NYSE:VEEV is showing good growth, while it is not too expensive.

Last update: Jun 3, 2024

Take a closer look at VEEVA SYSTEMS INC-CLASS A (NYSE:VEEV), an affordable growth stock uncovered by our stock screener. NYSE:VEEV boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Exploring NYSE:VEEV's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:VEEV has earned a 8 for growth:

The Earnings Per Share has grown by an impressive 28.67% over the past year.
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 14.31% 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.
The Earnings Per Share is expected to grow by 16.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.63% on average over the next years. This is quite good.

Valuation Assessment of NYSE:VEEV

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:VEEV boasts a 5 out of 10:

84.62% of the companies in the same industry are more expensive than VEEV, based on the Price/Earnings ratio.
Based on the Price/Forward Earnings ratio, VEEV is valued cheaper than 84.62% of the companies 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 74.36% of the companies listed in the same industry.
76.92% of the companies in the same industry are more expensive than VEEV, based on the Price/Free Cash Flow ratio.
The decent profitability rating of VEEV may justify a higher PE ratio.
A more expensive valuation may be justified as VEEV's earnings are expected to grow with 17.26% in the coming years.

Assessing Health for NYSE:VEEV

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:VEEV has earned a 8 out of 10:

An Altman-Z score of 15.12 indicates that VEEV is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.12, VEEV belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
VEEV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
VEEV has a Current Ratio of 4.29. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
VEEV has a better Current ratio (4.29) than 76.92% of its industry peers.
VEEV has a Quick Ratio of 4.29. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of VEEV (4.29) is better than 76.92% of its industry peers.

What does the Profitability looks like 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 7 out of 10:

VEEV has a better Return On Assets (8.98%) than 97.44% of its industry peers.
VEEV has a Return On Equity of 11.37%. This is amongst the best in the industry. VEEV outperforms 94.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.40%, VEEV belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
VEEV had an Average Return On Invested Capital over the past 3 years of 10.05%. This is above the industry average of 5.56%.
VEEV has a better Profit Margin (22.34%) than 97.44% of its industry peers.
VEEV has a better Operating Margin (21.22%) than 97.44% of its industry peers.
VEEV has a Gross Margin of 72.48%. This is in the better half of the industry: VEEV outperforms 74.36% of its industry peers.

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

Disclaimer

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.