Veeva Systems Inc. Class A Common Stock (VEEV)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Generates $1.0 billion in annual free cash flow (4.2% yield on market cap)
• Solid return on equity of 13.9% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 10.2 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 16.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($73) with negative 108% margin of safety—limited downside protection

AI Analysis

Veeva Systems Inc. Class A Common Stock is a mid-cap healthcare company valued at $25.1 billion. The business generates $3.2 billion in annual revenue with a 7.6% net margin and $1.0 billion in free cash flow. From a quality standpoint, Veeva shows Altman Z-Score of 10.2 confirms fortress-level solvency and adequate 14% ROE. On valuation, the stock is trading at a premium 28.7x earnings, with trades far above its Graham Number ($73) with no margin of safety. Growth dynamics show revenue growing at 16.0% and profit growth of 24.8%. Our composite FairStock Score of 63/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Veeva's 16% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $1.0 billion in annual free cash flow (4.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer