Velocity Financial, Inc. cash flow to debt ratio of 0.28% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Velocity Financial, Inc.'s free cash flow has decreased -52.28% from $37.47M last year to $17.88M, signaling decreasing performance

Velocity Financial, Inc.'s debt to equity ratio is 9.69, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Velocity Financial, Inc.'s debt has increased relative to shareholder equity from 9.40 last year to 9.69 today, signaling weakened financials

Velocity Financial, Inc. has a net debt to EBITDA ratio of 12.61x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Velocity Financial, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Velocity Financial, Inc.'s profit margin has increased (11.22%) in the last year from 14.17% to 15.76%, signaling increasing performance

Velocity Financial, Inc.'s short-term liabilities of $476.82M exceed its short-term assets of $301.62M, signaling financial risk

Velocity Financial, Inc.'s return on assets of 1.43% is lower than the 5.00% threshold, indicating inefficient asset utilization

Velocity Financial, Inc.'s return on equity of 16.71%, is higher than 15.00%, indicating good performance

Velocity Financial, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Velocity Financial, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Velocity Financial, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Velocity Financial, Inc. has a free cash flow yield of 2.50%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Velocity Financial, Inc.'s yearly earnings has increased 53.55% since last year from $68.42M to $105.05M, signaling increasing performance

Velocity Financial, Inc.'s yearly revenue has increased 58.41% since last year from $451.01M to $714.45M, signaling increasing performance

ROIC 3.66% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Velocity Financial, Inc.'s 3-year revenue CAGR of 42.22% is positive, indicating growing revenue over the past 3 years

Velocity Financial, Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance

Velocity Financial, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Velocity Financial, Inc. has insufficient data to evaluate this check.

Velocity Financial, Inc. has an earnings yield of 15.42%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Velocity Financial, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Velocity Financial, Inc. has an EV/EBITDA ratio of 20.33x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Velocity Financial, Inc. is undervalued relative to its fair value price of 73.90 based on Earnings Fair Value model

Velocity Financial, Inc. has a PEG-ratio under 1 which is considered undervalued

Velocity Financial, Inc. has a price-to-book ratio of 1.01x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Velocity Financial, Inc. has a price-to-sales ratio of 1.04x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue