VEEVA SYSTEMS INC-CLASS A (VEEV) Stock Fundamental Analysis
NYSE:VEEV - New York Stock Exchange, Inc. - US9224751084 - Common Stock - Currency: USD
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. 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! These ratings would make VEEV suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
VEEV had positive earnings in the past year.
VEEV had a positive operating cash flow in the past year.
VEEV had positive earnings in each of the past 5 years.
Each year in the past 5 years VEEV had a positive operating cash flow.
1.2 Ratios
VEEV has a Return On Assets of 9.73%. This is amongst the best in the industry. VEEV outperforms 94.59% of its industry peers.
The Return On Equity of VEEV (12.24%) is better than 94.59% of its industry peers.
With an excellent Return On Invested Capital value of 9.79%, VEEV belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VEEV is in line with the industry average of 7.17%.
The 3 year average ROIC (9.16%) for VEEV is below the current ROIC(9.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 12.24% | ||
| ROIC | 9.79% |
ROA(3y)9.59%
ROA(5y)10.49%
ROE(3y)12.23%
ROE(5y)13.63%
ROIC(3y)9.16%
ROIC(5y)11.04%
1.3 Margins
VEEV has a Profit Margin of 26.00%. This is amongst the best in the industry. VEEV outperforms 94.59% of its industry peers.
VEEV's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 25.36%, VEEV belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
VEEV's Operating Margin has been stable in the last couple of years.
VEEV has a Gross Margin of 74.53%. This is amongst the best in the industry. VEEV outperforms 83.78% of its industry peers.
VEEV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.36% | ||
| PM (TTM) | 26% | ||
| GM | 74.53% |
OM growth 3Y-2.45%
OM growth 5Y-0.44%
PM growth 3Y4.03%
PM growth 5Y-0.95%
GM growth 3Y0.79%
GM growth 5Y0.55%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VEEV is destroying value.
The number of shares outstanding for VEEV has been increased compared to 1 year ago.
The number of shares outstanding for VEEV has been increased compared to 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
VEEV has an Altman-Z score of 16.13. This indicates that VEEV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 16.13, VEEV belongs to the best of the industry, outperforming 89.19% 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 | 16.13 |
ROIC/WACC0.93
WACC10.5%
2.3 Liquidity
A Current Ratio of 4.51 indicates that VEEV has no problem at all paying its short term obligations.
VEEV's Current ratio of 4.51 is amongst the best of the industry. VEEV outperforms 91.89% of its industry peers.
A Quick Ratio of 4.51 indicates that VEEV has no problem at all paying its short term obligations.
VEEV has a better Quick ratio (4.51) than 91.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.51 | ||
| Quick Ratio | 4.51 |
3. Growth
3.1 Past
VEEV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.57%, which is quite impressive.
VEEV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.72% yearly.
VEEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.20%.
The Revenue has been growing by 19.99% on average over the past years. This is quite good.
EPS 1Y (TTM)36.57%
EPS 3Y21.12%
EPS 5Y24.72%
EPS Q2Q%26.09%
Revenue 1Y (TTM)16.2%
Revenue growth 3Y14.06%
Revenue growth 5Y19.99%
Sales Q2Q%14.31%
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 14.05% on average per year.
The Revenue is expected to grow by 13.21% on average over the next years. This is quite good.
EPS Next Y13.24%
EPS Next 2Y11.67%
EPS Next 3Y11.88%
EPS Next 5Y14.05%
Revenue Next Year11.95%
Revenue Next 2Y11.84%
Revenue Next 3Y12.25%
Revenue Next 5Y13.21%
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.
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 32.67, the valuation of VEEV can be described as expensive.
83.78% of the companies in the same industry are more expensive than VEEV, based on the Price/Earnings ratio.
VEEV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.85 indicates a quite expensive valuation of VEEV.
Based on the Price/Forward Earnings ratio, VEEV is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VEEV to the average of the S&P500 Index (21.08), we can say VEEV is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.67 | ||
| Fwd PE | 28.85 |
4.2 Price Multiples
VEEV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VEEV is cheaper than 72.97% of the companies in the same industry.
VEEV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VEEV is cheaper than 81.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.85 | ||
| EV/EBITDA | 35.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VEEV does not grow enough to justify the current Price/Earnings ratio.
