Velan Inc
Velan Inc designs, manufactures, and sells industrial valves and related equipment for the oil, gas, and chemical industries.
Business. Velan Inc (VLN.TO) is an industrial goods company that manufactures industrial machinery and equipment. The firm is headquartered in Canada and is primarily listed on the Toronto Stock Exchange. As segment and geographic breakdowns are not provided, the company is described at the industry level within the Industrial Goods sector. Its business model is based on product sales, typical of capital-equipment manufacturers in the industrial machinery space.
Analyst recommendations
3 analysts · consensus BuyAt a glance
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- Company
- EarningsQ3 2026 earnings (expected)2026-10-28 · estimated
- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
Velan Inc (VLN.TO) is an industrial goods company that manufactures industrial machinery and equipment. The firm is headquartered in Canada and is primarily listed on the Toronto Stock Exchange. As segment and geographic breakdowns are not provided, the company is described at the industry level within the Industrial Goods sector. Its business model is based on product sales, typical of capital-equipment manufacturers in the industrial machinery space.
Velan's capital structure shows a debt-to-equity ratio of 0.25, indicating a conservative leverage profile with long-term debt of $24.88M against total equity of $97.86M. The company maintains $34.87M in cash and equivalents, supporting a current ratio of 1.12, which suggests adequate short-term liquidity to cover obligations. However, free cash flow of -$67.53M indicates significant cash outflows, primarily driven by capital expenditures of -$10.68M and operational cash flow of $26.53M.
Profitability metrics show a return on equity of -77.15% and return on assets of -15.04%, both well below industry norms for industrial machinery firms. The company reported a net loss of $75.50M on revenue of $295.19M, with operating income of -$82.27M and gross profit of $84.92M. These results suggest operational inefficiencies and margin compression compared to industry peers.
The company's revenue is concentrated in a single business segment focused on industrial valves and equipment, with no disclosed geographic diversification in the latest financials. This lack of segment and geographic diversification increases exposure to sector-specific risks and regional demand fluctuations.
Velan's growth trajectory shows a significant decline in profitability, with a net loss of $75.50M in the latest period. While revenue of $295.19M provides a baseline, the negative operating and net income figures indicate a deterioration in performance compared to historical results. The outlook for the next fiscal year remains uncertain without clear signs of operational improvement or margin expansion.
Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company's capital structure remains stable, and there are no disclosed plans for near-term equity issuance or debt financing that would significantly alter the ownership structure. However, the significant net loss and negative free cash flow raise concerns about long-term sustainability without operational adjustments.
Recent filings and transcripts show no material events that would directly impact Velan's operations or financial position. The company has not disclosed any significant legal, regulatory, or strategic developments in the latest available documents.
- Velan operates with a conservative debt profile but faces significant profitability challenges with a -77.15% return on equity.
- The company's lack of segment and geographic diversification increases exposure to sector-specific risks.
- Free cash flow of -$67.53M highlights operational cash outflows that could pressure liquidity if not addressed.
- No immediate dilution or liquidity risks are present, but the net loss and negative operating income require close monitoring.
Bull / Bear case
Generated · model-assistedIn focus — financials by report
Valuation
Revenue by segment
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Supply chain
Peer comparison
Market position
Stress test
Predictor forecast
Options
Short squeeze
Earnings-call key lines
Estimate revisions
consensus EPS · 26-week trendSell-side observations
Themes
ESG
Risk factors
- No immediate filing-based liquidity or dilution flags were detected.
Benchmarks vs cohort
Corporate actions / M&A
FX exposure
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- ESG data
- Dilution Ratio(shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
- Net Cashcash_and_equivalents + short_term_investments - short_term_debt - long_term_debt
- Capex To Revenuecapital_expenditure / revenue
- Return On Equitynet_income / total_equity
- Debt To Equity(short_term_debt + long_term_debt) / total_equity
- Cash Conversion Ratiooperating_cash_flow / net_income
- Velan Inc Market data — financials · 2026-05-29
Ownership & reference
Leadership
- James A. MannebachChairman of the Board, Chief Executive Officer
Insider activity
Short positioning
Geographic breakdown
Intel & risk
Evidence & claims
From filings & derived data- Shareholders' equity (YoY) (2025-12-31 vs 2024-12-31): -26.4%Derived (calculated)
- Net margin (FY 2025-12-31): -44.7%Derived (calculated)
- EPS (basic) (YoY) (2025-12-31 vs 2024-12-31): 11.4%Derived (calculated)
- Debt-to-equity (FY 2025-12-31): 0.28xDerived (calculated)
- Operating cash flow (YoY) (2025-12-31 vs 2024-12-31): -1,348.1%Derived (calculated)
- Gross margin (FY 2025-12-31): 62.4%Derived (calculated)
- Total assets (YoY) (2025-12-31 vs 2024-12-31): -21.8%Derived (calculated)
- Total liabilities (YoY) (2025-12-31 vs 2024-12-31): 0.9%Derived (calculated)
- Cost of revenue (YoY) (2025-12-31 vs 2024-12-31): 12.5%Derived (calculated)
- Operating income (YoY) (2025-12-31 vs 2024-12-31): 17.6%Derived (calculated)
- Return on equity (FY 2025-12-31): -30.1%Derived (calculated)
- Gross profit (YoY) (2025-12-31 vs 2024-12-31): 28.6%Derived (calculated)
- R&D expense (YoY) (2025-12-31 vs 2024-12-31): 5.4%Derived (calculated)
- Return on assets (FY 2025-12-31): -23.4%Derived (calculated)
- Cash & equivalents (YoY) (2025-12-31 vs 2024-12-31): -21.3%Derived (calculated)
- Revenue (YoY) (2025-12-31 vs 2024-12-31): 22.1%Derived (calculated)
- Current ratio (FY 2025-12-31): 5.17xDerived (calculated)
- Capex (YoY) (2025-12-31 vs 2024-12-31): -42.7%Derived (calculated)
- EPS (diluted) (YoY) (2025-12-31 vs 2024-12-31): 11.4%Derived (calculated)
- Net income (YoY) (2025-12-31 vs 2024-12-31): 13.7%Derived (calculated)
- Gross profit (annual): USD 44.09MSEC XBRL filing
- Net income (annual): USD -31.58MSEC XBRL filing
- Revenue (annual): USD 70.62MSEC XBRL filing
- Total assets (annual): USD 134.7MSEC XBRL filing