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

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.

Growth Analysis 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 35.57%, 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.
• Looking at the last year, VEEV shows a quite strong growth in Revenue. The Revenue has grown by 9.68% in the last year.
• 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.
• Based on estimates for the next years, VEEV will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.50% on average per year.
• VEEV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.75% yearly.

Exploring NYSE:VEEV's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:VEEV has received a 5 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of VEEV indicates a rather cheap valuation: VEEV is cheaper than 83.33% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, VEEV is valued cheaper than 80.56% 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 63.89% 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 66.67% 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 17.60% in the coming years. This may justify a more expensive valuation.

Health Analysis for NYSE:VEEV

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:VEEV scores a 9 out of 10:

• An Altman-Z score of 20.83 indicates that VEEV is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 20.83, VEEV belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
• 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.
• VEEV has a Current ratio of 5.01. This is amongst the best in the industry. VEEV outperforms 91.67% of its industry peers.
• 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.
• VEEV has a better Quick ratio (5.01) than 91.67% 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:

• VEEV's Return On Assets of 9.72% is amongst the best of the industry. VEEV outperforms 94.44% of its industry peers.
• VEEV has a better Return On Equity (11.87%) than 94.44% 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 97.22% of the companies in the same industry.
• VEEV had an Average Return On Invested Capital over the past 3 years of 10.05%. This is above the industry average of 6.38%.
• VEEV's Profit Margin of 23.91% is amongst the best of the industry. VEEV outperforms 94.44% of its industry peers.
• Looking at the Operating Margin, with a value of 22.94%, VEEV belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 73.35%, VEEV is in the better half of the industry, outperforming 77.78% 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.

Disclaimer

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.