Velocity Financial Net Income vs. Return On Equity
| VEL Stock | USD 18.34 0.15 0.81% |
Net Income | First Reported 2017-03-31 | Previous Quarter 26 M | Current Value 25.4 M | Quarterly Volatility 6.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.53 | 0.5 |
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| Operating Profit Margin | 0.33 | 0.23 |
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For Velocity Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Velocity Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Velocity Financial Llc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Velocity Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Velocity Financial Llc over time as well as its relative position and ranking within its peers.
Check out World Market Map. Is Commercial & Residential Mortgage Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Velocity Financial. If investors know Velocity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Velocity Financial assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 0.485 | Earnings Share 2.43 | Revenue Per Share | Quarterly Revenue Growth 1.623 | Return On Assets |
Investors evaluate Velocity Financial Llc using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Velocity Financial's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. External factors like market trends, sector rotation, and investor psychology can cause Velocity Financial's market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between Velocity Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Velocity Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, Velocity Financial's market price signifies the transaction level at which participants voluntarily complete trades.
Velocity Financial Llc Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Velocity Financial's current stock value. Our valuation model uses many indicators to compare Velocity Financial value to that of its competitors to determine the firm's financial worth. Velocity Financial Llc is rated below average in net income category among its peers. It is rated third in return on equity category among its peers . The ratio of Net Income to Return On Equity for Velocity Financial Llc is about 423,152,040 . At this time, Velocity Financial's Net Income is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Velocity Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Velocity Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Velocity Financial |
| = | 68.47 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Velocity Financial |
| = | 0.16 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Velocity Return On Equity Comparison
Velocity Financial is currently under evaluation in return on equity category among its peers.
Velocity Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Velocity Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Velocity Financial will eventually generate negative long term returns. The profitability progress is the general direction of Velocity Financial's change in net profit over the period of time. It can combine multiple indicators of Velocity Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -724.5 K | -688.3 K | |
| Operating Income | 110.8 M | 116.4 M | |
| Income Before Tax | 110.8 M | 116.4 M | |
| Total Other Income Expense Net | -4.5 M | -4.7 M | |
| Net Income | 78.7 M | 82.7 M | |
| Interest Income | 475.3 M | 499.1 M | |
| Net Income Applicable To Common Shares | 77.7 M | 81.6 M | |
| Net Interest Income | 163.6 M | 171.8 M | |
| Net Income From Continuing Ops | 78.7 M | 82.7 M | |
| Income Tax Expense | 25.1 M | 20.5 M | |
| Change To Netincome | 11.7 M | 12.3 M | |
| Net Income Per Share | 1.89 | 1.98 | |
| Income Quality | 0.50 | 0.52 | |
| Net Income Per E B T | 0.64 | 0.54 |
Velocity Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Velocity Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Velocity Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Velocity Financial's important profitability drivers and their relationship over time.
