VEEVA SYSTEMS INC-CLASS A (VEEV) Stock Fundamental Analysis
USA - NYSE:VEEV - US9224751084 - Common Stock
279.08 USD
+4.5 (+1.64%)
279.08 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to VEEV. VEEV was compared to 35 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 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.
In the past year VEEV had a positive cash flow from operations.
Each year in the past 5 years VEEV has been profitable.
Each year in the past 5 years VEEV had a positive operating cash flow.
1.2 Ratios
VEEV has a better Return On Assets (10.12%) than 97.14% of its industry peers.
Looking at the Return On Equity, with a value of 12.20%, VEEV belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.28%, VEEV belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VEEV is above the industry average of 6.80%.
The 3 year average ROIC (9.16%) for VEEV is below the current ROIC(10.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 12.2% | ||
| ROIC | 10.28% |
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
With an excellent Profit Margin value of 27.29%, VEEV belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
In the last couple of years the Profit Margin of VEEV has remained more or less at the same level.
Looking at the Operating Margin, with a value of 27.96%, VEEV belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
In the last couple of years the Operating Margin of VEEV has remained more or less at the same level.
VEEV has a better Gross Margin (75.59%) than 82.86% of its industry peers.
VEEV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.96% | ||
| PM (TTM) | 27.29% | ||
| GM | 75.59% |
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
VEEV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
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 22.10 indicates that VEEV is not in any danger for bankruptcy at the moment.
VEEV's Altman-Z score of 22.10 is amongst the best of the industry. VEEV outperforms 94.29% 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 | 22.1 |
ROIC/WACC1.09
WACC9.46%
2.3 Liquidity
A Current Ratio of 5.57 indicates that VEEV has no problem at all paying its short term obligations.
VEEV has a better Current ratio (5.57) than 91.43% of its industry peers.
VEEV has a Quick Ratio of 5.57. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 5.57, VEEV belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.57 | ||
| Quick Ratio | 5.57 |
3. Growth
3.1 Past
VEEV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.57%, 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 24.72% on average per year.
Looking at the last year, VEEV shows a quite strong growth in Revenue. The Revenue has grown by 15.33% in the last year.
The Revenue has been growing by 19.99% on average over the past years. This is quite good.
EPS 1Y (TTM)27.57%
EPS 3Y21.12%
EPS 5Y24.72%
EPS Q2Q%22.84%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y14.06%
Revenue growth 5Y19.99%
Sales Q2Q%16.7%
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 14.08% on average per year.
The Revenue is expected to grow by 13.85% on average over the next years. This is quite good.
EPS Next Y18.26%
EPS Next 2Y13.43%
EPS Next 3Y14.66%
EPS Next 5Y14.08%
Revenue Next Year15.22%
Revenue Next 2Y13.48%
Revenue Next 3Y13.39%
Revenue Next 5Y13.85%
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
VEEV is valuated quite expensively with a Price/Earnings ratio of 37.46.
77.14% of the companies in the same industry are more expensive than VEEV, based on the Price/Earnings ratio.
VEEV is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.81, which means the current valuation is very expensive for VEEV.
VEEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VEEV is cheaper than 68.57% of the companies in the same industry.
VEEV is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.46 | ||
| Fwd PE | 32.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VEEV is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
VEEV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VEEV is cheaper than 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.44 | ||
| EV/EBITDA | 39.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VEEV has an outstanding profitability rating, which may justify a higher PE ratio.
VEEV's earnings are expected to grow with 14.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.05
PEG (5Y)1.52
EPS Next 2Y13.43%
EPS Next 3Y14.66%
5. Dividend
5.1 Amount
VEEV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
279.08
+4.5 (+1.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners86.34%
Inst Owner Change4.54%
Ins Owners8.49%
Ins Owner Change0.02%
Market Cap45.74B
Analysts76.84
Price Target318.76 (14.22%)
Short Float %3.36%
Short Ratio3.82
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)6.9%
Min EPS beat(2)2.73%
Max EPS beat(2)11.08%
EPS beat(4)4
Avg EPS beat(4)7.6%
Min EPS beat(4)2.73%
Max EPS beat(4)11.08%
EPS beat(8)8
Avg EPS beat(8)5.29%
EPS beat(12)12
Avg EPS beat(12)5.99%
EPS beat(16)15
Avg EPS beat(16)5.36%
Revenue beat(2)2
Avg Revenue beat(2)1.17%
Min Revenue beat(2)0.68%
Max Revenue beat(2)1.66%
Revenue beat(4)3
Avg Revenue beat(4)0.75%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)1.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.1%
Revenue beat(12)4
Avg Revenue beat(12)-0.26%
Revenue beat(16)5
Avg Revenue beat(16)-0.28%
PT rev (1m)6.28%
PT rev (3m)8.45%
EPS NQ rev (1m)2.98%
EPS NQ rev (3m)2.97%
EPS NY rev (1m)0.03%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)1.83%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.46 | ||
| Fwd PE | 32.81 | ||
| P/S | 15.41 | ||
| P/FCF | 34.44 | ||
| P/OCF | 33.9 | ||
| P/B | 6.89 | ||
| P/tB | 7.42 | ||
| EV/EBITDA | 39.24 |
EPS(TTM)7.45
EY2.67%
EPS(NY)8.5
Fwd EY3.05%
FCF(TTM)8.1
FCFY2.9%
OCF(TTM)8.23
OCFY2.95%
SpS18.11
BVpS40.5
TBVpS37.6
PEG (NY)2.05
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 12.2% | ||
| ROCE | 12.31% | ||
| ROIC | 10.28% | ||
| ROICexc | 203.55% | ||
| ROICexgc | N/A | ||
| OM | 27.96% | ||
| PM (TTM) | 27.29% | ||
| GM | 75.59% | ||
| FCFM | 44.74% |
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 | 53.26% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 155.11% | ||
| Profit Quality | 163.97% | ||
| Current Ratio | 5.57 | ||
| Quick Ratio | 5.57 | ||
| Altman-Z | 22.1 |
F-Score7
WACC9.46%
ROIC/WACC1.09
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)27.57%
EPS 3Y21.12%
EPS 5Y24.72%
EPS Q2Q%22.84%
EPS Next Y18.26%
EPS Next 2Y13.43%
EPS Next 3Y14.66%
EPS Next 5Y14.08%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y14.06%
Revenue growth 5Y19.99%
Sales Q2Q%16.7%
Revenue Next Year15.22%
Revenue Next 2Y13.48%
Revenue Next 3Y13.39%
Revenue Next 5Y13.85%
EBIT growth 1Y40.59%
EBIT growth 3Y11.27%
EBIT growth 5Y19.47%
EBIT Next Year25.84%
EBIT Next 3Y20.39%
EBIT Next 5Y17.37%
FCF growth 1Y39.06%
FCF growth 3Y12.54%
FCF growth 5Y19.82%
OCF growth 1Y38.09%
OCF growth 3Y12.55%
OCF growth 5Y20.04%