VELOCITY FINANCIAL INC (VEL) Fundamental Analysis & Valuation

NYSE:VEL • US92262D1019

18.34 USD
-0.15 (-0.81%)
At close: Mar 3, 2026
18.34 USD
0 (0%)
After Hours: 3/3/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This VEL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to VEL. VEL was compared to 97 industry peers in the Financial Services industry. While VEL is still in line with the averages on profitability rating, there are concerns on its financial health. VEL is growing strongly while it also seems undervalued. This is an interesting combination


Dividend Valuation Growth Profitability Health

6

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.
  • Of the past 5 years VEL 4 years were profitable.
  • VEL had a positive operating cash flow in each 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

  • VEL has a Return On Assets of 1.29%. This is comparable to the rest of the industry: VEL outperforms 54.64% of its industry peers.
  • With a decent Return On Equity value of 14.15%, VEL is doing good in the industry, outperforming 76.29% 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 56.70% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for VEL is below the industry average of 8.35%.
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 has a Profit Margin of 20.70%. This is in the better half of the industry: VEL outperforms 79.38% of its industry peers.
  • VEL's Profit Margin has improved in the last couple of years.
  • 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 90.72% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

0

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.
  • Compared to 1 year ago, VEL has more shares outstanding
  • VEL has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, VEL has a worse debt to assets ratio.
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

  • 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.
  • VEL has a Altman-Z score of 0.30. This is comparable to the rest of the industry: VEL outperforms 50.52% of its industry peers.
  • 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 68.04% 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.
  • With a Debt to Equity ratio value of 9.70, VEL is not doing good in the industry: 83.51% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 9.7
Debt/FCF 110.82
Altman-Z 0.3
ROIC/WACC0.7
WACC5.79%
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

  • A Current Ratio of 0.29 indicates that VEL may have some problems paying its short term obligations.
  • The Current ratio of VEL (0.29) is worse than 65.98% of its industry peers.
  • A Quick Ratio of 0.29 indicates that VEL may have some problems paying its short term obligations.
  • The Quick ratio of VEL (0.29) is worse than 64.95% of its industry peers.
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

8

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 35.98%, which is quite impressive.
  • The Earnings Per Share has been growing by 15.62% on average over the past years. This is quite good.
  • VEL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.61%.
  • 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

  • Based on estimates for the next years, VEL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.68% on average per year.
  • Based on estimates for the next years, VEL will show a quite strong growth in Revenue. The Revenue will grow by 16.85% on average per year.
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.
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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Find the best growth stocksShow best growing peers

8

4. VEL Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 7.14, the valuation of VEL can be described as very cheap.
  • Compared to the rest of the industry, the Price/Earnings ratio of VEL indicates a rather cheap valuation: VEL is cheaper than 83.51% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of VEL to the average of the S&P500 Index (26.83), we can say VEL is valued rather cheaply.
  • VEL is valuated cheaply with a Price/Forward Earnings ratio of 7.07.
  • Based on the Price/Forward Earnings ratio, VEL is valued a bit cheaper than 79.38% 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 24.95.
Industry RankSector Rank
PE 7.14
Fwd PE 7.07
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VEL is on the same level as its industry peers.
  • Based on the Price/Free Cash Flow ratio, VEL is valued a bit cheaper than the industry average as 64.95% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.85
EV/EBITDA 16.93
VEL Per share dataVEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
PEG (NY)0.26
PEG (5Y)0.46
EPS Next 2Y13.01%
EPS Next 3Y11.68%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. VEL Dividend Analysis

5.1 Amount

  • VEL does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

VEL Fundamentals: All Metrics, Ratios and Statistics

VELOCITY FINANCIAL INC

NYSE:VEL (3/3/2026, 8:04:00 PM)

After market: 18.34 0 (0%)

18.34

-0.15 (-0.81%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-06
Earnings (Next)03-11
Inst Owners62.47%
Inst Owner Change1.45%
Ins Owners2.84%
Ins Owner Change1.51%
Market Cap713.43M
Revenue(TTM)433.35M
Net Income(TTM)89.72M
Analysts77.14
Price Target22.1 (20.5%)
Short Float %3.87%
Short Ratio7.62
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)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 RankSector Rank
PE 7.14
Fwd PE 7.07
P/S 1.65
P/FCF 12.85
P/OCF 12.76
P/B 1.12
P/tB 1.14
EV/EBITDA 16.93
EPS(TTM)2.57
EY14.01%
EPS(NY)2.59
Fwd EY14.13%
FCF(TTM)1.43
FCFY7.78%
OCF(TTM)1.44
OCFY7.84%
SpS11.14
BVpS16.3
TBVpS16.13
PEG (NY)0.26
PEG (5Y)0.46
Graham Number30.71
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
WACC5.79%
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.