VEEV Dips 7.2% In One Day, Wait For A Dip To Buy The Stock

We believe there is not much to fear in VEEV stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $44 Bil in market cap, Veeva Systems provides cloud-based software and professional services for the life sciences industry, including implementation, deployment planning, project management, requirements analysis, solution design, and configuration worldwide.

[1] Valuation Looks Very High

This table highlights how VEEV is valued vs broader market. For more details see: VEEV Valuation Ratios

[2] Growth Is Strong

• Veeva Systems has seen its top line grow at an average rate of 14.1% over the last 3 years
• Its revenues have grown 15% from $2.5 Bil to $2.9 Bil in the last 12 months
• Also, its quarterly revenues grew 16.7% to $759 Mil in the most recent quarter from $650 Mil a year ago.

This table highlights how VEEV is growing vs broader market. For more details see: VEEV Revenue Comparison

[3] Profitability Appears Very Strong

• VEEV last 12 month operating income was $770 Mil representing operating margin of 27.0%
• With cash flow margin of 42.2%, it generated nearly $1.2 Bil in operating cash flow over this period
• For the same period, VEEV generated nearly $781 Mil in net income, suggesting net margin of about 27.3%

This table highlights how VEEV profitability vs broader market. For more details see: VEEV Operating Income Comparison

[4] Financial Stability Looks Very Strong

• VEEV Debt was $77 Mil at the end of the most recent quarter, while its current Market Cap is $44 Bil. This implies Debt-to-Equity Ratio of 0.2%
• VEEV Cash (including cash equivalents) makes up $6.1 Bil of $7.8 Bil in total Assets. This yields a Cash-to-Assets Ratio of 78.2%

[4] Downturn Resilience Is Moderate

VEEV saw an impact slightly worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• VEEV stock fell 55.7% from a high of $341.00 on 5 August 2021 to $151.10 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $293.59 on 27 August 2025 , and currently trades at $272.33

 
2020 Covid Pandemic

• VEEV stock fell 26.7% from a high of $164.97 on 20 February 2020 to $120.93 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 14 April 2020

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read VEEV Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.