VELOCITY FINANCIAL INC (VEL) Fundamental Analysis & Valuation

NYSE:VEL • US92262D1019

Current stock price

19.29 USD
+0.13 (+0.68%)
At close:
19.29 USD
0 (0%)
After Hours:

This VEL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. VEL Profitability Analysis

1.1 Basic Checks

  • In the past year VEL was profitable.
  • VEL had a positive operating cash flow in the past year.
  • VEL had positive earnings in each of the past 5 years.
  • Each year in the past 5 years VEL had a positive operating cash flow.
VEL Yearly Net Income VS EBIT VS OCF VS FCFVEL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M

1.2 Ratios

  • VEL has a Return On Assets of 1.40%. This is comparable to the rest of the industry: VEL outperforms 54.00% of its industry peers.
  • VEL has a Return On Equity of 15.42%. This is amongst the best in the industry. VEL outperforms 81.00% of its industry peers.
  • The Return On Invested Capital of VEL (5.23%) is better than 69.00% of its industry peers.
  • VEL had an Average Return On Invested Capital over the past 3 years of 4.90%. This is below the industry average of 7.97%.
  • The 3 year average ROIC (4.90%) for VEL is below the current ROIC(5.23%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.4%
ROE 15.42%
ROIC 5.23%
ROA(3y)1.27%
ROA(5y)1.08%
ROE(3y)13.46%
ROE(5y)10.97%
ROIC(3y)4.9%
ROIC(5y)4.55%
VEL Yearly ROA, ROE, ROICVEL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 -10 15

1.3 Margins

  • The Profit Margin of VEL (17.66%) is better than 73.00% of its industry peers.
  • In the last couple of years the Profit Margin of VEL has grown nicely.
  • VEL has a better Operating Margin (89.99%) than 100.00% of its industry peers.
  • VEL's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 89.49%, VEL belongs to the top of the industry, outperforming 93.00% of the companies in the same industry.
  • VEL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 89.99%
PM (TTM) 17.66%
GM 89.49%
OM growth 3Y2.54%
OM growth 5Y3.66%
PM growth 3Y11.31%
PM growth 5YN/A
GM growth 3Y-1.98%
GM growth 5Y-1.3%
VEL Yearly Profit, Operating, Gross MarginsVEL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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1

2. VEL Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VEL is destroying value.
  • Compared to 1 year ago, VEL has more shares outstanding
  • VEL has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for VEL is higher compared to a year ago.
VEL Yearly Shares OutstandingVEL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
VEL Yearly Total Debt VS Total AssetsVEL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • Based on the Altman-Z score of 0.39, we must say that VEL is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of VEL (0.39) is comparable to the rest of the industry.
  • The Debt to FCF ratio of VEL is 393.94, which is on the high side as it means it would take VEL, 393.94 years of fcf income to pay off all of its debts.
  • VEL has a Debt to FCF ratio (393.94) which is comparable to the rest of the industry.
  • VEL has a Debt/Equity ratio of 9.72. This is a high value indicating a heavy dependency on external financing.
  • VEL's Debt to Equity ratio of 9.72 is on the low side compared to the rest of the industry. VEL is outperformed by 83.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.72
Debt/FCF 393.95
Altman-Z 0.39
ROIC/WACC0.99
WACC5.28%
VEL Yearly LT Debt VS Equity VS FCFVEL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • VEL has a Current Ratio of 0.30. This is a bad value and indicates that VEL is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of VEL (0.30) is worse than 63.00% of its industry peers.
  • VEL has a Quick Ratio of 0.30. 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's Quick ratio of 0.30 is on the low side compared to the rest of the industry. VEL is outperformed by 63.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.3
Quick Ratio 0.3
VEL Yearly Current Assets VS Current LiabilitesVEL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. VEL Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 42.86% over the past year.
  • VEL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.04% yearly.
  • Looking at the last year, VEL shows a very strong growth in Revenue. The Revenue has grown by 40.86%.
  • Measured over the past years, VEL shows a very strong growth in Revenue. The Revenue has been growing by 27.40% on average per year.
EPS 1Y (TTM)42.86%
EPS 3Y33.1%
EPS 5Y30.04%
EPS Q2Q%55%
Revenue 1Y (TTM)40.86%
Revenue growth 3Y33.36%
Revenue growth 5Y27.4%
Sales Q2Q%-27.48%

