VELOCITY FINANCIAL INC (VEL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:VEL • US92262D1019
20.61 USD
+0.09 (+0.44%)
At close: Feb 5, 2026
20.61 USD
0 (0%)
After Hours: 2/5/2026, 8:04:00 PM
Taking everything into account, VEL scores 5 out of 10 in our fundamental rating. VEL was compared to 97 industry peers in the Financial Services industry. While VEL has a great profitability rating, there are quite some concerns on its financial health. VEL is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
- In the past year VEL was profitable.
- In the past year VEL had a positive cash flow from operations.
- Of the past 5 years VEL 4 years were profitable.
- In the past 5 years VEL always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 1.29%, VEL perfoms like the industry average, outperforming 52.58% of the companies in the same industry.
- With a decent Return On Equity value of 14.15%, VEL is doing good in the industry, outperforming 73.20% of the companies in the same industry.
- With a Return On Invested Capital value of 4.05%, VEL perfoms like the industry average, outperforming 56.70% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for VEL is below the industry average of 8.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 14.15% | ||
| ROIC | 4.05% |
ROA(3y)1.08%
ROA(5y)0.5%
ROE(3y)11.12%
ROE(5y)5.87%
ROIC(3y)4.55%
ROIC(5y)4.48%
1.3 Margins
- Looking at the Profit Margin, with a value of 20.70%, VEL belongs to the top of the industry, outperforming 80.41% of the companies in the same industry.
- In the last couple of years the Profit Margin of VEL has grown nicely.
- With an excellent Operating Margin value of 87.86%, VEL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- VEL's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 86.20%, VEL belongs to the best of the industry, outperforming 89.69% of the companies in the same industry.
- VEL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 87.86% | ||
| PM (TTM) | 20.7% | ||
| GM | 86.2% |
OM growth 3Y2.96%
OM growth 5Y2.4%
PM growth 3Y14.34%
PM growth 5Y8.7%
GM growth 3Y-2.01%
GM growth 5Y-1.17%
2. Health
2.1 Basic Checks
- VEL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- VEL has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, VEL has more shares outstanding
- VEL has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.31, we must say that VEL is in the distress zone and has some risk of bankruptcy.
- VEL has a Altman-Z score (0.31) which is in line with its industry peers.
- VEL has a debt to FCF ratio of 110.82. This is a negative value and a sign of low solvency as VEL would need 110.82 years to pay back of all of its debts.
- VEL has a Debt to FCF ratio of 110.82. This is in the lower half of the industry: VEL underperforms 65.98% of its industry peers.
- A Debt/Equity ratio of 9.70 is on the high side and indicates that VEL has dependencies on debt financing.
- With a Debt to Equity ratio value of 9.70, VEL is not doing good in the industry: 84.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 110.82 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.68
WACC6%
2.3 Liquidity
- A Current Ratio of 0.29 indicates that VEL may have some problems paying its short term obligations.
- With a Current ratio value of 0.29, VEL is not doing good in the industry: 64.95% of the companies in the same industry are doing better.
- VEL has a Quick Ratio of 0.29. This is a bad value and indicates that VEL is not financially healthy enough and could expect problems in meeting its short term obligations.
- VEL has a Quick ratio of 0.29. This is in the lower half of the industry: VEL underperforms 64.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 35.98% over the past year.
- VEL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.62% yearly.
- Looking at the last year, VEL shows a quite strong growth in Revenue. The Revenue has grown by 11.61% in the last year.
- The Revenue has been growing by 20.82% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)35.98%
EPS 3Y27.91%
EPS 5Y15.62%
EPS Q2Q%46.81%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y29.96%
Revenue growth 5Y20.82%
Sales Q2Q%54.24%
3.2 Future
- VEL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.68% yearly.
- Based on estimates for the next years, VEL will show a quite strong growth in Revenue. The Revenue will grow by 16.85% on average per year.
EPS Next Y27.37%
EPS Next 2Y13.01%
EPS Next 3Y11.68%
EPS Next 5YN/A
Revenue Next Year5.29%
Revenue Next 2Y15.78%
Revenue Next 3Y16.85%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 8.02 indicates a reasonable valuation of VEL.
- VEL's Price/Earnings ratio is a bit cheaper when compared to the industry. VEL is cheaper than 76.29% of the companies in the same industry.
- VEL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.67.
- The Price/Forward Earnings ratio is 7.95, which indicates a rather cheap valuation of VEL.
- 70.10% of the companies in the same industry are more expensive than VEL, based on the Price/Forward Earnings ratio.
