Velocity FinancialVEL +0.93%68 ROA % is 1.19% as of Mar. 2026, which is 17% above its 10-year median of 1.02. 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 1,528 Banks companies, Velocity Financial ranks better than 79.78% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Velocity Financial's annualizedNet Income for the quarter that ended in Mar. 2026 was $89.5 Mil.
Velocity Financial's average Total Assets over the quarter that ended in Mar. 2026 was $7,486.5 Mil. Therefore, Velocity Financial's annualized ROA % for the quarter that ended in Mar. 2026 was 1.19%.
The historical rank and industry rank for Velocity Financial's ROA % or its related term are showing as below:
VEL'
s ROA % Range Over the Past 10 Years
Min: 0.49 Med: 1.02 Max: 1.63
Current: 1.58
During the past 10 years, Velocity Financial's highest ROA % was 1.63%. The lowest was 0.49%. And the median was 1.02%.
VEL's ROA % is ranked better than 79.78% of 1528
companies
in the Banks industry
Industry Median: 0.98
vs VEL: 1.58
Velocity Financial (NYSE:VEL) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Velocity Financial ROA % Related Terms
Velocity Financial ROA % Historical Data
* Premium members only.
The historical data trend for Velocity Financial's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Velocity Financial's ROA % distribution charts can be found below:
* The bar in red indicates where Velocity Financial's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Velocity Financial (VEL) has a ROA % of 1.19% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Velocity Financial and its competitors. This is 17% above median its historical median of 1.02. Over the past decade, Velocity Financial's ROA % has ranged from 0.49 to 1.63. According to the industry distribution chart, Velocity Financial ranks #309 out of 1528 companies in the Banks industry, placing it in the top 20.2%.
Is Velocity Financial's ROA % too high?
Velocity Financial's current ROA % of 1.19% is 17% above median its 10-year median of 1.02. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 1.63. The Banks industry median ROA % is 0.98. Velocity Financial's value of 1.19% is 21.4% above this industry median. Based on the distribution chart, Velocity Financial ranks #309 out of 1528 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 ROA % compare to LDI and BETR?
According to the Banks industry distribution chart, Velocity Financial ranks #309 out of 1528 companies for ROA %. This places Velocity Financial in the top 20% of its industry — outperforming the majority of peers. The industry median ROA % is 0.98. Velocity Financial's value of 1.19% is 21.4% above this benchmark. Historically, Velocity Financial's own ROA % has ranged from 0.49 to 1.63 over the past decade. While the company's 10-year median is 1.02 vs. the industry median of 0.98, 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 ROA % for a Banks company?
The median ROA % among Banks companies is 0.98, based on 1,528 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Velocity Financial's current ROA % of 1.19% is 21.4% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Velocity Financial and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current ROA % is 1.19%, which is 17% above median its own 10-year median of 1.02. 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 $17.90 — trading 31% below its estimated fair value. The current ROA % is 1.19%, which is 17% above median its 10-year median of 1.02 and 21.4% above the Banks industry median of 0.98. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Velocity Financial (VEL), the current ROA % is 1.19% 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 $17.90 is trading 31% below its estimated GF Value™ of $25.93.
GuruFocus considers Velocity Financial to be Significantly Undervalued.
Key valuation signals for VEL:
ROA %: 1.19% (17% above median its 10-year median of 1.02)
GF Value™: $25.93 vs. price of $17.90 (31% below fair value)
Industry Position: 21.4% above the Banks median (#309 of 1528)
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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