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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. VEEV is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, VEEV could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
VEEV had positive earnings in the past year.
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
The Return On Assets of VEEV (10.32%) is better than 94.44% of its industry peers.
VEEV has a better Return On Equity (12.10%) than 94.44% of its industry peers.
VEEV's Return On Invested Capital of 9.08% is amongst the best of the industry. VEEV outperforms 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 6.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 12.1% | ||
| ROIC | 9.08% |
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 25.07% is amongst the best of the industry. VEEV outperforms 94.44% of its industry peers.
In the last couple of years the Profit Margin of VEEV has declined.
Looking at the Operating Margin, with a value of 24.22%, VEEV belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
VEEV's Operating Margin has declined in the last couple of years.
The Gross Margin of VEEV (73.93%) is better than 77.78% of its industry peers.
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 | 24.22% | ||
| PM (TTM) | 25.07% | ||
| GM | 73.93% |
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.
Compared to 1 year ago, VEEV has more shares outstanding
VEEV has more shares outstanding than it did 5 years ago.
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 25.25 indicates that VEEV is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 25.25, VEEV belongs to the top of the industry, outperforming 94.44% 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 | 25.25 |
ROIC/WACC0.98
WACC9.27%
2.3 Liquidity
VEEV has a Current Ratio of 6.36. 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 6.36, VEEV belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
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.
The Quick ratio of VEEV (6.36) is better than 97.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.36 | ||
| Quick Ratio | 6.36 |
3. Growth
3.1 Past
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%.
VEEV shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.35% yearly.
EPS 1Y (TTM)35.57%
EPS 3Y18.08%
EPS 5Y24.47%
EPS Q2Q%30.6%
Revenue 1Y (TTM)15.67%
Revenue growth 3Y17.28%
Revenue growth 5Y22.35%
Sales Q2Q%13.42%
3.2 Future
The Earnings Per Share is expected to grow by 16.50% on average over the next years. This is quite good.
VEEV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.75% yearly.
EPS Next Y34.73%
EPS Next 2Y20.68%
EPS Next 3Y17.45%
EPS Next 5Y16.5%
Revenue Next Year15.74%
Revenue Next 2Y13.99%
Revenue Next 3Y13.57%
Revenue Next 5Y13.75%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
VEEV is valuated quite expensively with a Price/Earnings ratio of 35.86.
83.33% of the companies in the same industry are more expensive than VEEV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, VEEV is valued a bit more expensive.
VEEV is valuated quite expensively with a Price/Forward Earnings ratio of 31.80.
VEEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VEEV is cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. VEEV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.86 | ||
| Fwd PE | 31.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VEEV indicates a somewhat cheap valuation: VEEV is cheaper than 66.67% of the companies listed in the same industry.
VEEV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VEEV is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.5 | ||
| EV/EBITDA | 40.08 |
4.3 Compensation for Growth
VEEV's 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.
VEEV's earnings are expected to grow with 17.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)1.47
EPS Next 2Y20.68%
EPS Next 3Y17.45%
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 (12/20/2024, 8:04:00 PM)
After market: 224.15 0 (0%)224.15
+4.48 (+2.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners83.6%
Inst Owner Change0.53%
Ins Owners8.85%
Ins Owner Change0.04%
Market Cap36.39B
Analysts77.22
Price Target254.18 (13.4%)
Short Float %1.33%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.06%
Min EPS beat(2)3.51%
Max EPS beat(2)8.6%
EPS beat(4)4
Avg EPS beat(4)4.86%
Min EPS beat(4)3.17%
Max EPS beat(4)8.6%
EPS beat(8)8
Avg EPS beat(8)5.83%
EPS beat(12)11
Avg EPS beat(12)4.64%
EPS beat(16)15
Avg EPS beat(16)6.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)0.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)0.09%
Revenue beat(8)2
Avg Revenue beat(8)-0.65%
Revenue beat(12)2
Avg Revenue beat(12)-0.63%
Revenue beat(16)5
Avg Revenue beat(16)-0.16%
PT rev (1m)6.31%
PT rev (3m)12.65%
EPS NQ rev (1m)-4.57%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)3.65%
EPS NY rev (3m)2.46%
Revenue NQ rev (1m)-2.75%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.86 | ||
| Fwd PE | 31.8 | ||
| P/S | 13.7 | ||
| P/FCF | 34.5 | ||
| P/OCF | 33.75 | ||
| P/B | 6.61 | ||
| P/tB | 7.26 | ||
| EV/EBITDA | 40.08 |
EPS(TTM)6.25
EY2.79%
EPS(NY)7.05
Fwd EY3.14%
FCF(TTM)6.5
FCFY2.9%
OCF(TTM)6.64
OCFY2.96%
SpS16.36
BVpS33.89
TBVpS30.88
PEG (NY)1.03
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 12.1% | ||
| ROCE | 11.5% | ||
| ROIC | 9.08% | ||
| ROICexc | 95.37% | ||
| ROICexgc | 1142.97% | ||
| OM | 24.22% | ||
| PM (TTM) | 25.07% | ||
| GM | 73.93% | ||
| FCFM | 39.71% |
ROA(3y)10.08%
ROA(5y)11.19%
ROE(3y)13.04%
ROE(5y)14.79%
ROIC(3y)10.05%
ROIC(5y)11.22%
ROICexc(3y)55.65%
ROICexc(5y)49.48%
ROICexgc(3y)356.57%
ROICexgc(5y)339.82%
ROCE(3y)12.72%
ROCE(5y)14.2%
ROICexcg growth 3Y-13.2%
ROICexcg growth 5Y-16.56%
ROICexc growth 3Y2.45%
ROICexc growth 5Y-14.96%
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%
F-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 61.8% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 158.26% | ||
| Profit Quality | 158.39% | ||
| Current Ratio | 6.36 | ||
| Quick Ratio | 6.36 | ||
| Altman-Z | 25.25 |
F-Score6
WACC9.27%
ROIC/WACC0.98
Cap/Depr(3y)59.5%
Cap/Depr(5y)45.92%
Cap/Sales(3y)0.83%
Cap/Sales(5y)0.7%
Profit Quality(3y)167.06%
Profit Quality(5y)157.56%
High Growth Momentum
Growth
EPS 1Y (TTM)35.57%
EPS 3Y18.08%
EPS 5Y24.47%
EPS Q2Q%30.6%
EPS Next Y34.73%
EPS Next 2Y20.68%
EPS Next 3Y17.45%
EPS Next 5Y16.5%
Revenue 1Y (TTM)15.67%
Revenue growth 3Y17.28%
Revenue growth 5Y22.35%
Sales Q2Q%13.42%
Revenue Next Year15.74%
Revenue Next 2Y13.99%
Revenue Next 3Y13.57%
Revenue Next 5Y13.75%
EBIT growth 1Y59.67%
EBIT growth 3Y4.35%
EBIT growth 5Y14.01%
EBIT Next Year28.81%
EBIT Next 3Y21.29%
EBIT Next 5Y19.7%
FCF growth 1Y39.2%
FCF growth 3Y17.73%
FCF growth 5Y24.08%
OCF growth 1Y39.82%
OCF growth 3Y18.25%
OCF growth 5Y24.01%