Valens Semiconductor Ltd. WT Fundamental Analysis (NYSE: VLN-WT)
Valens Semiconductor Ltd. WT (NYSE: VLN-WT) shows moderate financial fundamentals with a PE ratio of -5.56, profit margin of -45.23%, and ROE of -31.56%. The company generates $0.1B in annual revenue with strong year-over-year growth of 22.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -16.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VLN-WT's fundamental strength across five key dimensions:
Efficiency Score
WeakVLN-WT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVLN-WT trades at attractive valuation levels.
Growth Score
ModerateVLN-WT shows steady but slowing expansion.
Financial Health Score
ExcellentVLN-WT maintains a strong and stable balance sheet.
Profitability Score
WeakVLN-WT struggles to sustain strong margins.
Key Financial Metrics
Is VLN-WT Expensive or Cheap?
P/E Ratio
VLN-WT trades at -5.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VLN-WT's PEG of -3.04 indicates potential undervaluation.
Price to Book
The market values Valens Semiconductor Ltd. WT at 1.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -7.70 times EBITDA. This is generally considered low.
How Well Does VLN-WT Make Money?
Net Profit Margin
For every $100 in sales, Valens Semiconductor Ltd. WT keeps $-45.23 as profit after all expenses.
Operating Margin
Core operations generate -48.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-31.56 in profit for every $100 of shareholder equity.
ROA
Valens Semiconductor Ltd. WT generates $-26.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Valens Semiconductor Ltd. WT generates limited operating cash flow of $-14.07M, signaling weaker underlying cash strength.
Free Cash Flow
Valens Semiconductor Ltd. WT generates weak or negative free cash flow of $-14.91M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.14 in free cash annually.
FCF Yield
VLN-WT converts -7.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-5.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.32
vs 25 benchmark
ROA
Return on assets percentage
-0.26
vs 25 benchmark
ROCE
Return on capital employed
-0.33
vs 25 benchmark
How VLN-WT Stacks Against Its Sector Peers
| Metric | VLN-WT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -5.56 | 34.20 | Better (Cheaper) |
| ROE | -31.56% | 715.00% | Weak |
| Net Margin | -45.23% | -3125.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.22 | Strong (Low Leverage) |
| Current Ratio | 5.21 | 5.99 | Strong Liquidity |
| ROA | -26.02% | 246.00% | Weak |
VLN-WT outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Valens Semiconductor Ltd. WT's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-82.70%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
77.58%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
90.96%
Industry Style: Growth, Innovation, High Beta
High Growth