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Velocity Financial Llc (VEL)



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Upturn Advisory Summary
08/14/2025: VEL (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $21.33
1 Year Target Price $21.33
1 | Strong Buy |
1 | Buy |
0 | Hold |
0 | Sell |
1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 47.68% | Avg. Invested days 49 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 605.76M USD | Price to earnings Ratio 8.47 | 1Y Target Price 21.33 |
Price to earnings Ratio 8.47 | 1Y Target Price 21.33 | ||
Volume (30-day avg) 3 | Beta 1.22 | 52 Weeks Range 16.12 - 20.98 | Updated Date 08/2/2025 |
52 Weeks Range 16.12 - 20.98 | Updated Date 08/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.93 |
Earnings Date
Report Date 2025-08-07 | When - | Estimate 0.5333 | Actual - |
Profitability
Profit Margin 39.36% | Operating Margin (TTM) 77.26% |
Management Effectiveness
Return on Assets (TTM) 1.32% | Return on Equity (TTM) 13.65% |
Valuation
Trailing PE 8.47 | Forward PE - | Enterprise Value 5799828480 | Price to Sales(TTM) 3.4 |
Enterprise Value 5799828480 | Price to Sales(TTM) 3.4 | ||
Enterprise Value to Revenue 26.1 | Enterprise Value to EBITDA - | Shares Outstanding 36491500 | Shares Floating 3553179 |
Shares Outstanding 36491500 | Shares Floating 3553179 | ||
Percent Insiders 2.81 | Percent Institutions 100.12 |
Upturn AI SWOT
Velocity Financial Llc
Company Overview
History and Background
Velocity Financial, Inc. was founded in 2004. It is a commercial real estate finance company focused on originating and managing small balance commercial (SBC) loans. Over time, it has grown its loan portfolio and expanded its reach across the US.
Core Business Areas
- Commercial Real Estate Lending: Focuses on originating and managing small balance commercial (SBC) loans. This includes loans for multifamily, mixed-use, and other commercial properties.
- Securitization: The company securitizes its originated loans, packaging them into securities that are sold to investors.
- Loan Servicing: Velocity also provides loan servicing for the loans it originates and securitizes.
Leadership and Structure
Velocity Financial's leadership team includes the CEO, CFO, and other key executives. The organizational structure comprises departments for loan origination, underwriting, servicing, and securitization.
Top Products and Market Share
Key Offerings
- SBC Loans: Small Balance Commercial (SBC) loans are the company's primary product. These loans typically range from $250,000 to $5 million and are used to finance the acquisition, refinance, or renovation of commercial real estate properties. Market share information is fragmented, but Velocity Financial holds a noticeable share within the non-bank SBC lending segment. Competitors include banks, credit unions, and other private lenders. Revenue data varies with loan volume, and is reported in quarterly and annual earnings reports.
Market Dynamics
Industry Overview
The commercial real estate lending market is a large and competitive industry. It is influenced by factors such as interest rates, economic growth, and property values. The SBC segment is a niche market that is often underserved by traditional lenders.
Positioning
Velocity Financial is positioned as a specialist in the SBC lending market, focusing on borrowers and properties that may not meet the requirements of larger banks. Its competitive advantage lies in its expertise in this segment and its ability to provide flexible financing solutions.
Total Addressable Market (TAM)
The total addressable market (TAM) for SBC lending is estimated to be in the tens of billions of dollars annually. Velocity Financial is positioned to capture a segment of this market through its specialized expertise and lending products.
Upturn SWOT Analysis
Strengths
- Specialized expertise in SBC lending
- Flexible financing solutions
- Established securitization platform
- Experienced management team
Weaknesses
- Concentration in the SBC market
- Reliance on securitization for funding
- Sensitivity to interest rate changes
- Exposure to credit risk
Opportunities
- Expansion into new geographic markets
- Development of new loan products
- Increased demand for SBC financing
- Potential acquisitions of other lenders
Threats
- Increased competition from other lenders
- Economic downturn
- Rising interest rates
- Changes in regulations
Competitors and Market Share
Key Competitors
- BXMT
- STAR
- KREF
Competitive Landscape
Velocity Financial competes with a variety of lenders in the SBC market, including banks, credit unions, and other private lenders. Its advantages include its specialized expertise and flexible financing solutions. However, it faces competition from larger institutions with greater resources.
Growth Trajectory and Initiatives
Historical Growth: Velocity Financial has experienced growth in its loan portfolio and securitization volume in recent years. The growth has been driven by increased demand for SBC financing and the company's ability to originate and manage these loans effectively.
Future Projections: Future growth projections depend on various factors such as the economic environment and the company's ability to execute its strategy. Analyst estimates can be found on financial news websites.
Recent Initiatives: Recent initiatives include expanding into new geographic markets and developing new loan products to meet the evolving needs of borrowers.
Summary
Velocity Financial is a commercial real estate finance company specializing in small balance commercial loans. The company's strength lies in its expertise in this niche market and its ability to securitize its loans. However, it faces risks related to interest rate changes and economic cycles. Expanding geographic reach and new product development can contribute to future growth. Monitor financial reports for accurate valuation.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Financial News Outlets
- Analyst Reports
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor. Market share data is estimated and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Velocity Financial Llc
Exchange NYSE | Headquaters Westlake Village, CA, United States | ||
IPO Launch date 2020-01-17 | Co-Founder, CEO, President & Director Mr. Christopher D. Farrar | ||
Sector Financial Services | Industry Mortgage Finance | Full time employees 309 | Website https://www.velfinance.com |
Full time employees 309 | Website https://www.velfinance.com |
Velocity Financial, Inc. operates as a real estate finance company in the United States. It originates, securitizes, and manages a portfolio of loans, which are secured by real estate, including investor 1-4 unit residential rental properties; residential apartments combined with office or retail space; and loans for multi-family, mixed use, and commercial properties. The company also provides warehouse and other properties. It offers its products through a network of independent mortgage brokers and direct borrower relationships. The company was founded in 2004 and is headquartered in Westlake Village, California

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