VELOCITY FINANCIAL INC (VEL) Stock Fundamental Analysis
NYSE:VEL • US92262D1019
18.59 USD
-0.2 (-1.06%)
At close: Feb 27, 2026
18.59 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
We assign a fundamental rating of 5 out of 10 to VEL. VEL was compared to 98 industry peers in the Financial Services industry. VEL has a medium profitability rating, but doesn't score so well on its financial health evaluation. VEL has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
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 4 of the past 5 years.
- Each year in the past 5 years VEL had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 1.29%, VEL perfoms like the industry average, outperforming 52.04% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.15%, VEL is in the better half of the industry, outperforming 74.49% of the companies in the same industry.
- VEL has a Return On Invested Capital (4.05%) which is in line with 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 8.40%.
| 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
- Looking at the Profit Margin, with a value of 20.70%, VEL is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
- 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.
- In the last couple of years the Operating Margin of VEL has grown nicely.
- The Gross Margin of VEL (86.20%) is better than 90.82% of its industry peers.
- In the last couple of years the Gross Margin of VEL has remained more or less at the same level.
| 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. 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
- Compared to 1 year ago, VEL has a worse debt to assets ratio.
2.2 Solvency
- VEL has an Altman-Z score of 0.30. This is a bad value and indicates that VEL is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.30, VEL perfoms like the industry average, outperforming 51.02% of the companies in the same industry.
- 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.
- VEL's Debt to FCF ratio of 110.82 is on the low side compared to the rest of the industry. VEL is outperformed by 66.33% of its industry peers.
- VEL has a Debt/Equity ratio of 9.70. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 9.70, VEL is doing worse than 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 110.82 | ||
| Altman-Z | 0.3 |
ROIC/WACC0.7
WACC5.8%
2.3 Liquidity
- A Current Ratio of 0.29 indicates that VEL may have some problems paying its short term obligations.
- With a Current ratio value of 0.29, VEL is not doing good in the industry: 66.33% of the companies in the same industry are doing better.
- VEL has a Quick 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.
- VEL's Quick ratio of 0.29 is on the low side compared to the rest of the industry. VEL is outperformed by 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 35.98% over the past year.
- VEL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.62% yearly.
- The Revenue has grown by 11.61% in the past year. This is quite good.
- VEL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.82% yearly.
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
- The Earnings Per Share is expected to grow by 11.68% on average over the next years. This is quite good.
- 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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- VEL is valuated cheaply with a Price/Earnings ratio of 7.23.
- VEL's Price/Earnings ratio is rather cheap when compared to the industry. VEL is cheaper than 81.63% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.10. VEL is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 7.17, the valuation of VEL can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VEL indicates a somewhat cheap valuation: VEL is cheaper than 77.55% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. VEL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 7.17 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VEL indicates a somewhat cheap valuation: VEL is cheaper than 66.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.03 | ||
| EV/EBITDA | 16.96 |
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)0.26
PEG (5Y)0.46
EPS Next 2Y13.01%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
- VEL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
18.59
-0.2 (-1.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)03-11 2026-03-11/amc
Inst Owners62.47%
Inst Owner Change1.45%
Ins Owners2.84%
Ins Owner Change1.51%
Market Cap723.15M
Revenue(TTM)433.35M
Net Income(TTM)89.72M
Analysts77.14
Price Target22.1 (18.88%)
Short Float %3.58%
Short Ratio7.46
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)6.35%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 7.17 | ||
| P/S | 1.67 | ||
| P/FCF | 13.03 | ||
| P/OCF | 12.93 | ||
| P/B | 1.14 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 16.96 |
EPS(TTM)2.57
EY13.82%
EPS(NY)2.59
Fwd EY13.94%
FCF(TTM)1.43
FCFY7.68%
OCF(TTM)1.44
OCFY7.73%
SpS11.14
BVpS16.3
TBVpS16.13
PEG (NY)0.26
PEG (5Y)0.46
Graham Number30.71
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
WACC5.8%
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)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 8 / 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 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 grow by 27.37% in the next year.