Announcement • Jun 03
Velocity Financial, Inc. Announces Appointment of Dean Thevaos to Chief Technology Officer, Effective June 1, 2026 Velocity Financial, Inc. announced the appointment of Dean Thevaos as Chief Technology Officer, effective June 1, 2026. Thevaos will lead Velocity’s technology and engineering organization, with a mandate to modernize the company’s platform, deepen its product capabilities, and build the operational infrastructure that supports efficient, scalable growth. Mr. Thevaos is widely regarded across the financial services technology industry for his engineering depth and his ability to build and lead high-performing organizations. Over two decades, he has earned a reputation for translating complex technical strategy into measurable business outcomes across mortgage, consumer lending, wholesale banking, and capital markets. Most recently, Thevaos served as Chief Technology Officer and Head of Product at America’s #1 retail mortgage lender. He carried executive accountability for enterprise technology, product management, software quality assurance, cloud infrastructure, cybersecurity, and the 24/7 reliability of revenue-critical systems at scale. Earlier in his career, he spent more than eight years at LendingTree, advancing through five progressive roles to Vice President, Head of Engineering during a period of sustained market capitalization growth. He led the modernization of core lending platforms from monolithic architectures to cloud-based microservices, improving both deployment velocity and system resiliency at scale, and led technology through more than a dozen acquisitions and partnered with business leaders to spin up numerous lending verticals. Prior to that, he held software engineering roles at Wells Fargo within wholesale banking and capital markets, and at the City of Charlotte. Buy Or Sell Opportunity • May 07
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to US$18.29. The fair value is estimated to be US$23.09, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 31% over the last 3 years. Earnings per share has grown by 28%. Revenue is forecast to grow by 3.6% in 2 years. Earnings are forecast to grow by 14% in the next 2 years. Announcement • Apr 22
Velocity Financial, Inc. to Report Q1, 2026 Results on May 06, 2026 Velocity Financial, Inc. announced that they will report Q1, 2026 results at 4:00 PM, US Eastern Standard Time on May 06, 2026 Announcement • Apr 13
Velocity Financial, Inc., Annual General Meeting, May 21, 2026 Velocity Financial, Inc., Annual General Meeting, May 21, 2026. Buy Or Sell Opportunity • Apr 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to US$18.02. The fair value is estimated to be US$22.54, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 30%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 4.5% per annum over the same time period. Major Estimate Revision • Mar 19
Consensus EPS estimates increase by 14% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from US$2.40 to US$2.73. Revenue forecast unchanged at US$231.3m. Net income forecast to grow 2.9% next year vs 24% growth forecast for Diversified Financial industry in the US. Consensus price target of US$21.67 unchanged from last update. Share price fell 2.1% to US$17.42 over the past week. New Risk • Mar 13
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 15% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (0.3% operating cash flow to total debt). Minor Risks Shareholders have been diluted in the past year (15% increase in shares outstanding). Significant insider selling over the past 3 months (US$376k sold). Announcement • Mar 12
Velocity Financial, Inc. Reports Charge Offs for the Fourth Quarter Ended December 31, 2025 Velocity Financial, Inc. reported charge offs for the fourth quarter ended December 31, 2025. For the period, the company reported charge-offs totaled $2,019,000 compared to $699,000 a year ago. Recent Insider Transactions • Dec 18
Insider recently sold US$152k worth of stock On the 16th of December, Jeffrey Taylor sold around 8k shares on-market at roughly US$20.03 per share. This transaction amounted to 4.5% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$455k more than they bought in the last 12 months. Recent Insider Transactions • Dec 03
Chief Legal Officer recently sold US$129k worth of stock On the 2nd of December, Roland Kelly sold around 7k shares on-market at roughly US$19.38 per share. This transaction amounted to 6.2% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$304k more than they bought in the last 12 months. New Risk • Nov 10
