VELOCITY FINANCIAL INC (VEL) Fundamental Analysis & Valuation

NYSE:VEL • US92262D1019

Current stock price

18.21 USD
-0.26 (-1.41%)
Last:

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.
  • In the past year VEL had a positive cash flow from operations.
  • In the past 5 years VEL has always been profitable.
  • 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

  • The Return On Assets of VEL (1.40%) is comparable to the rest of the industry.
  • 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.
  • VEL has a better Return On Invested Capital (5.23%) than 68.00% 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 8.10%.
  • 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

  • VEL's Profit Margin of 17.66% is fine compared to the rest of the industry. VEL outperforms 73.00% of its industry peers.
  • In the last couple of years the Profit Margin of VEL has grown nicely.
  • With an excellent Operating Margin value of 89.99%, 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.
  • 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

  • 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
  • VEL has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, VEL has a worse debt to assets ratio.
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 0.38, we must say that VEL is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 0.38, VEL perfoms like the industry average, outperforming 51.00% of the companies in the same industry.
  • VEL has a debt to FCF ratio of 393.94. This is a negative value and a sign of low solvency as VEL would need 393.94 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 393.94, VEL is in line with its industry, outperforming 41.00% of the companies in the same industry.
  • VEL has a Debt/Equity ratio of 9.72. This is a high value indicating a heavy dependency on external financing.
  • VEL has a worse Debt to Equity ratio (9.72) than 83.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.72
Debt/FCF 393.95
Altman-Z 0.38
ROIC/WACC0.93
WACC5.62%
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

  • A Current Ratio of 0.30 indicates that VEL may have some problems paying its short term obligations.
  • With a Current ratio value of 0.30, VEL is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.30 indicates that VEL may have some problems paying its short term obligations.
  • VEL has a Quick ratio of 0.30. This is in the lower half of the industry: VEL underperforms 64.00% 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.
  • Measured over the past years, VEL shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.04% on average per year.
  • VEL shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.86%.
  • The Revenue has been growing by 27.40% on average over the past years. This is a very strong growth!
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

  • VEL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.25% yearly.
  • VEL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.10% yearly.
EPS Next Y-10.61%
EPS Next 2Y-1.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year27.31%
Revenue Next 2Y23.1%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 500M
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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6

4. VEL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.28, the valuation of VEL can be described as very cheap.
  • Based on the Price/Earnings ratio, VEL is valued cheaply inside the industry as 83.00% of the companies are valued more expensively.
  • VEL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.21.
  • With a Price/Forward Earnings ratio of 7.02, the valuation of VEL can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, VEL is valued a bit cheaper than 74.00% of the companies in the same industry.
  • VEL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.28
Fwd PE 7.02
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 43.06
EV/EBITDA 12.97
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)0.21
EPS Next 2Y-1.25%
EPS Next 3YN/A

More info and screens

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

0

5. VEL Dividend Analysis

5.1 Amount

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

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VEL Fundamentals: All Metrics, Ratios and Statistics

VELOCITY FINANCIAL INC

NYSE:VEL (4/7/2026, 4:15:00 PM)

18.21

-0.26 (-1.41%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)03-11
Earnings (Next)04-30
Inst Owners63.63%
Inst Owner Change0%
Ins Owners3.06%
Ins Owner Change1.36%
Market Cap714.56M
Revenue(TTM)587.08M
Net Income(TTM)103.71M
Analysts77.14
Price Target22.1 (21.36%)
Short Float %4.27%
Short Ratio8.43
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)6.08%
EPS NQ rev (3m)6.08%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 6.28
Fwd PE 7.02
P/S 1.22
P/FCF 43.06
P/OCF 39.35
P/B 1.06
P/tB 1.07
EV/EBITDA 12.97
EPS(TTM)2.9
EY15.93%
EPS(NY)2.59
Fwd EY14.24%
FCF(TTM)0.42
FCFY2.32%
OCF(TTM)0.46
OCFY2.54%
SpS14.96
BVpS17.14
TBVpS16.97
PEG (NY)N/A
PEG (5Y)0.21
Graham Number33.44
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 0.38
F-Score5
WACC5.62%
ROIC/WACC0.93
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-10.61%
EPS Next 2Y-1.25%
EPS Next 3YN/A
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 Year0.65%
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 6.28 and the Price/Book (PB) ratio is 1.06.


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

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