Investors seeking growth at a reasonable cost should explore NYSE:VEEV.

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.

Understanding NYSE:VEEV's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:VEEV was assigned a score of 8 for growth:

• 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.
• The Earnings Per Share has been growing by 24.47% on average over the past years. This is a very strong growth
• The Revenue has grown by 9.68% in the past year. This is quite good.
• Measured over the past years, VEEV shows a very strong growth in Revenue. The Revenue has been growing by 22.35% on average per year.
• 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.

Understanding NYSE:VEEV's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:VEEV has received a 5 out of 10:

• VEEV's Price/Earnings ratio is rather cheap when compared to the industry. VEEV is cheaper than 82.05% of the companies in the same industry.
• VEEV's Price/Forward Earnings ratio is rather cheap when compared to the industry. VEEV is cheaper than 82.05% of the companies in the same industry.
• VEEV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VEEV is cheaper than 69.23% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of VEEV indicates a somewhat cheap valuation: VEEV is cheaper than 74.36% of the companies listed in the same industry.
• 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.

Understanding NYSE:VEEV's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:VEEV was assigned a score of 8 for health:

• An Altman-Z score of 18.62 indicates that VEEV is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 18.62, VEEV belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
• There is no outstanding debt for VEEV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 4.24 indicates that VEEV has no problem at all paying its short term obligations.
• VEEV's Current ratio of 4.24 is fine compared to the rest of the industry. VEEV outperforms 71.79% of its industry peers.
• A Quick Ratio of 4.24 indicates that VEEV has no problem at all paying its short term obligations.
• VEEV's Quick ratio of 4.24 is fine compared to the rest of the industry. VEEV outperforms 71.79% of its industry peers.

How do we evaluate the Profitability for NYSE:VEEV?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:VEEV, the assigned 8 is noteworthy for profitability:

• VEEV has a Return On Assets of 8.89%. This is amongst the best in the industry. VEEV outperforms 94.87% of its industry peers.
• VEEV has a better Return On Equity (11.32%) than 94.87% of its industry peers.
• VEEV has a better Return On Invested Capital (7.17%) than 97.44% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for VEEV is significantly above the industry average of 4.83%.
• VEEV has a Profit Margin of 22.24%. This is amongst the best in the industry. VEEV outperforms 94.87% of its industry peers.
• VEEV has a Operating Margin of 18.16%. This is amongst the best in the industry. VEEV outperforms 97.44% of its industry peers.
• Looking at the Gross Margin, with a value of 71.35%, VEEV is in the better half of the industry, outperforming 71.79% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of VEEV contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.