Veeva Systems (VEEV) AI Stock Analysis

• Market Cap: $46.63B
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 60.0
• Beta (1Y): 1.08
• Revenue Growth: 14.78%
• EPS Growth: 39.33%
• Country: US
• Employees: 7,291
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 1.97
• Shares Outstanding: 163,412,280
• 10 Day Avg. Volume: 2,328,229
• 30 Day Avg. Volume: 1,551,752
• PEG Ratio: 6.51
• Price to Book (P/B): 7.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.46
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 4.10
• Enterprise Value/Gross Profit: 20.60
• Enterprise Value/Ebitda: 15.85
• 1Y Price Target: $292.43
• Price Target Upside: 3.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24

• Rating: 81 Outperform
• Price Target: $323.00 ▲(14.00%Upside)

Veeva Systems scores highly due to its robust financial performance and positive earnings call, highlighting strong revenue growth and strategic advancements in AI and CRM markets. However, the high P/E ratio and potential overbought technical indicators present valuation concerns and a risk of short-term pullbacks.

Positive Factors

Financial Performance

Veeva reported a strong start to the fiscal year, materially outperforming expectations across the board with total revenue and subscription revenue growth of 17% and 19%, respectively.

Market Position

Veeva is well-positioned in the early stages of life science digitization.

Product Development

The company is successfully transitioning to its Vault CRM system.

Negative Factors

Competitive Landscape

Veeva Systems has faced recent losses in top 20 CRM deals, with competitors like Salesforce offering highly customized solutions.

Growth Concerns

There are concerns about commercial growth sustainability due to the 'lumpy' demand described by management.

Valuation Concerns

The stock's valuation and growing competitive risk, particularly with Salesforce, contribute to a Neutral rating despite earnings upside potential.

Veeva Systems Business Overview & Revenue Model

Company Description

Veeva Systems Inc. provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, the Middle East, Africa, and Latin America. The company offers Veeva Commercial Cloud, a suite of software, data, and analytics solutions, which include Veeva customer relationship management (CRM) and Veeva Medical CRM, Veeva CLM, Veeva CRM MyInsights, Veeva CLM, Veeva CRM Approved Email, Veeva CRM Engage, Veeva Align, Veeva CRM Events Management, Veeva Nitro, Veeva OpenData, Veeva Link, Veeva Network, Veeva Crossix, Veeva Data Cloud, and MyVeeva for Patients; and Veeva Vault, a cloud-based enterprise content and data management applications for managing commercial functions, including sales and marketing, and medical content and communications, as well as research and development functions, such as clinical, regulatory, quality, and safety. It also provides professional and support services in the areas of implementation and deployment planning and project management; requirements analysis, solution design, and configuration; systems environment management and deployment services; services focused on advancing or transforming business and operating processes related to Veeva solutions; technical consulting services related to data migration and systems integrations; training on its solutions; and ongoing managed services that include outsourced systems administration. The company was formerly known as Verticals onDemand, Inc. and changed its name to Veeva Systems Inc. in April 2009. Veeva Systems Inc. was incorporated in 2007 and is headquartered in Pleasanton, California.

How the Company Makes Money

Veeva Systems generates revenue primarily through subscription fees for its cloud-based software solutions offered to the life sciences sector. The company's revenue model is largely based on multi-year contracts with customers, which provide a steady and predictable income stream. Key revenue streams include Veeva Vault, Veeva CRM, and Veeva Network, each catering to different aspects of the life sciences industry such as content management, customer engagement, and data management, respectively. Additionally, Veeva offers professional services, including implementation, training, and support, which contribute to its overall earnings. Strategic partnerships with major pharmaceutical companies and other stakeholders in the life sciences ecosystem further enhance Veeva's revenue potential by expanding its market reach and customer base.

Veeva Systems Financial Statement Overview

Summary

Veeva Systems exhibits strong financial performance with robust revenue growth, excellent profitability margins, and a stable balance sheet with minimal leverage. The company's cash flow management is exceptional, supporting operational and growth needs effectively. Potential risks include a slight decrease in EBIT Margin and the need to maintain growth momentum.

Income Statement

Veeva Systems demonstrates strong revenue growth with a Revenue Growth Rate of 17.5% from the previous year and a solid Gross Profit Margin of 75.5% for TTM. The company maintains a high EBIT Margin of 27% and a Net Profit Margin of 27.3%, indicating robust profitability. However, there is a slight decrease in EBIT Margin compared to the previous year, which could be a point of concern if it continues.

Balance Sheet

The balance sheet is highly stable with a low Debt-to-Equity Ratio of 0.0124, showcasing minimal leverage and financial risk. The Equity Ratio stands at 80%, reflecting a strong capital base. The Return on Equity (ROE) is impressive at 12.6% for TTM, indicating efficient use of equity capital to generate profits. The strong liquidity position further enhances the company's financial stability.

Cash Flow

Veeva Systems exhibits consistent cash flow generation with a strong Operating Cash Flow to Net Income Ratio of 1.54 and a Free Cash Flow to Net Income Ratio of 1.54, highlighting efficient cash conversion. The Free Cash Flow Growth Rate is 10.4%, demonstrating healthy cash flow management. The company's cash flow performance supports its operational and growth needs effectively.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
2.86B	2.75B	2.36B	2.16B	1.85B	1.47B
	Gross Profit
2.16B	2.05B	1.69B	1.55B	1.35B	1.06B
	EBIT
770.00M	691.43M	429.33M	459.09M	505.50M	377.79M
	EBITDA
790.95M	730.82M	461.96M	488.21M	532.94M	407.25M
	Net Income Common Stockholders
780.66M	714.14M	525.71M	487.71M	427.39M	380.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.49B	5.15B	4.03B	3.10B	2.38B	1.66B
	Total Assets
1.90B	7.34B	5.91B	4.80B	3.82B	3.05B
	Total Debt
27.31M	75.78M	55.77M	60.98M	54.59M	63.12M
	Net Debt
-865.27M	-1.04B	-647.71M	-825.49M	-1.08B	-667.39M
	Total Liabilities
341.88M	1.51B	1.27B	1.09B	904.83M	779.75M
	Stockholders Equity
1.56B	5.83B	4.64B	3.72B	2.91B	2.27B
Cash Flow		Free Cash Flow
1.20B	1.09B	885.14M	777.98M	761.97M	551.81M
	Operating Cash Flow
1.20B	1.09B	911.34M	780.47M	764.46M	551.25M
	Investing Cash Flow
-479.87M	-700.14M	-1.08B	-1.01B	-346.15M	-333.63M
	Financing Cash Flow
42.67M	26.11M	-16.19M	-19.38M	-4.14M	33.82M

Veeva Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 283.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 283.33 is above the 20-day moving average (MA) of 256.41, above the 50-day MA of 237.65, and above the 200-day MA of 225.66, indicating a bullish trend. The MACD of 14.40 indicates Negative momentum. The RSI at 71.24 is Negative, neither overbought nor oversold. The STOCH value of 90.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VEEV.

Veeva Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEEV	81 Outperform	$46.63B	60.04	14.07%	―	14.78%	39.33%
IQV	76 Outperform	$26.35B	21.01	21.65%	―	2.84%	-0.16%
GEHC	75 Outperform	$32.79B	15.06	26.32%	0.18%	1.55%	38.51%
EW	71 Outperform	$45.47B	51.02	16.73%	―	-9.84%	-35.77%
ARGX	70 Outperform	$35.93B	42.02	17.33%	―	78.01%	―
ALNY	64 Neutral	$39.22B	―	-414.62%	―	17.21%	21.16%
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%

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.