Velocity Financial, Inc.

Finance
Finance: Consumer Services
www.velfinance.com

Earnings Score
Safety Score

Market Cap $672.81M
PE 10
Debt $435.70M
Cash $44.09M
EV $1.06B
FCF $30.34M

Earnings

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Sales & Net Margins

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Earnings	$65.02M
EBIT	$86.66M
ROE	13%
ROA	2%
FCF	$30.34M
Equity	$487.69M
Growth Stability	100%
PE	10.35
PEG	0.33
PB	1.38
P/FCF	22.17
Price/Cash	0.07
Debt/Equity	0.89
Debt/FCF	14.36
Earnings CAGR	24%
FCF CAGR	7%
Equity CAGR	25%
Earnings Stability	0.16
Earnings Growth YoY	29%

Earnings Growth QoQ	6%
Earnings CAGR 5Y	31%
FCF CAGR 5Y	8%
Equity CAGR 5Y	25%
FCF CAGR 3Y	-5%
Equity CAGR 3Y	14%
Market Cap	$672.81M
Assets	$5.20B
Total Debt	$435.70M
Cash	$44.09M
Shares Outstanding	32.61M
EV	1.06B
Earnings Score	10%
Safety Score	74%
Shares Growth 3y	6%
Equity Growth QoQ	3%
Equity Growth YoY	16%

Assets & ROA

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Stockholders Equity & ROE

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Velocity Financial Inc is a United States-based real estate finance company. The company primarily originates and manages investor loans secured by 1-4 unit residential rental and small commercial properties. The company earns revenue in the form of interest income. It operates in New York, California, Florida, New Jersey, and other states.

SEC Filings

Direct access to Velocity Financial, Inc. (VEL) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Velocity Financial, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Velocity Financial, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 24%

Stability 16%

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Velocity Financial, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Velocity Financial, Inc..

Years

Calculation mode

= $486M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$30M	$32M	$35M	$37M	$40M	$42M	$45M	$48M	$52M	$55M	$59M	$588M
DCF		$29M	$29M	$28M	$27M	$26M	$25M	$25M	$24M	$23M	$23M	$227M
Value	$486M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-	-	-	-	-	-	-
ROA	-	1%	1%	1%	1%	2%	2%
ROE	-	11%	-14%	8%	8%	12%	13%

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	1.41	5.27	6.86	6.91	14.36
Debt over Equity	-	-	0.35	0.88	0.87	0.77	0.89
Growth Stability	-	-	-	-	100%	100%	100%

Bad Debt/FCF ratio (14.36)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.89)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-	-	-	-	-	-
Earnings YoY growth	-	127%	-280%	-194%	10%	62%	31%
Equity YoY growth	-	12%	44%	57%	10%	15%	25%
FCF YoY growth	-	44%	-151%	6%	-16%	1%	8%