Velocity Financial, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

UWM Holdings Corp.

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Velocity Financial, Inc.

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Runway Growth Finance Corp.

World Acceptance Corp.

U-Haul Holding Co.

Rocket Cos., Inc.

TROOPS, Inc.

Why is Velocity Financial, Inc. ?

Strong Long Term Fundamental Strength with a 27.40% CAGR growth in Operating Profits

Healthy long term growth as Operating profit has grown by an annual rate of 27.40%

Positive results in Jun 25

ROCE(HY) Highest at 15.02%
NET SALES(Q) Highest at USD 151.59 MM
INTEREST COVERAGE RATIO(Q) Highest at 144.51

With ROE of 12.29%, it has a attractive valuation with a 1.12 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.89%, its profits have risen by 19.2% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Velocity Financial, Inc. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Velocity Financial, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Velocity Financial, Inc.

-8.09%

0.25

24.03%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.44%

EBIT Growth (5y)

27.40%

EBIT to Interest (avg)

1.34

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

30.25%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

68.25%

ROE (avg)

10.04%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.12

EV to EBIT

1.39

EV to EBITDA

1.38

EV to Capital Employed

1.14

EV to Sales

1.16

PEG Ratio

0.61

Dividend Yield

ROCE (Latest)

81.83%

ROE (Latest)

12.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

ROCE(HY)

Highest at 15.02%

NET SALES(Q)

Highest at USD 151.59 MM

INTEREST COVERAGE RATIO(Q)

Highest at 144.51

CASH AND EQV(HY)

Highest at USD 171.65 MM

PRE-TAX PROFIT(Q)

Highest at USD 33.92 MM

NET PROFIT(Q)

Highest at USD 25.71 MM

EPS(Q)

Highest at USD 0.68

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 25.35 MM

DEBT-EQUITY RATIO (HY)

Highest at 938.65 %

INTEREST(Q)

Highest at USD 87.98 MM

Here's what is working for Velocity Financial, Inc.

Net Sales

Highest at USD 151.59 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Interest Coverage Ratio

Highest at 144.51

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At USD 151.59 MM has Grown at 41.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 33.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 33.92 MM has Grown at 70.69%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 25.71 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 25.71 MM has Grown at 76.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.68

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 171.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Velocity Financial, Inc.

Operating Cash Flow

Lowest at USD 25.35 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 938.65 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 87.98 MM

in the last five periods and Increased by 8.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)