3.2 Future

  • Based on estimates for the next years, VEL will show a small growth in Earnings Per Share. The EPS will grow by 2.03% on average per year.
  • Based on estimates for the next years, VEL will show a very strong growth in Revenue. The Revenue will grow by 23.10% on average per year.
EPS Next Y-3.53%
EPS Next 2Y7.85%
EPS Next 3Y2.03%
EPS Next 5YN/A
Revenue Next Year27.31%
Revenue Next 2Y23.1%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
VEL Yearly Revenue VS EstimatesVEL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M 500M
VEL Yearly EPS VS EstimatesVEL Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

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6

4. VEL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.65, the valuation of VEL can be described as very cheap.
  • Based on the Price/Earnings ratio, VEL is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of VEL to the average of the S&P500 Index (26.77), we can say VEL is valued rather cheaply.
  • VEL is valuated cheaply with a Price/Forward Earnings ratio of 6.89.
  • VEL's Price/Forward Earnings ratio is rather cheap when compared to the industry. VEL is cheaper than 81.00% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of VEL to the average of the S&P500 Index (21.75), we can say VEL is valued rather cheaply.
Industry RankSector Rank
PE 6.65
Fwd PE 6.89
VEL Price Earnings VS Forward Price EarningsVEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • VEL's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as VEL.
Industry RankSector Rank
P/FCF 45.61
EV/EBITDA 13.03
VEL Per share dataVEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • VEL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y7.85%
EPS Next 3Y2.03%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. VEL Dividend Analysis

5.1 Amount

  • VEL does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

VEL Fundamentals: All Metrics, Ratios and Statistics

VELOCITY FINANCIAL INC

NYSE:VEL (4/30/2026, 8:22:10 PM)

After market: 19.29 0 (0%)

