Veeva Systems Inc. (NYSE:VEEV) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of VEEV, it is a company with great financial health as well as a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Veeva Systems here.
Flawless balance sheet with solid track record
Over the past year, VEEV has grown its earnings by 62%, with its most recent figure exceeding its annual average over the past five years. Not only did VEEV outperformed its past performance, its growth also surpassed the Healthcare Services industry expansion, which generated a 40% earnings growth. This paints a buoyant picture for the company. VEEV’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. VEEV currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is rather impressive for a US$18b market cap company. VEEV has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For Veeva Systems, there are three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for VEEV’s future growth? Take a look at our free research report of analyst consensus for VEEV’s outlook.
- Valuation: What is VEEV worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether VEEV is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VEEV? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.