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Company Analysis

Velocity Financial, Inc. VEL

A comprehensive view of key metrics, scores, and financial health for Velocity Financial, Inc.

Overview of Velocity Financial, Inc.

VEL NYQ
Financial Services Mortgage Finance Framework: Banks & Lenders Small Cap
Velocity Financial, Inc. (VEL), is a Small Cap company, in the Mortgage Finance industry, last closed at $16.14, about 17.7% undervalued vs fair value, -13.9% 1Y return, placing in the top 25% of its sector.
Metrics P/E 7.5× Rev Growth 47.1% ROE 17.7%
USD 16.14
2.67%
(Delayed)
• Vol 90d: 23.8%
52-Week Range
Market Cap
$637.23M
Enterprise Value
$7.62B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Fair
Health
Fair
Efficiency
Fair
Valuation
Fair
Growth
Fair
Profitability
Fair
Health
Fair
Efficiency
Fair
Valuation
Fair
Completeness: 88%
Confidence: 93%
Updated: Oct 31
Top Beats

Quick Facts

Website https://www.velfinance.com
HQ Westlake Village, CA
Employees 309
Fiscal year Dec 31

Next Events

Earnings Nov 4 Call: Nov 4

Fair Value Snapshot

Bear Base Bull
$11
$19
$36
Current: $16.14 +18% vs base

Engine Room Money Flow™

Small Cap

Financial Services - Where revenue goes and how value is created

Flow Steps
Interest Income
$556.7M
34.7%%
Interest Expense
$365.0M
Net Interest Income
$191.6M
34.7%%
Total Revenue
$311.5M
47.1%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Financial Services

Quality & Reliability Indicators

Return on Equity
15.4%
Excellent

Net Income / Equity - key bank profitability metric

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Where It Leaks

Cash Flow Health critical
Significant cash flow inefficiencies identified. Multiple high-impact leaks require attention.
2
Active Leaks
0/2
Improving
1
High Impact
1
Critical
Locked Leak
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Competitive Advantage Assessment

Evaluating Velocity Financial, Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
70
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Returns Hold Up Through Funding Cycles Returns are strong for a debt-funded lender (profitability score 0.85).
  • Industry-Leading Efficiency Operational efficiency is excellent (score 0.93).

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Funding & Return Stability

Strong
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Signals, strengths and risks for Funding & Return Stability

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Signals, strengths and risks for Lending Advantage

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Signals, strengths and risks for Capital Strength

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Signals, strengths and risks for Cost Discipline

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Signals, strengths and risks for Revenue Diversification

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Signals, strengths and risks for Risk Management

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Banks (Regional & Diversified) vs Industry Peers 88% Coverage
Trade-Off Triangle Visualization A ternary plot showing VEL's balance between Growth (51.1%), Profitability (39.4%), and Safety (9.5%). Growth 51% Safety 10% Profitability 39%

Click axes to expand details. Marker shows current allocation.

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Growth

90th percentile vs peers
90
Key Signals
Asset Growth YoY 33.5% 94p NII Growth YoY 34.7% 93p Equity Growth YoY 30.1% 92p EPS Growth YoY 43.8% 75p
Strengths
  • Growth performance in top 20% of peers (percentile: 90)
  • Asset Growth YoY in top 20% of peers (33.5%, 94th percentile)
  • NII Growth YoY in top 20% of peers (34.7%, 93th percentile)
  • Equity Growth YoY in top 20% of peers (30.1%, 92th percentile)
  • ROTE in top 20% of peers (18.3%, 87th percentile)
Risks

No significant risks identified for this axis.

Profitability

69th percentile vs peers
69
Key Signals
Strengths
Risks
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Safety

16th percentile vs peers
17
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for Velocity Financial, Inc..

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Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$19.00
- - -
+17.7% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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