Velocity Financial, Inc. (VEL) 10-Year Financial Performance & Capital Metrics

VEL • • Banking & Credit

Financial ServicesMortgage FinanceSpecialty Mortgage & Alternative LendingResidential Investment Property Lenders

AboutVelocity Financial, Inc. operates as a real estate finance company in the United States. It primarily originates and manages investor loans secured by 14 unit residential rental and small commercial properties. The company offers its products through a network of independent mortgage brokers. Velocity Financial, Inc. was founded in 2004 and is headquartered in Westlake Village, California.Show more

Net Interest Income $160M +41.3%
Total Revenue $483M +266.5%
Net Income $68M +30.9%
Return on Equity 14.3% +11.8%
Net Interest Margin 2.89% +12.6%
Efficiency Ratio 23.65% -43.2%
ROA 1.38% +7.5%
Equity / Assets 9.41% -5.1%
Book Value per Share 14.55 +14.8%
Tangible BV/Share 13.97 +14.3%
Debt/Equity 9.34 +6.2%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong 5Y profit CAGR of 31.7%
✓Efficient operations: 23.6% efficiency ratio
✓Trading at only 1.3x book value

✗Weaknesses

✗High debt to equity ratio of 9.3x

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-

5Y25.87%

3Y38.6%

TTM-

Profit (Net Income) CAGR

10Y-

5Y31.66%

3Y32.78%

TTM38.63%

EPS CAGR

10Y-

5Y17.3%

3Y30.47%

TTM32.6%

ROCE

10Y Avg2.23%

5Y Avg1.74%

3Y Avg1.94%

Latest2.15%

Peer Comparison

Residential Investment Property Lenders

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
VELVelocity Financial, Inc.	762.44M	19.60	10.26	266.52%	14.17%	14.18%	4.91%	9.34

Profit & Loss

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	27.59M	36.54M	48.8M	59.01M	67.45M	75.97M	83.15M	112.94M	159.63M
NII Growth %	-	0.32%	0.34%	0.21%	0.14%	0.13%	0.09%	0.36%	0.41%
Net Interest Margin %	-	-	-	-	-	-	-	-	-
Interest Income	78.42M	97.83M	124.72M	157.53M	167.32M	181.97M	240.34M	315.97M	406.84M
Interest Expense	50.83M	61.29M	75.92M	98.52M	99.88M	106M	157.19M	203.02M	247.22M
Loan Loss Provision	1.46M	421K	201K	1.14M	5.07M	-292K	1.15M	-203.02M	24.99M
Non-Interest Income+	-2.95M	-2.9M	-3.2M	-4.75M	-1.48M	-658K	8.04M	-184.25M	75.93M
Non-Interest Income %	-	-	-	-	-	-	-	-	-
Total Revenue+	75.47M	94.93M	121.52M	152.78M	165.84M	181.31M	248.38M	131.72M	482.78M
Revenue Growth %	-	0.26%	0.28%	0.26%	0.09%	0.09%	0.37%	-0.47%	2.67%
Non-Interest Expense	16.39M	19.23M	26.15M	27.73M	37.77M	35.81M	45.48M	54.87M	114.17M
Efficiency Ratio	-	-	-	-	-	-	-	-	-
Operating Income+	6.8M	13.99M	19.25M	25.4M	23.13M	39.79M	44.55M	76.85M	96.39M
Operating Margin %	-	-	-	-	-	-	-	-	-
Operating Income Growth %	-	1.06%	0.38%	0.32%	-0.09%	0.72%	0.12%	0.72%	0.25%
Pretax Income+	6.8M	13.99M	19.25M	25.4M	23.13M	39.79M	44.55M	71.13M	96.39M
Pretax Margin %	-	-	-	-	-	-	-	-	-
Income Tax+	0	0	11.62M	8.11M	5.35M	10.57M	12.03M	18.83M	27.93M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-
Net Income+	6.8M	13.99M	7.63M	17.29M	17.78M	29.22M	32.21M	52.27M	68.42M
Net Margin %	-	-	-	-	-	-	-	-	-
Net Income Growth %	-	1.06%	-0.45%	1.27%	0.03%	0.64%	0.1%	0.62%	0.31%
Net Income (Continuing)	6.8M	13.99M	7.63M	17.29M	17.78M	29.22M	32.52M	52.29M	68.47M
EPS (Diluted)+	0.58	1.19	0.90	0.86	-1.55	0.86	0.93	1.52	1.91
EPS Growth %	-	1.05%	-0.24%	-0.04%	-2.8%	1.55%	0.08%	0.63%	0.26%
EPS (Basic)	0.58	1.19	0.65	0.86	-1.55	0.90	0.99	1.60	2.07
Diluted Shares Outstanding	11.75M	11.75M	11.75M	113.59M	20.09M	33.98M	34.13M	34.48M	35.76M

