Velocity Financial Llc (VEL) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Velocity Financial Llc stock (VEL) is currently trading at $17.68. Velocity Financial Llc PE ratio is 6.31. Velocity Financial Llc PS ratio (Price-to-Sales) is 3.02. Analyst consensus price target for VEL is $21.67. WallStSmart rates VEL as Moderate Buy.
- VEL PE ratio analysis and historical PE chart
- VEL PS ratio (Price-to-Sales) history and trend
- VEL intrinsic value — DCF, Graham Number, EPV models
- VEL stock price prediction 2025 2026 2027 2028 2029 2030
- VEL fair value vs current price
- VEL insider transactions and insider buying
- Is VEL undervalued or overvalued?
- Velocity Financial Llc financial analysis — revenue, earnings, cash flow
- VEL Piotroski F-Score and Altman Z-Score
- VEL analyst price target and Smart Rating
Velocity Financial Llc
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VEL Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Velocity Financial Llc (VEL)
VEL trades at a significant discount to its Graham intrinsic value of $128.70, offering a 85% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Velocity Financial Llc (VEL) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, price/book, eps growth. Concerns around revenue growth. Overall metrics suggest strong investment potential with favorable risk/reward.
Velocity Financial Llc (VEL) Key Strengths (6)
Keeps $62 of every $100 in revenue after operating costs
Earnings per share surging 55.50% year-over-year
Keeps $47 of every $100 in revenue as net profit
97.16% of shares held by major funds and institutions
Trading at 1.01x book value, attractively priced
Solid profitability: $18 profit per $100 equity
Supporting Valuation Data
Velocity Financial Llc (VEL) Areas to Watch (3)
Revenue declining -4.40%, a shrinking business
Small-cap company with higher risk but more growth potential
Revenue is fairly priced at 3.02x sales
Supporting Valuation Data
Velocity Financial Llc (VEL) Detailed Analysis Report
Overall Assessment
This company scores 66/100 in our Smart Analysis, earning a B- grade. Out of 9 metrics analyzed, 6 register as strengths (avg 9.2/10) while 3 fall into concern territory (avg 3.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, EPS Growth, Profit Margin. Valuation metrics including Price/Book (1.01) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 17.60%, Operating Margin at 61.70%, Profit Margin at 46.60%. Growth metrics are encouraging with EPS Growth at 55.50%.
The Bear Case
The primary concerns are Revenue Growth, Market Cap, Price/Sales. Some valuation metrics including Price/Sales (3.02) suggest expensive pricing. Growth concerns include Revenue Growth at -4.40%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 17.60% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at -4.40% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, EPS Growth) and negatives (Revenue Growth, Market Cap). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
VEL Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
VEL's Price-to-Sales ratio of 3.02x trades at a 18% premium to its historical average of 2.56x (75th percentile). The current valuation is 50% below its historical high of 6.04x set in Nov 2024, and 282% above its historical low of 0.79x in Apr 2020. Over the past 12 months, the PS ratio has expanded from ~1.5x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Velocity Financial Llc (VEL) · FINANCIAL SERVICES › MORTGAGE FINANCE
The Big Picture
Velocity Financial Llc faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 226M with 4% decline year-over-year. Profit margins are strong at 46.6%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 46.6% and operating margin of 61.7% demonstrate strong pricing power and operational efficiency.
Free cash flow is -5M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
Debt-to-equity ratio of 9.70 is elevated. High leverage amplifies both gains and losses and increases financial risk.
What to Watch Next
Debt management: total debt of 6.2B is significantly higher than cash (99M). Monitor refinancing risk.
Sector dynamics: monitor MORTGAGE FINANCE industry trends, competitive moves, and regulatory changes that could impact Velocity Financial Llc.
Bottom Line
Velocity Financial Llc faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(37 last 3 months)
| Insider | Type | Shares |
|---|---|---|
KELLY, ROLAND THOMAS Chief Legal Officer and GC | Sell | -5,160 |
| Insider | Type | Shares |
|---|---|---|
SZCZEPANIAK, MARK R Chief Financial Officer | Sell | -1,573 |
| Insider | Type | Shares |
|---|---|---|
TAYLOR, JEFFREY T. Executive VP, Capital Markets | Sell | -1,770 |
| Insider | Type | Shares |
|---|---|---|
TAYLOR, JEFFREY T. Executive VP, Capital Markets | Sell | -3,049 |
Data sourced from SEC Form 4 filings
Last updated: 10:00:50 AM
About Velocity Financial Llc(VEL)
NYSE
FINANCIAL SERVICES
MORTGAGE FINANCE
USA
Velocity Financial, Inc. is a real estate finance company in the United States. The company is headquartered in Westlake Village, California.