The Valens Company Inc.

NasdaqCM:VLNS Stock Report

Market Cap: US$60.5m

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Valens Balance Sheet Health

Financial Health criteria checks 2/6

Valens has a total shareholder equity of CA$79.3M and total debt of CA$60.0M, which brings its debt-to-equity ratio to 75.7%. Its total assets and total liabilities are CA$201.2M and CA$121.9M respectively.

Key information

75.69%

Debt to equity ratio

CA$60.02m

Debt

Interest coverage ration/a
CashCA$27.21m
EquityCA$79.30m
Total liabilitiesCA$121.87m
Total assetsCA$201.17m

Recent financial health updates

No updates

Recent updates

Seeking Alpha • Oct 12

The Valens Q3 Earnings Preview

The Valens (NASDAQ:VLNS) is scheduled to announce Q3 earnings results on Thursday, October 13th, before market open. The consensus Revenue Estimate is $20.68M (-1.5% Y/Y).
Seeking Alpha • Aug 22

SNDL to acquire rival cannabis player Valens in all stock deal

SNDL (SNDL) announced Monday that the Canadian cannabis company inked an agreement to acquire the domestic rival The Valens Company (NASDAQ:VLNS) for nearly $138M in an all-stock deal. SNDL is currently trading sharply lower while VLNS is on hold for trading. Per the terms, SNDL will buy all VLNS common shares other than it already owns in exchange for 0.3334 of SNDL common share for each VLNS share, and VLNS investors will own ~9.5% of the pro forma entity. The consideration implies $1.26 per VLNS share and indicates a premium of 10% based on the stock’s trailing 30-day volume-weighted average price. The combined entity will be a vertically integrated cannabis platform and operate as SNDL Inc. The transaction is expected to close in Jan. 2023.
Seeking Alpha • Jul 13

The Valens GAAP EPS of -$2.13, revenue of $24M beats by $4.55M

The Valens press release (NASDAQ:VLNS): Q2 GAAP EPS of -$2.13. Revenue of $24M (+3.5% Y/Y) beats by $4.55M. Adjusted gross profit was $3.4 million, or 14.0% of net revenue in Q2 2022, compared to $3.4 million, or 14.6% of net revenue, in Q1 2022. Adjusted EBITDA was $(15.9) million, in Q2 2022 compared to $(17.6) million in Q1 2022. Valens expects Q3 2022 cash flow from operations between $(9) million to $(12.5) million.

Financial Position Analysis

Short Term Liabilities: VLNS's short term assets (CA$112.0M) exceed its short term liabilities (CA$53.9M).

Long Term Liabilities: VLNS's short term assets (CA$112.0M) exceed its long term liabilities (CA$68.0M).

Debt to Equity History and Analysis

Debt Level: VLNS's net debt to equity ratio (41.4%) is considered high.

Reducing Debt: VLNS's debt to equity ratio has increased from 0% to 75.7% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss-making in the past, we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: VLNS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: VLNS has less than a year of cash runway if free cash flow continues to reduce at historical rates of 45.6% each year

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/01/19 23:44
End of Day Share Price 2023/01/18 00:00
Earnings2022/08/31
Annual Earnings2021/11/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The Valens Company Inc. is covered by 7 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David KideckelATB Cormark
Kimberly Thompson-HedlinCanaccord Genuity
John ChuDesjardins Securities Inc.