VEEVA SYSTEMS INC-CLASS A (VEEV)
US9224751084 - Common Stock
Taking everything into account, VEEV scores 7 out of 10 in our fundamental rating. VEEV was compared to 37 industry peers in the Health Care Technology industry. Both the health and profitability get an excellent rating, making VEEV a very profitable company, without any liquidiy or solvency issues. VEEV is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes VEEV very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year VEEV was profitable.
In the past year VEEV had a positive cash flow from operations.
Each year in the past 5 years VEEV has been profitable.
VEEV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VEEV's Return On Assets of 9.72% is amongst the best of the industry. VEEV outperforms 94.44% of its industry peers.
Looking at the Return On Equity, with a value of 11.87%, VEEV belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
VEEV's Return On Invested Capital of 8.87% is amongst the best of the industry. VEEV outperforms 97.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VEEV is above the industry average of 6.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 11.87% | ||
| ROIC | 8.87% |
ROA(3y)10.08%
ROA(5y)11.19%
ROE(3y)13.04%
ROE(5y)14.79%
ROIC(3y)10.05%
ROIC(5y)11.22%
1.3 Margins
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's Profit Margin has declined in the last couple of years.
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.
In the last couple of years the Operating Margin of VEEV has declined.
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.
VEEV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.94% | ||
| PM (TTM) | 23.91% | ||
| GM | 73.35% |
OM growth 3Y-11.02%
OM growth 5Y-6.82%
PM growth 3Y-5%
PM growth 5Y-3.55%
GM growth 3Y-0.34%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VEEV is creating some value.
The number of shares outstanding for VEEV has been increased compared to 1 year ago.
Compared to 5 years ago, VEEV has more shares outstanding
VEEV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 20.25 indicates that VEEV is not in any danger for 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.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 20.25 |
ROIC/WACC0.98
WACC9.01%
2.3 Liquidity
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.
VEEV's Quick ratio of 5.01 is amongst the best of the industry. VEEV outperforms 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.01 | ||
| Quick Ratio | 5.01 |
3. Growth
3.1 Past
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.
Looking at the last year, VEEV shows a quite strong growth in Revenue. The Revenue has grown by 15.29% 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.
EPS 1Y (TTM)32.73%
EPS 3Y18.08%
EPS 5Y24.47%
EPS Q2Q%33.88%
Revenue 1Y (TTM)15.29%
Revenue growth 3Y17.28%
Revenue growth 5Y22.35%
Sales Q2Q%14.56%
3.2 Future
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.
VEEV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.11% yearly.
EPS Next Y29.97%
EPS Next 2Y19.39%
EPS Next 3Y16.54%
EPS Next 5Y15.59%
Revenue Next Year15.04%
Revenue Next 2Y13.48%
Revenue Next 3Y13.1%
Revenue Next 5Y13.11%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.39, which means the current valuation is very expensive for VEEV.
Based on the Price/Earnings ratio, VEEV is valued cheaper than 80.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of VEEV to the average of the S&P500 Index (30.20), we can say VEEV is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 30.81, the valuation of VEEV can be described as expensive.
Based on the Price/Forward Earnings ratio, VEEV is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.28. VEEV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.39 | ||
| Fwd PE | 30.81 |
4.2 Price Multiples
63.89% 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 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.42 | ||
| EV/EBITDA | 41.23 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 16.54% in the coming years.
PEG (NY)1.21
PEG (5Y)1.49
EPS Next 2Y19.39%
EPS Next 3Y16.54%
5. Dividend
5.1 Amount
VEEV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VEEVA SYSTEMS INC-CLASS A
NYSE:VEEV (11/4/2024, 8:04:00 PM)
After market: 212.4 -0.13 (-0.06%)212.53
-0.25 (-0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap34.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.39 | ||
| Fwd PE | 30.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.21
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 11.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.94% | ||
| PM (TTM) | 23.91% | ||
| GM | 73.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.01 | ||
| Quick Ratio | 5.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)32.73%
EPS 3Y18.08%
EPS 5Y
EPS Q2Q%
EPS Next Y29.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.29%
Revenue growth 3Y17.28%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
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