19.29

+0.13 (+0.68%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Industry Strength37.27
Industry Growth65.84
Earnings (Last)03-11
Earnings (Next)05-06
Inst Owners63.1%
Inst Owner Change1.43%
Ins Owners2.98%
Ins Owner Change1.35%
Market Cap756.94M
Revenue(TTM)587.08M
Net Income(TTM)103.71M
Analysts77.14
Price Target22.1 (14.57%)
Short Float %4.09%
Short Ratio9.18
Dividend
Industry RankSector 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)25.18%
Min EPS beat(2)12.92%
Max EPS beat(2)37.43%
EPS beat(4)4
Avg EPS beat(4)22.48%
Min EPS beat(4)4.06%
Max EPS beat(4)37.43%
EPS beat(8)7
Avg EPS beat(8)18.6%
EPS beat(12)11
Avg EPS beat(12)16.61%
EPS beat(16)13
Avg EPS beat(16)14.46%
Revenue beat(2)2
Avg Revenue beat(2)53.29%
Min Revenue beat(2)10.88%
Max Revenue beat(2)95.7%
Revenue beat(4)3
Avg Revenue beat(4)44.29%
Min Revenue beat(4)-40.39%
Max Revenue beat(4)110.96%
Revenue beat(8)7
Avg Revenue beat(8)29.25%
Revenue beat(12)11
Avg Revenue beat(12)23.92%
Revenue beat(16)15
Avg Revenue beat(16)49.46%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.08%
EPS NY rev (1m)7.92%
EPS NY rev (3m)7.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 6.65
Fwd PE 6.89
P/S 1.29
P/FCF 45.61
P/OCF 41.68
P/B 1.13
P/tB 1.14
EV/EBITDA 13.03
EPS(TTM)2.9
EY15.03%
EPS(NY)2.8
Fwd EY14.5%
FCF(TTM)0.42
FCFY2.19%
OCF(TTM)0.46
OCFY2.4%
SpS14.96
BVpS17.14
TBVpS16.97
PEG (NY)N/A
PEG (5Y)0.22
Graham Number33.4413 (73.36%)
Profitability
Industry RankSector Rank
ROA 1.4%
ROE 15.42%
ROCE 7.65%
ROIC 5.23%
ROICexc 5.3%
ROICexgc 5.41%
OM 89.99%
PM (TTM) 17.66%
GM 89.49%
FCFM 2.83%
ROA(3y)1.27%
ROA(5y)1.08%
ROE(3y)13.46%
ROE(5y)10.97%
ROIC(3y)4.9%
ROIC(5y)4.55%
ROICexc(3y)4.95%
ROICexc(5y)4.6%
ROICexgc(3y)5.04%
ROICexgc(5y)4.67%
ROCE(3y)7.3%
ROCE(5y)6.64%
ROICexgc growth 3Y9.48%
ROICexgc growth 5Y2.95%
ROICexc growth 3Y9.06%
ROICexc growth 5Y2.71%
OM growth 3Y2.54%
OM growth 5Y3.66%
PM growth 3Y11.31%
PM growth 5YN/A
GM growth 3Y-1.98%
GM growth 5Y-1.3%
F-Score5
Asset Turnover0.08
Health
Industry RankSector Rank
Debt/Equity 9.72
Debt/FCF 393.95
Debt/EBITDA 12.36
Cap/Depr 303.49%
Cap/Sales 0.27%
Interest Coverage 1.53
Cash Conversion 3.43%
Profit Quality 16%
Current Ratio 0.3
Quick Ratio 0.3
Altman-Z 0.39
F-Score5
WACC5.28%
ROIC/WACC0.99
Cap/Depr(3y)321.33%
Cap/Depr(5y)263.19%
Cap/Sales(3y)0.51%
Cap/Sales(5y)0.55%
Profit Quality(3y)52.95%
Profit Quality(5y)116.47%
High Growth Momentum
Growth
EPS 1Y (TTM)42.86%
EPS 3Y33.1%
EPS 5Y30.04%
EPS Q2Q%55%
EPS Next Y-3.53%
EPS Next 2Y7.85%
EPS Next 3Y2.03%
EPS Next 5YN/A
Revenue 1Y (TTM)40.86%
Revenue growth 3Y33.36%
Revenue growth 5Y27.4%
Sales Q2Q%-27.48%
Revenue Next Year27.31%
Revenue Next 2Y23.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y43.97%
EBIT growth 3Y36.75%
EBIT growth 5Y32.07%
EBIT Next Year1.43%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-49.26%
FCF growth 3Y-28.86%
FCF growth 5Y-20.82%
OCF growth 1Y-51.9%
OCF growth 3Y-28.01%
OCF growth 5Y-19.85%

VELOCITY FINANCIAL INC / VEL Fundamental Analysis FAQ

What is the ChartMill fundamental rating of VELOCITY FINANCIAL INC (VEL) stock?

ChartMill assigns a fundamental rating of 5 / 10 to VEL.


Can you provide the valuation status for VELOCITY FINANCIAL INC?

ChartMill assigns a valuation rating of 6 / 10 to VELOCITY FINANCIAL INC (VEL). This can be considered as Fairly Valued.


Can you provide the profitability details for VELOCITY FINANCIAL INC?

VELOCITY FINANCIAL INC (VEL) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for VEL stock?

The Price/Earnings (PE) ratio for VELOCITY FINANCIAL INC (VEL) is 6.65 and the Price/Book (PB) ratio is 1.13.


What is the financial health of VELOCITY FINANCIAL INC (VEL) stock?

The financial health rating of VELOCITY FINANCIAL INC (VEL) is 1 / 10.