Veeva Systems (VEEV) AI Stock Analysis

• Market Cap: $35.31B
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 50.1
• Beta (1Y): 1.12
• Revenue Growth: 16.20%
• EPS Growth: 34.71%
• Country: US
• Employees: 7,291
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 4.33
• Shares Outstanding: 162,696,040
• 10 Day Avg. Volume: 1,386,582
• 30 Day Avg. Volume: 1,467,471
• PEG Ratio: 1.44
• Price to Book (P/B): N/A
• Price to Sales (P/S): 18.98
• Price to Cash Flow (P/CF): 58.60
• P/FCF Ratio: 60.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $265.38
• Price Target Upside: 22.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

Veeva Systems demonstrates a strong financial position, with impressive growth in revenue and profitability, supported by a solid balance sheet and robust cash flow performance. Technical indicators show a positive trend, although valuation remains high, posing a potential risk if growth expectations falter. The recent earnings call underscores strategic progress and future growth potential, despite some minor challenges. Overall, Veeva Systems is well-placed for continued success in the healthcare services industry.

Positive Factors

Customer Expansion

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.

Earnings

VEEV has outperformed, buoyed by a solid Q4 earnings report and benefitting from a flow of funds into healthcare related stocks.

Product Offering

Veeva's AI strategy includes offering new AI solutions for free within its existing products, which enhances value for customers and could strengthen market position.

Negative Factors

Healthcare Policy

Potential disruption from changes in healthcare policy, including job cuts at the FDA, and tariffs on pharmaceutical companies.

Macro Environment

Veeva is not immune from the macro environment that's been more volatile in Life Sciences in recent years relative to history.

Valuation Concerns

Much of the near-term upside is believed to be priced into the shares, supporting a Neutral rating on valuation.

Veeva Systems Business Overview & Revenue Model

Company Description

Veeva 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 Money

Veeva 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 is performing exceptionally well across all financial metrics. The company shows strong revenue and profit growth, efficient operational performance, and a solid balance sheet with minimal leverage. Its robust cash flow metrics further support its positive financial health. Veeva Systems is well-positioned for sustainable growth in the healthcare services industry.

Income Statement

Veeva Systems shows strong revenue growth with a TTM increase of 16.2% compared to the previous year. The gross profit margin is robust at 74.5%, and the net profit margin has improved to 26.0% from 22.2% in the previous year. EBIT and EBITDA margins are also strong at 25.2% and 25.9%, respectively. The company exhibits solid profitability and growth momentum.

Balance Sheet

The balance sheet is very strong with a low debt-to-equity ratio of 0.013, indicating minimal leverage. The equity ratio is high at 79.5%, suggesting a strong equity position relative to total assets. Return on equity is impressive at 12.2%, reflecting efficient use of equity to generate profits. Overall, the company maintains a stable and low-risk financial structure.

Cash Flow

Veeva Systems demonstrates excellent cash flow performance with a 21.9% increase in free cash flow over the previous year. The operating cash flow to net income ratio is 1.53, indicating strong cash generation relative to reported earnings. The free cash flow to net income ratio is also high at 1.51, highlighting effective cash management. Cash flow metrics are robust, supporting the company's growth and stability.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
2.75B	2.36B	2.16B	1.85B	1.47B
	Gross Profit
2.05B	1.69B	1.55B	1.35B	1.06B
	EBIT
691.43M	429.33M	459.09M	505.50M	377.79M
	EBITDA
691.43M	461.96M	488.21M	505.50M	407.25M
	Net Income Common Stockholders
714.14M	525.71M	487.71M	427.39M	380.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.15B	4.03B	3.10B	2.38B	1.66B
	Total Assets
7.34B	5.91B	4.80B	3.82B	3.05B
	Total Debt
75.78M	55.77M	60.98M	54.59M	63.12M
	Net Debt
-1.04B	-647.71M	-825.49M	-1.08B	-667.39M
	Total Liabilities
1.51B	1.27B	1.09B	904.83M	779.75M
	Stockholders Equity
5.83B	4.64B	3.72B	2.91B	2.27B
Cash Flow		Free Cash Flow
1.09B	885.14M	777.98M	761.97M	551.81M
	Operating Cash Flow
1.09B	911.34M	780.47M	764.46M	551.25M
	Investing Cash Flow
-700.14M	-1.08B	-1.01B	-346.15M	-333.63M
	Financing Cash Flow
26.11M	-16.19M	-19.38M	-4.14M	33.82M

Veeva Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 217.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEEV, the sentiment is Negative. The current price of 217.04 is below the 20-day moving average (MA) of 229.72, below the 50-day MA of 230.69, and above the 200-day MA of 214.46, indicating a neutral trend. The MACD of 0.95 indicates Positive momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 21.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VEEV.

Veeva Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEEV	79 Outperform	$35.31B	50.13	13.63%	―	16.20%	34.71%
IQV	74 Outperform	$27.68B	20.95	22.55%	―	2.95%	2.46%
EW	68 Neutral	$40.42B	27.38	17.17%	―	-4.67%	6.23%
ARGX	68 Neutral	$33.37B	39.52	17.33%	―	78.01%	―
GEHC	63 Neutral	$27.89B	14.05	25.60%	0.21%	0.61%	43.28%
ALNY	50 Neutral	$30.30B	―	-414.62%	―	22.97%	38.54%
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%

Veeva Systems Corporate Events

Veeva Systems Announces Board Member Retirement

On March 10, 2025, Tina Hunt announced her retirement from the board of directors at Veeva Systems Inc., effective immediately before the 2025 annual meeting of shareholders. Consequently, Dr. Hunt will not seek re-election at the upcoming meeting, marking a significant change in the board’s composition.