VEEVA SYSTEMS INC-CLASS A (VEEV) Stock Fundamental Analysis
NYSE:VEEV - US9224751084 - Common Stock
269.98 USD
+0.78 (+0.29%)
270 USD
+0.02 (+0.01%)
Taking everything into account, VEEV scores 7 out of 10 in our fundamental rating. 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 not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, VEEV could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year VEEV was profitable.
In the past year VEEV had a positive cash flow from operations.
In the past 5 years VEEV has always 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.
VEEV has a better Return On Equity (12.20%) than 97.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.28%, VEEV belongs to the top 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 last Return On Invested Capital (10.28%) for VEEV is above the 3 year average (9.16%), which is a sign of increasing profitability.
| 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
VEEV has a Profit Margin of 27.29%. This is amongst the best in the industry. VEEV outperforms 97.14% of its industry peers.
In the last couple of years the Profit Margin of VEEV has remained more or less at the same level.
VEEV's Operating Margin of 27.96% is amongst the best of the industry. VEEV outperforms 97.14% of its industry peers.
VEEV's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 75.59%, VEEV belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
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 | 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.
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
VEEV has an Altman-Z score of 21.65. This indicates that VEEV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 21.65, VEEV belongs to the best of the industry, outperforming 94.29% 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 | 21.65 |
ROIC/WACC1.03
WACC10.02%
2.3 Liquidity
VEEV has a Current Ratio of 5.57. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.57, VEEV belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
A Quick Ratio of 5.57 indicates that VEEV has no problem at all paying its short term obligations.
VEEV's Quick ratio of 5.57 is amongst the best of the industry. VEEV outperforms 91.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.57 | ||
| Quick Ratio | 5.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.57% over the past year.
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.
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
VEEV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.08% yearly.
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 Year13.78%
Revenue Next 2Y12.56%
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.
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 36.24, VEEV can be considered very expensive at the moment.
77.14% of the companies in the same industry are more expensive than VEEV, based on the Price/Earnings ratio.
VEEV's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.90.
VEEV is valuated quite expensively with a Price/Forward Earnings ratio of 31.74.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.52. VEEV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.24 | ||
| Fwd PE | 31.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VEEV is valued a bit cheaper than 62.86% 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 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.22 | ||
| EV/EBITDA | 38.07 |
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.
The excellent profitability rating of VEEV 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)1.98
PEG (5Y)1.47
EPS Next 2Y13.43%
EPS Next 3Y14.66%
5. Dividend
5.1 Amount
No dividends for VEEV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
269.98
+0.78 (+0.29%)
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 Change0.03%
Market Cap44.12B
Analysts76.84
Price Target303.6 (12.45%)
Short Float %3.14%
Short Ratio3.56
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)1.22%
PT rev (3m)13.44%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)6.09%
EPS NY rev (1m)0.03%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.24 | ||
| Fwd PE | 31.74 | ||
| P/S | 14.86 | ||
| P/FCF | 33.22 | ||
| P/OCF | 32.7 | ||
| P/B | 6.65 | ||
| P/tB | 7.16 | ||
| EV/EBITDA | 38.07 |
EPS(TTM)7.45
EY2.76%
EPS(NY)8.5
Fwd EY3.15%
FCF(TTM)8.13
FCFY3.01%
OCF(TTM)8.26
OCFY3.06%
SpS18.16
BVpS40.63
TBVpS37.71
PEG (NY)1.98
PEG (5Y)1.47
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 | 21.65 |
F-Score7
WACC10.02%
ROIC/WACC1.03
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 Year13.78%
Revenue Next 2Y12.56%
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%