Taking everything into account, VEL scores 5 out of 10 in our fundamental rating. VEL was compared to 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.
Of the past 5 years VEL 4 years were profitable.
VEL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of VEL (1.29%) is comparable to the rest of the industry.
VEL has a Return On Equity of 14.15%. This is in the better half of the industry: VEL outperforms 73.20% of its industry peers.
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.
VEL had an Average Return On Invested Capital over the past 3 years of 4.55%. This is below the industry average of 8.51%.

		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

With an excellent Profit Margin value of 20.70%, VEL belongs to the best of the industry, outperforming 81.44% of the companies in the same industry.
VEL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 87.86%, VEL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 89.69% of the companies in the same industry.
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

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

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 has a Altman-Z score of 0.31. This is comparable to the rest of the industry: VEL outperforms 48.45% 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 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.
With a Debt to Equity ratio value of 9.70, VEL is not doing good in the industry: 84.54% of the companies in the same industry are doing better.

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

ROIC/WACC0.68

WACC5.97%

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.
Looking at the Current ratio, with a value of 0.29, VEL is doing worse than 64.95% 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 64.95% 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.
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

The Earnings Per Share is expected to grow by 11.68% on average over the next years. This is quite good.
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

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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

Based on the Price/Earnings ratio of 7.89, the valuation of VEL can be described as very cheap.
Based on the Price/Earnings ratio, VEL is valued cheaper than 80.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.32. VEL is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.83, which indicates a rather cheap valuation of VEL.
Based on the Price/Forward Earnings ratio, VEL is valued a bit cheaper than 72.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, VEL is valued rather cheaply.

		Industry Rank	Sector Rank
PE	7.89
Fwd PE	7.83

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as VEL.
Based on the Price/Free Cash Flow ratio, VEL is valued a bit cheaper than 68.04% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	14.22
EV/EBITDA	17.12

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.