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Valens Semiconductor has the Financial Strength Rank of 7.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Valens Semiconductor did not have earnings to cover the interest expense.
Valens Semiconductor's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.11.
As of today, Valens Semiconductor's Altman Z-Score is 1.85.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Valens Semiconductor has the Financial Strength Rank of 7.
Valens Semiconductor Financial Strength Related Terms
VLN vs GCTS, GSIT, QUIK: Financial Strength Comparison
For the Semiconductors subindustry, Valens Semiconductor's Financial Strength, along with its competitors' market caps and Financial Strength 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.
Valens Semiconductor Financial Strength vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Valens Semiconductor's Financial Strength distribution charts can be found below:
* The bar in red indicates where Valens Semiconductor's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Valens Semiconductor has a Z-score of 1.85, indicating it is in Grey Zones. This implies that Valens Semiconductor is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 1.85 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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.
Valens Semiconductor (VLN) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Valens Semiconductor and its competitors. This is 13% below median its historical median of 8.00. Over the past decade, Valens Semiconductor's Financial Strength has ranged from 3.00 to 9.00.
Is Valens Semiconductor's Financial Strength too high?
Valens Semiconductor's current Financial Strength of 7 is 13% below median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 9.00. Overall, Valens Semiconductor has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Valens Semiconductor's Financial Strength compare to GCTS and GSIT?
Valens Semiconductor's Financial Strength of 7 can be compared against companies in the Semiconductors industry. Historically, Valens Semiconductor's own Financial Strength has ranged from 3.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Semiconductors company?
A good Financial Strength depends on the Semiconductors industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Valens Semiconductor and its competitors. Valens Semiconductor's current Financial Strength is 7, which is 13% below median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valens Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Valens Semiconductor (VLN) is currently considered Modestly Undervalued. The stock's GF Value™ is $2.16, compared to a current price of $1.87 — trading 13.4% below its estimated fair value. The current Financial Strength is 7, which is 13% below median its 10-year median of 8.00. Valens Semiconductor's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Valens Semiconductor (VLN), the current Financial Strength is 7 as of Jun. 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 Valens Semiconductor (VLN) Overvalued in 2026?
Based on GuruFocus' analysis, Valens Semiconductor stock appears to be undervalued.
The current stock price of $1.87 is trading 13.4% below its estimated GF Value™ of $2.16.
GuruFocus considers Valens Semiconductor to be Modestly Undervalued.
Key valuation signals for VLN:
Financial Strength: 7 (13% below median its 10-year median of 8.00)
GF Value™: $2.16 vs. price of $1.87 (13.4% below fair value)
No single metric tells the full story. See the VLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Cross Industry Business, which includes solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical revenue is derived from Hungary.
71GF Score
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