Veeva Systems Inc (VEEV, Financial) has been making waves in the stock market with a significant gain of 10.53% over the past week and a remarkable increase of 24.33% over the past three months. The company's current market cap stands at $33.25 billion, with a stock price of $207.5. According to the GF Value, defined by GuruFocus.com, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, Veeva Systems Inc is significantly undervalued with a GF Value of $336.09. This status has remained consistent over the past three months, indicating a potential opportunity for investors.
Unpacking Veeva Systems Inc
Veeva Systems Inc is a global leader in the Healthcare Providers & Services industry, providing cloud-based software solutions for the life sciences sector. The company's best-of-breed offerings address operating and regulatory requirements for customers ranging from small, emerging biotechnology companies to departments of global pharmaceutical manufacturers. Veeva Systems Inc leverages its domain expertise to improve the efficiency and compliance of the underserved life sciences industry, displacing large, highly customized and dated enterprise resource planning systems that have limited flexibility. Its two main products are Veeva CRM, a customer relationship management platform for companies with a salesforce, and Veeva Vault, a content management platform that tackles various functions within any life sciences company.
Profitability Analysis
Veeva Systems Inc boasts a Profitability Rank of 10/10, indicating a high level of profitability and a strong likelihood of maintaining this status. The company's key profitability metrics are impressive, with an Operating Margin of 18.06%, better than 87.83% of 649 companies in the industry. The ROE stands at 14.93%, better than 81.15% of 610 companies, while the ROA is 11.72%, better than 90.7% of 667 companies. The ROIC is 27.58%, better than 94.74% of 666 companies. Veeva Systems Inc has consistently demonstrated profitability over the past 10 years, outperforming 99.81% of 523 companies.
Growth Prospects
The company's Growth Rank is 10/10, indicating strong growth in terms of revenue and profitability. Key growth metrics include a 3-Year Revenue Growth Rate per Share of 23.90%, better than 79.02% of 572 companies, and a 5-Year Revenue Growth Rate per Share of 25.20%, better than 87.42% of 445 companies. The future total revenue growth rate is estimated at 14.20%, better than 67.36% of 144 companies. The company's EPS growth rates are also promising, with a 3-Year EPS without NRI Growth Rate of 16.40%, better than 61.62% of 482 companies, a 5-Year EPS without NRI Growth Rate of 24.10%, better than 76.21% of 290 companies, and a future EPS without NRI Growth Rate of 22.79%, better than 85.19% of 27 companies.
Top Holders of Veeva Systems Inc
The top three holders of Veeva Systems Inc's stock include Ron Baron (Trades, Portfolio), who holds 636,395 shares, Al Gore (Trades, Portfolio), who holds 503,480 shares, and Ray Dalio (Trades, Portfolio), who holds 493,959 shares. Their respective share percentages are 0.4%, 0.31%, and 0.31%.
Competitive Landscape
Veeva Systems Inc faces competition from other companies in the Healthcare Providers & Services industry. These include Cerner Corp (CERN, Financial) with a market cap of $27.92 billion, Change Healthcare Inc (CHNG, Financial) with a market cap of $9.03 billion, and Doximity Inc (DOCS, Financial) with a market cap of $4.69 billion.
Conclusion
In conclusion, Veeva Systems Inc's strong stock performance, high profitability and growth ranks, and significant holdings by top investors make it a compelling option for investors. The company's position in the industry and its potential for future growth, coupled with its undervalued status according to the GF Value, suggest that it is well-positioned for continued success.
