Added to YB: 2025-01-17
Pitch date: 2025-01-16
VLN.TO [bullish]
Velan Inc.
Author Info
everyonehatespoetry is an equities analyst sharing his best special situations / GARP ideas, mostly small and micro caps. Sign up for the newsletter.
Company Info
Velan Inc. designs, manufactures, and markets industrial valves worldwide. The company offers quarter-turn valves, such as ball, high performance three-piece ball, general purpose ball, metal-seated ball, triple-offset, high performance cryogenic butterfly, coker ball, and cap-tight batch digester capping valves; and gate, globe, and check valves, including pressure seal, bolted bonnet high pressure, cast steel, cast stainless steel corrosion resistant, small forged, bonnetless, and dual-plate check valves, as well as maintenance valves for nuclear service.
Market Cap
CAD 240.8M
Pitch Price
N/A
Price Target
31.60 (+90%)
Dividend
0.72%
Sector
Machinery
Category
special_situation
$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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