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Veeva Systems Inc (VEEV)
:VEEV
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Veeva Systems
(NYSE:VEEV)79Outperform
Positive Factors
Customer Growth
Veeva expanded with a major top 20 customer that is going 'all in' with Veeva's R&D platform, indicating strong customer trust and future growth potential.
Financial Performance
Veeva delivered a F4Q beat & guided FY26 comfortably ahead of consensus.
Negative Factors
Industry Dynamics
Despite raising EPS estimates, the projected P/E has been trimmed due to a slightly more mixed set of industry dynamics, including CRO pressure and NIH funding risk.
Veeva Systems (VEEV) vs. S&P 500 (SPY)
Market Cap
$38.34B
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)57.0
Beta (1Y)1.21
Revenue Growth15.67%
EPS Growth15.64%
CountryUS
Employees7,172
SectorHealthcare
Sector Strength74
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)4.33
Shares Outstanding162,350,360
10 Day Avg. Volume1,772,836
30 Day Avg. Volume1,174,874
Financial Highlights & Ratios
PEG Ratio1.64
Price to Book (P/B)N/A
Price to Sales (P/S)18.93
Price to Cash Flow (P/CF)58.40
P/FCF Ratio60.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$264.39Price Target Upside7.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering24
Veeva Systems Business Overview & Revenue Model
Company DescriptionVeeva Systems Inc. is a leading provider of cloud-based software solutions tailored for the global life sciences industry. Founded in 2007 and headquartered in Pleasanton, California, Veeva's platforms are designed to address the unique needs of life sciences companies in areas such as customer relationship management, content management, and data analytics. The company's core products include Veeva Vault, Veeva CRM, and Veeva Data Cloud, which help organizations improve their operational efficiency, compliance, and product development processes.
How the Company Makes MoneyVeeva Systems generates revenue primarily through subscriptions to its cloud-based software solutions and professional services. The company's subscription model provides a steady stream of recurring revenue as customers pay for access to its platforms, which are typically sold on multi-year contracts. Veeva also offers professional services, including consulting, implementation, and training, which complement its software offerings. Key partnerships with leading pharmaceutical and biotech companies further enhance its revenue streams, as these collaborations often involve the co-development and integration of Veeva's solutions into clients' operations. Additionally, Veeva's focus on expanding its product portfolio and geographic reach contributes to its growth and profitability.
Veeva Systems Financial Statement Overview
Summary
Veeva Systems presents strong financial performance with consistent revenue growth, high profitability margins, minimal leverage, and robust cash flow generation. The company's financials indicate a well-managed, financially stable, and profitable business with significant growth potential.Income Statement
Veeva Systems demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) of 12.4% compared to the previous year. The company maintains a healthy gross profit margin of 73.8% and a net profit margin of 25.1%, indicating robust profitability. EBIT and EBITDA margins are also solid at 24.0% and 25.1%, respectively, showcasing effective cost management and operational efficiency. Overall, the income statement reflects a stable and growing financial performance with excellent profitability metrics.85
Very Positive
Balance Sheet
The balance sheet of Veeva Systems is strong, with a low debt-to-equity ratio of 0.013, indicating minimal leverage and a low financial risk profile. The return on equity is impressive at 12.1%, reflecting efficient use of shareholder capital. The equity ratio stands at a solid 85.3%, signifying a strong equity base relative to total assets, which enhances financial stability. These metrics demonstrate a well-capitalized and financially stable position, reducing potential risks associated with debt.90
Very Positive
Cash Flow
Veeva Systems exhibits a healthy cash flow position, with a free cash flow growth rate of 19.6% in the most recent TTM period. The operating cash flow to net income ratio is high at 1.62, reflecting strong cash generation relative to net income. Furthermore, the free cash flow to net income ratio is equally robust at 1.59, indicating effective conversion of net income into free cash flow. The cash flow statement highlights strong operational cash generation capabilities, supporting ongoing growth initiatives.88
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.75B | 2.36B | 2.16B | 1.85B | 1.47B | 1.10B | Gross Profit |
| 2.05B | 1.69B | 1.55B | 1.35B | 1.06B | 800.71M | EBIT |
| 691.43M | 429.33M | 459.09M | 505.50M | 377.79M | 286.22M | EBITDA |
| 710.95M | 461.96M | 488.21M | 505.50M | 407.25M | 286.22M | Net Income Common Stockholders |
| 714.14M | 525.71M | 487.71M | 427.39M | 380.00M | 301.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.15B | 4.03B | 3.10B | 2.38B | 1.66B | 1.09B | Total Assets |
| 7.34B | 5.91B | 4.80B | 3.82B | 3.05B | 2.27B | Total Debt |
| 75.78M | 55.77M | 60.98M | 54.59M | 63.12M | 54.83M | Net Debt |
| -1.04B | -647.71M | -825.49M | -1.08B | -667.39M | -421.90M | Total Liabilities |
| 1.51B | 1.27B | 1.09B | 904.83M | 779.75M | 606.18M | Stockholders Equity |
| 5.83B | 4.64B | 3.72B | 2.91B | 2.27B | 1.67B |
| Cash Flow | Free Cash Flow | ||||
| 1.08B | 885.14M | 777.98M | 761.97M | 551.81M | 433.05M | Operating Cash Flow |
| 1.09B | 911.34M | 780.47M | 764.46M | 551.25M | 437.38M | Investing Cash Flow |
| -700.14M | -1.08B | -1.01B | -346.15M | -333.63M | -516.91M | Financing Cash Flow |
| 26.11M | -16.19M | -19.38M | -4.14M | 33.82M | 10.01M |
Veeva Systems Technical Analysis
Positive
246.80
Price Trends
224.70
Positive
223.70
Positive
209.79
Positive
Market Momentum
0.78
Negative
67.03
Neutral
69.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEEV, the sentiment is Positive. The current price of 246.8 is above the 20-day moving average (MA) of 229.37, above the 50-day MA of 224.70, and above the 200-day MA of 209.79, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 67.03 is Neutral, neither overbought nor oversold. The STOCH value of 69.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VEEV.
