Velocity Financial, Inc. - Understand $vel stock

$VEL Market Cap: $683.5 Million

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Financial Snapshot

Revenue

$388.3M

TTM

Gross Margin

90.94%

TTM

Net Earnings

$65.19M

TTM

Current Assets

$77.04M

Q3 2024

Current Liabilities

$574.6M

Q3 2024

Current Ratio

13.41%

Q3 2024

Total Assets

$5.202B

Q3 2024

Total Liabilities

$4.715B

Q3 2024

Book Value

$487.7M

Q3 2024

Cash

$44.09M

Q3 2024

P/E

10.49

Nov 29, 2024 EST

Free Cash Flow

$25.58M

TTM

Revenues

Revenue YoY Change

Revenues

Concept	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Revenue	$319.0M	$247.5M	$189.9M	$174.9M	$161.9M	$125.9M	$98.80M	$78.60M	$56.20M	$26.40M
YoY Change	28.92%	30.33%	8.55%	8.03%	28.59%	27.43%	25.7%	39.86%	112.88%

Expenses

Cost Of Revenues

Gross Profit

Gross Profit Margin

Gross Profit

Concept	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Revenue	$319.0M	$247.5M	$189.9M	$174.9M	$161.9M	$125.9M	$98.80M	$78.60M	$56.20M	$26.40M
Cost Of Revenue	$30.55M	$12.30M	$8.282M	$7.800M	$7.400M	$6.000M	$4.900M	$3.700M	$3.100M	$1.800M
Gross Profit	$288.5M	$235.2M	$181.6M	$167.1M	$154.5M	$119.9M	$93.90M	$75.00M	$53.10M	$24.60M
Gross Profit Margin	90.42%	95.03%	95.64%	95.54%	95.43%	95.23%	95.04%	95.42%	94.48%	93.18%

Selling, General & Admin Expense

Research & Development

Depreciation, Depletion & Amortization

SGA Expense to Gross Profit Ratio

R&D To Gross Profit Ratio

DDA To Gross Profit Ratio

Operating Expenses Total

Operating Profits/Loss

Operational Expenses

Concept	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Selling, General & Admin	$54.87M	$44.44M	$31.73M	$33.20M	$24.90M	$24.50M	$18.40M	$15.60M	$9.400M	$5.000M
YoY Change	23.47%	40.06%	-4.43%	33.33%	1.63%	33.15%	17.95%	65.96%	88.0%
% of Gross Profit	19.02%	18.9%	17.47%	19.87%	16.12%	20.43%	19.6%	20.8%	17.7%	20.33%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization	$800.0K	$800.0K	$1.100M	$1.200M	$1.400M	$1.434M	$1.190M	$510.0K
YoY Change	0.0%	-27.27%	-8.33%	-14.29%	-2.37%	20.5%	133.33%
% of Gross Profit	0.28%	0.34%	0.61%	0.72%	0.91%	1.2%	1.27%	0.68%
Operating Expenses	$13.35M	$28.58M	$28.34M	$35.60M	$28.00M	$23.40M	$18.00M	$16.80M	$10.40M	$13.00M
YoY Change	-53.28%	0.83%	-20.39%	27.14%	19.66%	30.0%	7.14%	61.54%	-20.0%
Operating Profit	$275.1M	$206.6M	$153.2M	$131.5M	$126.5M	$96.50M	$75.90M	$58.20M	$42.70M	$11.60M
YoY Change	33.18%	34.81%	16.53%	3.95%	31.09%	27.14%	30.41%	36.3%	268.1%

Interest Expenses

Interest Expenses To Operating Income %

Other Expense/Income

Interest & Other Expense/Income

Concept	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Interest Expense	-$197.8M	-$157.2M	-$106.0M	-$99.90M	-$98.50M	-$75.90M	-$61.30M	-$50.80M	-$34.90M	-$14.90M
YoY Change	25.85%	48.3%	6.1%	1.42%	29.78%	23.82%	20.67%	45.56%	134.23%
% of Operating Profit	-71.91%	-76.1%	-69.17%	-75.97%	-77.87%	-78.65%	-80.76%	-87.29%	-81.73%	-128.45%
Other Income/Expense, Net	-$6.154M	$70.00K	-$3.150M	-$2.700M	-$2.600M	-$1.400M	-$600.0K	-$500.0K	-$700.0K	-$3.000M
YoY Change	-8891.43%	-102.22%	16.67%	3.85%	85.71%	133.33%	20.0%	-28.57%	-76.67%

