VEEVA SYSTEMS INC-CLASS A (VEEV)
US9224751084 - Common Stock
We assign a fundamental rating of 7 out of 10 to VEEV. VEEV was compared to 37 industry peers in the Health Care Technology industry. VEEV gets an excellent profitability rating and is at the same time showing great financial health properties. VEEV is growing strongly while it is still valued neutral. This is a good combination! These ratings would make VEEV suitable 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.
VEEV had positive earnings in each of the past 5 years.
In the past 5 years VEEV always reported a positive cash flow from operatings.
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.
VEEV has a Return On Equity of 11.87%. This is amongst the best in 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 6.43%.
| 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's Profit Margin of 23.91% is amongst the best of the industry. VEEV outperforms 94.44% of its industry peers.
VEEV's Profit Margin has declined in the last couple of years.
The Operating Margin of VEEV (22.94%) is better than 97.22% of its industry peers.
In the last couple of years the Operating Margin of VEEV has declined.
Looking at the Gross Margin, with a value of 73.35%, VEEV is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Gross Margin of VEEV has remained more or less at the same level.
| 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
VEEV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
VEEV has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VEEV has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 20.06 indicates that VEEV is not in any danger for bankruptcy at the moment.
The Altman-Z score of VEEV (20.06) is better 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 20.06 |
ROIC/WACC0.98
WACC9.05%
2.3 Liquidity
A Current Ratio of 5.01 indicates that VEEV has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.01, VEEV belongs to the best 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.01 | ||
| Quick Ratio | 5.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.73% over the past year.
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.
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
VEEV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.59% yearly.
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 Y29.98%
EPS Next 2Y19.35%
EPS Next 3Y16.43%
EPS Next 5Y15.59%
Revenue Next Year15.49%
Revenue Next 2Y13.74%
Revenue Next 3Y13.07%
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
Based on the Price/Earnings ratio of 36.74, the valuation of VEEV can be described as expensive.
Based on the Price/Earnings ratio, VEEV is valued cheaper than 80.56% of the companies in the same industry.
VEEV is valuated rather expensively when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 31.12 indicates a quite expensive valuation of VEEV.
Based on the Price/Forward Earnings ratio, VEEV is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
VEEV's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 31.12 |
4.2 Price Multiples
61.11% of the companies in the same industry are more expensive than VEEV, based on the Enterprise Value to EBITDA ratio.
69.44% of the companies in the same industry are more expensive than VEEV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.76 | ||
| EV/EBITDA | 40.68 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VEEV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as VEEV's earnings are expected to grow with 16.43% in the coming years.
PEG (NY)1.23
PEG (5Y)1.5
EPS Next 2Y19.35%
EPS Next 3Y16.43%
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 (11/21/2024, 8:04:00 PM)
After market: 214.54 0 (0%)214.54
+3.91 (+1.86%)
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 Cap34.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 31.12 | ||
| 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)1.23
PEG (5Y)1.5
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 Y29.98%
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
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