Velocity Financial
Market Cap
US$141.4m
Last Updated
2021/01/18 00:34 UTC
Data Sources
Company Financials +
Executive Summary
Velocity Financial, Inc. operates as a real estate finance company in the United States. More Details
Rewards
Risk Analysis
No risks detected for VEL from our risk checks.
Snowflake Analysis
High growth potential and fair value.
Similar Companies
Share Price & News
How has Velocity Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VEL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: VEL's weekly volatility has decreased from 21% to 7% over the past year.
Market Performance
7 Day Return
-0.1%
VEL
-0.06%
US Mortgage
-1.0%
US Market
1 Year Return
-47.9%
VEL
5.9%
US Mortgage
19.6%
US Market
Return vs Industry: VEL underperformed the US Mortgage industry which returned 5.9% over the past year.
Return vs Market: VEL underperformed the US Market which returned 19.6% over the past year.
Shareholder returns
| VEL | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.1% | -0.06% | -1.0% |
| 30 Day | 12.6% | 1.3% | 2.3% |
| 90 Day | 45.5% | 6.8% | 13.1% |
| 1 Year | -47.9%-47.9% | 9.1%5.9% | 22.3%19.6% |
| 3 Year | n/a | 19.2%9.8% | 45.3%35.7% |
| 5 Year | n/a | 90.6%63.5% | 124.8%99.8% |
Long-Term Price Volatility Vs. Market
How volatile is Velocity Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Velocity Financial, Inc. (NYSE:VEL) Insiders Increased Their Holdings6 months ago | Simply Wall St
How Much Are Velocity Financial, Inc. (NYSE:VEL) Insiders Spending On Buying Shares?Valuation
Is Velocity Financial undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VEL ($7.04) is trading below our estimate of fair value ($691.31)
Significantly Below Fair Value: VEL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VEL is unprofitable, so we can't compare its PE Ratio to the US Mortgage industry average.
PE vs Market: VEL is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate VEL's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: VEL is good value based on its PB Ratio (0.7x) compared to the US Mortgage industry average (0.9x).
Next Steps
Future Growth
How is Velocity Financial forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
178.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VEL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: VEL is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: VEL's is expected to become profitable in the next 3 years.
Revenue vs Market: VEL's revenue (21.1% per year) is forecast to grow faster than the US market (10.3% per year).
High Growth Revenue: VEL's revenue (21.1% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if VEL's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Velocity Financial performed over the past 5 years?
-52.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VEL is currently unprofitable.
Growing Profit Margin: VEL is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: VEL is unprofitable, and losses have increased over the past 5 years at a rate of 52.6% per year.
Accelerating Growth: Unable to compare VEL's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: VEL is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage industry (2.7%).
Return on Equity
High ROE: VEL has a negative Return on Equity (4.46%), as it is currently unprofitable.
Next Steps
Financial Health
How is Velocity Financial's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: VEL's Assets to Equity ratio (7.1x) is low.
Allowance for Bad Loans: Insufficient data to determine if VEL has a sufficient allowance for bad loans.
Low Risk Liabilities: VEL reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.
Loan Level: Insufficient data to determine if VEL has an appropriate level of Loans to Assets ratio.
Low Risk Deposits: VEL reports no customer deposits, loans are made up entirely of externally borrowed funds.
Level of Bad Loans: Insufficient data to determine if VEL has an appropriate level of bad loans.
Next Steps
Dividend
What is Velocity Financial current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VEL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VEL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VEL's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VEL's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VEL's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.7yrs
Average management tenure
CEO
Chris Farrar (53 yo)
no data
Tenure
US$863,852
Compensation
Mr. Christopher D. Farrar, also known as Chris, is the Co-founder, Chief Executive Officer, President and Director of Velocity Financial, Inc. (formerly known as Velocity Financial, LLC) since 2004. He ser...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD863.85K) is above average for companies of similar size in the US market ($USD535.60K).
Compensation vs Earnings: Chris's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | no data | US$863.85k | 0.74% $ 1.0m | |
| CFO & Corporate Secretary | 3.67yrs | US$418.10k | 0.032% $ 45.1k | |
| Executive Vice President of Capital Markets | 17yrs | US$475.95k | 0.024% $ 34.0k | |
| Chief Information Officer of Velocity Commercial Capital LLC | no data | US$375.60k | 0.020% $ 28.2k | |
| Chief Operating Officer of Velocity Commercial Capital LLC | no data | US$420.60k | 0.011% $ 15.6k | |
| Chief Accounting Officer & Director of Investor Relations | no data | no data | 0.0087% $ 12.3k | |
| General Counsel & Corporate Secretary | 0.50yr | no data | 0.00050% $ 707.1 |
3.7yrs
Average Tenure
51yo
Average Age
Experienced Management: VEL's management team is considered experienced (3.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | no data | US$863.85k | 0.74% $ 1.0m | |
| Independent Director | 1yr | no data | 0.12% $ 176.0k | |
| Independent Chairman of the Board | no data | no data | no data | |
| Independent Director | 14yrs | no data | no data | |
| Independent Director | 4.08yrs | no data | no data | |
| Independent Director | 1yr | no data | 0.037% $ 52.6k | |
| Independent Director | 0.50yr | no data | no data |
2.5yrs
Average Tenure
49.5yo
Average Age
Experienced Board: VEL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.
Top Shareholders
Company Information
Velocity Financial, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Velocity Financial, Inc.
- Ticker: VEL
- Exchange: NYSE
- Founded: 2004
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: US$141.416m
- Shares outstanding: 20.09m
- Website: https://www.velfinance.com
Number of Employees
Location
- Velocity Financial, Inc.
- 30699 Russell Ranch Road
- Suite 295
- Westlake Village
- California
- 91362
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VEL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 2020 |
Biography
Velocity Financial, Inc. operates as a real estate finance company in the United States. The company primarily originates and manages investor loans secured by 1-4 unit residential rental and small commerc...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/18 00:34 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.