Income/Loss

Pretax Income

Income Tax

Net Profits/Loss

Pretax Income YoY Change

Income Tax Rate

Net Profits/Loss YoY Change

Basic EPS

Net Income To Revenue Ratio

Pretax & Net Income

Concept	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Pretax Income	$71.13M	$44.55M	$39.79M	$23.13M	$25.40M	$19.25M	$14.00M	$6.800M	$7.200M	-$6.300M
YoY Change	59.65%	11.96%	72.05%	-8.93%	31.94%	37.49%	105.88%	-5.56%	-214.29%
Income Tax	$18.83M	$12.03M	$10.57M	$5.352M	$8.106M	$11.62M	$0.00	$0.00	$0.00	$0.00
% Of Pretax Income	26.48%	27.01%	26.56%	23.14%	31.92%	60.36%	0.0%	0.0%	0.0%
Net Earnings	$52.27M	$32.21M	$29.22M	$17.78M	$17.29M	$7.631M	$14.00M	$6.800M	$7.200M	-$6.300M
YoY Change	62.28%	10.22%	64.39%	2.8%	126.6%	-45.49%	105.88%	-5.56%	-214.29%
Net Earnings / Revenue	16.39%	13.02%	15.39%	10.16%	10.68%	6.06%	14.17%	8.65%	12.81%	-23.86%
Basic Earnings Per Share	$1.60	$0.99	$0.90	-$1.55
Diluted Earnings Per Share	$1.52	$0.94	$0.86	-$1.55	$910.5K	$400.0K	$736.8K	$357.9K	$378.9K	-$331.6K

