Overall VEL gets a fundamental rating of 5 out of 10. We evaluated VEL against 97 industry peers in the Financial Services industry. While VEL has a great profitability rating, there are quite some concerns on its financial health. VEL has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

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.
Each year in the past 5 years VEL had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 1.29%, VEL is in line with its industry, outperforming 52.58% 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 73.20% of the companies in the same industry.
VEL has a Return On Invested Capital of 4.05%. This is comparable to the rest of the industry: VEL outperforms 57.73% of 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 8.46%.

		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 81.44% of its industry peers.
VEL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 87.86%, VEL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of VEL has grown nicely.
Looking at the Gross Margin, with a value of 86.20%, VEL belongs to the top of the industry, outperforming 89.69% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

VEL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VEL has more shares outstanding than it did 1 year ago.
VEL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VEL is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.31, we must say that VEL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.31, VEL is in line with its industry, outperforming 48.45% of the companies in the same industry.
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.
VEL has a Debt to FCF ratio of 110.82. This is in the lower half of the industry: VEL underperforms 65.98% 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 85.57% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	9.7
Debt/FCF	110.82
Altman-Z	0.31

ROIC/WACC0.68

WACC5.97%

2.3 Liquidity

A Current Ratio of 0.29 indicates that VEL may have some problems paying its short term obligations.
VEL's Current ratio of 0.29 is on the low side compared to the rest of the industry. VEL is outperformed by 65.98% 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 65.98% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.29
Quick Ratio	0.29

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

VEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.98%, which is quite impressive.
Measured over the past years, VEL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.62% on average per year.
Looking at the last year, VEL shows a quite strong growth in Revenue. The Revenue has grown by 11.61% in the last year.
Measured over the past years, VEL shows a very strong growth in Revenue. The Revenue has been growing by 20.82% on average per year.

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

VEL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.68% yearly.
VEL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.85% yearly.

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

VEL is valuated cheaply with a Price/Earnings ratio of 7.89.
Based on the Price/Earnings ratio, VEL is valued cheaper than 81.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.30. VEL is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.83, which indicates a rather cheap valuation of VEL.
VEL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VEL is cheaper than 72.16% 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 25.57.

		Industry Rank	Sector Rank
PE	7.89
Fwd PE	7.83

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 67.01% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	14.22
EV/EBITDA	17.13

4.3 Compensation for Growth

The 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.