Velocity Financial Earnings Estimation Breakdown
The calculation of Velocity Financial's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Velocity Financial is estimated to be 0.6033 with the future projection ranging from a low of 0.58 to a high of 0.62. Please be aware that this consensus of annual earnings estimates for Velocity Financial Llc is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.58 Lowest | Expected EPS | 0.62 Highest |
Velocity Financial Earnings Projection Consensus
Suppose the current estimates of Velocity Financial's value are higher than the current market price of the Velocity Financial stock. In this case, investors may conclude that Velocity Financial is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Velocity Financial's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 3 | 78.08% | 0.0 | 0.6033 | 2.43 |
Velocity Financial Earnings History
Earnings estimate consensus by Velocity Financial Llc analysts from Wall Street is used by the market to judge Velocity Financial's stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we suggest analyzing not only Velocity Financial's upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.Velocity Financial Quarterly Gross Profit |
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Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Velocity Financial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Velocity Financial Earnings per Share Projection vs Actual
Actual Earning per Share of Velocity Financial refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Velocity Financial Llc predict the company's earnings will be in the future. The higher the earnings per share of Velocity Financial, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.Velocity Financial Estimated Months Earnings per Share
For an investor who is primarily interested in generating an income out of investing in entities such as Velocity Financial, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Velocity Financial should always be considered in relation to other companies to make a more educated investment decision.Velocity Quarterly Analyst Estimates and Surprise Metrics
Earnings surprises can significantly impact Velocity Financial's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
null | null | null | null | null | 0 | ||
2025-11-06 | 2025-09-30 | 0.57 | 0.65 | 0.08 | 14 | ||
2025-08-08 | 2025-06-30 | 0.53 | 0.69 | 0.16 | 30 | ||
2025-04-30 | 2025-03-31 | 0.575 | 0.55 | -0.025 | 4 | ||
2025-03-05 | 2024-12-31 | 0.4825 | 0.6 | 0.1175 | 24 | ||
2024-11-07 | 2024-09-30 | 0.48 | 0.47 | -0.01 | 2 | ||
2024-08-01 | 2024-06-30 | 0.41 | 0.45 | 0.04 | 9 | ||
2024-05-02 | 2024-03-31 | 0.39 | 0.51 | 0.12 | 30 | ||
2024-03-07 | 2023-12-31 | 0.38 | 0.46 | 0.08 | 21 | ||
2023-11-02 | 2023-09-30 | 0.35 | 0.37 | 0.02 | 5 | ||
2023-08-03 | 2023-06-30 | 0.33 | 0.38 | 0.05 | 15 | ||
2023-05-04 | 2023-03-31 | 0.29 | 0.33 | 0.04 | 13 | ||
2023-03-09 | 2022-12-31 | 0.29 | 0.27 | -0.02 | 6 | ||
2022-11-03 | 2022-09-30 | 0.3 | 0.29 | -0.01 | 3 | ||
2022-08-04 | 2022-06-30 | 0.29 | 0.31 | 0.02 | 6 | ||
2022-05-05 | 2022-03-31 | 0.26 | 0.36 | 0.1 | 38 | ||
2022-03-10 | 2021-12-31 | 0.23 | 0.29 | 0.06 | 26 | ||
2021-11-03 | 2021-09-30 | 0.19 | 0.23 | 0.04 | 21 | ||
2021-08-05 | 2021-06-30 | 0.17 | 0.25 | 0.08 | 47 | ||
2021-05-06 | 2021-03-31 | 0.2 | 0.2 | 0.0 | 0 | ||
2021-03-16 | 2020-12-31 | 0.13 | 0.29 | 0.16 | 123 | ||
2020-11-11 | 2020-09-30 | 0.14 | 0.12 | -0.02 | 14 | ||
2020-08-12 | 2020-06-30 | 0.21 | 0.11 | -0.1 | 47 | ||
2020-05-14 | 2020-03-31 | 0.31 | 0.26 | -0.05 | 16 | ||
2020-01-17 | 2019-12-31 | 0.49 | 0.1 | -0.39 | 79 | ||
2019-10-18 | 2019-09-30 | 0.33 | 0.19 | -0.14 | 42 |
Use Velocity Financial in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Velocity Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Velocity Financial will appreciate offsetting losses from the drop in the long position's value.Velocity Financial Pair Trading
Velocity Financial Llc Pair Trading Analysis
The ability to find closely correlated positions to Velocity Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Velocity Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Velocity Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Velocity Financial Llc to buy it.
The correlation of Velocity Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Velocity Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Velocity Financial Llc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Velocity Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Velocity Financial position
In addition to having Velocity Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Consumer Discretionary ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Consumer Discretionary ETFs theme has 32 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Discretionary ETFs Theme or any other thematic opportunities.
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Check out World Market Map. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
To fully project Velocity Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Velocity Financial Llc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Velocity Financial's income statement, its balance sheet, and the statement of cash flows.