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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Velocity Financial, Inc.

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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 -5.36%, 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.

-6.65%

0.31

24.34%

S&P 500

16.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.16%

EBIT Growth (5y)

29.70%

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

99.25%

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

1.07

EV to EBIT

1.16

EV to EBITDA

1.16

EV to Capital Employed

1.09

EV to Sales

0.99

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

94.01%

ROE (Latest)

14.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

21What is working for the Company

ROCE(HY)

Highest at 16.04%

NET SALES(Q)

Highest at USD 159.39 MM

INTEREST COVERAGE RATIO(Q)

Highest at 146.31

RAW MATERIAL COST(Y)

Fallen by 0.99% (YoY

CASH AND EQV(HY)

Highest at USD 215 MM

PRE-TAX PROFIT(Q)

Highest at USD 35.38 MM

NET PROFIT(Q)

At USD 25.02 MM has Grown at 60.27%

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 37.49 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.7 times

DEBT-EQUITY RATIO (HY)

Highest at 951.16 %

INTEREST(Q)

Highest at USD 95.04 MM

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

Net Sales

Highest at USD 159.39 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 146.31

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 159.39 MM has Grown at 38.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 35.38 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 35.38 MM has Grown at 66.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 25.02 MM has Grown at 60.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 215 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.99% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

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

Operating Cash Flow

Lowest at USD 37.49 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)

Inventory Turnover Ratio

Lowest at 0.7 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at USD 95.04 MM

in the last five periods and Increased by 8.03% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 951.16 %

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