Investors should take note of NYSE:VEEV, a growth stock that remains attractively priced.

Last update: Jul 30, 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.

Assessing Growth 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 28.67%, which is quite impressive.
VEEV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.47% yearly.
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!
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.
The Revenue is expected to grow by 13.11% on average over the next years. This is quite good.

Unpacking NYSE:VEEV's Valuation Rating

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:

81.58% of the companies in the same industry are more expensive than VEEV, based on the Price/Earnings ratio.
VEEV's Price/Forward Earnings ratio is rather cheap when compared to the industry. VEEV is cheaper than 84.21% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, VEEV is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VEEV indicates a somewhat cheap valuation: VEEV is cheaper than 76.32% of the companies listed in the same industry.
The decent profitability rating of VEEV may justify a higher PE ratio.
VEEV's earnings are expected to grow with 17.10% in the coming years. This may justify a more expensive valuation.

Exploring NYSE:VEEV's Health

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:

VEEV has an Altman-Z score of 16.44. This indicates that VEEV is financially healthy and has little risk of bankruptcy at the moment.
VEEV has a Altman-Z score of 16.44. This is amongst the best in the industry. VEEV outperforms 94.74% 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.
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.
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.
VEEV has a Quick ratio of 4.29. This is in the better half of the industry: VEEV outperforms 76.32% of its industry peers.

How do we evaluate the Profitability for NYSE:VEEV?

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 7 for profitability:

With an excellent Return On Assets value of 8.98%, VEEV belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.37%, VEEV belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
VEEV has a better Return On Invested Capital (8.40%) than 97.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VEEV is above the industry average of 5.60%.
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 has a Operating Margin of 21.22%. This is amongst the best in the industry. VEEV outperforms 97.37% of its industry peers.
VEEV has a Gross Margin of 72.48%. This is in the better half of the industry: VEEV outperforms 73.68% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Keep in mind

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.