Velocity FinancialVEL +0.11%68 ROE % is 13.10% as of Mar. 2026, which is 23% above its 10-year median of 10.68. 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 1,523 Banks companies, Velocity Financial ranks better than 87.2% on this metric.
The historical rank and industry rank for Velocity Financial's ROE % or its related term are showing as below:
VEL'
s ROE % Range Over the Past 10 Years
Min: 5.7 Med: 10.68 Max: 17.66
Current: 17.17
During the past 10 years, Velocity Financial's highest ROE % was 17.66%. The lowest was 5.70%. And the median was 10.68%.
VEL's ROE % is ranked better than 87.2% of 1523
companies
in the Banks industry
Industry Median: 10.22
vs VEL: 17.17
Velocity Financial (NYSE:VEL) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Velocity Financial ROE % Related Terms
Velocity Financial ROE % Historical Data
* Premium members only.
The historical data trend for Velocity Financial's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Velocity Financial's ROE % distribution charts can be found below:
* The bar in red indicates where Velocity Financial's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Velocity Financial (VEL) has a ROE % of 13.10% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Velocity Financial and its competitors. This is 23% above median its historical median of 10.68. Over the past decade, Velocity Financial's ROE % has ranged from 5.70 to 17.66. According to the industry distribution chart, Velocity Financial ranks #195 out of 1523 companies in the Banks industry, placing it in the top 12.8%.
Is Velocity Financial's ROE % too high?
Velocity Financial's current ROE % of 13.10% is 23% above median its 10-year median of 10.68. Over the past 10 years, this metric has ranged from a low of 5.70 to a high of 17.66. The Banks industry median ROE % is 10.22. Velocity Financial's value of 13.10% is 28.2% above this industry median. Based on the distribution chart, Velocity Financial ranks #195 out of 1523 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 ROE % compare to LDI and BETR?
According to the Banks industry distribution chart, Velocity Financial ranks #195 out of 1523 companies for ROE %. This places Velocity Financial in the top 13% of its industry — outperforming the majority of peers. The industry median ROE % is 10.22. Velocity Financial's value of 13.10% is 28.2% above this benchmark. Historically, Velocity Financial's own ROE % has ranged from 5.70 to 17.66 over the past decade. While the company's 10-year median is 10.68 vs. the industry median of 10.22, 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Velocity Financial's current ROE % of 13.10% is 28.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Velocity Financial and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current ROE % is 13.10%, which is 23% above median its own 10-year median of 10.68. 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 ROE % is 13.10%, which is 23% above median its 10-year median of 10.68 and 28.2% above the Banks industry median of 10.22. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Velocity Financial (VEL), the current ROE % is 13.10% 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:
ROE %: 13.10% (23% above median its 10-year median of 10.68)
GF Value™: $25.93 vs. price of $17.75 (31.5% below fair value)
Industry Position: 28.2% above the Banks median (#195 of 1523)
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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