One-glance verdict
Within fair range
$370.92 our estimate vs market $318.18
Wall Street consensus: $300.56 (-19.0% lower than our fair-value estimate)
14% below our estimate
Fundamentals snapshot
Veeva Systems Inc.
VEEV · NYQ · Healthcare · Health Information Services
Current price
$318.18
52-week range
$148.05 - $325.99
Market cap
$51.52B
Balance sheet
Healthy
3.43x Stretched
Net cash $7.09B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 8.2% last year.
- Reward Returns 14.4% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 4/10 years.
What this company does
Veeva Systems Inc.
Veeva Systems provides specialized cloud software for pharmaceutical and biotech companies to manage everything from developing new drugs to selling them. The company primarily makes money from subscription fees, which creates predictable recurring revenue (income that a company can reliably expect to receive at regular intervals). This matters because the software is deeply integrated into its customers' critical work, making them very loyal and unlikely to switch to a competitor.
How the company got here
Founded in 2007, Veeva Systems started with a specific idea: the life sciences industry, which includes companies that make medicines and medical devices, needed specialized cloud-based software. Their first big product was a Customer Relationship Management (CRM) tool, which helps sales teams manage their interactions with doctors and hospitals, built using Salesforce's technology. A key moment was the introduction of Veeva Vault, a system for managing the vast amount of regulated documents and data required in drug development. The company went public in 2013 and has since grown by adding more applications to its platform and acquiring other companies, like Crossix for data analytics.
What it actually does
Think of Veeva as providing the digital backbone for the companies that discover, make, and sell pharmaceuticals and other life science products. They offer a suite of online software that helps these companies manage everything from clinical trials and quality control to marketing and sales. This means instead of using generic software, a pharmaceutical company can use Veeva's tools that are specifically designed for their industry's strict rules and complex processes. Their products help manage the entire lifecycle of a drug, from the research and development (R&D) phase all the way to when it's being sold to patients.
Veeva Commercial Cloud
This part of the business helps life sciences companies with the sales and marketing side of their operations. Its main product is Veeva CRM, a specialized tool for sales representatives to track their meetings and relationships with healthcare professionals. This segment also includes data products that provide information on doctors and healthcare organizations, and tools to manage promotional materials in a way that complies with industry regulations. This is a major part of Veeva's business, making up a significant portion of its subscription revenue.
Veeva Development Cloud
This segment focuses on the research and development (R&D) side of the life sciences industry, helping companies manage the long and complex process of creating new drugs and treatments. It offers a collection of applications that handle clinical trial data, manage regulatory submissions to health authorities like the FDA, and oversee product quality and safety. By unifying these different functions on one platform, it aims to make drug development faster and more efficient. This is Veeva's largest and fastest-growing business area.
Professional Services
In addition to selling software subscriptions, Veeva also offers services to help its customers implement and use its products effectively. This can include planning the initial setup, migrating data from old systems, and providing ongoing technical support and training. These services help ensure that the large pharmaceutical companies and smaller biotechs that use Veeva's software can get the most out of their investment. While smaller than its subscription businesses, these services are an important part of its customer relationships.
What management is betting on now
Veeva is making a big bet on moving its customers to its own Vault platform for all its applications, including its CRM, which will reduce its dependence on Salesforce's technology. The company sees a large opportunity in expanding its Development Cloud, as many potential customers are still using older, less efficient systems for their clinical and quality processes. Additionally, Veeva is focused on embedding artificial intelligence (AI) into its software to help automate tasks and provide smarter insights from the vast amounts of data its systems manage. Management is also aiming to get its existing large pharmaceutical clients to adopt even more of its products across their different departments.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$927.96M
Net income
$273.43M
Diluted EPS
1.66
Operating cash flow
$238.71M
Free cash flow
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Revenue
$882.95M
Net income
$260.94M
Diluted EPS
1.57
Operating cash flow
$1.13B
Free cash flow
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Revenue
$835.95M
Net income
$244.20M
Diluted EPS
1.48
Operating cash flow
$106.85M
Free cash flow
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Revenue
$811.24M
Net income
$236.20M
Diluted EPS
1.40
Operating cash flow
$192.79M
Free cash flow
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Revenue
$789.08M
Net income
$200.31M
Diluted EPS
1.19
Operating cash flow
$238.43M
Free cash flow
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Revenue
$759.04M
Net income
$228.19M
Diluted EPS
1.37
Operating cash flow
$877.16M
Free cash flow
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Revenue
$720.89M
Net income
$195.62M
Diluted EPS
1.17
Operating cash flow
$69.54M
Free cash flow
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Revenue
$699.21M
Net income
$185.81M
Diluted EPS
1.13
Operating cash flow
$164.12M
Free cash flow
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Is it cheap or expensive?
Fair value $370.92 vs current price $318.18
Wall Street consensus is the average analyst price target: $300.56 (-19.0% lower than our fair-value estimate).
Our most-likely fair value is $370.92 a share — about 16.6% away from today's price of $318.18, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $7.1B - more cash than debt. Interest coverage 3.4x.
Net debt
$-7.09B
Interest coverage
3.43x
Veeva Systems Inc.'s profit covers its interest bill about 3.4 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
VEEV
BASELINE
Veeva Systems Inc.
Total debt $151.70M Interest coverage 3.43x This is the baseline the peer rows are being compared against.
Total debt $16.25B Interest coverage 3.14x -9% vs VEEV Has roughly the same debt cushion as VEEV.
Total debt $167.06M Interest coverage -1.82x -100% vs VEEV This peer has almost no interest-payment cushion compared with VEEV.
Total debt $169.14B Interest coverage 4.88x +42% vs VEEV Carries about 1.4x more debt cushion than VEEV.
Total debt $169.98M Interest coverage -1.76x -100% vs VEEV This peer has almost no interest-payment cushion compared with VEEV.
Total debt $22.06B Interest coverage 6.04x +76% vs VEEV Carries about 1.8x more debt cushion than VEEV.
What you should know
The case for and against VEEV
3 Rewards
0 Risks
Rewards
-
Revenue grew 8.2% last year.
-
Returns 14.4% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
52.16x
Forward P/E
31.04x
P/B
6.93x
P/S
14.90x
EV/EBITDA
41.31x
PEG ratio
1.25x
Profitability
How much profit each dollar creates
Gross margin
75.0%
Operating margin
29.6%
Net margin
29.3%
ROE
14.4%
ROA
7.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
5.46x
Quick ratio
5.36x
Total debt
$151.70M
Total cash
$7.24B
Growth
How the business has been compounding
Revenue TTM
$3.46B
Revenue 5Y CAGR
14.6%
EPS TTM
6.10
EPS 5Y CAGR
21.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.67B
Free CF TTM
$1.42B
FCF margin
40.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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