Post-Market Laggard: Veeva Systems (VEEV)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Veeva Systems as such a stock due to the following factors:
- VEEV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $84.3 million.
- VEEV is down 2.2% today from today's close.
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More details on VEEV:
Veeva Systems Inc. provides industry-specific cloud-based software solutions for the life sciences industry in North America, Europe, the Asia Pacific, and Latin America. VEEV has a PE ratio of 69.5. Currently there are 7 analysts that rate Veeva Systems a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Veeva Systems has been 1.2 million shares per day over the past 30 days. Veeva Systems has a market cap of $1.5 billion and is part of the technology sector and computer software & services industry. Shares are down 6.4% year-to-date as of the close of trading on Thursday.
Analysis:
rates Veeva Systems as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, premium valuation and weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 23.0%. Since the same quarter one year prior, revenues rose by 38.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- VEEV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.62, which clearly demonstrates the ability to cover short-term cash needs.
- VEEV has underperformed the S&P 500 Index, declining 9.17% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full Veeva Systems Ratings Report.
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