Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Velocity Financial's 5-Year RORE % for the quarter that ended in Mar. 2026 was 23.22%.
The industry rank for Velocity Financial's 5-Year RORE % or its related term are showing as below:
VEL's 5-Year RORE % is ranked better than 79.89% of 1412
companies
in the Banks industry
Industry Median: 9.65
vs VEL: 23.22
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Velocity Financial 5-Year RORE % Related Terms
Velocity Financial 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Velocity Financial's 5-Year RORE % 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 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Banks Industry
For the Banks industry and Financial Services sector, Velocity Financial's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Velocity Financial's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
Velocity Financial (VEL) has a 5-Year RORE % of 23.22 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Velocity Financial and its competitors. According to the industry distribution chart, Velocity Financial ranks #284 out of 1412 companies in the Banks industry, placing it in the top 20.1%.
Is Velocity Financial's 5-Year RORE % too high?
Velocity Financial's current 5-Year RORE % is 23.22. The Banks industry median 5-Year RORE % is 9.65. Velocity Financial's value of 23.22 is 140.6% above this industry median. Based on the distribution chart, Velocity Financial ranks #284 out of 1412 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 5-Year RORE % compare to LDI and BETR?
According to the Banks industry distribution chart, Velocity Financial ranks #284 out of 1412 companies for 5-Year RORE %. This places Velocity Financial in the top 20% of its industry — outperforming the majority of peers. The industry median 5-Year RORE % is 9.65. Velocity Financial's value of 23.22 is 140.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Banks company?
The median 5-Year RORE % among Banks companies is 9.65, based on 1,412 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Velocity Financial's current 5-Year RORE % of 23.22 is 140.6% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Velocity Financial and its competitors. For the Banks industry, the median 5-Year RORE % is 9.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Financial's current 5-Year RORE % is 23.22. 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 $25.97, compared to a current price of $18.22 — trading 29.8% below its estimated fair value. The current 5-Year RORE % is 23.22 and 140.6% above the Banks industry median of 9.65. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Velocity Financial (VEL), the current 5-Year RORE % is 23.22 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 $18.22 is trading 29.8% below its estimated GF Value™ of $25.97.
GuruFocus considers Velocity Financial to be Significantly Undervalued.
Key valuation signals for VEL:
5-Year RORE %: 23.22
GF Value™: $25.97 vs. price of $18.22 (29.8% below fair value)
Industry Position: 140.6% above the Banks median (#284 of 1412)
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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5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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