Overall VEL gets a fundamental rating of 5 out of 10. We evaluated VEL against 97 industry peers in the Financial Services industry. VEL has an excellent profitability rating, but there are concerns on its financial health. VEL is evaluated to be cheap and growing strongly. This does not happen too often!

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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.
VEL had a positive operating cash flow in the past year.
Of the past 5 years VEL 4 years were profitable.
In the past 5 years VEL always reported a positive cash flow from operatings.

1.2 Ratios

VEL's Return On Assets of 1.29% is in line compared to the rest of the industry. VEL outperforms 52.58% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for VEL 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

The Profit Margin of VEL (20.70%) is better than 81.44% 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.
In the last couple of years the Operating Margin of VEL has grown nicely.
VEL has a better Gross Margin (86.20%) than 89.69% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VEL is destroying value.
Compared to 1 year ago, VEL has more shares outstanding
Compared to 5 years ago, VEL has more shares outstanding
VEL has a worse debt/assets ratio than last year.

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.
VEL's Altman-Z score of 0.31 is in line compared to the rest of the industry. VEL outperforms 47.42% 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.
VEL has a worse Debt to FCF ratio (110.82) than 65.98% 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 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

WACC5.96%

2.3 Liquidity

A Current Ratio of 0.29 indicates that VEL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.29, VEL is doing worse than 65.98% of the companies in the same industry.
A Quick Ratio of 0.29 indicates that VEL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.29, VEL is doing worse than 65.98% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.29
Quick Ratio	0.29

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WACC

Debt/Equity

How to determine the health of a company

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.
The Revenue has been growing by 20.82% on average over the past years. This is a very strong growth!

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.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.84, the valuation of VEL can be described as very cheap.
78.35% of the companies in the same industry are more expensive than VEL, based on the Price/Earnings ratio.
VEL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
Based on the Price/Forward Earnings ratio of 7.77, the valuation of VEL can be described as very cheap.
Based on the Price/Forward Earnings ratio, VEL is valued a bit cheaper than 72.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VEL to the average of the S&P500 Index (25.96), we can say VEL is valued rather cheaply.

		Industry Rank	Sector Rank
PE	7.84
Fwd PE	7.77

4.2 Price Multiples

VEL's Enterprise Value to EBITDA ratio is in line with the industry average.
65.98% 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	14.12
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.
The decent profitability rating of VEL may justify a higher PE ratio.