MeritValue

VEEVA SYSTEMS INC

VEEVdata completeness 75%15 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

VEEVA SYSTEMS INC earns about 17% on invested capital, but has diluted owners by 3% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $32.62 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$1.85B1$2.16B2$2.36B3$2.75B3$3.2B3
Net income$427.4M4$487.7M5$525.7M6$714.1M6$908.9M6
Operating cash flow$764.5M7$780.5M8$911.3M9$1.09B9$1.42B9
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$1.14B10$886.5M11$703.5M12$1.12B12$1.42B12
Diluted shares162.3M162.4M163.5M165.2M167.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$432.03
your share of equity
Profit it earned you last year
$54.43
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $432.03 of net worth that earned you $54.43 last year.

iii. Is this a good business?
Moat signal · return on invested capital
17% avg · 5y
FY22 24%FY23 17%FY24 13%FY25 15%FY26 16%

It earned an average 17% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+3% shares · 5y

Share count is up 3% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$32.62
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$525.7M
  • growthAssumed0.0%
Graham Number
$72.72
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-01-31 · accession 0001393052-24-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-01-31 · accession 0001393052-25-000022 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-01-31 · accession 0001393052-26-000014 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-01-31 · accession 0001393052-24-000013 (NetIncomeLoss)
  5. 10-K · period ending 2023-01-31 · accession 0001393052-25-000022 (NetIncomeLoss)
  6. 10-K · period ending 2024-01-31 · accession 0001393052-26-000014 (NetIncomeLoss)
  7. 10-K · period ending 2022-01-31 · accession 0001393052-24-000013 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-01-31 · accession 0001393052-25-000022 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-01-31 · accession 0001393052-26-000014 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-01-31 · accession 0001393052-24-000013 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2023-01-31 · accession 0001393052-25-000022 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2024-01-31 · accession 0001393052-26-000014 (CashAndCashEquivalentsAtCarryingValue)