Veeva Systems Inc.
Veeva Systems Inc. Fundamental Analysis
Veeva Systems Inc. (VEE.DE) shows strong financial fundamentals with a PE ratio of 28.63, profit margin of 28.45%, and ROE of 13.41%. The company generates $3.2B in annual revenue with strong year-over-year growth of 16.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze VEE.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVEE.DE demonstrates superior asset utilization.
Valuation Score
ModerateVEE.DE shows balanced valuation metrics.
Growth Score
ExcellentVEE.DE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentVEE.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateVEE.DE maintains healthy but balanced margins.
Key Financial Metrics
Is VEE.DE Expensive or Cheap?
P/E Ratio
VEE.DE trades at 28.63 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VEE.DE's PEG of 0.92 indicates potential undervaluation.
Price to Book
The market values Veeva Systems Inc. at 3.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.33 times EBITDA. This signals the market has high growth expectations.
How Well Does VEE.DE Make Money?
Net Profit Margin
For every $100 in sales, Veeva Systems Inc. keeps $28.45 as profit after all expenses.
Operating Margin
Core operations generate 28.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.41 in profit for every $100 of shareholder equity.
ROA
Veeva Systems Inc. generates $10.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Veeva Systems Inc. generates strong operating cash flow of $1.42B, reflecting robust business health.
Free Cash Flow
Veeva Systems Inc. generates strong free cash flow of $1.30B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.88 in free cash annually.
FCF Yield
VEE.DE converts 4.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.92
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How VEE.DE Stacks Against Its Sector Peers
| Metric | VEE.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.63 | 28.81 | Neutral |
| ROE | 13.41% | 643.00% | Weak |
| Net Margin | 28.45% | -44312.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.36 | Strong (Low Leverage) |
| Current Ratio | 4.89 | 4.50 | Strong Liquidity |
| ROA | 10.12% | -17799.00% (disorted) | Strong |
VEE.DE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Veeva Systems Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
127.13%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
116.53%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
127.54%
Industry Style: Defensive, Growth, Innovation
High Growth