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
$1.77
52-week range
$1.10 - $3.71
Market cap
$191.66M
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 specialized computer chips (semiconductors, which are the tiny electronic brains in devices) that allow high-quality video, audio, and power to be sent over a single long cable. The company primarily earns money by selling these chips to the audio-video industry for equipment like conference room projectors and is also growing its business with carmakers. This is important because its technology is a key component for advanced driver-assistance systems (the tech that helps with things like parking and staying in your lane), a large and growing part of the modern car market.
How the company got here
Founded in 2006 in Israel, Valens Semiconductor started with a goal to revolutionize digital connectivity. The company first made its name by inventing HDBaseT, a technology that became the go-to standard in the professional audio-video market for sending high-definition video and other signals over a single long cable. Seeing an opportunity in the growing complexity of cars, Valens expanded into the automotive industry in 2016, developing chipsets to connect the increasing number of sensors and displays in modern vehicles. A major turning point was when its technology was chosen as the basis for a new global standard for in-car connectivity called MIPI A-PHY, giving it a head start in this large market. The company went public on the New York Stock Exchange in 2021 through a combination with a special purpose acquisition company (SPAC).
What it actually does
Valens Semiconductor is a 'fabless' chip company, which means it designs specialized microchips but hires other companies to actually manufacture them. These chips solve a common problem: how to send huge amounts of data, like ultra-high-definition video and audio, reliably over long distances using a single, simple cable. You might find their technology inside advanced videoconferencing systems from companies like Logitech, in high-end Samsung TVs, or even in Siemens medical imaging equipment. In cars, their chips act like a high-speed nervous system, connecting cameras, sensors, and screens that are essential for features like advanced driver-assistance systems (the technology that helps with things like parking and staying in your lane).
Audio-Video
This is the company's original and largest business, built on its HDBaseT technology. It sells chips to manufacturers of equipment for professional settings like conference rooms, classrooms, hospitals, and live events. These customers, such as Logitech and Siemens, pay for Valens' chips because they can replace a messy bundle of different cables with a single, reliable, long-distance connection for video, audio, power, and more. This segment provides a steady base of revenue (the total money coming in from sales) for the company and is seeing new demand from the rise of hybrid work and remote services.
Automotive
This is Valens' newer and faster-growing business, focused on the car of the future. It sells its high-speed connectivity chips to Tier 1 suppliers (companies that sell parts directly to carmakers) like Bosch and Harman, who then build them into systems for major car brands such as Mercedes-Benz. As cars add more cameras, radar, and high-resolution displays for both safety and entertainment, they need a way to move massive amounts of data instantly and without errors, which is what Valens' chips are designed to do. While currently the smaller part of the company's sales, management sees this as a very large opportunity as its technology becomes a global standard.
What management is betting on now
The company's main strategy is to focus intensely on its two core businesses: Audio-Video and Automotive. Management is betting that its technology, which was chosen as the foundation for the MIPI A-PHY automotive standard, gives it a significant competitive advantage and a direct path into next-generation vehicles. They are also pushing their newest chips for the Audio-Video market, targeting growth in areas like videoconferencing, medical imaging, and industrial machine vision. To become more profitable, the company has also been focused on operational efficiency, which has included reducing its workforce to lower costs and concentrate resources on the most promising opportunities.
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 $1.77
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
-23.09x
P/B
1.98x
P/S
2.67x
EV/EBITDA
-3.31x
PEG ratio
—
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
—
Payout ratio
0.0%
Last ex-div date
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