VELOCITY FINANCIAL INC (VEL) Fundamental Analysis & Valuation

NYSE:VEL • US92262D1019

Current stock price

17.55 USD
-0.17 (-0.96%)
Last:

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

6

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.
  • VEL had positive earnings in 4 of the past 5 years.
  • Of the past 5 years VEL 4 years 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 0 100M -100M 200M 300M

1.2 Ratios

  • VEL's Return On Assets of 1.29% is in line compared to the rest of the industry. VEL outperforms 53.06% of its industry peers.
  • VEL has a Return On Equity of 14.15%. This is in the better half of the industry: VEL outperforms 74.49% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.05%, VEL is in line with its industry, outperforming 57.14% of the companies in the same industry.
  • VEL had an Average Return On Invested Capital over the past 3 years of 4.55%. This is below the industry average of 8.22%.
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 79.59% of its industry peers.
  • VEL's Profit Margin has improved in the last couple of years.
  • VEL's Operating Margin of 87.86% is amongst the best of the industry. VEL outperforms 100.00% of its industry peers.
  • VEL's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 86.20%, VEL belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
  • 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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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.
  • There is no outstanding debt for VEL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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 47.96% 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 65.31% 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.
  • The Debt to Equity ratio of VEL (9.70) is worse 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
WACC5.78%
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.
  • The Current ratio of VEL (0.29) is worse than 66.33% of its industry peers.
  • 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 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

4

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.
EPS 1Y (TTM)42.86%
EPS 3Y33.1%
EPS 5Y30.04%
EPS Q2Q%55%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
  • The Revenue is expected to grow by 23.10% on average over the next years. This is a very strong growth
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.
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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6

4. VEL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 6.05 indicates a rather cheap valuation of VEL.
  • Based on the Price/Earnings ratio, VEL is valued cheaply inside the industry as 85.71% 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 26.11.
  • The Price/Forward Earnings ratio is 6.77, which indicates a rather cheap valuation of VEL.
  • Based on the Price/Forward Earnings ratio, VEL is valued a bit cheaper than 77.55% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of VEL to the average of the S&P500 Index (24.12), we can say VEL is valued rather cheaply.
Industry RankSector Rank
PE 6.05
Fwd PE 6.77
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as VEL.
  • 71.43% of the companies in the same industry are more expensive than VEL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.41
EV/EBITDA 16.87
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
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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Find the best dividend stocksShow peers with best dividend

VEL Fundamentals: All Metrics, Ratios and Statistics

VELOCITY FINANCIAL INC

NYSE:VEL (3/18/2026, 10:09:04 AM)

17.55

-0.17 (-0.96%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)03-11
Earnings (Next)04-29
Inst Owners63.63%
Inst Owner Change1.43%
Ins Owners3.06%
Ins Owner Change1.51%
Market Cap688.66M
Revenue(TTM)N/A
Net Income(TTM)89.72M
Analysts77.14
Price Target22.1 (25.93%)
Short Float %4.14%
Short Ratio7.57
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)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 6.05
Fwd PE 6.77
P/S 1.59
P/FCF 12.41
P/OCF 12.31
P/B 1.09
P/tB 1.1
EV/EBITDA 16.87
EPS(TTM)2.9
EY16.52%
EPS(NY)2.59
Fwd EY14.77%
FCF(TTM)1.41
FCFY8.06%
OCF(TTM)1.43
OCFY8.12%
SpS11.04
BVpS16.16
TBVpS15.99
PEG (NY)N/A
PEG (5Y)0.2
Graham Number32.48
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
WACC5.78%
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)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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-27.48%
Revenue Next Year27.31%
Revenue Next 2Y23.1%
Revenue Next 3YN/A
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 Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 4 / 10 to VEL.


What is the valuation status for VEL stock?

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


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 decline by -10.61% in the next year.