Velocity FinancialVEL +0.11%68 Net Margin % is 28.56% as of Mar. 2026, which is 13% below its 10-year median of 32.96. GuruFocus rates VEL with a GF Score™ of 68/100 and a GF Value™ of $25.93 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,526 Banks companies, Velocity Financial ranks better than 71.04% on this metric.
The historical rank and industry rank for Velocity Financial's Net Margin % or its related term are showing as below:
VEL'
s Net Margin % Range Over the Past 10 Years
Min: 16.73 Med: 32.96 Max: 41.59
Current: 33.23
VEL's Net Margin % is ranked better than 71.04% of 1526
companies
in the Banks industry
Industry Median: 26.97
vs VEL: 33.23
Velocity Financial (NYSE: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 Financial Net Margin % Related Terms
Velocity Financial Net Margin % Historical Data
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The historical data trend for Velocity Financial'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 Mortgage Finance subindustry, Velocity Financial'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 Financial Net Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Velocity Financial's Net Margin % distribution charts can be found below:
* The bar in red indicates where Velocity Financial'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 Financial (VEL) has a Net Margin % of 28.56% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Velocity Financial and its competitors. This is 13% below median its historical median of 32.96. Over the past decade, Velocity Financial's Net Margin % has ranged from 16.73 to 41.59. According to the industry distribution chart, Velocity Financial ranks #442 out of 1526 companies in the Banks industry, placing it in the top 29%.
Is Velocity Financial's Net Margin % too high?
Velocity Financial's current Net Margin % of 28.56% is 13% below median its 10-year median of 32.96. Over the past 10 years, this metric has ranged from a low of 16.73 to a high of 41.59. The Banks industry median Net Margin % is 26.97. Velocity Financial's value of 28.56% is 5.9% above this industry median. Based on the distribution chart, Velocity Financial ranks #442 out of 1526 companies in the Banks industry, which is above the industry midpoint. Overall, Velocity Financial has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Velocity Financial's Net Margin % compare to LDI and BETR?
According to the Banks industry distribution chart, Velocity Financial ranks #442 out of 1526 companies for Net Margin %. This puts Velocity Financial in the upper half of its industry. The industry median Net Margin % is 26.97. Velocity Financial's value of 28.56% is 5.9% above this benchmark. Historically, Velocity Financial's own Net Margin % has ranged from 16.73 to 41.59 over the past decade. While the company's 10-year median is 32.96 vs. the industry median of 26.97, Velocity Financial has consistently been above the industry average. 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 a Banks company?
The median Net Margin % among Banks companies is 26.97, based on 1,526 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. Velocity Financial's current Net Margin % of 28.56% is 5.9% above the industry median. 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 Financial and its competitors. For the Banks industry, the median Net Margin % is 26.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current Net Margin % is 28.56%, which is 13% below median its own 10-year median of 32.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velocity Financial stock overvalued right now?
Based on GuruFocus' analysis, Velocity Financial (VEL) is currently considered Significantly Undervalued. The stock's GF Value™ is $25.93, compared to a current price of $17.75 — trading 31.5% below its estimated fair value. The current Net Margin % is 28.56%, which is 13% below median its 10-year median of 32.96 and 5.9% above the Banks industry median of 26.97. Velocity Financial's overall GF Score™ is 68/100 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 Financial (VEL), the current Net Margin % is 28.56% as of Mar. 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 Financial (VEL) Overvalued in 2026?
Based on GuruFocus' analysis, Velocity Financial stock appears to be undervalued.
The current stock price of $17.75 is trading 31.5% below its estimated GF Value™ of $25.93.
GuruFocus considers Velocity Financial to be Significantly Undervalued.
Key valuation signals for VEL:
Net Margin %: 28.56% (13% below median its 10-year median of 32.96)
GF Value™: $25.93 vs. price of $17.75 (31.5% below fair value)
Industry Position: 5.9% above the Banks median (#442 of 1526)
No single metric tells the full story. See the VEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velocity Financial Inc is a United States-based real estate finance company. Company operates in a large fragmented market with substantial demand for financing and limited supply of institutional financing alternative The company originates and manages investor loans secured by residential rental and small commercial properties. The company earns revenue in the form of interest income. It operates in New York, California, Florida, New Jersey, and other states.
68GF Score
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