VELOCITY FINANCIAL INC (VEL) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:VEL • US92262D1019

20.49 USD
-0.12 (-0.58%)
At close: Feb 6, 2026
20.49 USD
0 (0%)
After Hours: 2/6/2026, 8:10:21 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, VEL scores 5 out of 10 in our fundamental rating. VEL was compared to 96 industry peers in the Financial Services industry. VEL scores excellent on profitability, but there are concerns on its financial health. VEL has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!


Dividend Valuation Growth Profitability Health

7

1. Profitability

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 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

  • The Return On Assets of VEL (1.29%) 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's Return On Invested Capital of 4.05% is in line compared to the rest of the industry. VEL outperforms 56.70% 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 8.60%.
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.
  • VEL's Gross Margin has been stable in the last couple of years.
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.
  • 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.
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.
  • VEL has a Altman-Z score (0.31) which is in line with its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 110.82, VEL is doing worse than 65.98% of the companies in the same industry.
  • A Debt/Equity ratio of 9.70 is on the high side and indicates that VEL has dependencies on debt financing.
  • VEL's Debt to Equity ratio of 9.70 is on the low side compared to the rest of the industry. VEL is outperformed by 84.54% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.7
Debt/FCF 110.82
Altman-Z 0.31
ROIC/WACC0.68
WACC5.98%
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.
  • Looking at the Current ratio, with a value of 0.29, VEL is doing worse than 64.95% of the companies in the same industry.
  • A Quick Ratio of 0.29 indicates that VEL may have some problems paying 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 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.
  • 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

  • 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.
  • The Revenue is expected to grow by 16.85% on average over the next years. This is quite good.
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.
  • 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
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

  • Based on the Price/Earnings ratio of 7.97, the valuation of VEL can be described as very cheap.
  • Based on the Price/Earnings ratio, VEL is valued a bit cheaper than 78.35% 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 27.93.
  • The Price/Forward Earnings ratio is 7.90, which indicates a rather cheap valuation of VEL.
  • Based on the Price/Forward Earnings ratio, VEL is valued a bit cheaper than 71.13% 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 27.77.
Industry RankSector Rank
PE 7.97
Fwd PE 7.9
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

  • 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 64.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.36
EV/EBITDA 17.14
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)0.29
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 (2/6/2026, 8:10:21 PM)

After market: 20.49 0 (0%)

20.49

-0.12 (-0.58%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)01-26
Earnings (Next)04-29
Inst Owners62.47%
Inst Owner Change0.22%
Ins Owners2.84%
Ins Owner Change1.51%
Market Cap797.06M
Revenue(TTM)433.35M
Net Income(TTM)89.72M
Analysts77.14
Price Target22.1 (7.86%)
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 7.97
Fwd PE 7.9
P/S 1.84
P/FCF 14.36
P/OCF 14.25
P/B 1.26
P/tB 1.27
EV/EBITDA 17.14
EPS(TTM)2.57
EY12.54%
EPS(NY)2.59
Fwd EY12.65%
FCF(TTM)1.43
FCFY6.96%
OCF(TTM)1.44
OCFY7.02%
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
WACC5.98%
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.