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 39% Last year net profit margin: 61% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (0.9% operating cash flow to total debt). Minor Risks Profit margins are more than 30% lower than last year (39% net profit margin). Shareholders have been diluted in the past year (17% increase in shares outstanding). Significant insider selling over the past 3 months (US$115k sold). Reported Earnings • Nov 07
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: US$0.44 loss per share (down from US$0.48 profit in 3Q 2024). Net loss: US$19.0m (down 222% from profit in 3Q 2024). Revenue exceeded analyst estimates by 73%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Nov 07
Velocity Financial, Inc. Reports Charge Offs for the Third Quarter Ended September 30, 2025 Velocity Financial, Inc. reported charge offs for the third quarter ended September 30, 2025. For the quarter, the company reported total charge offs of $677,000 against $320,000 a year ago. Announcement • Oct 23
Velocity Financial, Inc. to Report Q3, 2025 Results on Nov 06, 2025 Velocity Financial, Inc. announced that they will report Q3, 2025 results After-Market on Nov 06, 2025 Major Estimate Revision • Sep 24
Consensus EPS estimates increase by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from US$175.1m to US$185.8m. EPS estimate increased from US$2.07 to US$2.36 per share. Net income forecast to grow 12% next year vs 23% growth forecast for Diversified Financial industry in the US. Consensus price target of US$21.33 unchanged from last update. Share price rose 3.7% to US$18.97 over the past week. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$18.99, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 14x in the Diversified Financial industry in the US. Total returns to shareholders of 57% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$18.63 per share. New Risk • Aug 10
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 16% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (0.5% operating cash flow to total debt). Minor Risk Shareholders have been diluted in the past year (16% increase in shares outstanding). Reported Earnings • Aug 10
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: US$0.70 (up from US$0.45 in 2Q 2024). Revenue: US$85.8m (up 103% from 2Q 2024). Net income: US$26.0m (up 78% from 2Q 2024). Profit margin: 30% (down from 35% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 19%. Earnings per share (EPS) also surpassed analyst estimates by 37%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • Aug 08
Velocity Financial, Inc. Reports Total Charge Offs for the Second Quarter Ended June 30, 2025 Velocity Financial, Inc. reported total charge offs for the Second quarter ended June 30, 2025. For the quarter, the company reported total charge offs of $1,733,000 against $245,000 a year ago. Announcement • Jul 22
Velocity Financial, Inc. to Report Q2, 2025 Results on Aug 07, 2025 Velocity Financial, Inc. announced that they will report Q2, 2025 results After-Market on Aug 07, 2025 Major Estimate Revision • May 08
Consensus EPS estimates fall by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from US$168.6m to US$166.0m. EPS estimate also fell from US$2.30 per share to US$1.94 per share. Net income forecast to grow 9.2% next year vs 16% growth forecast for Diversified Financial industry in the US. Consensus price target of US$21.33 unchanged from last update. Share price fell 6.4% to US$16.72 over the past week. Reported Earnings • May 02
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: US$0.55 (up from US$0.52 in 1Q 2024). Revenue: US$69.1m (up 86% from 1Q 2024). Net income: US$18.7m (up 9.5% from 1Q 2024). Profit margin: 27% (down from 46% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 7.1%. Earnings per share (EPS) also missed analyst estimates by 18%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • May 02
Velocity Financial, Inc. Reports Total Charge Offs for the First Quarter Ended March 31, 2025 Velocity Financial, Inc. reported total charge offs for the first quarter ended March 31, 2025. For the quarter, the company reported total charge offs of $1,029,100 against $504,000 a year ago. Announcement • Apr 16
Velocity Financial, Inc. to Report Q1, 2025 Results on May 01, 2025 Velocity Financial, Inc. announced that they will report Q1, 2025 results After-Market on May 01, 2025 Announcement • Apr 14
Velocity Financial, Inc., Annual General Meeting, May 23, 2025 Velocity Financial, Inc., Annual General Meeting, May 23, 2025. Reported Earnings • Mar 07
