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Added to YB: 2025-01-17

Pitch date: 2025-01-16

VLN.TO [bullish]

Velan Inc.

-10.36%

current return

Author Info

No bio for this author

Company Info

Velan Inc. designs, manufactures, and markets industrial valves worldwide. The company offers quarter-turn valves; gate, globe, and check valves; API 600 cast steel gate, globe, and check valves; corrosion-resistant steel gate, globe, and check valves; API 602 small forged gate, globe, and check valves; API 6D/API 6A through conduit and double expanding gate valves; large forged pressure seal and bolted bonnet gate, globe, and check valves; y-pattern valves; Proquip dual-plate check valves; API 6D/API 6A non slam and swing check valves; quarter-turn valves; resilient-seated ball valves; Securaseal metal-seated ball valves; Coker ball valves; API 6D/API 6A pipeline ball valves; modular double block and bleed ball valves; Torqseal triple-offset butterfly valves; and other products.

Market Cap

CAD 220.3M

Pitch Price

CAD 16.18

Price Target

31.60 (+118%)

Dividend

0.78%

Sector

Machinery

Category

special_situation

Show full summary:
$VLN.TO: Clean-up and take-out

VLN.TO: Sold French biz for $198.4M (2x rev), settled $143M asbestos liability. Q3 adj EBITDA $14.3M (19.5% margin). LTM adj EBITDA $39.3M, trading at 4.3x. Mgmt hints at sale, removed French regulatory hurdle. Bull case: 2x rev multiple = $31.60/share. Risks: margins not sustainable, no takeover.

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