VEEVA SYSTEMS INC-CLASS A (VEEV) Stock Fundamental Analysis
USA - NYSE:VEEV - US9224751084 - Common Stock
291.7 USD
-5.26 (-1.77%)
288.02 USD
-3.68 (-1.26%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. VEEV is growing strongly while it is still valued neutral. This is a good combination! These ratings would make VEEV suitable 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.
VEEV had positive earnings in each of the past 5 years.
In the past 5 years VEEV always reported a positive cash flow from operatings.
1.2 Ratios
VEEV has a Return On Assets of 10.12%. This is amongst the best in the industry. VEEV outperforms 97.14% of its industry peers.
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 has a better Return On Invested Capital (10.28%) than 91.43% of its industry peers.
VEEV had an Average Return On Invested Capital over the past 3 years of 9.16%. This is above the industry average of 6.84%.
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.
With an excellent Operating Margin value of 27.96%, VEEV belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
VEEV's Operating Margin has been stable in the last couple of years.
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
VEEV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VEEV has more shares outstanding
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 23.33 indicates that VEEV is not in any danger for bankruptcy at the moment.
VEEV has a better Altman-Z score (23.33) than 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 | 23.33 |
ROIC/WACC1
WACC10.3%
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.
VEEV's Current ratio of 5.57 is amongst the best of the industry. VEEV outperforms 91.43% of its industry peers.
A Quick Ratio of 5.57 indicates that VEEV has no problem at all paying 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
The Earnings Per Share has grown by an impressive 27.57% over the past year.
VEEV shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.72% yearly.
VEEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.33%.
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
VEEV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.71% yearly.
The Revenue is expected to grow by 14.31% on average over the next years. This is quite good.
EPS Next Y20.45%
EPS Next 2Y14.16%
EPS Next 3Y14.72%
EPS Next 5Y15.71%
Revenue Next Year15.26%
Revenue Next 2Y13.63%
Revenue Next 3Y13.53%
Revenue Next 5Y14.31%
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
Based on the Price/Earnings ratio of 39.15, the valuation of VEEV can be described as expensive.
71.43% of the companies in the same industry are more expensive than VEEV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.91, VEEV is valued quite expensively.
VEEV is valuated quite expensively with a Price/Forward Earnings ratio of 33.86.
62.86% of the companies in the same industry are more expensive than VEEV, based on the Price/Forward Earnings ratio.
VEEV is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.15 | ||
| Fwd PE | 33.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VEEV is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, VEEV is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36 | ||
| EV/EBITDA | 42.46 |
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 14.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.92
PEG (5Y)1.58
EPS Next 2Y14.16%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
No dividends for VEEV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
291.7
-5.26 (-1.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners89.1%
Inst Owner Change1.94%
Ins Owners8.46%
Ins Owner Change-0.02%
Market Cap47.81B
Revenue(TTM)2.97B
Net Income(TTM)809.93M
Analysts78.5
Price Target323.55 (10.92%)
Short Float %3%
Short Ratio3.41
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)1.33%
PT rev (3m)7.87%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)3.34%
EPS NY rev (1m)0.15%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.91%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.15 | ||
| Fwd PE | 33.86 | ||
| P/S | 16.11 | ||
| P/FCF | 36 | ||
| P/OCF | 35.44 | ||
| P/B | 7.2 | ||
| P/tB | 7.76 | ||
| EV/EBITDA | 42.46 |
EPS(TTM)7.45
EY2.55%
EPS(NY)8.61
Fwd EY2.95%
FCF(TTM)8.1
FCFY2.78%
OCF(TTM)8.23
OCFY2.82%
SpS18.11
BVpS40.5
TBVpS37.6
PEG (NY)1.92
PEG (5Y)1.58
Graham Number82.4
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%
ROICexgc growth 3Y-36.21%
ROICexgc 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 | 23.33 |
F-Score7
WACC10.3%
ROIC/WACC1
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 Y20.45%
EPS Next 2Y14.16%
EPS Next 3Y14.72%
EPS Next 5Y15.71%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y14.06%
Revenue growth 5Y19.99%
Sales Q2Q%16.7%
Revenue Next Year15.26%
Revenue Next 2Y13.63%
Revenue Next 3Y13.53%
Revenue Next 5Y14.31%
EBIT growth 1Y40.59%
EBIT growth 3Y11.27%
EBIT growth 5Y19.47%
EBIT Next Year27.8%
EBIT Next 3Y20.11%
EBIT Next 5Y19.14%
FCF growth 1Y39.06%
FCF growth 3Y12.54%
FCF growth 5Y19.82%
OCF growth 1Y38.09%
OCF growth 3Y12.55%
OCF growth 5Y20.04%
VEEVA SYSTEMS INC-CLASS A / VEEV FAQ
What is the fundamental rating for VEEV stock?
ChartMill assigns a fundamental rating of 7 / 10 to VEEV.
Can you provide the valuation status for VEEVA SYSTEMS INC-CLASS A?
ChartMill assigns a valuation rating of 4 / 10 to VEEVA SYSTEMS INC-CLASS A (VEEV). This can be considered as Fairly Valued.
How profitable is VEEVA SYSTEMS INC-CLASS A (VEEV) stock?
VEEVA SYSTEMS INC-CLASS A (VEEV) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for VEEV stock?
The Price/Earnings (PE) ratio for VEEVA SYSTEMS INC-CLASS A (VEEV) is 39.15 and the Price/Book (PB) ratio is 7.2.
What is the financial health of VEEVA SYSTEMS INC-CLASS A (VEEV) stock?
The financial health rating of VEEVA SYSTEMS INC-CLASS A (VEEV) is 9 / 10.