M | 35.62M | 24.88M | 40.91M | 44.02M | 84.05M |
| Total Liabilities | 150.39M | 164.36M | 403.23M | 277.02M | 242.92M | 280.61M |
| Stockholders Equity | 166.48M | 181.32M | 97.86M | 199.89M | 264.82M | 297.08M |
Cash Flow | ||||||
| Free Cash Flow | -23.58M | -169.97M | 15.85M | -6.07M | 9.25M | -20.00M |
| Operating Cash Flow | -17.63M | -162.77M | 26.52M | 522.00K | 17.87M | -9.10M |
| Investing Cash Flow | -14.31M | 187.04M | -10.28M | 1.76M | -26.00K | 2.90M |
| Financing Cash Flow | -15.21M | -8.65M | -9.81M | -2.62M | -23.52M | 33.10M |
Velan Inc. SV Technical Analysis
Neutral
18.60
Price Trends
17.70
Positive
16.70
Positive
16.66
Positive
Market Momentum
0.11
Positive
50.66
Neutral
60.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VLN, the sentiment is Neutral. The current price of 18.6 is above the 20-day moving average (MA) of 18.55, above the 50-day MA of 17.70, and above the 200-day MA of 16.66, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:VLN.
Velan Inc. SV Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | C$25.91M | 8.65 | 6.20% | 4.23% | 7.21% | ― | |
57 Neutral | C$393.94M | -23.69 | -7.22% | 3.07% | -14.82% | 86.51% | |
53 Neutral | C$2.66B | 55.76 | 2.66% | ― | 13.75% | ― | |
53 Neutral | C$26.71M | -14.33 | -16.94% | ― | 9.31% | -124.29% | |
50 Neutral | C$979.90M | -9.13 | -13.16% | ― | 45.07% | 73.98% | |
50 Neutral | C$47.54M | -4.28 | 112.32% | ― | 11.62% | 16.81% |
* Industrials Sector Average
TSE:VLN
Velan Inc. SV
18.25
2.70
17.35%
TSE:BLDP
Ballard Power Systems
3.26
0.63
23.95%
TSE:ATS
ATS Corporation
26.81
-10.37
-27.89%
TSE:ENW
Enwave Corp
0.23
-0.14
-37.84%
TSE:PYR
PyroGenesis Canada
0.21
-0.05
-18.00%
TSE:REKO
Reko International
4.75
0.50
11.76%
Velan Inc. SV Corporate Events
Executive/Board ChangesShareholder Meetings
Velan Inc. Confirms Board Elections and Appoints New Chair and Lead Director
Positive
Aug 26, 2026
Velan 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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.