This analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from -100% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +40% can be considered good.
This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.
Veeva Systems Inc (VEEV)
- Overall Score: +81,5%
- Strongly growing over the past 3 years
- Revenue Up +136,8%
- Net Income Up +428,9%
- Optimistic analysts on the future of VEEV
- They consider it undervalued by 15,7%
- Expected annual growth rate of EPS for the next 5 years +19,3%
- YTD performance: +79% vs +20% of the S&P 500 index
Veeva Systems Inc. is a cloud-computing company focused on pharmaceutical and life sciences industry applications. Headquartered in Pleasanton, California, it was founded in 2007 by Peter Gassner and Matt Wallach.It works with software as a service in the global life science industry.
The overall score of VEEV is 81,5% .
In the last 6 months, VEEV has overperformed the S&P500 index by 13,8% and analysts believe the company is undervalued by 15,7% .
In the last quarter, the company reported revenues of 267 million, up by 27,4% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 968,8 million, up by 136,8% in the last 3 years.
VEEV reported an operating income of 74 million in the last quarter, an improvement of 40,2% compared to the same quarter 12 months earlier, also reporting an improvement of 10,0% in the operating margin. Considering the sum of the last four quarters (TTM), VEEV reports an operating income of 271,3 Million , a growth of 245,2% compared to three years ago and an improvement of 45,8% in the operating margin.
VEEV reported a net income of 79 million in the last quarter, an improvement of 57,1% compared to the same quarter 12 months earlier, also reporting an improvement of 23,3% in the net margin. The TTM net income is 287,7 million , a growth of 428,9% compared to three years ago and the net margin has improved by 123,4% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 20,0% and a growth in revenue of 22,3% . Furthermore, they expect an annual growth of VEEV EPS by 19,3% for the next 5 years.
In the last quarter, VEEV reported better EPS than analysts’ expectations and the stock price reacted by increasing by 0,4% .
Finally, in the last 3 months the Hedge Funds have increased their positions by 52.1k shares. The Insiders have sold shares worth $2.51M .
Sources & additional info
*The comparison with the S&P 500 index is visible inside the graph.
*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
This analysis gives you a general idea of whether a company is good or not, but you may also be interested in finding potential entry points, so I am waiting for you here to know about the best chart patterns of today.
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DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.