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Velocity CompositesLSE:VEL 34 Net Margin % is -12.24% as of Apr. 2026. GuruFocus rates LSE:VEL with a GF Score™ of 34/100 and a GF Value™ of £0.23 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 350 Aerospace & Defense companies, Velocity Composites ranks worse than 76% on this metric.
The historical rank and industry rank for Velocity Composites's Net Margin % or its related term are showing as below:
LSE:VEL'
s Net Margin % Range Over the Past 10 Years
Min: -23.08 Med: -4.65 Max: -1.87
Current: -8.25
LSE:VEL's Net Margin % is ranked worse than 76% of 350
companies
in the Aerospace & Defense industry
Industry Median: 4.865
vs LSE:VEL: -8.25
Velocity Composites (LSE:VEL) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Velocity Composites Net Margin % Related Terms
Velocity Composites Net Margin % Historical Data
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The historical data trend for Velocity Composites's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Velocity Composites's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Velocity Composites Net Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Velocity Composites's Net Margin % distribution charts can be found below:
* The bar in red indicates where Velocity Composites's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Velocity Composites (LSE:VEL) has a Net Margin % of -12.24% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on Velocity Composites and its competitors. According to the industry distribution chart, Velocity Composites ranks #266 out of 350 companies in the Aerospace & Defense industry, placing it in the top 76%.
Is Velocity Composites' Net Margin % too high?
Velocity Composites' current Net Margin % is -12.24%. Based on the distribution chart, Velocity Composites ranks #266 out of 350 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Velocity Composites has a GF Score™ of 34/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Velocity Composites' Net Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Velocity Composites ranks #266 out of 350 companies for Net Margin %. This places Velocity Composites in the lower half of its industry. The industry median Net Margin % is 4.87. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Aerospace & Defense company?
The median Net Margin % among Aerospace & Defense companies is 4.87, based on 350 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Velocity Composites and its competitors. For the Aerospace & Defense industry, the median Net Margin % is 4.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Composites's current Net Margin % is -12.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velocity Composites stock overvalued right now?
Based on GuruFocus' analysis, Velocity Composites (LSE:VEL) is currently considered Significantly Undervalued. The stock's GF Value™ is £0.23, compared to a current price of £0.14 — trading 39.1% below its estimated fair value. The current Net Margin % is -12.24%. Velocity Composites' overall GF Score™ is 34/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Velocity Composites (LSE:VEL), the current Net Margin % is -12.24% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Velocity Composites (LSE:VEL) Overvalued in 2026?
Based on GuruFocus' analysis, Velocity Composites stock appears to be undervalued.
The current stock price of £0.14 is trading 39.1% below its estimated GF Value™ of £0.23.
GuruFocus considers Velocity Composites to be Significantly Undervalued.
Key valuation signals for LSE:VEL:
Net Margin %: -12.24%
GF Value™: £0.23 vs. price of £0.14 (39.1% below fair value)
No single metric tells the full story. See the LSE:VEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velocity Composites PLC is a provider of engineered composite and process material kits to the aerospace industry. The company's offerings include Engineered Vacuum Bag Material Kits, Structural Material Kits and other Support Services. The majority of revenue is derived from the sale of goods. Geographically, it generates the maximum revenue from the United Kingdom, and the rest from Europe, the USA and the rest of the World.
34GF Score
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