Veeva Systems Inc.
Veeva Systems Inc. Fundamental Analysis
Veeva Systems Inc. (VEEV) shows moderate financial fundamentals with a PE ratio of 34.53, profit margin of 27.93%, and ROE of 13.38%. The company generates $3.1B in annual revenue with moderate year-over-year growth of 9.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.3/100 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 VEEV's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVEEV demonstrates superior asset utilization.
Valuation Score
WeakVEEV trades at a premium to fair value.
Growth Score
ModerateVEEV shows steady but slowing expansion.
Financial Health Score
ExcellentVEEV maintains a strong and stable balance sheet.
Profitability Score
ModerateVEEV maintains healthy but balanced margins.
Key Financial Metrics
Is VEEV Expensive or Cheap?
P/E Ratio
VEEV trades at 34.53 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VEEV's PEG of 5.93 indicates potential overvaluation.
Price to Book
The market values Veeva Systems Inc. at 4.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.55 times EBITDA. This signals the market has high growth expectations.
How Well Does VEEV Make Money?
Net Profit Margin
For every $100 in sales, Veeva Systems Inc. keeps $27.93 as profit after all expenses.
Operating Margin
Core operations generate 27.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.38 in profit for every $100 of shareholder equity.
ROA
Veeva Systems Inc. generates $10.63 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 $1.38B, reflecting robust business health.
Free Cash Flow
Veeva Systems Inc. generates strong free cash flow of $1.36B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.28 in free cash annually.
FCF Yield
VEEV converts 4.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How VEEV Stacks Against Its Sector Peers
| Metric | VEEV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.53 | 29.43 | Worse (Expensive) |
| ROE | 13.38% | 800.00% | Weak |
| Net Margin | 27.93% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 7.53 | 4.64 | Strong Liquidity |
| ROA | 10.63% | -17936.00% (disorted) | Strong |
VEEV outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
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
146.33%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
105.53%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
163.45%
Industry Style: Defensive, Growth, Innovation
High Growth