Balance Sheet

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	49.98M	15.92M	15.01M	22.55M	13.91M	36.13M	45.42M	40.76M	50.11M
Short Term Investments	0	0	0	0	0	0	0	0	0
Total Investments+	-1.77M	1.31B	-1.75B	2.08B	1.96B	2.62B	3.55B	4.15B	5.19B
Investments Growth %	-	742.69%	-2.33%	2.19%	-0.06%	0.33%	0.36%	0.17%	0.25%
Long-Term Investments	0	1.31B	0	2.08B	1.96B	2.62B	3.55B	4.15B	5.19B
Accounts Receivables	0	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-
Goodwill	0	0	4.32M	0	0	6.78M	6.78M	6.78M	6.78M
Intangible Assets	0	0	4.78M	0	0	7.15M	9.24M	8.58M	13.71M
PP&E (Net)	3.88M	5.77M	5.54M	10.69M	8.93M	7.57M	5.78M	5.33M	4.15M
Other Assets	1.08B	5.13M	-14.64M	23.16M	22.79M	-2.62B	30.97M	66.29M	89.95M
Total Current Assets	49.98M	51.13M	68.94M	91.86M	101.68M	125.43M	142.75M	163.65M	212.34M
Total Non-Current Assets	1.08B	1.32B	1.73B	2.12B	2B	21.5M	3.61B	4.24B	5.32B
Total Assets+	1.13B	1.37B	1.74B	2.21B	2.1B	2.81B	3.75B	4.4B	5.53B
Asset Growth %	-	0.21%	0.26%	0.28%	-0.05%	0.34%	0.33%	0.17%	0.25%
Return on Assets (ROA)	0.01%	0.01%	0%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Accounts Payable	0	22.03M	26.8M	56.15M	63.36M	92.19M	91.53M	121.97M	147.81M
Total Debt+	1.05B	1.19B	1.55B	2.01B	1.73B	2.38B	3.28B	3.84B	4.86B
Net Debt	995.68M	1.18B	1.53B	1.98B	1.72B	2.34B	3.23B	3.8B	4.81B
Long-Term Debt	972.48M	1.11B	1.55B	1.58B	1.65B	2.07B	2.95B	3.51B	4.51B
Short-Term Debt	0	85.3M	0	421.55M	75.92M	301.07M	330.81M	334.75M	348.08M
Other Liabilities	0	24.69M	-1.55B	0	90M	393.26M	0	3.67M	0
Total Current Liabilities	1.96B	107.33M	26.8M	477.69M	139.28M	0	422.34M	456.72M	495.9M
Total Non-Current Liabilities	972.48M	1.13B	1.57B	1.58B	1.74B	2.47B	2.95B	3.51B	4.51B
Total Liabilities	984.75M	1.24B	1.57B	2.06B	1.88B	2.47B	3.37B	3.97B	5.01B
Total Equity+	2.05B	130.94M	163.26M	152.84M	219.59M	344.49M	380.5M	436.87M	520.22M
Equity Growth %	-	-0.94%	0.25%	-0.06%	0.44%	0.57%	0.1%	0.15%	0.19%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0%	0.01%	0.05%	0.11%	0.1%	0.1%	0.09%	0.13%	0.14%
Book Value per Share	174.80	11.14	13.89	1.35	10.93	10.14	11.15	12.67	14.55
Tangible BV per Share	-	-	-	-	-	-	-	-	-
Common Stock	125.34M	0	136.8M	0	201K	323K	326K	331K	339K
Additional Paid-in Capital	0	0	0	0	204.19M	296.36M	300.31M	306.74M	322.95M
Retained Earnings	148.38M	0	0	0	15.2M	44.42M	76.63M	128.91M	197.32M
Accumulated OCI	148.38M	0	-4.04M	0	0	0	0	-1.21M	-805K
Treasury Stock	0	0	0	0	0	0	-458K	-1.32M	-2.87M
Preferred Stock	23.04M	0	26.46M	0	0	0	0	0	0

