NYSE:VEEV

Stock Analysis Report

Executive Summary

Veeva Systems Inc. provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Veeva Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VEEV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

VEEV

1.4%

US Healthcare Services

0.5%

US Market


1 Year Return

63.6%

VEEV

22.5%

US Healthcare Services

12.8%

US Market

Return vs Industry: VEEV exceeded the US Healthcare Services industry which returned 22.5% over the past year.

Return vs Market: VEEV exceeded the US Market which returned 12.8% over the past year.


Shareholder returns

VEEVIndustryMarket
7 Day4.1%1.4%0.5%
30 Day-4.3%1.0%4.3%
90 Day-7.5%-4.0%8.0%
1 Year63.6%63.6%22.7%22.5%15.3%12.8%
3 Year260.0%260.0%82.4%81.8%48.3%38.7%
5 Year436.3%436.3%59.8%58.5%62.6%44.5%

Price Volatility Vs. Market

How volatile is Veeva Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Veeva Systems undervalued compared to its fair value and its price relative to the market?

74.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VEEV ($146.68) is trading above our estimate of fair value ($80.79)

Significantly Below Fair Value: VEEV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VEEV is poor value based on its PE Ratio (74.5x) compared to the Healthcare Services industry average (60.5x).

PE vs Market: VEEV is poor value based on its PE Ratio (74.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: VEEV is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: VEEV is overvalued based on its PB Ratio (15x) compared to the US Healthcare Services industry average (3.6x).


Next Steps

Future Growth

How is Veeva Systems forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEEV's forecast earnings growth (13.8% per year) is above the savings rate (2.7%).

Earnings vs Market: VEEV's earnings (13.8% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: VEEV's earnings are forecast to grow, but not significantly.

Revenue vs Market: VEEV's revenue (16.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: VEEV's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VEEV's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has Veeva Systems performed over the past 5 years?

43.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEEV has high quality earnings.

Growing Profit Margin: VEEV's current net profit margins (29.7%) are higher than last year (22.2%).


Past Earnings Growth Analysis

Earnings Trend: VEEV's earnings have grown significantly by 43.1% per year over the past 5 years.

Accelerating Growth: VEEV's earnings growth over the past year (69.2%) exceeds its 5-year average (43.1% per year).

Earnings vs Industry: VEEV earnings growth over the past year (69.2%) exceeded the Healthcare Services industry -0.2%.


Return on Equity

High ROE: VEEV's Return on Equity (19.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Veeva Systems's financial position?


Financial Position Analysis

Short Term Liabilities: VEEV's short term assets ($1.6B) exceeds its short term liabilities ($382.9M)

Long Term Liabilities: VEEV's short term assets (1.6B) exceeds its long term liabilities (31.9M)


Debt to Equity History and Analysis

Debt Level: VEEV is debt free.

Reducing Debt: VEEV has not had any debt for past 5 years.

Debt Coverage: VEEV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VEEV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: VEEV has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if VEEV's debt is covered by short term assets.


Next Steps

Dividend

What is Veeva Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.8%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VEEV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VEEV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VEEV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VEEV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VEEV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Veeva Systems's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Peter Gassner (54yo)

12.8yrs

Tenure

US$322,917

Compensation

Mr. Peter P. Gassner Co-founded Veeva Systems Inc. in 2007 and has been its Chief Executive Officer since January 2007. Mr. Gassner is responsible for the overall direction and management of Verticals on D ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD322.92K) is below average for companies of similar size in the US market ($USD11.04M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.6yrs

Average Tenure

50.5yo

Average Age

Experienced Management: VEEV's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: VEEV's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: VEEV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$94,82808 Oct 19
Paul Sekhri
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares628
Max PriceUS$151.00
SellUS$2,513,62203 Sep 19
Timothy Cabral
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares15,000
Max PriceUS$167.57
SellUS$121,54919 Jun 19
Timothy Barabe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares727
Max PriceUS$167.19
SellUS$92,62303 Apr 19
Timothy Barabe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares727
Max PriceUS$127.41

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Management Team

  • Josh Faddis (47yo)

    Senior VP

    • Tenure: 7.2yrs
    • Compensation: US$322.92k
  • Alan Mateo (57yo)

    Executive Vice President of Global Sales

    • Tenure: 4.6yrs
    • Compensation: US$322.92k
  • Tim Cabral (52yo)

    Chief Financial Officer

    • Tenure: 9.8yrs
    • Compensation: US$322.92k
  • Peter Gassner (54yo)

    Founder

    • Tenure: 12.8yrs
    • Compensation: US$322.92k
  • Eleni Zuppas (49yo)

    Chief Marketing Officer

    • Tenure: 6.7yrs
    • Compensation: US$322.92k
  • Frederic Lequient (50yo)

    Senior Vice President of Global Customer Services

    • Tenure: 3.8yrs
    • Compensation: US$322.92k
  • Catherine Allshouse

    Global Chief Information Officer & Head of Operations

    • Tenure: 1.8yrs
  • Michele O'Connor (42yo)

    Chief Accounting Officer

    • Tenure: 0.7yrs
  • Tom Schwenger (51yo)

    President & COO

    • Tenure: 0.2yrs

Board Members

  • Ron Codd (64yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$312.49k
  • Tim Barabe (66yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$287.50k
  • Paul Sekhri (61yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$254.99k
  • Gordon Ritter (54yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$324.98k
  • Mark Carges (57yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$249.93k
  • Mary Hedley (56yo)

    Director

    • Tenure: 0.3yrs
  • Peter Gassner (54yo)

    Founder

    • Tenure: 12.8yrs
    • Compensation: US$322.92k
  • Paul Chamberlain (55yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$274.92k

Company Information

Veeva Systems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Veeva Systems Inc.
  • Ticker: VEEV
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$21.706b
  • Shares outstanding: 147.98m
  • Website: https://www.veeva.com

Number of Employees


Location

  • Veeva Systems Inc.
  • 4280 Hacienda Drive
  • Pleasanton
  • California
  • 94588
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VEEVNYSE (New York Stock Exchange)YesClass A Common StockUSUSDOct 2013
VEEDB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 2013
0LO3LSE (London Stock Exchange)YesClass A Common StockGBUSDOct 2013
VEEV *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNOct 2013

Biography

Veeva Systems Inc. provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, and internationally. The company offers Veeva Commercial Cloud, a suite of multic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 00:38
End of Day Share Price2019/11/12 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.