VELOCITY FINANCIAL INC (VEL) Fundamental Analysis & Valuation

NYSE:VEL • US92262D1019

Current stock price

19.65 USD
-0.16 (-0.81%)
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

  • VEL had positive earnings in the past year.
  • VEL had a positive operating cash flow in the past year.
  • VEL had positive earnings in each 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 2025 0 200M 400M

1.2 Ratios

  • VEL has a Return On Assets (1.40%) which is comparable to the rest of the industry.
  • VEL's Return On Equity of 15.42% is amongst the best of the industry. VEL outperforms 81.00% of its industry peers.
  • The Return On Invested Capital of VEL (5.23%) is better than 69.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for VEL is below the industry average of 7.97%.
  • 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

  • With a decent Profit Margin value of 17.66%, VEL is doing good in the industry, outperforming 73.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of VEL has grown nicely.
  • VEL has a better Operating Margin (89.99%) than 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of VEL has grown nicely.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VEL is destroying value.
  • The number of shares outstanding for VEL has been increased compared to 1 year ago.
  • The number of shares outstanding for VEL has been increased compared to 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 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 0.39, we must say that VEL is in the distress zone and has some risk of bankruptcy.
  • VEL has a Altman-Z score of 0.39. This is comparable to the rest of the industry: VEL outperforms 51.00% of its industry peers.
  • The Debt to FCF ratio of VEL is 393.94, which is on the high side as it means it would take VEL, 393.94 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of VEL (393.94) is comparable to the rest of the industry.
  • VEL has a Debt/Equity ratio of 9.72. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of VEL (9.72) is worse than 83.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.72
Debt/FCF 393.95
Altman-Z 0.39
ROIC/WACC0.99
WACC5.3%
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

  • VEL has a Current Ratio of 0.30. 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 0.30. This is in the lower half of the industry: VEL underperforms 63.00% of its industry peers.
  • A Quick Ratio of 0.30 indicates that VEL may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.30, VEL is doing worse than 63.00% of the companies in the same industry.
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%.
  • Measured over the past years, VEL shows a very strong growth in Revenue. The Revenue has been growing by 27.40% on average per year.
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

  • The Earnings Per Share is expected to grow by 2.03% on average over the next years.
  • Based on estimates for the next years, VEL will show a very strong growth in Revenue. The Revenue will grow by 23.10% on average per year.
EPS Next Y-3.53%
EPS Next 2Y7.85%
EPS Next 3Y2.03%
EPS Next 5YN/A
Revenue Next Year27.31%
Revenue Next 2Y23.1%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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 2028 1 2 3

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6

4. VEL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.78, the valuation of VEL can be described as very cheap.
  • Based on the Price/Earnings ratio, VEL is valued a bit cheaper than the industry average as 80.00% 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 26.91.
  • 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 79.00% 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 21.99.
Industry RankSector Rank
PE 6.78
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as VEL.
  • VEL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 46.46
EV/EBITDA 13.07
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)0.23
EPS Next 2Y7.85%
EPS Next 3Y2.03%

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 (4/29/2026, 9:53:18 AM)

19.65

-0.16 (-0.81%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Industry Strength43.48
Industry Growth65.84
Earnings (Last)03-11
Earnings (Next)05-06
Inst Owners63.1%
Inst Owner Change1.43%
Ins Owners2.98%
Ins Owner Change1.35%
Market Cap771.07M
Revenue(TTM)587.08M
Net Income(TTM)103.71M
Analysts77.14
Price Target22.1 (12.47%)
Short Float %4.09%
Short Ratio9.18
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)0%
EPS NQ rev (3m)6.08%
EPS NY rev (1m)7.92%
EPS NY rev (3m)7.92%
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 6.78
Fwd PE 7.02
P/S 1.31
P/FCF 46.46
P/OCF 42.46
P/B 1.15
P/tB 1.16
EV/EBITDA 13.07
EPS(TTM)2.9
EY14.76%
EPS(NY)2.8
Fwd EY14.24%
FCF(TTM)0.42
FCFY2.15%
OCF(TTM)0.46
OCFY2.36%
SpS14.96
BVpS17.14
TBVpS16.97
PEG (NY)N/A
PEG (5Y)0.23
Graham Number33.4413 (70.18%)
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 0.39
F-Score5
WACC5.3%
ROIC/WACC0.99
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-3.53%
EPS Next 2Y7.85%
EPS Next 3Y2.03%
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 Year1.43%
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 6.78 and the Price/Book (PB) ratio is 1.15.


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

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