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 is evaluated to be cheap and growing strongly. This does not happen too often!

Quickly go to:

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.
VEL had positive earnings in 4 of the past 5 years.
VEL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

VEL has a Return On Assets (1.29%) which is in line with 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's Return On Invested Capital of 4.05% is in line compared to the rest of the industry. VEL outperforms 56.70% 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 8.44%.

		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 80.41% of its industry peers.
In the last couple of years the Profit Margin of VEL has grown nicely.
The Operating Margin of VEL (87.86%) is better than 100.00% of its industry peers.
VEL's Operating Margin has improved in the last couple of years.
VEL's Gross Margin of 86.20% is amongst the best of the industry. VEL outperforms 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

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

2.2 Solvency

VEL has an Altman-Z score of 0.31. This is a bad value and indicates that VEL is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.31, VEL perfoms like the industry average, 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.
With a Debt to FCF ratio value of 110.82, VEL is not doing good in the industry: 65.98% of the companies in the same industry are doing better.
VEL has a Debt/Equity ratio of 9.70. This is a high value indicating a heavy dependency on external financing.
VEL has a Debt to Equity ratio of 9.70. This is amonst the worse of the industry: VEL underperforms 85.57% of its industry peers.

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

ROIC/WACC0.69

WACC5.9%

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.
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: 65.98% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.29
Quick Ratio	0.29

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 35.98% over the past year.
VEL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.62% yearly.
VEL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.61%.
VEL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.82% yearly.

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.
The Revenue is expected to grow by 16.85% on average over the next years. This is quite good.

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 7.54 indicates a rather cheap valuation of VEL.
Based on the Price/Earnings ratio, VEL is valued cheaply inside the industry as 81.44% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.21, VEL is valued rather cheaply.
The Price/Forward Earnings ratio is 7.48, which indicates a rather cheap valuation of VEL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VEL indicates a somewhat cheap valuation: VEL is cheaper than 74.23% of the companies listed 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 24.26.

		Industry Rank	Sector Rank
PE	7.54
Fwd PE	7.48

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 67.01% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	13.59
EV/EBITDA	17.03

4.3 Compensation for Growth

VEL's 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.