VELOCITY FINANCIAL INC (VEL) Fundamental Analysis & Valuation
NYSE:VEL • US92262D1019
Current stock price
19.42 USD
+0.13 (+0.67%)
At close:
19.42 USD
0 (0%)
After Hours:
This VEL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. VEL Profitability Analysis
1.1 Basic Checks
- In the past year VEL was profitable.
- VEL had a positive operating cash flow in the past year.
- Each year in the past 5 years VEL has been profitable.
- In the past 5 years VEL always reported a positive cash flow from operatings.
1.2 Ratios
- VEL has a Return On Assets (1.40%) which is in line with its industry peers.
- With an excellent Return On Equity value of 15.42%, VEL belongs to the best of the industry, outperforming 81.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.23%, VEL is in the better half of the industry, outperforming 69.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for VEL is below the industry average of 7.99%.
- The 3 year average ROIC (4.90%) for VEL is below the current ROIC(5.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 15.42% | ||
| ROIC | 5.23% |
ROA(3y)1.27%
ROA(5y)1.08%
ROE(3y)13.46%
ROE(5y)10.97%
ROIC(3y)4.9%
ROIC(5y)4.55%
1.3 Margins
- VEL has a better Profit Margin (17.66%) than 73.00% of its industry peers.
- VEL's Profit Margin has improved in the last couple of years.
- VEL has a better Operating Margin (89.99%) than 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 (89.49%) than 93.00% 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 | 89.99% | ||
| PM (TTM) | 17.66% | ||
| GM | 89.49% |
OM growth 3Y2.54%
OM growth 5Y3.66%
PM growth 3Y11.31%
PM growth 5YN/A
GM growth 3Y-1.98%
GM growth 5Y-1.3%
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.
- The number of shares outstanding for VEL has been increased compared to 1 year ago.
- The number of shares outstanding for VEL has been increased compared to 5 years ago.
- VEL has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.39, we must say that VEL is in the distress zone and has some risk of bankruptcy.
- VEL has a Altman-Z score of 0.39. This is comparable to the rest of the industry: VEL outperforms 51.00% of its industry peers.
- The Debt to FCF ratio of VEL is 393.94, which is on the high side as it means it would take VEL, 393.94 years of fcf income to pay off all of its debts.
- VEL has a Debt to FCF ratio (393.94) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 9.72 is on the high side and indicates that VEL has dependencies on debt financing.
- VEL has a Debt to Equity ratio of 9.72. This is amonst the worse of the industry: VEL underperforms 83.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.72 | ||
| Debt/FCF | 393.95 | ||
| Altman-Z | 0.39 |
ROIC/WACC0.99
WACC5.29%
2.3 Liquidity
- VEL has a Current Ratio of 0.30. 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 has a Current ratio of 0.30. This is in the lower half of the industry: VEL underperforms 63.00% of its industry peers.
- A Quick Ratio of 0.30 indicates that VEL may have some problems paying its short term obligations.
- With a Quick ratio value of 0.30, VEL is not doing good in the industry: 63.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. VEL Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 42.86% over the past year.
- Measured over the past years, VEL shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.04% on average per year.
- VEL shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.86%.
- VEL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.40% yearly.
EPS 1Y (TTM)42.86%
EPS 3Y33.1%
EPS 5Y30.04%
EPS Q2Q%55%
Revenue 1Y (TTM)40.86%
Revenue growth 3Y33.36%
Revenue growth 5Y27.4%
Sales Q2Q%-27.48%
3.2 Future
- VEL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.03% yearly.
- VEL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.10% yearly.
EPS Next Y-3.53%
EPS Next 2Y7.85%
EPS Next 3Y2.03%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. VEL Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 6.70, the valuation of VEL can be described as very cheap.
- 80.00% of the companies in the same industry are more expensive than VEL, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 26.64. VEL is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 6.94, the valuation of VEL can be described as very cheap.
- Based on the Price/Forward Earnings ratio, VEL is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, VEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as VEL.
