Share Price | Velocity Financial, Inc. Stock Analysis & Recommendation

Q: What does Velocity Financial, Inc. do?

Overview:Velocity Financial, Inc. operates in the finance industry and is classified as a micro-cap company.Financial Snapshot:Most recent Net Sales: 131 Million (Quarterly Results - Mar 2025) Most recent Net Profit: 18 Million (Quarterly Results - Mar 2025) Market-cap: USD 676.43 Million (Micro Cap)Key Metrics:P/E: 9.00 Dividend Yield: 0.00% Debt Equity: -999,999.00 Return on Equity: 12.29% Price to Book: 1.20 Contact Details:Registrar Address: Not available.

Q: Is Velocity Financial, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Velocity Financial, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued based on its key metrics, including a P/E ratio of 9, a PEG ratio of 0.61, and an EV to EBITDA ratio of 1.38. In comparison, peers such as Runway Growth Finance Corp. have a P/E of 5.47 and NewtekOne, Inc. has a P/E of 5.88, suggesting that Velocity is trading at a premium relative to its peers, yet still remains attractive given its strong performance indicators.Despite recent underperformance against the S&P 500, with a year-to-date return of -5.73% compared to the index's 12.22%, Velocity's long-term performance shows resilience, with a 5-year return of 243.39% versus the S&P 500's 96.61%. This divergence highlights the potential for recovery and growth, reinforcing the view that Velocity Financial, Inc. is currently undervalued.

Q: Is Velocity Financial, Inc. technically bullish or bearish?

As of 26 September 2025, the technical trend for Velocity Financial, Inc. has changed from sideways to mildly bullish. The weekly MACD is bullish, supported by a bullish signal from the Bollinger Bands and a bullish On-Balance Volume (OBV). However, the monthly MACD and KST are mildly bearish, indicating some caution. The daily moving averages are mildly bearish, which contrasts with the overall bullish sentiment in the weekly indicators. Overall, the current stance is mildly bullish, driven primarily by the weekly MACD and OBV, despite mixed signals from other time frames. Multi-period return data is not available for comparison with the S&P 500.

Price Point

High/Low

1Day

52 Week

Valuation

Technical

Day's Volume

CASH

48.23 k

Shareholding (Sep 2025)

FII

1.25%

Held by 27 FIIs

DII

58.1%

Held by 10 DIIs

Promoter

34.74%

How big is Velocity Financial, Inc.?

22-Jun-2025

As of Jun 18, Velocity Financial, Inc. has a market capitalization of 676.43 million and reported net sales of 478.65 million with a net profit of 68.92 million for the latest four quarters. Shareholder's funds were 516.94 million, and total assets amounted to 5,529.60 million as of December 2024.

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What does Velocity Financial, Inc. do?

22-Jun-2025

Velocity Financial, Inc. is a micro-cap finance company with recent net sales of $131 million and a net profit of $18 million. Key metrics include a P/E ratio of 9.00 and a return on equity of 12.29%.

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Is Velocity Financial, Inc. overvalued or undervalued?

20-Sep-2025

As of August 7, 2025, Velocity Financial, Inc. is rated very attractive due to its undervaluation indicated by a P/E ratio of 9, a PEG ratio of 0.61, and an EV to EBITDA ratio of 1.38, despite recent underperformance against the S&P 500, suggesting strong potential for recovery and growth.

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Is Velocity Financial, Inc. technically bullish or bearish?

29-Sep-2025

As of September 26, 2025, Velocity Financial, Inc. shows a mildly bullish trend driven by a bullish weekly MACD and On-Balance Volume, despite mixed signals from monthly and daily indicators.

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Compare Velocity Financial, Inc. with Similar Stocks

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Dashboard

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

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

Mojo Parameters

Stock DNA

Industry

Finance

Market cap

USD 760 Million (Micro Cap)

P/E

9.00

Industry P/E

Dividend Yield

0.00%

Debt Equity

-999,999.00

Return on Equity

14.15%

Price to Book

1.20

Revenue and Profits:

Net Sales:

152 Million

(Quarterly Results - Jun 2025)

Net Profit:

26 Million

Total Returns

Total Returns (Price + Dividend)

TimePeriod

Price Return

Dividend Return

Total Return

3 Months

9.15%

6 Months

23.32%

1 Year

11.58%

2 Years

32.47%

3 Years

98.64%

4 Years

64.16%

5 Years

182.64%

Velocity Financial, Inc. for the last several years.

Risk Adjusted Returns v/s

News & Corporate Actions

News

No Recent News for the Company

Announcements

No announcement available

Corporate Actions

No corporate action available

Key Factors

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

98.59%

ROCE (avg)

68.25%

ROE (avg)

10.04%

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 key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

Shareholding

Shareholding Snapshot : Sep 2025

Shareholding Compare (%holding)

Majority shareholders

Strategic Entities

Domestic Funds

Held in 28 Schemes (5.91%)

Foreign Institutions

Held by 27 Foreign Institutions (1.25%)

