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
Fundamental Rating

5

VEL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. VEL has an excellent profitability rating, but there are concerns on its financial health. An interesting combination arises when we look at growth and value: VEL is growing strongly while it also seems undervalued.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • VEL had positive earnings in the past year.
  • VEL had a positive operating cash flow in the past year.
  • VEL had positive earnings in 4 of the past 5 years.
  • VEL had a positive operating cash flow in each of the past 5 years.
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 comparable to the rest of the industry.
  • VEL has a Return On Equity of 14.15%. This is in the better half of the industry: VEL outperforms 73.20% of its industry peers.
  • VEL has a Return On Invested Capital (4.05%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for VEL is below the industry average of 8.54%.
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 better Profit Margin (20.70%) than 80.41% of its industry peers.
  • VEL's Profit Margin has improved in the last couple of years.
  • The Operating Margin of VEL (87.86%) is better than 100.00% of its industry peers.
  • VEL's Operating Margin has improved in the last couple of years.
  • VEL has a Gross Margin of 86.20%. This is amongst the best in the industry. VEL outperforms 89.69% of its industry peers.
  • 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

  • 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 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

  • VEL has an Altman-Z score of 0.31. This is a bad value and indicates that VEL is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 0.31, VEL perfoms like the industry average, outperforming 49.48% of the companies in the same industry.
  • The Debt to FCF ratio of VEL is 110.82, which is on the high side as it means it would take VEL, 110.82 years of fcf income to pay off all of its debts.
  • VEL's Debt to FCF ratio of 110.82 is on the low side compared to the rest of the industry. VEL is outperformed by 65.98% of its industry peers.
  • VEL has a Debt/Equity ratio of 9.70. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 9.70, VEL is doing worse than 84.54% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 9.7
Debt/FCF 110.82
Altman-Z 0.31
ROIC/WACC0.68
WACC6%
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

  • VEL has a Current 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 Current ratio of 0.29. This is in the lower half of the industry: VEL underperforms 64.95% of its industry peers.
  • A Quick Ratio of 0.29 indicates that VEL may have some problems paying its short term obligations.
  • With a Quick 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.
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

  • 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.
  • VEL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.61%.
  • 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

  • The Earnings Per Share is expected to grow by 11.68% on average over the next years. This is quite good.
  • 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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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

  • The Price/Earnings ratio is 8.02, which indicates a very decent valuation of VEL.
  • Based on the Price/Earnings ratio, VEL is valued a bit cheaper than 76.29% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of VEL to the average of the S&P500 Index (27.67), we can say VEL is valued rather cheaply.
  • VEL is valuated cheaply with a Price/Forward Earnings ratio of 7.95.
  • Based on the Price/Forward Earnings ratio, VEL is valued a bit cheaper than 69.07% of the companies in the same industry.
  • VEL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
Industry RankSector Rank
PE 8.02
Fwd PE 7.95
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.
  • Based on the Price/Free Cash Flow ratio, VEL is valued a bit cheaper than 62.89% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.45
EV/EBITDA 17.15
VEL Per share dataVEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of VEL may justify a higher PE ratio.
PEG (NY)0.29
PEG (5Y)0.51
EPS Next 2Y13.01%
EPS Next 3Y11.68%

More info and screens

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

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

VELOCITY FINANCIAL INC

NYSE:VEL (2/5/2026, 8:04:00 PM)

After market: 20.61 0 (0%)

20.61

+0.09 (+0.44%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)01-26
Earnings (Next)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 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)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 RankSector 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 17.15
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 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 0.31
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.