NYSE:VEEV, a growth stock which is not overvalued.

Our stock screener has spotted VEEVA SYSTEMS INC-CLASS A (NYSE:VEEV) as a growth stock which is not overvalued. NYSE:VEEV is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Growth Insights: NYSE:VEEV

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:

• The Earnings Per Share has grown by an impressive 28.67% over the past year.
• Measured over the past years, VEEV shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.47% on average per year.
• The Revenue has grown by 14.31% in the past year. This is quite good.
• The Revenue has been growing by 22.35% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 15.59% on average over the next years. This is quite good.
• VEEV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.11% yearly.

A Closer Look at Valuation for NYSE:VEEV

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:VEEV scores a 5 out of 10:

• Based on the Price/Earnings ratio, VEEV is valued cheaply inside the industry as 82.05% of the companies are valued more expensively.
• 82.05% of the companies in the same industry are more expensive than VEEV, based on the Price/Forward Earnings ratio.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VEEV indicates a somewhat cheap valuation: VEEV is cheaper than 71.79% of the companies listed in the same industry.
• VEEV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VEEV is cheaper than 76.92% of the companies in the same industry.
• VEEV has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as VEEV's earnings are expected to grow with 17.10% in the coming years.

Assessing Health Metrics 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 16.05 indicates that VEEV is not in any danger for bankruptcy at the moment.
• VEEV has a better Altman-Z score (16.05) than 94.87% of its industry peers.
• 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.
• 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's Current ratio of 4.29 is fine compared to the rest of the industry. VEEV outperforms 76.92% of its industry peers.
• A Quick Ratio of 4.29 indicates that VEEV has no problem at all paying its short term obligations.
• VEEV has a Quick ratio of 4.29. This is in the better half of the industry: VEEV outperforms 76.92% of its industry peers.

Profitability Examination for NYSE:VEEV

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:VEEV, the assigned 7 is a significant indicator of profitability:

• The Return On Assets of VEEV (8.98%) is better than 97.44% of its industry peers.
• Looking at the Return On Equity, with a value of 11.37%, VEEV belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
• VEEV's Return On Invested Capital of 8.40% is amongst the best of the industry. VEEV outperforms 97.44% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for VEEV is above the industry average of 5.77%.
• VEEV's Profit Margin of 22.34% is amongst the best of the industry. VEEV outperforms 97.44% of its industry peers.
• VEEV has a better Operating Margin (21.22%) than 97.44% of its industry peers.
• VEEV's Gross Margin of 72.48% is fine compared to the rest of the industry. VEEV outperforms 74.36% of its industry peers.

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.

Disclaimer

This article should in no way be interpreted as advice. 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.