While growth is established for NYSE:VEEV, the stock's valuation remains reasonable.

Last update: Oct 7, 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.

Understanding NYSE:VEEV's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:VEEV has achieved a 8 out of 10:

The Earnings Per Share has grown by an impressive 32.73% 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.
VEEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.29%.
The Revenue has been growing by 22.35% on average over the past years. This is a very strong growth!
Based on estimates for the next years, VEEV will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.59% on average per year.
Based on estimates for the next years, VEEV will show a quite strong growth in Revenue. The Revenue will grow by 13.11% on average per year.

Valuation Analysis 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 cheaper than 81.58% of the companies in the same industry.
VEEV's Price/Forward Earnings ratio is rather cheap when compared to the industry. VEEV is cheaper than 81.58% of the companies in the same industry.
68.42% of the companies in the same industry are more expensive than VEEV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VEEV is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
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 17.10% in the coming years.

Looking at the Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:VEEV has received a 9 out of 10:

VEEV has an Altman-Z score of 19.56. This indicates that VEEV is financially healthy and has little risk of bankruptcy at the moment.
VEEV has a Altman-Z score of 19.56. 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 5.01 indicates that VEEV has no problem at all paying its short term obligations.
The Current ratio of VEEV (5.01) is better than 86.84% of its industry peers.
A Quick Ratio of 5.01 indicates that VEEV has no problem at all paying its short term obligations.
VEEV has a better Quick ratio (5.01) than 86.84% of its industry peers.

Looking at the Profitability

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:

The Return On Assets of VEEV (9.72%) is better than 94.74% of its industry peers.
The Return On Equity of VEEV (11.87%) is better than 94.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.87%, VEEV belongs to the top 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 6.10%.
With an excellent Profit Margin value of 23.91%, VEEV belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
VEEV has a better Operating Margin (22.94%) than 97.37% of its industry peers.
VEEV has a Gross Margin of 73.35%. This is in the better half of the industry: VEEV outperforms 76.32% of its industry peers.

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

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

Keep in mind

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.