Velocity Composites (LSE:VEL) Operating Income: £-1.08 Mil (TTM As of Apr. 2026)

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LSE:VEL Velocity Composites PLC LSE:VEL
34 GF Score
Price £0.14
GF Value £0.23
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Velocity Composites Operating Income?

Velocity Composites LSE:VEL 34 Operating Income is £-1.08 Mil 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.

Velocity Composites's Operating Income for the six months ended in Apr. 2026 was £-0.76 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was £-1.08 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Velocity Composites's Operating Income for the six months ended in Apr. 2026 was £-0.76 Mil. Velocity Composites's Revenue for the six months ended in Apr. 2026 was £8.44 Mil. Therefore, Velocity Composites's Operating Margin % for the quarter that ended in Apr. 2026 was -8.97%.

Good Sign:

Velocity Composites PLC operating margin is expanding. Margin expansion is usually a good sign.

Velocity Composites's 5-Year average Growth Rate for Operating Margin % was 29.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Velocity Composites's annualized ROC % for the quarter that ended in Apr. 2026 was -22.68%. Velocity Composites's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was -28.05%.


Velocity Composites  (LSE:VEL) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Velocity Composites's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2025 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=-1.514 * ( 1 - 0% )/( (7.75 + 5.601)/ 2 )
=-1.514/6.6755
=-22.68 %

where

Note: The Operating Income data used here is two times the semi-annual (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Velocity Composites's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2025  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1.514/( ( (3.716 + max(2.521, 0)) + (3.132 + max(1.425, 0)) )/ 2 )
=-1.514/( ( 6.237 + 4.557 )/ 2 )
=-1.514/5.397
=-28.05 %

where Working Capital is:

Working Capital(Q: Oct. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.471 + 2.099 + 0.545) - (2.162 + 0 + 0.432)
=2.521

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.754 + 1.937 + 8.8817841970013E-16) - (3.181 + 0 + 0.085)
=1.425

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Apr. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Velocity Composites's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2026 )/Revenue (Q: Apr. 2026 )
=-0.757/8.439
=-8.97 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Velocity Composites Operating Income Related Terms


Velocity Composites Operating Income Historical Data

* Premium members only.

The historical data trend for Velocity Composites's Operating Income 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.

Velocity Composites Operating Income Chart

Velocity Composites Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.36 -1.32 -2.70 -0.93 -0.72

Velocity Composites Semi-Annual Data
Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24 Oct24 Apr25 Oct25 Apr26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.86 -0.07 -0.40 -0.32 -0.76
LSE:VEL
34GF Score
Velocity Composites PLC LSE:VEL
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Velocity Composites Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-1.08 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of £-1.08 Mil mean?
Velocity Composites (LSE:VEL) has a Operating Income of £-1.08 Mil as of Apr. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Velocity Composites and its competitors.
Is Velocity Composites' Operating Income too high?
Velocity Composites' current Operating Income is £-1.08 Mil. 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' Operating Income compare to SPCX and GE?
Velocity Composites' Operating Income of £-1.08 Mil can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Aerospace & Defense company?
A good Operating Income depends on the Aerospace & Defense industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Velocity Composites and its competitors. Velocity Composites's current Operating Income is £-1.08 Mil. 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 Operating Income is £-1.08 Mil. 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 Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Velocity Composites (LSE:VEL), the current Operating Income is £-1.08 Mil 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:

  • Operating Income: £-1.08 Mil
  • GF Value™: £0.23 vs. price of £0.14 (39.1% below fair value)
  • GF Score™: 34/100 with 3 warning signs

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 Business Description

Address Billington Road, AMS Technology Park, Burnley, Lancashire, GBR, BB11 5UB
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

Get the complete analysis for LSE:VEL

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.14
Price
£0.23
GF Value