While growth is established for NYSE:VEEV, the stock's valuation remains reasonable.

Last update: Mar 19, 2024

Discover VEEVA SYSTEMS INC-CLASS A (NYSE:VEEV), an undervalued growth gem identified by our stock screener. NYSE:VEEV is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Unpacking NYSE:VEEV's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:VEEV scores a 8 out of 10:

VEEV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.56%, which is quite good.
VEEV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.47% yearly.
Looking at the last year, VEEV shows a quite strong growth in Revenue. The Revenue has grown by 9.68% in the last year.
VEEV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.35% yearly.
VEEV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.62% yearly.
Based on estimates for the next years, VEEV will show a quite strong growth in Revenue. The Revenue will grow by 13.84% on average per year.

Valuation Assessment of NYSE:VEEV

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:VEEV has earned a 5 for valuation:

85.00% of the companies in the same industry are more expensive than VEEV, based on the Price/Earnings ratio.
82.50% of the companies in the same industry are more expensive than VEEV, based on the Price/Forward Earnings ratio.
Based on the Enterprise Value to EBITDA ratio, VEEV is valued a bit cheaper than 67.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VEEV is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The excellent profitability rating of VEEV may justify a higher PE ratio.
VEEV's earnings are expected to grow with 17.55% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Health for NYSE:VEEV?

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:VEEV has received a 8 out of 10:

VEEV has an Altman-Z score of 19.50. This indicates that VEEV is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VEEV (19.50) is better than 92.50% of its industry peers.
VEEV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
A Current Ratio of 4.24 indicates that VEEV has no problem at all paying its short term obligations.
VEEV has a better Current ratio (4.24) than 72.50% of its industry peers.
VEEV has a Quick Ratio of 4.24. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
VEEV has a better Quick ratio (4.24) than 72.50% of its industry peers.

A Closer Look at Profitability for NYSE:VEEV

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:VEEV has earned a 8 out of 10:

VEEV has a Return On Assets of 8.89%. This is amongst the best in the industry. VEEV outperforms 95.00% of its industry peers.
With an excellent Return On Equity value of 11.32%, VEEV belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
VEEV has a better Return On Invested Capital (7.17%) than 97.50% of its industry peers.
VEEV had an Average Return On Invested Capital over the past 3 years of 10.05%. This is significantly above the industry average of 4.28%.
The Profit Margin of VEEV (22.24%) is better than 95.00% of its industry peers.
With an excellent Operating Margin value of 18.16%, VEEV belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
Looking at the Gross Margin, with a value of 71.35%, VEEV is in the better half of the industry, outperforming 72.50% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of VEEV

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.