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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 110.82 | ||
| Altman-Z | 0.3 |
ROIC/WACC0.7
WACC5.78%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 6.77 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.41 | ||
| EV/EBITDA | 16.87 |
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
5. VEL Dividend Analysis
5.1 Amount
- No dividends for VEL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
VEL Fundamentals: All Metrics, Ratios and Statistics
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 2026-03-11/amc
Earnings (Next)04-29 2026-04-29
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.