- VEL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.92 | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
- VEL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y7.85%
EPS Next 3Y2.03%
5. VEL Dividend Analysis
5.1 Amount
- No dividends for VEL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
VEL Fundamentals: All Metrics, Ratios and Statistics
19.42
+0.13 (+0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Industry Strength39.13
Industry Growth65.22
Earnings (Last)03-11 2026-03-11/amc
Earnings (Next)05-06 2026-05-06/amc
Inst Owners63.1%
Inst Owner Change1.43%
Ins Owners2.98%
Ins Owner Change1.35%
Market Cap762.04M
Revenue(TTM)587.08M
Net Income(TTM)103.71M
Analysts77.14
Price Target22.1 (13.8%)
Short Float %4.09%
Short Ratio9.18
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)25.18%
Min EPS beat(2)12.92%
Max EPS beat(2)37.43%
EPS beat(4)4
Avg EPS beat(4)22.48%
Min EPS beat(4)4.06%
Max EPS beat(4)37.43%
EPS beat(8)7
Avg EPS beat(8)18.6%
EPS beat(12)11
Avg EPS beat(12)16.61%
EPS beat(16)13
Avg EPS beat(16)14.46%
Revenue beat(2)2
Avg Revenue beat(2)53.29%
Min Revenue beat(2)10.88%
Max Revenue beat(2)95.7%
Revenue beat(4)3
Avg Revenue beat(4)44.29%
Min Revenue beat(4)-40.39%
Max Revenue beat(4)110.96%
Revenue beat(8)7
Avg Revenue beat(8)29.25%
Revenue beat(12)11
Avg Revenue beat(12)23.92%
Revenue beat(16)15
Avg Revenue beat(16)49.46%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.08%
EPS NY rev (1m)7.92%
EPS NY rev (3m)7.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 6.94 | ||
| P/S | 1.3 | ||
| P/FCF | 45.92 | ||
| P/OCF | 41.96 | ||
| P/B | 1.13 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 13.04 |
EPS(TTM)2.9
EY14.93%
EPS(NY)2.8
Fwd EY14.41%
FCF(TTM)0.42
FCFY2.18%
OCF(TTM)0.46
OCFY2.38%
SpS14.96
BVpS17.14
TBVpS16.97
PEG (NY)N/A
PEG (5Y)0.22
Graham Number33.4413 (72.2%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 15.42% | ||
| ROCE | 7.65% | ||
| ROIC | 5.23% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 5.41% | ||
| OM | 89.99% | ||
| PM (TTM) | 17.66% | ||
| GM | 89.49% | ||
| FCFM | 2.83% |
ROA(3y)1.27%
ROA(5y)1.08%
ROE(3y)13.46%
ROE(5y)10.97%
ROIC(3y)4.9%
ROIC(5y)4.55%
ROICexc(3y)4.95%
ROICexc(5y)4.6%
ROICexgc(3y)5.04%
ROICexgc(5y)4.67%
ROCE(3y)7.3%
ROCE(5y)6.64%
ROICexgc growth 3Y9.48%
ROICexgc growth 5Y2.95%
ROICexc growth 3Y9.06%
ROICexc growth 5Y2.71%
OM growth 3Y2.54%
OM growth 5Y3.66%
PM growth 3Y11.31%
PM growth 5YN/A
GM growth 3Y-1.98%
GM growth 5Y-1.3%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.72 | ||
| Debt/FCF | 393.95 | ||
| Debt/EBITDA | 12.36 | ||
| Cap/Depr | 303.49% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 1.53 | ||
| Cash Conversion | 3.43% | ||
| Profit Quality | 16% | ||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 0.39 |
F-Score5
WACC5.29%
ROIC/WACC0.99
Cap/Depr(3y)321.33%
Cap/Depr(5y)263.19%
Cap/Sales(3y)0.51%
Cap/Sales(5y)0.55%
Profit Quality(3y)52.95%
Profit Quality(5y)116.47%
High Growth Momentum
Growth
EPS 1Y (TTM)42.86%
EPS 3Y33.1%
EPS 5Y30.04%
EPS Q2Q%55%
EPS Next Y-3.53%
EPS Next 2Y7.85%
EPS Next 3Y2.03%
EPS Next 5YN/A
Revenue 1Y (TTM)40.86%
Revenue growth 3Y33.36%
Revenue growth 5Y27.4%
Sales Q2Q%-27.48%
Revenue Next Year27.31%
Revenue Next 2Y23.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y43.97%
EBIT growth 3Y36.75%
EBIT growth 5Y32.07%
EBIT Next Year1.43%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-49.26%
FCF growth 3Y-28.86%
FCF growth 5Y-20.82%
OCF growth 1Y-51.9%
OCF growth 3Y-28.01%
OCF growth 5Y-19.85%
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 5 / 10 to VEL.
Can you provide the valuation status for VELOCITY FINANCIAL INC?
ChartMill assigns a valuation rating of 6 / 10 to VELOCITY FINANCIAL INC (VEL). This can be considered as Fairly Valued.
Can you provide the profitability details for VELOCITY FINANCIAL INC?
VELOCITY FINANCIAL INC (VEL) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for VEL stock?
The Price/Earnings (PE) ratio for VELOCITY FINANCIAL INC (VEL) is 6.7 and the Price/Book (PB) ratio is 1.13.
What is the financial health of VELOCITY FINANCIAL INC (VEL) stock?
The financial health rating of VELOCITY FINANCIAL INC (VEL) is 1 / 10.