For those who appreciate growth without the sticker shock, NYSE:VEEV is worth considering.

Last update: May 3, 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.

Growth Examination for NYSE:VEEV

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:VEEV boasts 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.
VEEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.68%.
The Revenue has been growing by 22.35% on average over the past years. This is a very strong growth!
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.
The Revenue is expected to grow by 13.84% on average over the next years. This is quite good.

Evaluating Valuation: NYSE:VEEV

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 84.62% of the companies in the same industry.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VEEV indicates a rather cheap valuation: VEEV is cheaper than 84.62% of the companies listed in the same industry.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VEEV indicates a somewhat cheap valuation: VEEV is cheaper than 69.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VEEV is valued a bit cheaper than the industry average as 74.36% 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 17.25% in the coming years. This may justify a more expensive valuation.

Health Examination for NYSE:VEEV

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:VEEV scores a 8 out of 10:

An Altman-Z score of 17.46 indicates that VEEV is not in any danger for bankruptcy at the moment.
VEEV has a better Altman-Z score (17.46) than 92.31% 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 74.36% 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 74.36% of its industry peers.

Understanding NYSE:VEEV's Profitability

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

Looking at the Return On Assets, with a value of 8.89%, VEEV belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
The Return On Equity of VEEV (11.32%) is better than 94.87% of its industry peers.
VEEV has a better Return On Invested Capital (7.17%) than 97.44% 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 4.85%.
The Profit Margin of VEEV (22.24%) is better than 94.87% of its industry peers.
VEEV's Operating Margin of 18.16% is amongst the best of the industry. VEEV outperforms 97.44% of its industry peers.
The Gross Margin of VEEV (71.35%) is better than 71.79% of its industry peers.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.