IQV - Veeva: Great Company But Not The Time To Buy
- Veeva is a dominant player in cloud-based life sciences applications, digitally transforming the entire industry with CRM and product lifecycle management.
- Performance metrics are superb with TTM revenue growth of 33%, free cash flow margin of 38%, and revenue retention rate of 124%.
- Company management has guided for 20% revenue growth for FY'21 in spite of anticipated headwinds. Guidance is typically low-balled by 4%.
- The company scores quite well on ESE or forward-looking Rule of 40, indicating financial strength for the coming year.
- The stock price is quite frothy, normal for Veeva, given its stellar growth. But I suggest waiting until the tech meltdown has played out. High-growth highly valued stocks may still have room to fall.
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Veeva: Great Company But Not The Time To Buy