VEEVA SYSTEMS INC-CLASS A (VEEV) Stock Fundamental Analysis
USA - NYSE:VEEV - US9224751084 - Common Stock
283.73 USD
-9 (-3.07%)
283.73 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. 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! 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.
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
With an excellent Return On Assets value of 10.12%, VEEV belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
VEEV has a Return On Equity of 12.20%. This is amongst the best in the industry. VEEV outperforms 97.14% of its industry peers.
VEEV's Return On Invested Capital of 10.28% is amongst the best of the industry. VEEV outperforms 91.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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.
VEEV's Profit Margin has been stable in the last couple of years.
The Operating Margin of VEEV (27.96%) is better than 97.14% of its industry peers.
In the last couple of years the Operating Margin of VEEV has remained more or less at the same level.
The Gross Margin of VEEV (75.59%) is better 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VEEV is destroying value.
VEEV has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VEEV has been increased compared to 5 years ago.
VEEV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
VEEV has an Altman-Z score of 22.76. This indicates that VEEV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 22.76, VEEV belongs to the best of the industry, outperforming 94.29% 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 | 22.76 |
ROIC/WACC0.99
WACC10.41%
2.3 Liquidity
A Current Ratio of 5.57 indicates that VEEV has no problem at all paying its short term obligations.
The Current ratio of VEEV (5.57) is better 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.
The Quick ratio of VEEV (5.57) is better than 91.43% of its industry peers.
| 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.
VEEV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.72% yearly.
The Revenue has grown by 15.33% in the past year. This is quite good.
Measured over the past years, VEEV shows a quite strong growth in Revenue. The Revenue has been growing by 19.99% on average per year.
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.
Based on estimates for the next years, VEEV will show a quite strong growth in Revenue. The Revenue will grow by 13.85% on average per year.
EPS Next Y20.27%
EPS Next 2Y14.12%
EPS Next 3Y14.66%
EPS Next 5Y14.08%
Revenue Next Year15.22%
Revenue Next 2Y13.5%
Revenue Next 3Y13.39%
Revenue Next 5Y13.85%
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.
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
The Price/Earnings ratio is 38.08, which means the current valuation is very expensive for VEEV.
Based on the Price/Earnings ratio, VEEV is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.40. VEEV is valued slightly more expensive when compared to this.
VEEV is valuated quite expensively with a Price/Forward Earnings ratio of 32.96.
Based on the Price/Forward Earnings ratio, VEEV is valued a bit cheaper than 68.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. VEEV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.08 | ||
| Fwd PE | 32.96 |
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.
Based on the Price/Free Cash Flow ratio, VEEV is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.02 | ||
| EV/EBITDA | 40.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of VEEV may justify a higher PE ratio.
A more expensive valuation may be justified as VEEV's earnings are expected to grow with 14.66% in the coming years.
PEG (NY)1.88
PEG (5Y)1.54
EPS Next 2Y14.12%
EPS Next 3Y14.66%
5. Dividend
5.1 Amount
VEEV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
283.73
-9 (-3.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners89.1%
Inst Owner Change0.05%
Ins Owners8.46%
Ins Owner Change-0.03%
Market Cap46.51B
Analysts77.95
Price Target319.29 (12.53%)
Short Float %3.61%
Short Ratio4.1
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)0.17%
PT rev (3m)6.45%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)1.91%
EPS NY rev (1m)1.7%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.08 | ||
| Fwd PE | 32.96 | ||
| P/S | 15.67 | ||
| P/FCF | 35.02 | ||
| P/OCF | 34.47 | ||
| P/B | 7.01 | ||
| P/tB | 7.55 | ||
| EV/EBITDA | 40.96 |
EPS(TTM)7.45
EY2.63%
EPS(NY)8.61
Fwd EY3.03%
FCF(TTM)8.1
FCFY2.86%
OCF(TTM)8.23
OCFY2.9%
SpS18.11
BVpS40.5
TBVpS37.6
PEG (NY)1.88
PEG (5Y)1.54
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 | 22.76 |
F-Score7
WACC10.41%
ROIC/WACC0.99
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 Y20.27%
EPS Next 2Y14.12%
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 2Y13.5%
Revenue Next 3Y13.39%
Revenue Next 5Y13.85%
EBIT growth 1Y40.59%
EBIT growth 3Y11.27%
EBIT growth 5Y19.47%
EBIT Next Year27.8%
EBIT Next 3Y19.99%
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%