VELOCITY FINANCIAL INC (VEL) Fundamental Analysis & Valuation

NYSE:VEL • US92262D1019

Current stock price

17.53 USD
+0.11 (+0.63%)
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

  • VEL had positive earnings in the past year.
  • In the past year VEL had a positive cash flow from operations.
  • Of the past 5 years VEL 4 years were profitable.
  • VEL had a positive operating cash flow in 4 of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 1.29%, VEL is in line with its industry, outperforming 53.06% of the companies in the same industry.
  • 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.
  • VEL's Return On Invested Capital of 4.05% is in line compared to the rest of the industry. VEL outperforms 57.14% 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 8.22%.
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's Profit Margin of 20.70% is fine compared to the rest of the industry. VEL outperforms 79.59% of its industry peers.
  • In the last couple of years the Profit Margin of VEL has grown nicely.
  • VEL has a better Operating Margin (87.86%) 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 86.20%, VEL belongs to the top 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

  • VEL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
  • Looking at the Altman-Z score, with a value of 0.30, VEL is in line with its industry, outperforming 48.98% 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.
  • The Debt to FCF ratio of VEL (110.82) is worse than 64.29% 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.
  • 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 RankSector Rank
Debt/Equity 9.7
Debt/FCF 110.82
Altman-Z 0.3
ROIC/WACC0.7
WACC5.76%
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

  • VEL has a Current 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.
  • The Current ratio of VEL (0.29) is worse than 65.31% of its industry peers.
  • 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.
  • With a Quick ratio value of 0.29, VEL is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
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

  • VEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.86%, which is quite impressive.
  • The Earnings Per Share has been growing by 30.04% on average over the past years. This is a very strong growth
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

  • Based on estimates for the next years, VEL will show a decrease in Earnings Per Share. The EPS will decrease by -1.25% on average per year.
  • 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

  • The Price/Earnings ratio is 6.04, which indicates a rather cheap valuation of VEL.
  • Compared to the rest of the industry, the Price/Earnings ratio of VEL indicates a rather cheap valuation: VEL is cheaper than 85.71% of the companies listed in the same industry.
  • VEL is valuated cheaply when we compare the Price/Earnings ratio to 25.73, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 6.76, the valuation of VEL can be described as very cheap.
  • VEL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VEL is cheaper than 78.57% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.72, VEL is valued rather cheaply.
Industry RankSector Rank
PE 6.04
Fwd PE 6.76
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

  • VEL's Enterprise Value to EBITDA is on the same level as the industry average.
  • VEL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VEL is cheaper than 71.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.39
EV/EBITDA 16.84
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

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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 (3/20/2026, 10:35:30 AM)

17.53

+0.11 (+0.63%)

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 Cap687.88M
Revenue(TTM)N/A
Net Income(TTM)89.72M
Analysts77.14
Price Target22.1 (26.07%)
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 6.04
Fwd PE 6.76
P/S 1.59
P/FCF 12.39
P/OCF 12.3
P/B 1.08
P/tB 1.1
EV/EBITDA 16.84
EPS(TTM)2.9
EY16.54%
EPS(NY)2.59
Fwd EY14.79%
FCF(TTM)1.41
FCFY8.07%
OCF(TTM)1.43
OCFY8.13%
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
WACC5.76%
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.