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: US$2.07 (up from US$1.60 in FY 2023). Revenue: US$175.4m (up 33% from FY 2023). Net income: US$67.6m (up 31% from FY 2023). Profit margin: 39% (in line with FY 2023). Revenue exceeded analyst estimates by 45%. Earnings per share (EPS) also surpassed analyst estimates by 3.4%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Feb 11
Now 20% overvalued Over the last 90 days, the stock has fallen 7.6% to US$18.59. The fair value is estimated to be US$15.45, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 6.5% in the next 2 years. Announcement • Jan 28
Velocity Financial, Inc. to Report Q4, 2024 Results on Mar 06, 2025 Velocity Financial, Inc. announced that they will report Q4, 2024 results After-Market on Mar 06, 2025 Price Target Changed • Nov 12
Price target increased by 8.9% to US$21.50 Up from US$19.75, the current price target is an average from 4 analysts. New target price is 5.4% above last closing price of US$20.40. Stock is up 15% over the past year. The company is forecast to post earnings per share of US$1.85 for next year compared to US$1.60 last year. Reported Earnings • Nov 08
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: EPS: US$0.48 (up from US$0.37 in 3Q 2023). Revenue: US$55.9m (up 57% from 3Q 2023). Net income: US$15.6m (up 31% from 3Q 2023). Profit margin: 28% (down from 34% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 35%. Earnings per share (EPS) missed analyst estimates by 5.0%. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Oct 23
Velocity Financial, Inc. to Report Q3, 2024 Results on Nov 07, 2024 Velocity Financial, Inc. announced that they will report Q3, 2024 results After-Market on Nov 07, 2024 Reported Earnings • Aug 02
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: US$0.45 (up from US$0.37 in 2Q 2023). Revenue: US$54.8m (up 82% from 2Q 2023). Net income: US$14.6m (up 22% from 2Q 2023). Profit margin: 27% (down from 40% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 34%. Earnings per share (EPS) also surpassed analyst estimates by 6.3%. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Price Target Changed • May 30
Price target increased by 7.5% to US$19.75 Up from US$18.38, the current price target is an average from 4 analysts. New target price is 8.7% above last closing price of US$18.17. Stock is up 108% over the past year. The company is forecast to post earnings per share of US$1.64 for next year compared to US$1.60 last year. Reported Earnings • May 03
First quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2024 results: EPS: US$0.52 (up from US$0.33 in 1Q 2023). Revenue: US$54.2m (up 87% from 1Q 2023). Net income: US$17.0m (up 62% from 1Q 2023). Profit margin: 31% (down from 36% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 24%. Earnings per share (EPS) exceeded analyst estimates by 32%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Board Change • May 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. Independent Director Omar Maasarani was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 19
Velocity Financial, Inc. to Report Q1, 2024 Results on May 02, 2024 Velocity Financial, Inc. announced that they will report Q1, 2024 results After-Market on May 02, 2024 Announcement • Mar 28
Velocity Financial, Inc., Annual General Meeting, May 17, 2024 Velocity Financial, Inc., Annual General Meeting, May 17, 2024, at 13:00 Pacific Standard Time. Agenda: To approve Election of Directors; to approve Advisory Vote on 2023 Executive Compensation; and to approve Ratification of Independent Auditors. Price Target Changed • Mar 08
Price target increased by 12% to US$17.40 Up from US$15.60, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of US$16.73. Stock is up 100% over the past year. The company is forecast to post earnings per share of US$1.44 for next year compared to US$1.65 last year. Announcement • Mar 08
Velocity Financial, Inc. Announces Impairment Charges for the Fourth Quarter 2023 Velocity Financial, Inc. announced impairment charges for the fourth quarter 2023. For the quarter, the company announced charge-offs totaled $744,000. Announcement • Feb 01
Velocity Financial, Inc. to Report Q4, 2023 Results on Mar 07, 2024 Velocity Financial, Inc. announced that they will report Q4, 2023 results After-Market on Mar 07, 2024 Price Target Changed • Dec 12
