VEL
Velocity Financial·NYSE
--
--(--)
--
--(--)
4.64 / 10
Netural
VEL exhibits moderate fundamental strength (score 4.6/10). Key positives include strong Profit-MV (1.56) and Asset-MV (-0.51) values, placing them in higher performance quartiles with historically better returns. However, metrics like Accounts receivable turnover ratio (25.88) and Current assets turnover ratio (1.78) are only average, and some factors such as Days sales outstanding (72.42) fall short. The PB-ROE is negative (-0.955), indicating potential overvaluation relative to peers. Overall, the fundamentals are steady but not exceptional, warranting a selective buy-or-avoid approach.
Analysis Checks(7/10)
Revenue-MV
Value-0.08
Score2/3
Weight14.65%
1M Return4.29%
Value-0.08
Score2/3
Weight14.65%
1M Return4.29%
Profit-MV
Value1.56
Score2/3
Weight11.37%
1M Return3.51%
Value1.56
Score2/3
Weight11.37%
1M Return3.51%
Accounts receivable turnover ratio
Value25.88
Score1/3
Weight3.24%
1M Return1.09%
Value25.88
Score1/3
Weight3.24%
1M Return1.09%
Income tax / Total profit (%)
Value26.99
Score2/3
Weight3.73%
1M Return1.33%
Value26.99
Score2/3
Weight3.73%
1M Return1.33%
Total assets turnover ratio
Value0.58
Score1/3
Weight4.24%
1M Return1.39%
Value0.58
Score1/3
Weight4.24%
1M Return1.39%
Days sales outstanding
Value72.42
Score2/3
Weight3.17%
1M Return1.06%
Value72.42
Score2/3
Weight3.17%
1M Return1.06%
Net income-Revenue
Value0.61
Score2/3
Weight7.55%
1M Return2.60%
Value0.61
Score2/3
Weight7.55%
1M Return2.60%
PB-ROE
Value-0.96
Score2/3
Weight4.67%
1M Return1.36%
Value-0.96
Score2/3
Weight4.67%
1M Return1.36%
Current assets turnover ratio
Value1.78
Score1/3
Weight3.93%
1M Return1.31%
Value1.78
Score1/3
Weight3.93%
1M Return1.31%
Asset-MV
Value-0.51
Score3/3
Weight43.43%
1M Return9.55%
Value-0.51
Score3/3
Weight43.43%
1M Return9.55%
Revenue-MV
Value-0.08
Score2/3
Weight14.65%
1M Return4.29%
Value-0.08
Score2/3
Weight14.65%
1M Return4.29%
Days sales outstanding
Value72.42
Score2/3
Weight3.17%
1M Return1.06%
Value72.42
Score2/3
Weight3.17%
1M Return1.06%
Profit-MV
Value1.56
Score2/3
Weight11.37%
1M Return3.51%
Value1.56
Score2/3
Weight11.37%
1M Return3.51%
Net income-Revenue
Value0.61
Score2/3
Weight7.55%
1M Return2.60%
Value0.61
Score2/3
Weight7.55%
1M Return2.60%
Accounts receivable turnover ratio
Value25.88
Score1/3
Weight3.24%
1M Return1.09%
Value25.88
Score1/3
Weight3.24%
1M Return1.09%
PB-ROE
Value-0.96
Score2/3
Weight4.67%
1M Return1.36%
Value-0.96
Score2/3
Weight4.67%
1M Return1.36%
Income tax / Total profit (%)
Value26.99
Score2/3
Weight3.73%
1M Return1.33%
Value26.99
Score2/3
Weight3.73%
1M Return1.33%
Current assets turnover ratio
Value1.78
Score1/3
Weight3.93%
1M Return1.31%
Value1.78
Score1/3
Weight3.93%
1M Return1.31%
Total assets turnover ratio
Value0.58
Score1/3
Weight4.24%
1M Return1.39%
Value0.58
Score1/3
Weight4.24%
1M Return1.39%
Asset-MV
Value-0.51
Score3/3
Weight43.43%
1M Return9.55%
Value-0.51
Score3/3
Weight43.43%
1M Return9.55%
Is VEL undervalued or overvalued?
- VEL scores 4.64/10 on fundamentals and holds a Fair valuation at present. Backed by its 11.99% ROE, 28.83% net margin, 8.88 P/E ratio, 1.25 P/B ratio, and 27.78% earnings growth, these metrics solidify its Netural investment rating.
