VEL
VEL
US92262D1019
Velocity Financial, Inc.
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Elevated Business & Solvency Risk

Caution: In addition to price volatility, there are balance sheet risks due to higher debt or weaker liquidity (Health Score: 60/100).

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score
7/7 Very High
7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Moves noticeably less than the broader market (0.7x).

Beta (Market Relation)
0.75x
Defensive
Volatility (5Y p.a.)
39.5% p.a.
5-Year Horizon
Max Drawdown (5Y)
-42.1%
5-Year Horizon
Sharpe Ratio
0.01
Return / Risk
Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

High Volatility
Timeframe
Volatility (p.a.)
Max Drawdown
Sharpe Ratio
Return (p.a.)
1 Year — — — -17.8%
3 Years 32.5% -29.7% 0.25 +10.6%
5 Years 39.5% -42.1% 0.01 +2.9%
10 Years — — — —

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).
Critical leverage: Debt-to-Equity is at 972%.
Strong cyclicality: The business model is sensitive to economic downturns.
🔴 Low analyst coverage – higher uncertainty in growth estimates & projections
Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (39.5% p.a.).
Historical Stress Test: Maximum peak-to-trough drawdown of -42.1% in the extended horizon.

Corporate Governance & ISS Scores

Shareholder rights, board structure and audit safety (Scale 1 = Low Risk, 10 = High Risk)
Overall Governance Risk
2 ISS Score: 2 / 10
Audit Risk
8 ISS Score: 8 / 10
Board Risk
3 ISS Score: 3 / 10
Short Ratio
13.55
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