Veeva Systems Risk Analysis
Veeva Systems disclosed 43 risk factors in its most recent earnings report. Veeva Systems reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veeva Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $38.34B | 57.01 | 13.63% | ― | 15.67% | 15.64% | |
79 Outperform | $67.50B | 128.95 | 6.15% | ― | 17.04% | -62.24% | |
78 Outperform | $193.43B | 36.22 | 36.31% | ― | 11.02% | 4.96% | |
71 Outperform | $178.62B | 124.35 | 16.53% | ― | 22.44% | -18.31% | |
70 Outperform | $32.77B | 24.74 | 22.55% | ― | 2.95% | 2.46% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
VEEV
Veeva Systems
246.80
19.05
8.36%
ADBE
Adobe
449.40
-111.02
-19.81%
WDAY
Workday
252.38
-14.34
-5.38%
NOW
ServiceNow
850.63
93.89
12.41%
IQV
IQVIA Holdings
191.63
-66.95
-25.89%
Veeva Systems Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: 12.21% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Positive
The earnings call for Veeva Systems highlighted a strong finish to the fiscal year with robust financial performance and strategic wins, particularly in the clinical space. Significant advancements in AI and data cloud offerings position the company well for future growth. However, the guidance reflects slight deceleration in subscription growth, and there are potential external risks due to policy changes that could affect future performance. Overall, the positive momentum and strategic achievements outweigh the challenges noted.Highlights
Strong Quarterly and Annual Financial Performance
Fourth quarter total revenue was $721 million with non-GAAP operating income of $308 million. For the full year, total revenue reached $2.75 billion with non-GAAP operating income of $1.15 billion.
Top 20 Customer Win in Clinical
Veeva secured a significant deal with a top 20 pharmaceutical company for a full clinical platform. This reflects a strategic consolidation trend among large pharma companies.
Expansion and Innovation in AI Strategy
Significant progress made on AI strategy with new product launches including CRM Voice Control, CRM Bot, and MLR Bot. Veeva is focusing on AI solutions with a centralized group for development.
Momentum in Data Cloud and Compass
Increased interest in Data Cloud, including Compass, OpenData, Link, and the new Pulse product. Plans to expand offerings and customer base, with initiatives to serve smaller companies.
Record Operating Margin Guidance
Full-year margin guide at the highest level ever, driven by efficiency and scale across product and sales teams.
Lowlights
Minor Deceleration in Subscription Growth
Fiscal 2026 guidance reflects a slight deceleration in subscription growth, particularly within the Crossix segment, due to tough year-over-year comparisons.
Challenges in Achieving Incentive Compensation Grade with Compass
While progress is being made, Compass prescriber data is not yet widely used for incentive compensation. Full integration into enterprise systems remains a year or more away.
Potential Impact of Policy Changes on Client Decisions
Uncertainty around government policies and economic conditions could delay decision-making among customers, though no immediate impact has been noted.
Company Guidance
During the Veeva Systems fiscal 2025 fourth quarter and full year results conference call, the company provided guidance and shared several key financial metrics. For the fourth quarter, Veeva reported total revenue of $721 million and a non-GAAP operating income of $308 million. For the full fiscal year, total revenue reached $2.75 billion, accompanied by a non-GAAP operating income of $1.15 billion. The company has set a 2030 revenue goal of $6 billion, indicating confidence in the significant opportunities ahead. They also discussed the progress on their AI strategy and expansion into new markets. Additionally, Veeva highlighted the strength across its business, achieving results above guidance, and noted that the total addressable market (TAM) for clinical operations represents roughly one-third of their opportunity.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.