Price target increased by 8.3% to US$15.60 Up from US$14.40, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of US$15.00. Stock is up 55% over the past year. The company is forecast to post earnings per share of US$1.35 for next year compared to US$0.99 last year. New Risk • Nov 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 9.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (1.7% operating cash flow to total debt). Minor Risk Share price has been volatile over the past 3 months (9.7% average weekly change). Valuation Update With 7 Day Price Move • Nov 10
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to US$13.75, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Diversified Financial industry in the US. Total returns to shareholders of 162% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$9.14 per share. Reported Earnings • Nov 03
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: US$0.37 (up from US$0.31 in 3Q 2022). Revenue: US$35.5m (up 44% from 3Q 2022). Net income: US$11.9m (up 21% from 3Q 2022). Profit margin: 34% (down from 40% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 42%. Earnings per share (EPS) also surpassed analyst estimates by 6.1%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 80% per year but the company’s share price has only increased by 42% per year, which means it is significantly lagging earnings growth. Announcement • Oct 21
Velocity Financial, Inc. to Report Q3, 2023 Results on Nov 02, 2023 Velocity Financial, Inc. announced that they will report Q3, 2023 results After-Market on Nov 02, 2023 Valuation Update With 7 Day Price Move • Aug 11
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$13.92, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Diversified Financial industry in the US. Total returns to shareholders of 223% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$6.95 per share. Reported Earnings • Aug 04
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: US$0.37 (up from US$0.33 in 2Q 2022). Revenue: US$30.2m (up 8.5% from 2Q 2022). Net income: US$12.0m (up 14% from 2Q 2022). Profit margin: 40% (up from 38% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 19%. Earnings per share (EPS) also surpassed analyst estimates by 9.1%. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 51% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 04
Price target increased by 7.7% to US$12.25 Up from US$11.38, the current price target is an average from 4 analysts. New target price is 5.8% below last closing price of US$13.00. Stock is up 12% over the past year. The company is forecast to post earnings per share of US$1.36 for next year compared to US$0.99 last year. Announcement • Aug 04
Velocity Financial, Inc. Announces Impairment Charges for the Second Quarter Ended June 30, 2023 Velocity Financial, Inc. announced impairment charges for the second quarter ended June 30, 2023. For the quarter, the company announced charge-offs totaled $716,600, compared to $37,800 in second quarter of 2022. Announcement • Jul 23
Velocity Financial, Inc. to Report Q2, 2023 Results on Aug 03, 2023 Velocity Financial, Inc. announced that they will report Q2, 2023 results at 4:00 PM, US Eastern Standard Time on Aug 03, 2023 Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to US$10.77, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 13x in the Diversified Financial industry in the US. Total returns to shareholders of 89% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$6.13 per share. Reported Earnings • May 06
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: US$0.33 (up from US$0.10 in 1Q 2022). Revenue: US$36.3m (up 139% from 1Q 2022). Net income: US$10.6m (up 235% from 1Q 2022). Profit margin: 29% (up from 21% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 31%. Earnings per share (EPS) also surpassed analyst estimates by 4.5%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 9.1% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 11
Full year 2022 earnings released: EPS: US$0.99 (vs US$0.91 in FY 2021) Full year 2022 results: EPS: US$0.99 (up from US$0.91 in FY 2021). Revenue: US$104.2m (up 24% from FY 2021). Net income: US$31.7m (up 54% from FY 2021). Profit margin: 30% (up from 25% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.1% p.a. on average during the next 2 years, compared to a 7.8% growth forecast for the Mortgage industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 149 percentage points per year, which is a significant difference in performance. Announcement • Feb 03
Velocity Financial, Inc. to Report Q4, 2022 Results on Mar 09, 2023 Velocity Financial, Inc. announced that they will report Q4, 2022 results After-Market on Mar 09, 2023 Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Katherine Verner was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improved over the past week After last week's 17% share price gain to US$10.78, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 9x in the Mortgage industry in the US. Total loss to shareholders of 18% over the past year. Reported Earnings • Nov 05
