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Veeva Systems Inc.

Data period: Annual Quarterly Graham uses annual
NYSE · Healthcare
Veeva Systems Inc.
VEEV · Health Information Services
$153.30
▼ -1.55 (-1.0%)
Cached · 10 min
Overall Grade
B
Defensive
A
Enterprising
Profitability
A
Gross Profit Margin 75.0%
Operating Margin 30.9%
Net Income Margin 29.6%
Fin. Health
A
Years to Pay Off Debt 0.4 yrs
Working Capital vs Long-Term Debt $6.3B
Working Capital $6.4B
Valuation
F
Margin of Safety 0.0%
Price-to-Book 3.41x
Cash Flow
A
Free Cash Flow $1.1B
About Veeva Systems Inc.
Veeva 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 comprising Veeva Vault CRM Suite for pharmaceutical and biotechnology companies; Veeva Medical that provides source of medical content across multiple channels and geographies; Veeva PromoMats, an end-to-end content and digital asset management solution; and Veeva Crossix, an analytics platform for pharmaceutical brands. It also provides Veeva Data Cloud, such as Veeva OpenData, a customer reference data solution; Veeva Link, which provides deep data; Veeva Compass, which includes de-identified and longitudinal patient data; and Veeva CRM Pulse that provides access and multichannel engagement metrics. In addition, the company offers Veeva Development Cloud consisting of Veeva Clinical Platform, which advances clinical trial execution; Veeva Clinical Data Management that helps sponsors and CROs design and run trials; Veeva Safety, which unifies systems and processes; Veeva RIM that provides regulatory information management capabilities, as well as Veeva Quality Cloud, which is used by the life sciences and consumer products industries; and Veeva Business Consulting services. Further, it provides professional and support services, including implementation and deployment planning, and project management; requirements analysis, solution design, and configuration; systems environment management and deployment; services focused on advancing or transforming business and operating processes; technical consulting services on data migration and systems integrations; training; and ongoing managed services, such as 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.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Market Cap $24.9B
Enterprise Value $19.3B
P/E (TTM) 27.18
Dividend Yield N/A
Exchange NYSE
Gross Profit 75.0%
Operating Margin 30.9%
Net Margin 29.6%
Sector Healthcare
Industry Health Information Services
Employees 7928
Country United States
📖
Full Graham Analysis

Mr. Market is currently offering Veeva Systems Inc. at $153.30.

The business passes only 1 of 7 of Graham's defensive criteria — well below his required standard.

At $153.30, the stock trades at a 285% premium to its Graham Number of $39.85. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Trading at 4.0x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics
Income Highlights
Metric Q2 2026 Q4 2025 Q4 2024
Gross Profit % 75.0% 75.4% N/A
Operating Margin % 30.9% 29.7% N/A
Net Income % 29.6% 29.1% N/A
Diluted EPS 1.57 1.40 N/A
Balance Sheet Highlights
Metric Q2 2026 Q4 2025 Q4 2024
Total Assets $9.1B $8.1B N/A
Total Debt $103M $90M N/A
Working Capital $6.4B $6.2B N/A
Years to Pay Debt 0.39 0.38 N/A
Cash Flow Highlights
Metric Q2 2026 Q4 2025 Q4 2024
Free Cash Flow $1.1B $193M N/A
Owner Earnings N/A N/A N/A
CapEx % of Net Income N/A N/A N/A
📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $759M ▲ $883M +16.3%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 77.1% ▲ 75.0% -2.1pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 36.0% ▲ 30.9% -5.0pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 30.1% ▲ 29.6% -0.5pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$883M/qtr (≈$3.5B ann.)
vs > $1.5B annualised revenue
✅ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
4.74x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$1.1B
vs Positive
Operating Cash Flow
$1.1B
Latest quarter · Buffett's cash reality check
ROIC
2.9%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
3.4x
Net Assets: $7.3B
⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
Peers & Industry
No auto-detected peers for Health Information Services. You can manually compare VEEV against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
8.58%
Moderate — some alignment with shareholders
Return on Equity (ROE)
3.6%
Weak — poor returns on equity
Return on Assets (ROA)
2.9%
Fair — average asset utilization
Share Buybacks (Latest Year)
$170M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+7.5% YoY
Debt is roughly stable
Leadership Team
Peter Gassner
Founder, CEO & Director
Age 60
Pay: $470,833
0.180% of net income
Eleni Nitsa Zuppas
President & Chief of Staff
Age 55
Pay: $470,833
0.180% of net income
Thomas Schwenger
President & Chief Customer Officer
Age 57
Pay: $470,833
0.180% of net income
Brian Van Wagener
Chief Financial Officer
Age 42
Pay: $470,833
0.180% of net income
Paul Shawah
Executive Vice President of Strategy & Campaign Manager
Top Institutional Holders
Institution % Owned Shares
Blackrock Inc. 7.12% 11,558,875
Vanguard Portfolio Management LLC 4.54% 7,376,031
Vanguard Capital Management LLC 4.11% 6,670,318
Alliancebernstein L.P. 3.86% 6,271,098
Linonia Partnership LP 3.03% 4,924,626
Principal Financial Group, Inc. 2.55% 4,141,545
State Street Corporation 2.22% 3,608,655
T. Rowe Price Investment Management, Inc. 2.10% 3,405,594
Risk Analysis
Beta (Market Risk)
0.95
Low volatility — more stable than the market
Short Interest
5.9% of float
Moderate short interest
Debt-to-Equity
0.01x
Conservative balance sheet — low financial risk
Current Ratio
4.74x
Strong liquidity — Graham approved
52-Week Price Range
Low: $148.05 Current: $153.30 High: $310.50
Currently at 3% of 52-week range

Veeva Systems Inc. (VEEV) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's Fair Value: $39.85. Margin of safety: 0%. Gross profit margin: 75.0%. Operating margin: 30.9%. Net margin: 29.6%. Market cap: $24.9B. Sector: Healthcare. Industry: Health Information Services. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

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