VelanVLNSF 61 Gross Margin % is 20.75% as of Feb. 2026, which is 22% below its 10-year median of 26.67. GuruFocus rates VLNSF with a GF Score™ of 61/100 and a GF Value™ of $7.17 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,003 Industrial Products companies, Velan ranks better than 51.71% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Velan's Gross Profit for the
three
months ended in Feb. 2026 was $17.6 Mil. Velan's Revenue for the
three
months ended in Feb. 2026 was $84.9 Mil. Therefore, Velan's Gross Margin % for the quarter that ended in Feb. 2026 was 20.75%.
Warning Sign:
Velan Inc gross margin has been in long-term decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Velan's Gross Margin % or its related term are showing as below:
VLNSF'
s Gross Margin % Range Over the Past 10 Years
Min: 20.97 Med: 26.67 Max: 32.82
Current: 27.43
During the past 13 years, the highestGross Margin % of Velan was 32.82%. The lowest was 20.97%. And the median was 26.67%.
VLNSF's Gross Margin % is ranked better than 51.71% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs VLNSF: 27.43
Velan had a gross margin of 20.75% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Velan was -1.80% per year.
Velan (OTCPK:VLNSF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Velan had a gross margin of 20.75% for the quarter that ended in Feb. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Velan Gross Margin % Related Terms
Velan Gross Margin % Historical Data
* Premium members only.
The historical data trend for Velan's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Velan's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Velan Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Velan's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Velan's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Velan (VLNSF) has a Gross Margin % of 20.75% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Velan and its competitors. This is 22% below median its historical median of 26.67. Over the past decade, Velan's Gross Margin % has ranged from 20.97 to 32.82. According to the industry distribution chart, Velan ranks #1450 out of 3003 companies in the Industrial Products industry, placing it in the top 48.3%.
Is Velan's Gross Margin % too high?
Velan's current Gross Margin % of 20.75% is 22% below median its 10-year median of 26.67. Over the past 10 years, this metric has ranged from a low of 20.97 to a high of 32.82. The Industrial Products industry median Gross Margin % is 26.79. Velan's value of 20.75% is 22.5% below this industry median. Based on the distribution chart, Velan ranks #1450 out of 3003 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Velan has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Velan's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Velan ranks #1450 out of 3003 companies for Gross Margin %. This puts Velan in the upper half of its industry. The industry median Gross Margin % is 26.79. Velan's value of 20.75% is 22.5% below this benchmark. Historically, Velan's own Gross Margin % has ranged from 20.97 to 32.82 over the past decade. While the company's 10-year median is 26.67 vs. the industry median of 26.79, Velan has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Velan's current Gross Margin % of 20.75% is 22.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Velan and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velan's current Gross Margin % is 20.75%, which is 22% below median its own 10-year median of 26.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velan stock overvalued right now?
Based on GuruFocus' analysis, Velan (VLNSF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.17, compared to a current price of $10.92 — trading 52.3% above its estimated fair value. The current Gross Margin % is 20.75%, which is 22% below median its 10-year median of 26.67 and 22.5% below the Industrial Products industry median of 26.79. Velan's overall GF Score™ is 61/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Velan (VLNSF), the current Gross Margin % is 20.75% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Velan (VLNSF) Overvalued in 2026?
Based on GuruFocus' analysis, Velan stock appears to be overvalued.
The current stock price of $10.92 is trading 52.3% above its estimated GF Value™ of $7.17.
GuruFocus considers Velan to be Significantly Overvalued.
Key valuation signals for VLNSF:
Gross Margin %: 20.75% (22% below median its 10-year median of 26.67)
GF Value™: $7.17 vs. price of $10.92 (52.3% above fair value)
Industry Position: 22.5% below the Industrial Products median (#1450 of 3003)
No single metric tells the full story. See the VLNSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velan Inc is an international manufacturer of industrial valves. The company offers products such as Gate valves, check valves, cryogenic, steam traps, and others, which are used in various industries including power generation, oil and gas, refining and petrochemicals, chemical, liquid natural gas (LNG) and cryogenics, mining, shipbuilding, water, and wastewater. It operates in various geographical regions: Canada, the United States, France, Italy, and Other countries.
61GF Score
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