VELOCITY FINANCIAL INC (VEL) Stock Fundamental Analysis

NYSE:VEL • US92262D1019

18.59 USD
-0.2 (-1.06%)
At close: Feb 27, 2026
18.59 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

VEL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. There are concerns on the financial health of VEL while its profitability can be described as average. VEL is evaluated to be cheap and growing strongly. This does not happen too often!


Dividend Valuation Growth Profitability Health

6

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.
  • VEL had positive earnings in 4 of the past 5 years.
  • In the past 5 years VEL always reported a positive cash flow from operatings.
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 0 100M -100M 200M 300M

1.2 Ratios

  • VEL has a Return On Assets (1.29%) which is in line with its industry peers.
  • The Return On Equity of VEL (14.15%) is better than 76.53% of its industry peers.
  • VEL has a Return On Invested Capital of 4.05%. This is comparable to the rest of the industry: VEL outperforms 57.14% of its industry peers.
  • VEL had an Average Return On Invested Capital over the past 3 years of 4.55%. This is below the industry average of 8.39%.
Industry RankSector 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%
VEL Yearly ROA, ROE, ROICVEL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 -10

1.3 Margins

  • VEL has a Profit Margin of 20.70%. This is in the better half of the industry: VEL outperforms 79.59% of its industry peers.
  • In the last couple of years the Profit Margin of VEL has grown nicely.
  • VEL has a Operating Margin of 87.86%. This is amongst the best in the industry. VEL outperforms 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 86.20%, VEL belongs to the top of the industry, outperforming 90.82% of the companies in the same industry.
  • In the last couple of years the Gross Margin of VEL has remained more or less at the same level.
Industry RankSector 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%
VEL Yearly Profit, Operating, Gross MarginsVEL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

0

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VEL is destroying value.
  • Compared to 1 year ago, VEL has more shares outstanding
  • The number of shares outstanding for VEL has been increased compared to 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 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 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 0.30, we must say that VEL is in the distress zone and has some risk of bankruptcy.
  • VEL's Altman-Z score of 0.30 is in line compared to the rest of the industry. VEL outperforms 51.02% of 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.
  • The Debt to FCF ratio of VEL (110.82) is worse than 68.37% 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.
  • VEL has a worse Debt to Equity ratio (9.70) than 83.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.7
Debt/FCF 110.82
Altman-Z 0.3
ROIC/WACC0.7
WACC5.8%
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 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 0.29 indicates that VEL may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.29, VEL is doing worse than 66.33% of the companies in the same industry.
  • 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 worse Quick ratio (0.29) than 65.31% of its industry peers.
Industry RankSector Rank
Current Ratio 0.29
Quick Ratio 0.29
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 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. Growth

3.1 Past

  • VEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.98%, which is quite impressive.
  • The Earnings Per Share has been growing by 15.62% on average over the past years. This is quite good.
  • 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

  • Based on estimates for the next years, VEL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.68% on average per year.
  • VEL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.85% yearly.
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.
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
VEL Yearly EPS VS EstimatesVEL Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 7.23 indicates a rather cheap valuation of VEL.
  • 79.59% of the companies in the same industry are more expensive than VEL, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.07. VEL is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 7.17, the valuation of VEL can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, VEL is valued a bit cheaper than 77.55% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, VEL is valued rather cheaply.
Industry RankSector Rank
PE 7.23
Fwd PE 7.17
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of VEL indicates a somewhat cheap valuation: VEL is cheaper than 65.31% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.03
EV/EBITDA 16.94
VEL Per share dataVEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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)0.26
PEG (5Y)0.46
EPS Next 2Y13.01%
EPS Next 3Y11.68%

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

0

5. Dividend

5.1 Amount

  • No dividends for VEL!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

VELOCITY FINANCIAL INC

NYSE:VEL (2/27/2026, 8:04:00 PM)

After market: 18.59 0 (0%)

18.59

-0.2 (-1.06%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-06
Earnings (Next)03-11
Inst Owners62.47%
Inst Owner Change1.45%
Ins Owners2.84%
Ins Owner Change1.51%
Market Cap723.15M
Revenue(TTM)433.35M
Net Income(TTM)89.72M
Analysts77.14
Price Target22.1 (18.88%)
Short Float %3.58%
Short Ratio7.46
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)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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.35%
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 RankSector Rank
PE 7.23
Fwd PE 7.17
P/S 1.67
P/FCF 13.03
P/OCF 12.93
P/B 1.14
P/tB 1.15
EV/EBITDA 16.94
EPS(TTM)2.57
EY13.82%
EPS(NY)2.59
Fwd EY13.94%
FCF(TTM)1.43
FCFY7.68%
OCF(TTM)1.44
OCFY7.73%
SpS11.14
BVpS16.3
TBVpS16.13
PEG (NY)0.26
PEG (5Y)0.46
Graham Number30.71
Profitability
Industry RankSector 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 RankSector 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 0.3
F-Score4
WACC5.8%
ROIC/WACC0.7
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 8 / 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 6 / 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.