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Veeva Systems (VEEV)
NYSE:VEEV
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Veeva Systems
(NYSE:VEEV)
81Outperform
Positive Factors
Customer Trust
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 earnings report and benefitting from a flow of funds into healthcare related stocks.
Negative Factors
Healthcare Policy
Potential disruption from changes in healthcare policy, including job cuts at the FDA, and tariffs on pharmaceutical companies.
Investment Concerns
Some investors may have concerns about material incremental investments over the next several years.
Veeva Systems (VEEV) vs. S&P 500 (SPY)
Market Cap
$37.88B
Dividend YieldN/A
Average Volume (3M)1.25M
Price to Earnings (P/E)53.8
Beta (1Y)1.08
Revenue Growth16.20%
EPS Growth34.71%
CountryUS
Employees7,291
SectorHealthcare
Sector Strength46
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)1.74
Shares Outstanding162,696,040
10 Day Avg. Volume925,031
30 Day Avg. Volume1,251,265
Financial Highlights & Ratios
PEG Ratio7.95
Price to Book (P/B)6.60
Price to Sales (P/S)0.00
P/FCF Ratio35.82
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue3.59
Enterprise Value/Gross Profit18.36
Enterprise Value/Ebitda14.63
Forecast
1Y Price Target
$266.10Price Target Upside12.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
Veeva Systems Business Overview & Revenue Model
Company DescriptionVeeva 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 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 Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across various business segments, providing insight into which areas drive growth and where the company might face challenges or opportunities.
Breaks down revenue across various business segments, providing insight into which areas drive growth and where the company might face challenges or opportunities.
Data provided by:
Main Street Data
Main Street DataVeeva Systems Financial Statement Overview
Summary
Veeva Systems exhibits exceptional financial performance with strong revenue and profit growth, efficient operations, and a solid balance sheet with minimal leverage. The company demonstrates excellent cash flow management, supporting its stable and growing position 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.85
Very Positive
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.90
Very Positive
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.88
Very Positive
| 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
Positive
237.05
Price Trends
228.42
Positive
226.37
Positive
218.91
Positive
Market Momentum
3.53
Negative
58.29
Neutral
82.66
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 237.05 is above the 20-day moving average (MA) of 227.35, above the 50-day MA of 228.42, and above the 200-day MA of 218.91, indicating a bullish trend. The MACD of 3.53 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 82.66 is Negative, 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $37.88B | 53.77 | 13.63% | ― | 16.20% | 34.71% | |
76 Outperform | $27.06B | 20.32 | 21.65% | ― | 2.84% | -0.16% | |
71 Outperform | $43.88B | 30.26 | 16.73% | ― | -9.84% | -35.77% | |
71 Outperform | $32.29B | 14.83 | 26.32% | 0.19% | 1.55% | 38.51% | |
69 Neutral | $39.69B | 47.27 | 17.33% | ― | 78.01% | ― | |
60 Neutral | $35.18B | ― | -414.62% | ― | 17.21% | 21.16% | |
52 Neutral | $5.15B | 3.56 | -42.52% | 2.83% | 14.56% | -0.53% |
* Healthcare Sector Average
Performance Comparison
VEEV
Veeva Systems
237.05
33.19
16.28%
ALNY
Alnylam Pharma
251.15
101.26
67.56%
EW
Edwards Lifesciences
73.68
-11.02
-13.01%
IQV
IQVIA Holdings
148.99
-80.05
-34.95%
ARGX
Argenx Se
549.65
190.17
52.90%
GEHC
GE Healthcare Technologies Inc
69.87
-11.03
-13.63%
Veeva Systems Earnings Call Summary
Earnings Call Date:Mar 05, 2025
(Q4-2025)
| % Change Since: 7.78%|
Next Earnings Date:May 28, 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.Q4-2025 Updates
Positive Updates
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.
Negative Updates
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.Veeva Systems Corporate Events
Executive/Board ChangesShareholder Meetings
Veeva Systems Announces Board Member Retirement
Neutral
Mar 12, 2025
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.
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.