VEEVA SYSTEMS INC-CLASS A (VEEV) Stock Fundamental Analysis
NYSE:VEEV - New York Stock Exchange, Inc. - US9224751084 - Common Stock - Currency: USD
Overall VEEV gets a fundamental rating of 7 out of 10. We evaluated VEEV against 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 not priced too expensively while it is growing strongly. 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 97.30% of its industry peers.
VEEV has a Return On Equity of 12.24%. This is amongst the best in the industry. VEEV outperforms 97.30% 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.
VEEV had an Average Return On Invested Capital over the past 3 years of 9.16%. This 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
Looking at the Profit Margin, with a value of 26.00%, VEEV belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
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's Gross Margin of 74.53% is amongst the best of the industry. VEEV outperforms 81.08% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VEEV is destroying value.
VEEV has more shares outstanding than it did 1 year ago.
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 17.50 indicates that VEEV is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 17.50, VEEV belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
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 | 17.5 |
ROIC/WACC0.89
WACC11.05%
2.3 Liquidity
A Current Ratio of 4.51 indicates that VEEV has no problem at all paying its short term obligations.
The Current ratio of VEEV (4.51) is better than 89.19% of its industry peers.
A Quick Ratio of 4.51 indicates that VEEV has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.51, VEEV belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.51 | ||
| Quick Ratio | 4.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.57% over the past year.
The Earnings Per Share has been growing by 24.72% on average over the past years. This is a very strong growth
Looking at the last year, VEEV shows a quite strong growth in Revenue. The Revenue has grown by 16.20% 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)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
The Earnings Per Share is expected to grow by 14.05% on average over the next years. This is quite good.
Based on estimates for the next years, VEEV will show a quite strong growth in Revenue. The Revenue will grow by 13.21% on average per year.
EPS Next Y12.62%
EPS Next 2Y11.49%
EPS Next 3Y11.93%
EPS Next 5Y14.05%
Revenue Next Year11.87%
Revenue Next 2Y11.81%
Revenue Next 3Y12.38%
Revenue Next 5Y13.21%
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
With a Price/Earnings ratio of 35.22, VEEV can be considered very expensive at the moment.
81.08% 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 24.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 31.27, the valuation of VEEV can be described as expensive.
Based on the Price/Forward Earnings ratio, VEEV is valued a bit cheaper than 75.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, VEEV is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.22 | ||
| Fwd PE | 31.27 |
4.2 Price Multiples
VEEV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VEEV is cheaper than 70.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VEEV is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.42 | ||
| EV/EBITDA | 39.92 |
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.
PEG (NY)2.79
PEG (5Y)1.42
EPS Next 2Y11.49%
EPS Next 3Y11.93%
5. Dividend
5.1 Amount
VEEV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
232.81
-4.18 (-1.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners84.77%
Inst Owner Change-0.79%
Ins Owners8.83%
Ins Owner Change0.04%
Market Cap37.88B
Analysts77.37
Price Target267.21 (14.78%)
Short Float %2.62%
Short Ratio2.84
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)-1.19%
PT rev (3m)-1.02%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)6.79%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)5.63%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.22 | ||
| Fwd PE | 31.27 | ||
| P/S | 13.79 | ||
| P/FCF | 35.42 | ||
| P/OCF | 34.75 | ||
| P/B | 6.49 | ||
| P/tB | 7.08 | ||
| EV/EBITDA | 39.92 |
EPS(TTM)6.61
EY2.84%
EPS(NY)7.44
Fwd EY3.2%
FCF(TTM)6.57
FCFY2.82%
OCF(TTM)6.7
OCFY2.88%
SpS16.88
BVpS35.85
TBVpS32.87
PEG (NY)2.79
PEG (5Y)1.42
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 | 17.5 |
F-Score7
WACC11.05%
ROIC/WACC0.89
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 Y12.62%
EPS Next 2Y11.49%
EPS Next 3Y11.93%
EPS Next 5Y14.05%
Revenue 1Y (TTM)16.2%
Revenue growth 3Y14.06%
Revenue growth 5Y19.99%
Sales Q2Q%14.31%
Revenue Next Year11.87%
Revenue Next 2Y11.81%
Revenue Next 3Y12.38%
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%