VEL
Velocity Financial, Inc.
Next earnings Aug 5, 2026 · consensus $0.65 EPS
Last earnings +1.2% on 2026-05-06
$18.22
▲ +2.65%$18.22▼ -2.10%
over 1Y
L $16.33EODHDH $20.76
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+2.6%
1W+4.8%
1M+4.6%
3M+2.3%
YTD-6.8%
1Y-2.1%
Buy
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 7 analysts
Buy
Cheap specialty lender compounding earnings >40%/yr at 6.4x P/E; leverage is high but structural to the securitization model.
The read
Quality fundamentals and an attractive price line up (~474% below fair value) — the rarer case where both the business and the entry look good.
Velocity Financial is a vertically integrated investor-real-estate lender that has compounded net income from $29.2M (FY2021) to $105M (FY2025) — a >3.5x lift in four years — with FY2025 alone delivering +53.5% net income growth and +44% diluted EPS growth to $2.75. At $17.64, the stock trades at just 6.4x trailing earnings on a business the MD&A says earned a 17.5% return on average equity and a 24.4% pre-tax ROAE in 2025, with a 3.61% portfolio net interest margin on a $6.5B UPB book yielding 9.45%. That is a deep mismatch between price and demonstrated profitability, and the 15.6% derived ROE confirms equity is being deployed productively rather than diluted away.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | — | — | — | — | — |
| Gross profit | — | — | — | — | — |
| Operating income | — | — | — | — | — |
| Net income | $29.2M | $32.2M | $52.3M | $68.4M | $105M |
| Diluted EPS | $0.86 | $0.94 | $1.52 | $1.91 | $2.75 |
| Net margin | — | — | — | — | — |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value—
EV / EBITDA—
EV / Sales—
EV / FCF—
P / FCF40.0
PEG (trailing)0.12
Earnings yield14.7%
FCF yield2.5%
Quality & risk
ROIC (est.)—
Free cash flow$17.9M
Total debt—
Net cash$92.1M
Capital returns
Buyback yield1.0%
Dividend yield (est.)—
Shareholder yield1.0%
Shares Δ YoY+15.3%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRoutine disclosure cadence — no material red flags in recent filings.
Recent filings
all on EDGAR ↗4Period ending 2026-05-262026-05-27open ↗4Period ending 2026-05-262026-05-27open ↗8-KPeriod ending 2026-05-212026-05-26open ↗4Period ending 2026-05-212026-05-22open ↗4Period ending 2026-05-212026-05-22open ↗4Period ending 2026-05-212026-05-22open ↗8-KPeriod ending 2026-05-062026-05-07open ↗10-QPeriod ending 2026-03-312026-05-07open ↗8-KPeriod ending 2026-05-062026-05-06open ↗4Period ending 2026-05-012026-05-04open ↗144Filing2026-05-01open ↗4Period ending 2026-04-172026-04-17open ↗
Frequently asked
- Is Velocity Financial, Inc. (VEL) a buy?
- VEL currently carries a Buy rating with 4/5 conviction, derived from its latest SEC filings. Cheap specialty lender compounding earnings >40%/yr at 6.4x P/E; leverage is high but structural to the securitization model.
- What is VEL's fair value?
- A Modified-Graham model based on VEL's SEC fundamentals estimates a fair value of about $104.50. It is an estimate from reported earnings, not a price target.
- Is VEL overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, VEL currently appears undervalued relative to its SEC-grounded earnings power.
- What is Velocity Financial, Inc.'s quality score?
- VEL scores 85.88235294117646/100 (grade A) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001692376, latest 10-Q filed 2026-05-07) · EODHD · analysis by claude-code · as of 6/25/2026, 3:20:03 PM.
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