A Business at a Glance
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Our Company We are a vertically integrated real estate finance company founded in 2004. We originate, securitize, and manage a nationwide portfolio of loans secured by real estate to earn attractive risk adjusted spreads for our shareholders. We primarily originate investor loans secured by 1-4 unit residential rental properties, as well as loans for multi-family, mixed use and commercial properties. We originate loans nationwide across our extensive network of independent mortgage brokers and direct borrower relationships, which we have built and refined over the 20 years since our inception. Our objective is to be the preferred and one of the most recognized brands in our core market. We operate in a large and highly fragmented market with substantial demand for financing and limited supply of institutional financing alternatives.
| Metric | TTM | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | 175M | 138M | 110M | 85M | 76M | 66M |
| Net Income | 91M | 68M | 52M | 32M | 29M | 18M |
| EPS | $2.43 | $1.91 | $1.52 | $0.94 | $0.86 | $-1.55 |
| Free Cash Flow | 56M | 37M | 49M | 48M | 57M | 54M |
| ROIC | 18.9% | 16.7% | 12.3% | 5.3% | 8.6% | 2.4% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.00 | 9.69 | 9.15 | 8.94 | 7.24 | 8.17 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 143M | 101M | 66M | 24M | 8.2M | 6.3M |
| Operating Margin | 81.4% | 73.5% | 60.1% | 28.7% | 10.7% | 9.6% |
| ROE | 14.3% | 14.4% | 12.1% | 8.5% | 8.6% | 8.1% |
| Shares Outstanding | 39M | 36M | 34M | 34M | 34M | 32M |
| Metric | 2019 | 2020 | 2021 | 2022 | |||
|---|---|---|---|---|---|---|---|
| Income Statement | |||||||
| Revenue | 57M | 66M | 76M | 85M | 110M | 138M | 175M |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 2.6M | 6.3M | 8.2M | 24M | 66M | 101M | 143M |
| Op. Margin | 4.6% | 9.6% | 10.7% | 28.7% | 60.1% | 73.5% | 81.4% |
| Net Income | 17M | 18M | 29M | 32M | 52M | 68M | 91M |
| Net Margin | 30.2% | 27.0% | 38.3% | 38.0% | 47.7% | 49.6% | 51.8% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||
| ROIC | 11.3% | 2.4% | 8.6% | 5.3% | 12.3% | 16.7% | 18.9% |
| ROE | 11.3% | 8.1% | 8.6% | 8.5% | 12.1% | 14.4% | 14.3% |
| ROA | 0.8% | 0.8% | 1.0% | 0.9% | 1.2% | 1.4% | 504688.9% |
| Cash Flow | |||||||
| Op. Cash Flow | -105M | 55M | 58M | 49M | 49M | 38M | 56M |
| Free Cash Flow | -106M | 54M | 57M | 48M | 49M | 37M | 56M |
| Owner Earnings | -107M | 53M | 54M | 45M | 44M | 31M | 49M |
| CapEx | 882K | 726K | 135K | 326K | 180K | 289K | 323K |
| Maint. CapEx | 1.4M | 1.2M | 1.1M | 796K | 752K | 793K | 793K |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 1.4M | 1.2M | 1.1M | 796K | 752K | 793K | 793K |
| CapEx/OCF | N/A | 1.3% | 0.2% | 0.7% | 0.4% | 0.8% | 0.6% |
| Capital Allocation | |||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 458K | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | 0.1% | N/A | N/A | 0.0% |
| Stock-Based Comp | N/A | 965K | 2.2M | 3.3M | 4.1M | 6.2M | 6.2M |
| Debt Repayment | 18M | 8.9M | 27M | 26M | 3.1M | 3.9M | 3.9M |
| Balance Sheet | |||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | N/A | -99M |
| Cash & Equiv. | N/A | N/A | N/A | N/A | N/A | N/A | 99M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 13.49 | 8.17 | 7.24 | 8.94 | 9.15 | 9.69 | 0.00 |
| Interest Coverage | 0.0 | 0.1 | 0.1 | 0.2 | 0.4 | 0.4 | 0.4 |
| Equity | 153M | 220M | 341M | 377M | 433M | 517M | 634M |
