# Velan Inc. (VLN.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Machinery. Price C$18.25, market value C$394 million.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Velan Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 37.4×**. Enterprise value is 37.4× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: -8.3%** (5-yr avg -9.3%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.

## Profitability
- **Gross margin: 27.5%**. Velan Inc. keeps 27.5% of revenue after the direct cost of what it sells.
- **Operating margin: -0.8%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: 57.3%**. 57.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 95.2%**. A 95.2% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: -1.4%**. Return on all capital, debt included, is -1.4%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -3.7%**. Each dollar of assets produces -3.7% of profit.

## Growth
- **Revenue growth (1 yr): 2.1%** (3-yr -6.7%/yr, 5-yr -0.1%/yr). Revenue grew 2.1% over the last year, against -0.1% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 328.3%** (5-yr 140.2%/yr). Earnings per share rose 328.3%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 0.20**. Debt is 0.20 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Velan Inc. holds more cash than debt.
- **Interest coverage: -1.3×**. Operating profit covers interest only -1.3×: fragile.
- **Current ratio: 2.13** (quick 1.03). Current assets cover the next year's liabilities 2.13 times.
- **Altman Z-score: 3.67**. A Z-score of 3.67 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.19%** (C$0.40 per share, trailing). Velan Inc. yields 2.19%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 5%**. 5% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): 79.6%/yr**. The dividend has compounded at 79.6% a year over five years, doubling roughly every 1 years at that pace.
- **Shareholder yield: 2.2%**. Dividends plus net buybacks return 2.2% of the market value a year.

## Price and momentum
- **Total return (1 yr): 18.4%** (YTD -2.1%, 3-mo 15.9%). The shares are up 18.4% over twelve months including dividends.
- **From 52-week high: -6.4%** (34.1% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 50**. An RSI of 50 is neutral.
- **Beta (1 yr): 0.18** (volatility 31%). Beta of 0.18 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=VLN.TO · Page: https://foliofundamentals.com/stocks/vln.to

Not investment advice.