Assets & Liabilities

Cash & Short-Term Investments

Cash & Equivalents

Cash To Operating Expenses Ratio

Inventory

Receivables

Total Short-Term Assets

Property, Plant And Equipment

Long-Term Investments

Total Long-Term Assets

Total Assets

Net Income To Total Assets Percentage

Accounts Payable

Short-Term Debt

Long Term Debt Due

Total Short-Term Liabilities

Long-Term Debt

Other Long-Term Liabilities

Total Long-Term Liabilities

Total Liabilities

Short-Term To Long-Term Debt Ratio

Short-Term Assets To Debt Ratio

Long-Term Debt To Net Income Ratio

Assets & Liabilities

Concept	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Cash & Short-Term Investments	$40.57M	$45.25M	$35.97M	$13.30M	$21.50M	$15.00M	$15.40M	$50.00M	$4.700M	$2.900M
YoY Change	-10.35%	25.81%	170.41%	-38.14%	43.33%	-2.6%	-69.2%	963.83%	62.07%
Cash & Equivalents	$40.57M	$45.25M	$35.97M	$13.30M	$21.50M	$15.00M	$15.40M	$50.00M	$4.700M	$2.900M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables	$27.03M	$20.46M	$13.16M	$11.40M	$13.30M	$10.10M	$7.700M	$6.000M	$4.600M	$2.300M
Other Receivables	$0.00	$176.0K	$166.0K	$600.0K	$1.100M	$900.0K	$500.0K	$0.00	$0.00	$0.00
Total Short-Term Assets	$67.59M	$65.89M	$49.29M	$25.30M	$35.90M	$26.00M	$23.60M	$56.00M	$9.300M	$5.200M
YoY Change	2.59%	33.67%	94.82%	-29.53%	38.08%	10.17%	-57.86%	502.15%	78.85%
Property, Plant & Equipment	$2.785M	$5.780M	$7.574M	$8.900M	$10.70M	$5.500M	$5.800M	$3.900M	$1.500M	$700.0K
YoY Change	-51.82%	-23.69%	-14.9%	-16.82%	94.55%	-5.17%	48.72%	160.0%	114.29%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets	$23.70M	$22.34M	$28.75M	$13.70M	$18.40M	$3.400M	$300.0K	$1.800M	$7.600M	$2.700M
YoY Change	6.08%	-22.28%	109.82%	-25.54%	441.18%	1033.33%	-83.33%	-76.32%	181.48%
Total Long-Term Assets	$4.337B	$3.683B	$2.763B	$2.078B	$2.179B	$1.709B	$1.348B	$1.077B	$903.3M	$443.3M
YoY Change	17.75%	33.29%	33.0%	-4.65%	27.48%	26.78%	25.17%	19.24%	103.77%
Total Assets	$4.405B	$3.749B	$2.812B	$2.103B	$2.215B	$1.735B	$1.372B	$1.133B	$912.6M	$448.5M
YoY Change
Accounts Payable	$122.0M	$88.83M	$88.20M	$63.40M	$56.10M	$26.80M	$22.00M	$12.30M	$8.600M	$3.700M
YoY Change	37.31%	0.71%	39.11%	13.01%	109.33%	21.82%	78.86%	43.02%	132.43%
Accrued Expenses	$2.700M	$2.700M	$4.000M
YoY Change	0.0%	-32.5%
Deferred Revenue
YoY Change
Short-Term Debt	$334.8M	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities	$122.0M	$91.53M	$92.20M	$63.40M	$56.10M	$26.80M	$22.00M	$12.30M	$8.600M	$3.700M
YoY Change	33.26%	-0.73%	45.42%	13.01%	109.33%	21.82%	78.86%	43.02%	132.43%
Long-Term Debt	$3.842B	$3.277B	$2.376B	$1.730B	$2.006B	$1.545B	$1.194B	$972.5M	$817.7M	$365.5M
YoY Change	17.25%	37.93%	37.34%	-13.76%	29.81%	29.39%	22.8%	18.93%	123.72%
Other Long-Term Liabilities	$3.665M
YoY Change
Total Long-Term Liabilities	$3.846B	$3.277B	$2.376B	$1.730B	$2.006B	$1.545B	$1.194B	$972.5M	$817.7M	$365.5M
YoY Change	17.36%	37.93%	37.34%	-13.76%	29.81%	29.39%	22.8%	18.93%	123.72%
Total Liabilities	$3.971B	$3.372B	$2.471B	$1.793B	$2.062B	$1.572B	$1.216B	$984.7M	$826.2M	$369.3M
YoY Change	17.76%	36.45%	37.81%	-13.03%	31.16%	29.26%	23.51%	19.18%	123.72%

Ownership

Basic Shares Outstanding

Diluted Shares Outstanding

Preferred Stock

Treasury Stock Shares

Stock Issuance & Repurchase

Ownership Data

Concept	2023	2022	2021	2020
Basic Shares Outstanding	32.21M	31.91M	22.81M	20.09M
Diluted Shares Outstanding	34.48M	34.13M	33.98M	20.09M
Preferred Stock
Treasury Stock Shares

Return On Shareholders' Equity

Book Value

Free Cash Flow

Free Cash Flow YoY

Free Cash Flow Margin

Dividends

Stock Price

Market Cap: $683.49 Million

About Velocity Financial, Inc.

Velocity Financial, Inc. operates a real estate finance company. The company is headquartered in Westlake Village, California and currently employs 253 full-time employees. The company went IPO on 2020-01-17. The company originates loans nationwide across its network of independent mortgage brokers. The firm's portfolio provides loans held for investment. The Company’s typical investor real estate loan is secured by a first lien on the underlying property with the added protection of a personal guarantee. Its portfolio of loans held for investment totaled $4.1 billion of unpaid principal balance (UPB) on properties in 45 states and the District of Columbia. The firm funds its portfolio primarily through a combination of committed and uncommitted secured warehouse facilities, securitized debt, corporate debt and equity.

Industry: Finance Services Peers: Greystone Housing Impact Investors LP Blue Foundry Bancorp Bridgewater Bancshares Inc FEDERAL HOME LOAN MORTGAGE CORP HOME BANCORP, INC. loanDepot, Inc. Rocket Companies, Inc. Sterling Bancorp, Inc. Waterstone Financial, Inc.