Velan, Inc. (VLN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Biorem, Inc.

Reko International Group, Inc.

Trican Well Service Ltd.

Thermal Energy International, Inc.

ATS Corp.

Enerflex Ltd.

Velan, Inc.

TerraVest Industries, Inc.

EnWave Corp.

Ag Growth International, Inc.

H2O Innovation, Inc.

Why is Velan, Inc. ?

Poor Management Efficiency with a low ROE of 7.10%

The company has been able to generate a Return on Equity (avg) of 7.10% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -1.9%, the company declared Very Negative results in Feb 26

The company has declared negative results for the last 3 consecutive quarters
The company has declared negative results in Aug 25 after 4 consecutive negative quarters
NET PROFIT(Q) At CAD -2.21 MM has Fallen at -161.87%
OPERATING CASH FLOW(Y) Lowest at CAD -222.18 MM
INTEREST COVERAGE RATIO(Q) Lowest at 121.22

Underperformed the market in the last 1 year

The stock has generated a return of 19.51% in the last 1 year, much lower than market (S&P/TSX 60) returns of 29.60%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Velan, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Velan, Inc.

19.51%

5.91

31.56%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.43%

EBIT Growth (5y)

3.41%

EBIT to Interest (avg)

0.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.66

Tax Ratio

44.25%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.59%

ROE (avg)

7.10%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.35

EV to EBIT

18.02

EV to EBITDA

10.19

EV to Capital Employed

1.40

EV to Sales

0.74

PEG Ratio

Dividend Yield

0.09%

ROCE (Latest)

7.78%

ROE (Latest)

13.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

ROCE(HY)

Highest at 11.16%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.51 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.94 times

-33What is not working for the Company

NET PROFIT(Q)

At CAD -2.21 MM has Fallen at -161.87%

OPERATING CASH FLOW(Y)

Lowest at CAD -222.18 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 121.22

RAW MATERIAL COST(Y)

Grown by 13.49% (YoY

INTEREST(Q)

Highest at CAD 1.35 MM

OPERATING PROFIT(Q)

Lowest at CAD 1.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.41 %

PRE-TAX PROFIT(Q)

Lowest at CAD 0.97 MM

Here's what is working for Velan, Inc.

Inventory Turnover Ratio

Highest at 1.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Velan, Inc.

Pre-Tax Profit

At CAD 0.97 MM has Fallen at -64.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -2.21 MM has Fallen at -161.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 1.35 MM has Grown at 274.81%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 121.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CAD -222.18 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

Highest at CAD 1.35 MM

in the last five periods and Increased by 274.81% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit

Lowest at CAD 1.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 1.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 0.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Raw Material Cost

Grown by 13.49% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales