Velocity FinancialVEL -0.17%68 Pretax Margin % is 39.43% as of Mar. 2026, which is 14% below its 10-year median of 45.63. 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 76.15% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Velocity Financial Pretax Margin % Related Terms
Velocity Financial Pretax Margin % Historical Data
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The historical data trend for Velocity Financial's Pretax 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.
VEL vs LDI, BETR, UWMC: Pretax Margin % Comparison
For the Mortgage Finance subindustry, Velocity Financial's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Velocity Financial's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Velocity Financial's Pretax 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 Pretax Margin % of 39.43% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Velocity Financial and its competitors. This is 14% below median its historical median of 45.63. Over the past decade, Velocity Financial's Pretax Margin % has ranged from 27.58 to 52.84. According to the industry distribution chart, Velocity Financial ranks #364 out of 1526 companies in the Banks industry, placing it in the top 23.9%.
Is Velocity Financial's Pretax Margin % too high?
Velocity Financial's current Pretax Margin % of 39.43% is 14% below median its 10-year median of 45.63. Over the past 10 years, this metric has ranged from a low of 27.58 to a high of 52.84. The Banks industry median Pretax Margin % is 34.89. Velocity Financial's value of 39.43% is 13% above this industry median. Based on the distribution chart, Velocity Financial ranks #364 out of 1526 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. 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 Pretax Margin % compare to LDI and BETR?
According to the Banks industry distribution chart, Velocity Financial ranks #364 out of 1526 companies for Pretax Margin %. This places Velocity Financial in the top 24% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 34.89. Velocity Financial's value of 39.43% is 13% above this benchmark. Historically, Velocity Financial's own Pretax Margin % has ranged from 27.58 to 52.84 over the past decade. While the company's 10-year median is 45.63 vs. the industry median of 34.89, 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 Pretax Margin % for a Banks company?
The median Pretax Margin % among Banks companies is 34.89, based on 1,526 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Velocity Financial's current Pretax Margin % of 39.43% is 13% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Velocity Financial and its competitors. For the Banks industry, the median Pretax Margin % is 34.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current Pretax Margin % is 39.43%, which is 14% below median its own 10-year median of 45.63. 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 $17.70 — trading 31.7% below its estimated fair value. The current Pretax Margin % is 39.43%, which is 14% below median its 10-year median of 45.63 and 13% above the Banks industry median of 34.89. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Velocity Financial (VEL), the current Pretax Margin % is 39.43% 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 $17.70 is trading 31.7% below its estimated GF Value™ of $25.93.
GuruFocus considers Velocity Financial to be Significantly Undervalued.
Key valuation signals for VEL:
Pretax Margin %: 39.43% (14% below median its 10-year median of 45.63)
GF Value™: $25.93 vs. price of $17.70 (31.7% below fair value)
Industry Position: 13% above the Banks median (#364 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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