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: US$0.31 (up from US$0.25 in 3Q 2021). Revenue: US$24.7m (up 11% from 3Q 2021). Net income: US$9.83m (up 97% from 3Q 2021). Profit margin: 40% (up from 23% in 3Q 2021). The increase in margin was primarily driven by lower expenses. Revenue missed analyst estimates by 6.6%. Earnings per share (EPS) also missed analyst estimates by 2.2%. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Mortgage industry in the US. Price Target Changed • Nov 04
Price target decreased to US$13.50 Down from US$14.75, the current price target is an average from 4 analysts. New target price is 48% above last closing price of US$9.12. Stock is down 30% over the past year. The company is forecast to post earnings per share of US$1.09 for next year compared to US$0.90 last year. Announcement • Oct 25
Velocity Financial, Inc. to Report Q3, 2022 Results on Nov 03, 2022 Velocity Financial, Inc. announced that they will report Q3, 2022 results After-Market on Nov 03, 2022 Reported Earnings • Aug 05
Second quarter 2022 earnings released: EPS: US$0.33 (vs US$0.29 in 2Q 2021) Second quarter 2022 results: EPS: US$0.33 (up from US$0.29 in 2Q 2021). Revenue: US$29.1m (up 24% from 2Q 2021). Net income: US$10.5m (up 78% from 2Q 2021). Profit margin: 36% (up from 25% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 29% compared to a 8.6% decline forecast for the industry in the US. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment improved over the past week After last week's 17% share price gain to US$11.83, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 9x in the Mortgage industry in the US. Total loss to shareholders of 6.5% over the past year. Simply Wall St's valuation model estimates the intrinsic value at US$5.12 per share. Announcement • Jul 28
Velocity Financial, Inc. to Report Q2, 2022 Results on Aug 04, 2022 Velocity Financial, Inc. announced that they will report Q2, 2022 results After-Market on Aug 04, 2022 Valuation Update With 7 Day Price Move • May 26
Investor sentiment improved over the past week After last week's 16% share price gain to US$10.62, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 9x in the Mortgage industry in the US. Total returns to shareholders of 4.7% over the past year. Simply Wall St's valuation model estimates the intrinsic value at US$5.14 per share. Reported Earnings • May 06
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: US$0.096. Revenue: US$16.3m (up 6.6% from 1Q 2021). Net income: US$3.07m (up 45% from 1Q 2021). Profit margin: 19% (up from 14% in 1Q 2021). Revenue missed analyst estimates by 33%. Earnings per share (EPS) also missed analyst estimates by 65%. Over the next year, revenue is forecast to grow 37% compared to a 8.8% decline forecast for the industry in the US. Board Change • Apr 27
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. 1 highly experienced director. Co-Founder, CEO, President & Director Chris Farrar is the most experienced director on the board, commencing their role in 2004. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Apr 09
Velocity Financial, Inc., Annual General Meeting, May 19, 2022 Velocity Financial, Inc., Annual General Meeting, May 19, 2022, at 13:00 Pacific Standard Time. Agenda: To consider Election of Directors; to consider Advisory Vote on 2021 Executive Compensation; Ratification of Independent Auditors; to consider Approve company's Amended and Restated 2020 Omnibus Incentive Plan; to consider Approve company's Employee Stock Purchase Plan; to consider Approve an Amendment to company's Certificate of Incorporation to Allow Shareholders to Act by Written Consent; and to consider Approve an Amendment to company's Certificate of Incorporation to Allow Shareholders to Call Special Meetings. Reported Earnings • Mar 12
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: US$0.91 (up from US$1.55 loss in FY 2020). Revenue: US$84.5m (up 21% from FY 2020). Net income: US$20.6m (up US$51.8m from FY 2020). Profit margin: 24% (up from net loss in FY 2020). The move to profitability was primarily driven by lower expenses. Net interest margin (NIM): 3.57% (up from 3.30% in FY 2020). Non-performing loans: 10.56% (down from 17.11% in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 9.6%. Over the next year, revenue is forecast to grow 25% compared to a 9.0% decline forecast for the banks industry in the US. Announcement • Feb 11
