One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Valens Semiconductor Ltd.
VLN · NYQ · Technology · Semiconductors
Current price
$1.49
52-week range
$1.10 - $3.71
Market cap
$161.34M
Balance sheet
Healthy
-313.98x Concerning
Net cash $75.42M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Revenue grew 22.1% last year.
- Risk Return on equity was -30.4% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -31.3% to -43.9% over 3 years.
What this company does
Valens Semiconductor Ltd.
Valens Semiconductor makes special computer chips that help send high-quality video and audio, as well as data and power, over a single cable for things like TVs and car systems. Most of their money comes from selling these chips to companies that build these devices, and it matters because their technology is key to making these electronic systems work smoothly.
How the company got here
Valens Semiconductor started in 2006 with a big idea: to simplify how high-definition video and audio signals are sent. They developed a technology called HDBaseT, which allows all the necessary signals, plus power, to travel through a single cable. This innovation was a game-changer for industries needing to transmit high-quality video without a mess of wires. Over time, they expanded their focus to include the demanding automotive sector, recognizing the growing need for advanced connectivity in cars.
What it actually does
Valens Semiconductor makes special computer chips (semiconductors) that act like traffic controllers for data. These chips are designed to send different types of information, like video, audio, and control signals, very efficiently over a single cable. Think of it like a super-efficient postal service for digital information, ensuring everything arrives quickly and in the right order. Their technology is used in everything from professional video setups to the complex electronic systems inside modern cars.
Cross Industry Business
This part of Valens focuses on making it easier to connect audio and video equipment in various professional settings. Their HDBaseT technology is key here, allowing for a single cable to carry ultra-high-definition video and audio, internet signals (Ethernet), and even power to devices. This simplifies installations in places like conference rooms, classrooms, and digital signs, reducing the need for multiple cables and complex setups. This segment is a significant part of Valens' business, serving markets that need reliable and high-quality audio-visual distribution.
Automotive
This is a rapidly growing area for Valens, where they provide chips that enable advanced connectivity within vehicles. Their technology, particularly MIPI A-PHY, is crucial for the sophisticated electronic systems in modern cars, such as advanced driver-assistance systems (ADAS) and the components needed for automated driving. These systems require robust and high-speed data transfer, which Valens' chips are designed to handle reliably. This segment represents a key strategic focus for the company as the automotive industry increasingly relies on complex electronic architectures.
What management is betting on now
Valens is heavily focused on expanding its presence in the automotive sector, seeing it as a major growth engine. They are investing in technologies that support the increasing demand for advanced driver-assistance systems and autonomous driving features in cars. By providing reliable and high-performance connectivity solutions, they aim to become a go-to supplier for automakers. Additionally, they continue to innovate within their traditional cross-industry business, seeking new applications for their HDBaseT technology to maintain their competitive edge.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-848.00K
FY2025 Q4
$-13.79M
Revenue
$70.62M
Net income
$-31.58M
Diluted EPS
-0.31
Operating cash flow
$-12.72M
Free cash flow
$-13.79M
Fetching…
Sources
Revenue
$57.86M
Net income
$-36.58M
Diluted EPS
-0.35
Operating cash flow
$1.02M
Free cash flow
$-848.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $1.49
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $75.4M - more cash than debt. Interest coverage -314.0x.
Net debt
$-75.42M
Interest coverage
-313.98x
Valens Semiconductor Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
VLN
BASELINE
Valens Semiconductor Ltd.
Total debt $8.02M Interest coverage -313.98x This is the baseline the peer rows are being compared against.
Total debt $431.30M Interest coverage -9.10x Neither company has much profit cushion over interest right now.
Total debt $524.99M Interest coverage 8.60x This peer still has a real interest-payment cushion, while VLN does not.
Total debt $876.80M Interest coverage -2.44x Neither company has much profit cushion over interest right now.
What you should know
The case for and against VLN
1 Reward
2 Risks
Rewards
-
Revenue grew 22.1% last year.
Risks
-
Return on equity was -30.4% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -31.3% to -43.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-19.43x
P/B
1.66x
P/S
2.25x
EV/EBITDA
-2.75x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
61.8%
Operating margin
-43.9%
Net margin
-45.2%
ROE
-30.4%
ROA
-15.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.08x
Current ratio
5.21x
Quick ratio
4.37x
Total debt
$8.02M
Total cash
$83.43M
Growth
How the business has been compounding
Revenue TTM
$303.36M
Revenue 5Y CAGR
-0.0%
EPS TTM
-0.31
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-40.15M
Free CF TTM
$-13.79M
FCF margin
-4.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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