For those who appreciate growth without the sticker shock, NYSE:VEEV is worth considering.

Last update: Jan 13, 2025

VEEVA SYSTEMS INC-CLASS A (NYSE:VEEV) has caught the eye of our stock screener as an affordable growth stock. NYSE:VEEV is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:VEEV has earned a 8 for growth:

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.
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 15.67%.
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.
VEEV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.50% yearly.
VEEV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.40% yearly.

Valuation Insights: NYSE:VEEV

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:VEEV was assigned a score of 5 for valuation:

Based on the Price/Earnings ratio, VEEV is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VEEV indicates a somewhat cheap valuation: VEEV is cheaper than 78.38% of the companies listed in the same industry.
Based on the Enterprise Value to EBITDA ratio, VEEV is valued a bit cheaper than 67.57% of the companies in the same industry.
67.57% of the companies in the same industry are more expensive than VEEV, based on the Price/Free Cash Flow ratio.
VEEV has an outstanding profitability rating, which may justify a higher PE ratio.
VEEV's earnings are expected to grow with 17.45% in the coming years. This may justify a more expensive valuation.

Assessing Health 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:

VEEV has an Altman-Z score of 24.59. This indicates that VEEV is financially healthy and has little risk of bankruptcy at the moment.
VEEV has a Altman-Z score of 24.59. This is amongst the best in the industry. VEEV outperforms 91.89% 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 6.36 indicates that VEEV has no problem at all paying its short term obligations.
VEEV has a Current ratio of 6.36. This is amongst the best in the industry. VEEV outperforms 97.30% of its industry peers.
VEEV has a Quick Ratio of 6.36. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
VEEV has a better Quick ratio (6.36) than 97.30% of its industry peers.

Evaluating Profitability: NYSE:VEEV

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:VEEV scores a 8 out of 10:

VEEV's Return On Assets of 10.32% is amongst the best of the industry. VEEV outperforms 94.59% of its industry peers.
With an excellent Return On Equity value of 12.10%, VEEV belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
VEEV's Return On Invested Capital of 9.08% is amongst the best of the industry. VEEV outperforms 97.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VEEV is above the industry average of 6.40%.
With an excellent Profit Margin value of 25.07%, VEEV belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
The Operating Margin of VEEV (24.22%) is better than 97.30% of its industry peers.
VEEV has a better Gross Margin (73.93%) than 81.08% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of VEEV contains the most current fundamental analsysis.

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.