Velocity Financial, Inc. Appoints Christopher Oltmann as Chief Accounting Officer and Director of Investor Relations Velocity Financial, Inc. appointed Christopher Oltmann, 56, to the position of Corporate Treasurer. Mr. Oltmann has served as Chief Accounting Officer and Director of Investor Relations since September 2019. In addition to his role as Corporate Treasurer, Mr. Oltmann will continue to serve as Director of Investor Relations. Previously, Mr. Oltmann served in various roles at financial services and mortgage companies, including as Executive Vice President Treasury Finance for PennyMac from 2012 to 2019, VP Strategic Planning and Competitive Intelligence at Bank of America, VP Treasury Finance at Union Bank and Senior VP at Countrywide. Board of Directors also appointed Fiona Tam, 51, as new Chief Accounting Officer. Ms. Tam has served as Chief Financial Reporting & Policy Officer since August 2017. Ms. Tam has extensive experience with accounting, audit and internal controls, previously serving as Director of SOX for PennyMac from 2014 to 2017 and as Senior Audit Manager for KPMG. Announcement • Jan 22
Velocity Financial, Inc. Provides Earnings Guidance for the Fourth Quarter of 2021 Velocity Financial, Inc. provided earnings guidance for the fourth quarter of 2021. For the quarter, the company expected net income to be in the range of $8.2 million and $8.6 million. Diluted EPS expected to be in the range of $0.24 and $0.25. Announcement • Dec 29
Velocity Financial, Inc. (NYSE:VEL) acquired an unknown majority stake in Century Health & Housing Capital. Velocity Financial, Inc. (NYSE:VEL) acquired an unknown majority stake in Century Health & Housing Capital on December 28, 2021. The addition of Century is expected to be immediately accretive to Velocity’s earnings with minimal impact to tangible book value.
Velocity Financial, Inc. (NYSE:VEL) completed the acquisition of an unknown majority stake in Century Health & Housing Capital on December 28, 2021. Reported Earnings • Nov 06
Third quarter 2021 earnings released: EPS US$0.25 (vs US$0.17 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: US$22.2m (up 43% from 3Q 2020). Net income: US$4.99m (up 43% from 3Q 2020). Profit margin: 23% (in line with 3Q 2020). Reported Earnings • Aug 08
Second quarter 2021 earnings released: EPS US$0.29 (vs US$2.33 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$23.5m (up 57% from 2Q 2020). Net income: US$5.88m (up US$52.7m from 2Q 2020). Profit margin: 25% (up from net loss in 2Q 2020). The move to profitability was primarily driven by lower expenses. Price Target Changed • Aug 06
Price target increased to US$12.75 Up from US$11.25, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of US$13.25. Stock is up 251% over the past year. Board Change • Aug 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Katherine Verner was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • May 24
Price target increased to US$11.25 Up from US$10.38, the current price target is an average from 3 analysts. New target price is 5.1% above last closing price of US$10.70. Stock is up 240% over the past year. Price Target Changed • May 13
Price target increased to US$11.25 Up from US$10.38, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of US$11.35. Stock is up 291% over the past year. Executive Departure • May 11
Independent Director has left the company On the 28th of April, Daniel Ballen's tenure as Independent Director ended after 4.4 years in the role. We don't have any record of a personal shareholding under Daniel's name. Daniel is the only executive to leave the company over the last 12 months. Reported Earnings • May 09
First quarter 2021 earnings released: EPS US$0.10 (vs US$0.13 in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$15.2m (down 9.3% from 1Q 2020). Net income: US$2.12m (down 18% from 1Q 2020). Profit margin: 14% (down from 15% in 1Q 2020). The decrease in margin was driven by lower revenue. Price Target Changed • May 05
Price target increased to US$10.75 Up from US$9.88, the current price target is an average from 3 analysts. New target price is 19% above last closing price of US$9.00. Stock is up 179% over the past year. Reported Earnings • Mar 17
Full year 2020 earnings released: US$1.55 loss per share (vs US$152 profit in FY 2019) The company reported a soft full year result with weaker earnings and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: US$68.7m (up 10% from FY 2019). Net loss: US$31.2m (down 280% from profit in FY 2019). 