NYSE:VEEV: a strong growth stock preparing for the next leg up?.

Last update: Jul 25, 2024

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether VEEVA SYSTEMS INC-CLASS A (NYSE:VEEV) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but VEEVA SYSTEMS INC-CLASS A has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

A Closer Look at Growth for NYSE:VEEV

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:VEEV has received a 8 out of 10:

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

How We Gauge Health for NYSE:VEEV

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:VEEV has achieved a 8 out of 10:

An Altman-Z score of 15.89 indicates that VEEV is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 15.89, VEEV belongs to the best of the industry, outperforming 94.74% 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.
A Current Ratio of 4.29 indicates that VEEV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.29, VEEV is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
A Quick Ratio of 4.29 indicates that VEEV has no problem at all paying its short term obligations.
With a decent Quick ratio value of 4.29, VEEV is doing good in the industry, outperforming 76.32% of the companies in the same industry.

Assessing Profitability for NYSE:VEEV

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:VEEV scores a 7 out of 10:

The Return On Assets of VEEV (8.98%) is better than 94.74% of its industry peers.
VEEV has a better Return On Equity (11.37%) than 92.11% of its industry peers.
With an excellent Return On Invested Capital value of 8.40%, VEEV belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VEEV is above the industry average of 5.59%.
Looking at the Profit Margin, with a value of 22.34%, VEEV belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
VEEV's Operating Margin of 21.22% is amongst the best of the industry. VEEV outperforms 97.37% of its industry peers.
With a decent Gross Margin value of 72.48%, VEEV is doing good in the industry, outperforming 73.68% of the companies in the same industry.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:VEEV this score is currently 7:

Although the technical rating is bad, VEEV does present a nice setup opportunity. Prices have been consolidating lately. There is a support zone below the current price at 183.96, a Stop Loss order could be placed below this zone.

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

Check the latest full fundamental report of VEEV for a complete fundamental analysis.

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

Keep in mind

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.