Velan

VLN.TO

Industrial - Machinery · Industrials

Exchange

Toronto Stock Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through May 31, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Good

Valuation

Data not available

Dividends

Strong

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Winston Score History

The full picture

Velan Inc. is a Canadian industrial company that makes valves — the mechanical devices that control the flow of liquids, gases, and steam inside pipes. Its products are used in power plants, oil refineries, chemical facilities, and naval ships. The company is headquartered in Montreal and has been making valves for over 70 years, selling to customers in heavy industries around the world.

Velan earns money by selling its valves and related parts directly to industrial customers and through distributors. It operates manufacturing facilities across North America, Europe, and Asia, giving it a global footprint that is unusual for a company of its size. The main competitive strength is its long history and reputation for valves used in demanding, high-pressure environments. However, the company's very thin operating margin and deeply negative return on capital signal that profitability is a serious ongoing challenge, and improving cost efficiency is the key hurdle management must clear.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+76.6% YoY

YoY Growth Rate

Strong earnings growth

Insider Activity

21.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

C$54M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Velan is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

19.6%

Thin — 19.6% gross margin

Profit after running costs

Operating Margin

-12.5%

Losing money on operations — -12.5%

Return on the money invested

ROCE

-1.1%

Weak — -1.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-13.7%

Shrinking sales (-13.7% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-8.3%

Burning cash (-8.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.19

Conservative — low debt load (0.19)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

2.17%

no trend

Moderate income — 2.17% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+366.7%

no trend

Dividend growing fast (366.7% YoY)

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