Cash Flow

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	29.77M	37.64M	-72.48M	-105.34M	54.89M	57.62M	48.67M	61.05M	37.76M
Operating CF Growth %	-	0.26%	-2.93%	-0.45%	1.52%	0.05%	-0.16%	0.25%	-0.38%
Net Income	6.8M	13.99M	7.63M	17.29M	17.78M	29.22M	32.52M	51.52M	68.47M
Depreciation & Amortization	514K	1.19M	1.43M	2.47M	2.45M	2.41M	2.12M	2.3M	2M
Deferred Taxes	0	0	-517K	-7.76M	1.67M	-9.95M	11.57M	0	-11.43M
Other Non-Cash Items	21.31M	17.63M	-62.17M	-117.96M	22.45M	20.98M	17.15M	-9.42M	-47.06M
Working Capital Changes	1.15M	4.84M	-18.86M	628K	9.59M	12.8M	-18.02M	16.66M	19.62M
Cash from Investing+	-181.09M	-274.78M	-270.2M	-305.93M	87.74M	-656.48M	-908.24M	-596.95M	-1.05B
Purchase of Investments	0	0	0	0	0	-1.69M	0	-38.04M	-16.67M
Sale/Maturity of Investments	0	0	0	0	0	1000K	0	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-
Acquisitions	0	0	0	0	0	-10.76M	0	0	0
Other Investing	-178.18M	-271.7M	-268.89M	-305.05M	88.47M	-666.59M	-907.91M	-615.51M	-1.08B
Cash from Financing+	190.78M	201.12M	343.63M	422.14M	-149.89M	626.17M	874.02M	535.77M	1.02B
Dividends Paid	0	0	0	0	0	0	0	0	0
Share Repurchases	0	0	0	0	0	0	-458K	-861K	0
Stock Issued	0	0	0	0	100.8M	137K	607K	2.31M	10.14M
Net Stock Activity	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	1000K	1000K	1000K	-1000K	1000K	1000K	1000K	1000K
Other Financing	-12.62M	-14.66M	-7.85M	-17.88M	-8.61M	-27.58M	-25.59M	-280K	-5.84M
Net Change in Cash+	39.46M	-36.02M	950K	10.88M	-7.26M	27.31M	14.45M	-129K	8.9M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0
Cash at Beginning	12.29M	51.74M	15.73M	16.68M	27.55M	20.29M	47.6M	62.06M	61.93M
Cash at End	51.74M	15.73M	16.68M	27.55M	20.29M	47.6M	62.06M	61.93M	70.83M
Interest Paid	30.91M	46.25M	66.46M	86.45M	85.41M	85.02M	118.71M	0	251.26M
Income Taxes Paid	21K	127K	13.22M	15.42M	965K	9.64M	23.04M	0	41.55M
Free Cash Flow+	26.85M	34.56M	-74.19M	-107.34M	53.32M	57.29M	48.35M	60.87M	37.47M
FCF Growth %	-	0.29%	-3.15%	-0.45%	1.5%	0.07%	-0.16%	0.26%	-0.38%

Banking Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	0.33%	1.28%	5.19%	10.94%	9.55%	10.36%	8.89%	12.79%	14.3%
Return on Assets (ROA)	0.6%	1.12%	0.49%	0.88%	0.82%	1.19%	0.98%	1.28%	1.38%
Net Interest Margin	2.44%	2.66%	2.81%	2.66%	3.21%	2.7%	2.22%	2.56%	2.89%
Efficiency Ratio	21.72%	20.26%	21.52%	18.15%	22.77%	19.75%	18.31%	41.66%	23.65%
Equity / Assets	181.26%	9.55%	9.41%	6.9%	10.44%	12.25%	10.15%	9.92%	9.41%
Book Value / Share	174.8	11.14	13.89	1.35	10.93	10.14	11.15	12.67	14.55
NII Growth	-	32.42%	33.57%	20.91%	14.3%	12.64%	9.44%	35.84%	41.33%

Frequently Asked Questions

Valuation & Price

Velocity Financial, Inc. (VEL) has a price-to-earnings (P/E) ratio of 10.3x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Velocity Financial, Inc. (VEL) grew revenue by 266.5% over the past year. This is strong growth.

Yes, Velocity Financial, Inc. (VEL) is profitable, generating $90.4M in net income for fiscal year 2024 (14.2% net margin).

Dividend & Returns

Velocity Financial, Inc. (VEL) has a return on equity (ROE) of 14.3%. This is reasonable for most industries.

Industry Metrics

Velocity Financial, Inc. (VEL) has a net interest margin (NIM) of 2.9%. NIM has been under pressure due to interest rate environment.

Velocity Financial, Inc. (VEL) has an efficiency ratio of 23.6%. This is excellent, indicating strong cost control.

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