VEEV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)1.32
EPS Next 2Y11.67%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
VEEV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
215.95
-4.71 (-2.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners84.77%
Inst Owner Change0.01%
Ins Owners8.83%
Ins Owner Change0.07%
Market Cap35.14B
Analysts77.37
Price Target272.21 (26.05%)
Short Float %2.71%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)8.29%
Min EPS beat(2)7.97%
Max EPS beat(2)8.61%
EPS beat(4)4
Avg EPS beat(4)5.82%
Min EPS beat(4)3.17%
Max EPS beat(4)8.61%
EPS beat(8)8
Avg EPS beat(8)5.77%
EPS beat(12)11
Avg EPS beat(12)5.29%
EPS beat(16)15
Avg EPS beat(16)5.79%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.41%
Max Revenue beat(2)1.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)1.09%
Revenue beat(8)2
Avg Revenue beat(8)-0.57%
Revenue beat(12)2
Avg Revenue beat(12)-0.57%
Revenue beat(16)4
Avg Revenue beat(16)-0.26%
PT rev (1m)0.83%
PT rev (3m)-0.45%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)7.31%
EPS NY rev (1m)6.21%
EPS NY rev (3m)6.2%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.67 | ||
| Fwd PE | 28.85 | ||
| P/S | 12.79 | ||
| P/FCF | 32.85 | ||
| P/OCF | 32.23 | ||
| P/B | 6.02 | ||
| P/tB | 6.57 | ||
| EV/EBITDA | 35.27 |
EPS(TTM)6.61
EY3.06%
EPS(NY)7.49
Fwd EY3.47%
FCF(TTM)6.57
FCFY3.04%
OCF(TTM)6.7
OCFY3.1%
SpS16.88
BVpS35.85
TBVpS32.87
PEG (NY)2.47
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 12.24% | ||
| ROCE | 11.72% | ||
| ROIC | 9.79% | ||
| ROICexc | 73.54% | ||
| ROICexgc | 189.64% | ||
| OM | 25.36% | ||
| PM (TTM) | 26% | ||
| GM | 74.53% | ||
| FCFM | 38.94% |
ROA(3y)9.59%
ROA(5y)10.49%
ROE(3y)12.23%
ROE(5y)13.63%
ROIC(3y)9.16%
ROIC(5y)11.04%
ROICexc(3y)59.89%
ROICexc(5y)59.49%
ROICexgc(3y)196.73%
ROICexgc(5y)318.62%
ROCE(3y)10.96%
ROCE(5y)13.22%
ROICexcg growth 3Y-36.21%
ROICexcg growth 5Y-13.57%
ROICexc growth 3Y1.45%
ROICexc growth 5Y14.29%
OM growth 3Y-2.45%
OM growth 5Y-0.44%
PM growth 3Y4.03%
PM growth 5Y-0.95%
GM growth 3Y0.79%
GM growth 5Y0.55%
F-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 52.1% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 148.14% | ||
| Profit Quality | 149.76% | ||
| Current Ratio | 4.51 | ||
| Quick Ratio | 4.51 | ||
| Altman-Z | 16.13 |
F-Score7
WACC10.5%
ROIC/WACC0.93
Cap/Depr(3y)59.59%
Cap/Depr(5y)52.02%
Cap/Sales(3y)0.83%
Cap/Sales(5y)0.77%
Profit Quality(3y)158.47%
Profit Quality(5y)158.74%
High Growth Momentum
Growth
EPS 1Y (TTM)36.57%
EPS 3Y21.12%
EPS 5Y24.72%
EPS Q2Q%26.09%
EPS Next Y13.24%
EPS Next 2Y11.67%
EPS Next 3Y11.88%
EPS Next 5Y14.05%
Revenue 1Y (TTM)16.2%
Revenue growth 3Y14.06%
Revenue growth 5Y19.99%
Sales Q2Q%14.31%
Revenue Next Year11.95%
Revenue Next 2Y11.84%
Revenue Next 3Y12.25%
Revenue Next 5Y13.21%
EBIT growth 1Y62.24%
EBIT growth 3Y11.27%
EBIT growth 5Y19.47%
EBIT Next Year20.34%
EBIT Next 3Y16.25%
EBIT Next 5Y17.62%
FCF growth 1Y20.83%
FCF growth 3Y12.54%
FCF growth 5Y19.82%
OCF growth 1Y19.61%
OCF growth 3Y12.55%
OCF growth 5Y20.04%