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

Last update: Nov 4, 2024

VEEVA SYSTEMS INC-CLASS A (NYSE:VEEV) was identified as an affordable growth stock by our stock screener. NYSE:VEEV is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Understanding NYSE:VEEV's Growth Score

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:

VEEV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.73%, 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
The Revenue has grown by 15.29% 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 15.59% on average over the next years. This is quite good.
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.

Assessing Valuation for NYSE:VEEV

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:VEEV has achieved a 5 out of 10:

Based on the Price/Earnings ratio, VEEV is valued cheaper than 80.56% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, VEEV is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
Based on the Enterprise Value to EBITDA ratio, VEEV is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
66.67% of the companies in the same industry are more expensive than VEEV, based on the Price/Free Cash Flow ratio.
VEEV has a very decent profitability rating, which may justify a higher PE ratio.
VEEV's earnings are expected to grow with 16.54% in the coming years. This may justify a more expensive valuation.

Health Insights: NYSE:VEEV

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:VEEV has earned a 9 out of 10:

VEEV has an Altman-Z score of 20.25. This indicates that VEEV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 20.25, VEEV belongs to the top of the industry, outperforming 91.67% 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 5.01. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.01, VEEV belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
VEEV has a Quick Ratio of 5.01. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 5.01, VEEV belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.

Looking at the Profitability

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:

VEEV has a Return On Assets of 9.72%. This is amongst the best in the industry. VEEV outperforms 94.44% of its industry peers.
VEEV's Return On Equity of 11.87% is amongst the best of the industry. VEEV outperforms 94.44% of its industry peers.
The Return On Invested Capital of VEEV (8.87%) is better than 97.22% of its industry peers.
VEEV had an Average Return On Invested Capital over the past 3 years of 10.05%. This is above the industry average of 6.15%.
VEEV has a Profit Margin of 23.91%. This is amongst the best in the industry. VEEV outperforms 94.44% of its industry peers.
VEEV has a better Operating Margin (22.94%) than 97.22% of its industry peers.
With a decent Gross Margin value of 73.35%, VEEV is doing good in the industry, outperforming 72.22% of the companies in the same industry.

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

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

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.