Fundamental Analysis
About Veeva Systems
Veeva Systems Inc. is a leader in cloud-based software for the global life sciences industry. Committed to innovation, product excellence, and customer success, Veeva has more than 625 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. Veeva is headquartered in the San Francisco Bay Area, with offices in Europe, Asia, and Latin America.
Reasons to buy – VEEVA SYSTEMS
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see VEEVA SYSTEMSmakes a margin of 69% on Gross Level and about 20% on Net level. This means that out of $1 that it makes $0.2 is being pocketed as profits. This is among the best margins across a ton of companies.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 26% in the revenue and the net profit figures grew by 106%. The huge increase in the Net Profit when compared to the Revenue Growth points to an increase in the Net Margins.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see VEEVA SYSTEMS makes a Return on Assets of 47% and Return of Equity of 65% which is pretty good. Even the Debt/Equity ratio is great.
Although you would notice very less chatter on the media on this stock you can be sure that the last 3 month/one year returns on this stock are amazing. Although this being in the Medical/IT space may not be a consistent continuously up-trending earnings trajectory.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by VEEVA SYSTEMS to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