- VEL is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 7.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VEL is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, VEL is valued a bit cheaper than the industry average as 63.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.45 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
- VEL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- VEL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.29
PEG (5Y)0.51
EPS Next 2Y13.01%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
- VEL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
20.61
+0.09 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)01-26 2026-01-26/amc
Earnings (Next)04-29 2026-04-29
Inst Owners62.47%
Inst Owner Change0.19%
Ins Owners2.84%
Ins Owner Change1.79%
Market Cap801.73M
Revenue(TTM)433.35M
Net Income(TTM)89.72M
Analysts77.14
Price Target22.1 (7.23%)
Short Float %2.73%
Short Ratio6.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.22%
Min EPS beat(2)12.92%
Max EPS beat(2)35.52%
EPS beat(4)4
Avg EPS beat(4)18.9%
Min EPS beat(4)4.06%
Max EPS beat(4)35.52%
EPS beat(8)7
Avg EPS beat(8)16.55%
EPS beat(12)10
Avg EPS beat(12)12.95%
EPS beat(16)13
Avg EPS beat(16)13.53%
Revenue beat(2)2
Avg Revenue beat(2)103.33%
Min Revenue beat(2)95.7%
Max Revenue beat(2)110.96%
Revenue beat(4)3
Avg Revenue beat(4)48.54%
Min Revenue beat(4)-40.39%
Max Revenue beat(4)110.96%
Revenue beat(8)7
Avg Revenue beat(8)28.83%
Revenue beat(12)11
Avg Revenue beat(12)34.35%
Revenue beat(16)15
Avg Revenue beat(16)56.62%
PT rev (1m)0%
PT rev (3m)1.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.94%
EPS NY rev (1m)0%
EPS NY rev (3m)2.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 7.95 | ||
| P/S | 1.85 | ||
| P/FCF | 14.45 | ||
| P/OCF | 14.34 | ||
| P/B | 1.26 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 17.14 |
EPS(TTM)2.57
EY12.47%
EPS(NY)2.59
Fwd EY12.58%
FCF(TTM)1.43
FCFY6.92%
OCF(TTM)1.44
OCFY6.98%
SpS11.14
BVpS16.3
TBVpS16.13
PEG (NY)0.29
PEG (5Y)0.51
Graham Number30.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 14.15% | ||
| ROCE | 5.9% | ||
| ROIC | 4.05% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 4.2% | ||
| OM | 87.86% | ||
| PM (TTM) | 20.7% | ||
| GM | 86.2% | ||
| FCFM | 12.81% |
ROA(3y)1.08%
ROA(5y)0.5%
ROE(3y)11.12%
ROE(5y)5.87%
ROIC(3y)4.55%
ROIC(5y)4.48%
ROICexc(3y)4.6%
ROICexc(5y)4.52%
ROICexgc(3y)4.66%
ROICexgc(5y)4.58%
ROCE(3y)6.64%
ROCE(5y)6.4%
ROICexgc growth 3Y6.61%
ROICexgc growth 5Y3.27%
ROICexc growth 3Y6.46%
ROICexc growth 5Y3.05%
OM growth 3Y2.96%
OM growth 5Y2.4%
PM growth 3Y14.34%
PM growth 5Y8.7%
GM growth 3Y-2.01%
GM growth 5Y-1.17%
F-Score4
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 110.82 | ||
| Debt/EBITDA | 16.18 | ||
| Cap/Depr | -82.23% | ||
| Cap/Sales | 0.1% | ||
| Interest Coverage | 1.2 | ||
| Cash Conversion | 14.71% | ||
| Profit Quality | 61.86% | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.31 |
F-Score4
WACC6%
ROIC/WACC0.68
Cap/Depr(3y)327.67%
Cap/Depr(5y)228.23%
Cap/Sales(3y)0.77%
Cap/Sales(5y)0.68%
Profit Quality(3y)96.08%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.98%
EPS 3Y27.91%
EPS 5Y15.62%
EPS Q2Q%46.81%
EPS Next Y27.37%
EPS Next 2Y13.01%
EPS Next 3Y11.68%
EPS Next 5YN/A
Revenue 1Y (TTM)11.61%
Revenue growth 3Y29.96%
Revenue growth 5Y20.82%
Sales Q2Q%54.24%
Revenue Next Year5.29%
Revenue Next 2Y15.78%
Revenue Next 3Y16.85%
Revenue Next 5YN/A
EBIT growth 1Y12.08%
EBIT growth 3Y33.8%
EBIT growth 5Y23.72%
EBIT Next Year40.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-11.28%
FCF growth 3Y-17.04%
FCF growth 5YN/A
OCF growth 1Y-10.79%
OCF growth 3Y-13.14%
OCF growth 5YN/A
VELOCITY FINANCIAL INC / VEL FAQ
What is the ChartMill fundamental rating of VELOCITY FINANCIAL INC (VEL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to VEL.
What is the valuation status for VEL stock?
ChartMill assigns a valuation rating of 7 / 10 to VELOCITY FINANCIAL INC (VEL). This can be considered as Undervalued.
How profitable is VELOCITY FINANCIAL INC (VEL) stock?
VELOCITY FINANCIAL INC (VEL) has a profitability rating of 7 / 10.
What is the earnings growth outlook for VELOCITY FINANCIAL INC?
The Earnings per Share (EPS) of VELOCITY FINANCIAL INC (VEL) is expected to grow by 27.37% in the next year.