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

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Velan, Inc.

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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

The company has declared negative results for the last 4 consecutive quarters

The company has declared negative results in Aug 25 after 4 consecutive negative quarters
INTEREST(HY) At CAD 1.47 MM has Grown at 167.93%
NET PROFIT(Q) At CAD -12.25 MM has Fallen at -137.55%
RAW MATERIAL COST(Y) Grown by 32.37% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 24.58%, its profits have fallen by -24.1%

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.

24.58%

6.93

30.83%

S&P/TSX 60

28.13%

2.33

12.07%

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)

0.67

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.77

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.89%

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

1.46

EV to EBIT

19.54

EV to EBITDA

11.05

EV to Capital Employed

1.52

EV to Sales

0.80

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

7.78%

ROE (Latest)

13.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 1.52 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.82 times

-32What is not working for the Company

INTEREST(HY)

At CAD 1.47 MM has Grown at 167.93%

NET PROFIT(Q)

At CAD -12.25 MM has Fallen at -137.55%

RAW MATERIAL COST(Y)

Grown by 32.37% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 2.2 %

NET SALES(Q)

Lowest at CAD 79.42 MM

OPERATING PROFIT(Q)

Lowest at CAD -3.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.82 %

PRE-TAX PROFIT(Q)

Lowest at CAD -10.03 MM

Here's what is working for Velan, Inc.

Inventory Turnover Ratio

Highest at 1.52 times and Grown

In each half year 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 3.82 times and Grown

In each half year 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.

Interest

At CAD 1.47 MM has Grown at 167.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

At CAD -10.03 MM has Fallen at -698.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -12.25 MM has Fallen at -137.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Net Sales

Lowest at CAD 79.42 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

Fallen at -21.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD -3.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at -3.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD -10.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Debt-Equity Ratio

Highest at 2.2 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 32.37% (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