VEEVA SYSTEMS INC-CLASS A (VEEV) Stock Fundamental Analysis
NYSE:VEEV - New York Stock Exchange, Inc. - US9224751084 - Common Stock - Currency: USD
Taking everything into account, VEEV scores 7 out of 10 in our fundamental rating. VEEV was compared to 36 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! 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.
VEEV had a positive operating cash flow in the past year.
VEEV had positive earnings in each of the past 5 years.
VEEV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VEEV's Return On Assets of 10.05% is amongst the best of the industry. VEEV outperforms 97.22% of its industry peers.
VEEV has a better Return On Equity (12.57%) than 97.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.20%, VEEV belongs to the top of the industry, outperforming 91.67% 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 above the industry average of 6.38%.
The last Return On Invested Capital (10.20%) for VEEV is above the 3 year average (9.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.05% | ||
| ROE | 12.57% | ||
| ROIC | 10.2% |
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 27.34%, VEEV belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
VEEV's Profit Margin has been stable in the last couple of years.
VEEV's Operating Margin of 26.97% is amongst the best of the industry. VEEV outperforms 97.22% of its industry peers.
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 (75.50%) than 80.56% of its industry peers.
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 | 26.97% | ||
| PM (TTM) | 27.34% | ||
| GM | 75.5% |
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.
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 19.79. This indicates that VEEV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 19.79, VEEV belongs to the best of the industry, outperforming 91.67% 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 | 19.79 |
ROIC/WACC1.04
WACC9.81%
2.3 Liquidity
VEEV has a Current Ratio of 4.60. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VEEV (4.60) is better than 86.11% of its industry peers.
VEEV has a Quick Ratio of 4.60. This indicates that VEEV is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of VEEV (4.60) is better than 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.6 | ||
| Quick Ratio | 4.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.39% 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
VEEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.78%.
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)30.39%
EPS 3Y21.12%
EPS 5Y24.72%
EPS Q2Q%31.33%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y14.06%
Revenue growth 5Y19.99%
Sales Q2Q%16.71%
3.2 Future
The Earnings Per Share is expected to grow by 13.26% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.45% on average over the next years. This is quite good.
EPS Next Y16.83%
EPS Next 2Y13.26%
EPS Next 3Y14.68%
EPS Next 5Y13.26%
Revenue Next Year13.46%
Revenue Next 2Y12.51%
Revenue Next 3Y12.44%
Revenue Next 5Y13.45%
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.
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
Based on the Price/Earnings ratio of 39.56, the valuation of VEEV can be described as expensive.
Based on the Price/Earnings ratio, VEEV is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VEEV to the average of the S&P500 Index (26.35), we can say VEEV is valued expensively.
VEEV is valuated quite expensively with a Price/Forward Earnings ratio of 33.03.
Based on the Price/Forward Earnings ratio, VEEV is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
VEEV's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.56 | ||
| Fwd PE | 33.03 |
4.2 Price Multiples
VEEV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VEEV is cheaper than 63.89% of the companies in the same industry.
72.22% of the companies in the same industry are more expensive than VEEV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.49 | ||
| EV/EBITDA | 43.75 |
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 14.68% in the coming years.
PEG (NY)2.35
PEG (5Y)1.6
EPS Next 2Y13.26%
EPS Next 3Y14.68%
5. Dividend
5.1 Amount
VEEV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
280.08
-1.35 (-0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners86.41%
Inst Owner Change0.54%
Ins Owners8.48%
Ins Owner Change0.04%
Market Cap45.64B
Analysts76.84
Price Target298.48 (6.57%)
Short Float %3.58%
Short Ratio3.49
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)9.53%
Min EPS beat(2)7.97%
Max EPS beat(2)11.08%
EPS beat(4)4
Avg EPS beat(4)7.79%
Min EPS beat(4)3.51%
Max EPS beat(4)11.08%
EPS beat(8)8
Avg EPS beat(8)5.6%
EPS beat(12)11
Avg EPS beat(12)5.76%
EPS beat(16)15
Avg EPS beat(16)5.59%
Revenue beat(2)2
Avg Revenue beat(2)1.38%
Min Revenue beat(2)1.09%
Max Revenue beat(2)1.66%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)1.66%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)3
Avg Revenue beat(12)-0.42%
Revenue beat(16)4
Avg Revenue beat(16)-0.39%
PT rev (1m)11.53%
PT rev (3m)10.56%
EPS NQ rev (1m)4.77%
EPS NQ rev (3m)4.84%
EPS NY rev (1m)3.76%
EPS NY rev (3m)9.57%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)1.91%
Revenue NY rev (1m)1.42%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.56 | ||
| Fwd PE | 33.03 | ||
| P/S | 15.98 | ||
| P/FCF | 38.49 | ||
| P/OCF | 37.92 | ||
| P/B | 7.35 | ||
| P/tB | 7.96 | ||
| EV/EBITDA | 43.75 |
EPS(TTM)7.08
EY2.53%
EPS(NY)8.48
Fwd EY3.03%
FCF(TTM)7.28
FCFY2.6%
OCF(TTM)7.39
OCFY2.64%
SpS17.52
BVpS38.12
TBVpS35.17
PEG (NY)2.35
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.05% | ||
| ROE | 12.57% | ||
| ROCE | 12.21% | ||
| ROIC | 10.2% | ||
| ROICexc | 267.97% | ||
| ROICexgc | N/A | ||
| OM | 26.97% | ||
| PM (TTM) | 27.34% | ||
| GM | 75.5% | ||
| FCFM | 41.53% |
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 | 44.1% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 148.48% | ||
| Profit Quality | 151.89% | ||
| Current Ratio | 4.6 | ||
| Quick Ratio | 4.6 | ||
| Altman-Z | 19.79 |
F-Score7
WACC9.81%
ROIC/WACC1.04
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)30.39%
EPS 3Y21.12%
EPS 5Y24.72%
EPS Q2Q%31.33%
EPS Next Y16.83%
EPS Next 2Y13.26%
EPS Next 3Y14.68%
EPS Next 5Y13.26%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y14.06%
Revenue growth 5Y19.99%
Sales Q2Q%16.71%
Revenue Next Year13.46%
Revenue Next 2Y12.51%
Revenue Next 3Y12.44%
Revenue Next 5Y13.45%
EBIT growth 1Y45.85%
EBIT growth 3Y11.27%
EBIT growth 5Y19.47%
EBIT Next Year18.21%
EBIT Next 3Y19.55%
EBIT Next 5Y16.63%
FCF growth 1Y49.87%
FCF growth 3Y12.54%
FCF growth 5Y19.82%
OCF growth 1Y49.45%
OCF growth 3Y12.55%
OCF growth 5Y20.04%