(VEL) Velocity Financial - Ratings and Ratios

Velocity Financial, Inc. (NYSE:VEL) is a specialized real estate finance company focused on originating, securitizing, and managing a diversified portfolio of loans secured by first mortgage liens on commercial and residential properties. The company targets income-generating assets, including 1-4 unit non-owner-occupied residential rental properties, mixed-use buildings combining residential and commercial spaces, and multi-family properties such as apartment buildings and condominiums. It also provides financing for retail, office, and warehouse properties, including self-storage, auto services, hospitality, and light industrial assets. Additionally, the firm offers short-term and interest-only loans for the acquisition and improvement of 1-4 unit residential properties, catering to independent real estate investors and small business owners. Velocity Financial operates through a network of independent mortgage brokers and has been active since 2004, with its headquarters in Westlake Village, California.

From a technical perspective, VEL shares have shown a short-term downtrend, with the 20-day SMA (18.55) below the 50-day SMA (18.99) and 200-day SMA (19.04). The stock is currently trading at 18.73, slightly above its 20-day moving average but below its 50-day and 200-day averages. The Average True Range (ATR) of 0.31 indicates moderate volatility. On the fundamental side, the company has a market capitalization of $612.62 million, with a price-to-earnings (P/E) ratio of 10.05 and a price-to-book (P/B) ratio of 1.26, reflecting a reasonable valuation relative to its book value. The return on equity (RoE) of 13.45% highlights profitable operations, while the price-to-sales (P/S) ratio of 3.79 suggests a premium valuation relative to revenue.