| Total Assets | 2.2B | 2.1B | 2.8B | 3.7B | 4.4B | 5.5B | 18K |
| Total Liabilities | 2.1B | 1.8B | 2.5B | 3.4B | 4.0B | 5.0B | 6.3B |
| Intangibles | N/A | N/A | 6.8M | 6.8M | 6.8M | 6.8M | 6.8M |
| Retained Earnings | N/A | 15M | 44M | 77M | 129M | 197M | 197M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | 56M | 63M | 92M | 92M | 122M | 148M | 148M |
| Per Share Data | |||||||
| EPS | 0.84 | -1.55 | 0.86 | 0.94 | 1.52 | 1.91 | 2.43 |
| Owner EPS | -5.19 | 1.62 | 1.60 | 1.30 | 1.28 | 0.86 | 1.26 |
| Book Value | 7.43 | 6.76 | 10.04 | 11.00 | 12.60 | 14.43 | 16.30 |
| Cash Flow/Share | -5.12 | 1.69 | 1.70 | 1.42 | 1.42 | 1.05 | 2.36 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 20.6M | 32.5M | 34.0M | 34.3M | 34.4M | 35.8M | 38.9M |
| Valuation | |||||||
| P/E Ratio | N/A | N/A | 15.6 | 9.8 | 10.9 | 10.3 | 8.0 |
| P/FCF | N/A | 3.7 | 8.0 | 6.6 | 11.7 | 18.8 | 13.6 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | 4.6 |
| Price/Book | N/A | 0.9 | 1.3 | 0.8 | 1.3 | 1.4 | 1.2 |
| Price/Sales | N/A | 3.0 | 4.9 | 4.5 | 3.5 | 4.7 | 4.3 |
| FCF Yield | N/A | 27.3% | 12.6% | 15.3% | 8.6% | 5.3% | 7.3% |
| Market Cap | N/A | 198M | 457M | 317M | 568M | 706M | 757M |
| Avg. Price | N/A | 6.05 | 10.90 | 11.15 | 11.20 | 18.18 | 19.47 |
| Year-End Price | N/A | 6.10 | 13.45 | 9.25 | 16.53 | 19.70 | 19.47 |
Velocity Financial, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Velocity Financial, Inc. trades at 8.0x trailing earnings, compared to its 15-year median P/E of 10.6x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 13.6x vs a median of 8.0x. The company's 5-year average ROIC is 9.1%. At current prices, the estimated annualized return to fair value is +1.1%.
Velocity Financial, Inc. (VEL) has a current P/E ratio of 8.0, compared to its historical median P/E of 10.6. The stock is currently considered Cheap based on its historical valuation range.
Velocity Financial, Inc. (VEL) has a 5-year average return on invested capital (ROIC) of 9.1%. This is below average and may indicate limited pricing power.
Velocity Financial, Inc. (VEL) has a market capitalization of $757M. It is classified as a small-cap stock.
Velocity Financial, Inc. (VEL) does not currently pay a regular dividend.
Based on historical P/E analysis, Velocity Financial, Inc. (VEL) appears cheap. The current P/E of 8.0 is 24% below its historical median of 10.6. The estimated fair value CAGR (P/E method) is 40.4%.
Velocity Financial, Inc. (VEL) operates in the Finance Services industry, within the Financials sector.
Velocity Financial, Inc. (VEL) reported annual revenue of $138 million in its most recent fiscal year, based on SEC EDGAR filings.
Velocity Financial, Inc. (VEL) has a net profit margin of 49.6%. This is a strong margin indicating high profitability.
Velocity Financial, Inc. (VEL) generated $37 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Velocity Financial, Inc. (VEL) has a debt-to-equity ratio of 9.69. This indicates higher leverage, which may increase financial risk.
Velocity Financial, Inc. (VEL) reported earnings per share (EPS) of $1.91 in its most recent fiscal year.
Velocity Financial, Inc. (VEL) has a return on equity (ROE) of 14.4%. This indicates moderate shareholder returns.
The Ledger Terminal provides 6 years of financial data for Velocity Financial, Inc. (VEL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Velocity Financial, Inc. (VEL) has a book value per share of $14.43, based on its most recent annual SEC filing.