What's missing?

Interested to know what you all think about VEEV?

Veeva Systems Inc. is an American cloud-computing company focused on pharmaceutical and life sciences industry applications.

From what I can see their:

  • market cap is $33,680M
  • gross margin 72%
  • LTM FCF is 40%
  • been around since 2013 but really started to take off last year it seems
  • last 4 quarters of growth have been 27%, 25%, 34% and 38%
  • guidance is for next Q is lower at 28%
  • Veeva estimates its TAM at $9 billion
  • $1.41 billion in net cash

Is this a case of a solid company growing a good rate but just not as quickly or powerfully as a ZM, CRWD, DDOG, etc?

TAM not as big as others because they are focused currently just in life sciences?

I’d like to learn and better understand how you all analyze a company like this. (Yes, I’ve gone through the knowledge base and many of the other great articles here - thank you!)

But would certainly appreciate really understanding how you think about a company with metrics like this?

Thank you!
Miklo

4 Likes

Welcome Miklo… VEEV has often been discussed here. You can learn more through those discussions by googling:

veev +sauls +site:discussion.fool.com

Best,

🆁🅶🅱
post tenebras lux
For not in my bow do I trust, nor can my sword save me.

2 Likes

Thanks for the reply. I did search through past posts before posting above and have gone back and re-read them again. From what I read it seems that VEEV was considered a solid company growing well, with a strong moat … but wasn’t/isn’t growing as fast as some of the other companies we own that are discussed on this board - is that correct?

When you all look at the #s above of VEEV what tells you right away it’s not an ideal investment? I’m trying to learn how to break these companies down and expand my thinking. Thank you!

When you all look at the #s above of VEEV what tells you right away it’s not an ideal investment?

  • guidance is for next Q is lower at 28%

If it were truly “ideal,” it would be growing faster. It’s been great for the last few years because not only has revenue grown well, but the valuation multiples (like PS ratio) have expanded. It’s hard to see the multiples expanding further unless revenue starts growing a lot faster (at least 50%+) on a sustained basis. That seems really unlikely. This is probably a solid hold but far from “ideal.”

Bear

5 Likes

Bear - appreciate the reply. That does help and confirms what I was thinking (but I’m still early stages here learning so great to get your feedback and others). Thanks!