The SaaS company Veeva was mentioned on the board recently. When it came through one of my screens-for-outsiders, I did a bit of DD and decided to have a small punt.

It is a gamble. The PEG will certainly get the raised eyebrow and the curt wave of dismissal here! Price $67/full year EPS guidance .84 = PE 80/a stab at growth of 37 = PEG 2.2 - or worse, much worse, read in different ways.

P/FCF is 68 save the Lord. Good grief.

And it currently fails ROIC by a long chalk, normally a game-stopper for me.

The company seems to have two main divisions. ‘Vault’ helps drug companies bring their products to market in 14 different ways via cloud-based subscriptions (whatever that means) which tend to be recurring. Vault customers with more than one product are up 70% yoy.

There is political risk, on the basis that a lower price for drugs, imposed or self-inflicted, means more pressure on what you can or will pay to get them to market.

The other division is also something cloud-based, but different. This clueless information reminds me of the tone-deaf patriot who said ‘I only know two tunes: one’s The Star-Spangled Banner and the other isn’t.’

45% of revenue comes from the top ten customers.

8% short.

Competition is right out there, both from big players and smaller.

The company is starting to lightly expand into other areas besides drugs.

A couple of metrics got my attention. Wish I had paid attention before. I haven’t run that screen in months. You snooze, you lose.

Big downside, upside limited by price? Well, the bet is on and so is the desktop note of the stop-loss. This is for fun not disaster. I should probably have posted it on the How to Lose Money in Short Order board, not here.


Article on VEEVA:…

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Thank you for posting that very interesting article which I would otherwise have missed.