Why NYSE:VEEV Is a Promising High-Growth Stock in the Midst of Consolidation.

Last update: Dec 3, 2024

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether VEEVA SYSTEMS INC-CLASS A (NYSE:VEEV) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but VEEVA SYSTEMS INC-CLASS A has surfaced on our radar for growth with base formation, warranting further examination.

How We Gauge Growth for NYSE:VEEV

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:VEEV scores a 8 out of 10:

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.
VEEV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.47% yearly.
VEEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.29%.
VEEV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.35% yearly.
The Earnings Per Share is expected to grow by 15.59% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.11% on average over the next years. This is quite good.

Health Analysis for NYSE:VEEV

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 21.49. This indicates that VEEV is financially healthy and has little risk of bankruptcy at the moment.
VEEV has a better Altman-Z score (21.49) than 91.67% of its industry peers.
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 5.01 indicates that VEEV has no problem at all paying its short term obligations.
VEEV has a Current ratio of 5.01. This is amongst the best in the industry. VEEV outperforms 91.67% of its industry peers.
A Quick Ratio of 5.01 indicates that VEEV has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.01, VEEV belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.

How do we evaluate the Profitability for NYSE:VEEV?

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:

With an excellent Return On Assets value of 9.72%, VEEV belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
VEEV has a better Return On Equity (11.87%) than 94.44% of its industry peers.
The Return On Invested Capital of VEEV (8.87%) is better than 97.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VEEV is above the industry average of 6.38%.
With an excellent Profit Margin value of 23.91%, VEEV belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
VEEV has a better Operating Margin (22.94%) than 97.22% of its industry peers.
VEEV has a better Gross Margin (73.35%) than 77.78% of its industry peers.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:VEEV currently has a 7 as setup rating:

Although VEEV has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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 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.