Strategic Entities with highest holding

Highest Public shareholder

Financial

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    "link": "quarterly",
    "btn_text": "All Quarterly Results",
    "header": "Quarterly Results Snapshot (Consolidated) - Jun'25 - YoY",
    "rhs": [
      {
        "prefix": "Net Sales ",
        "suffix": "YoY Growth in quarter ended Jun 2025 is 41.55% vs 32.55% in Jun 2024",
        "dir": 1
      },
      {
        "prefix": "Consolidated Net Profit ",
        "suffix": "YoY Growth in quarter ended Jun 2025 is 78.62% vs 20.83% in Jun 2024",
        "dir": 1
      }
    ],
    "table": {
      "header": [
        "Jun'25",
        "Jun'24",
        "Change(%)"
      ],
      "body": [
        {
          "field": "Net Sales",
          "val1": "151.60",
          "val2": "107.10",
          "chgp": "41.55%",
          "chgp_class": "positive"
        },
        {
          "field": "Operating Profit (PBDIT) excl Other Income",
          "val1": "127.10",
          "val2": "87.30",
          "chgp": "45.59%",
          "chgp_class": "positive"
        },
        {
          "field": "Interest",
          "val1": "88.00",
          "val2": "65.30",
          "chgp": "34.76%",
          "chgp_class": "negative"
        },
        {
          "field": "Exceptional Items",
          "val1": "0.00",
          "val2": "0.00",
          "chgp": "",
          "chgp_class": "neutral"
        },
        {
          "field": "Consolidate Net Profit",
          "val1": "25.90",
          "val2": "14.50",
          "chgp": "78.62%",
          "chgp_class": "positive"
        },
        {
          "field": "Operating Profit Margin (Excl OI)",
          "val1": "825.90%",
          "val2": "808.40%",
          "chgp": "1.75%",
          "chgp_class": "positive"
        }
      ]
    }
  },
  {
    "link": "annual",
    "btn_text": "All Annual Results",
    "header": "Annual Results Snapshot (Consolidated) - Dec'24",
    "rhs": [
      {
        "prefix": "Net Sales ",
        "suffix": "YoY Growth in year ended Dec 2024 is 33.23% vs 33.53% in Dec 2023",
        "dir": -1
      },
      {
        "prefix": "Consolidated Net Profit ",
        "suffix": "YoY Growth in year ended Dec 2024 is 31.26% vs 60.94% in Dec 2023",
        "dir": -1
      }
    ],
    "table": {
      "header": [
        "Dec'24",
        "Dec'23",
        "Change(%)"
      ],
      "body": [
        {
          "field": "Net Sales",
          "val1": "451.00",
          "val2": "338.50",
          "chgp": "33.23%",
          "chgp_class": "positive"
        },
        {
          "field": "Operating Profit (PBDIT) excl Other Income",
          "val1": "370.60",
          "val2": "279.00",
          "chgp": "32.83%",
          "chgp_class": "positive"
        },
        {
          "field": "Interest",
          "val1": "271.00",
          "val2": "203.00",
          "chgp": "33.50%",
          "chgp_class": "negative"
        },
        {
          "field": "Exceptional Items",
          "val1": "0.00",
          "val2": "-0.70",
          "chgp": "100.00%",
          "chgp_class": "positive"
        },
        {
          "field": "Consolidate Net Profit",
          "val1": "67.60",
          "val2": "51.50",
          "chgp": "31.26%",
          "chgp_class": "positive"
        },
        {
          "field": "Operating Profit Margin (Excl OI)",
          "val1": "814.70%",
          "val2": "811.70%",
          "chgp": "0.30%",
          "chgp_class": "positive"
        }
      ]
    }
  }
]

Quarterly Results Snapshot (Consolidated) - Jun'25 - YoY

Jun'25

Jun'24

Change(%)

Net Sales

151.60

107.10

41.55%

Operating Profit (PBDIT) excl Other Income

127.10

87.30

45.59%

Interest

88.00

65.30

34.76%

Exceptional Items

0.00

Consolidate Net Profit

25.90

14.50

78.62%

Operating Profit Margin (Excl OI)

825.90%

808.40%

1.75%

USD in Million.

Compare with Peers

Net Sales

YoY Growth in quarter ended Jun 2025 is 41.55% vs 32.55% in Jun 2024

Consolidated Net Profit

YoY Growth in quarter ended Jun 2025 is 78.62% vs 20.83% in Jun 2024

All Quarterly Results

Annual Results Snapshot (Consolidated) - Dec'24

Dec'24

Dec'23

Change(%)

Net Sales

451.00

338.50

33.23%

Operating Profit (PBDIT) excl Other Income

370.60

279.00

32.83%

Interest

271.00

203.00

33.50%

Exceptional Items

0.00

-0.70

100.00%

Consolidate Net Profit

67.60

51.50

31.26%

Operating Profit Margin (Excl OI)

814.70%

811.70%

0.30%

USD in Million.

Compare with Peers

Net Sales

YoY Growth in year ended Dec 2024 is 33.23% vs 33.53% in Dec 2023

Consolidated Net Profit

YoY Growth in year ended Dec 2024 is 31.26% vs 60.94% in Dec 2023

All Annual Results

Company CV

About Velocity Financial, Inc.

Velocity Financial, Inc.

Finance

No Details Available.

Company Coordinates

No Company Details Available

Velocity Financial, Inc.

1Day

52 Week

CASH

FII

DII

Promoter

How big is Velocity Financial, Inc.?

Watch in Real-Time

What does Velocity Financial, Inc. do?

Is Velocity Financial, Inc. overvalued or undervalued?

Is Velocity Financial, Inc. technically bullish or bearish?

Compare Velocity Financial, Inc. with Similar Stocks

MarketsMojo — Loved in India, Now Global

Dashboard

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

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

Mojo Parameters

Stock DNA

Total Returns (Price + Dividend)

Risk Adjusted Returns v/s

News

Announcements

Corporate Actions

Quality key factors

Valuation key factors

Technicals key factors

Shareholding Snapshot : Sep 2025

Shareholding Compare (%holding)

Quarterly Results Snapshot (Consolidated) - Jun'25 - YoY

Annual Results Snapshot (Consolidated) - Dec'24

About Velocity Financial, Inc.

Company Coordinates