Yahoo Finance Investors Who Bought Veeva Systems (NYSE:VEEV) Shares Five Years Ago Are Now Up 992%
Long term investing can be life changing when you buy and hold the truly great businesses. And we've seen some truly amazing gains over the years. To wit, the Veeva Systems Inc. (NYSE:VEEV) share price has soared 992% over five years. And this is just one example of the epic gains achieved by some long term investors. Also pleasing for shareholders was the 23% gain in the last three months. But this could be related to the strong market, which is up 16% in the last three months.
Anyone who held for that rewarding ride would probably be keen to talk about it.
See our latest analysis for Veeva Systems
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, Veeva Systems managed to grow its earnings per share at 43% a year. This EPS growth is slower than the share price growth of 61% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 126.97.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Veeva Systems' earnings, revenue and cash flow.
A Different Perspective
It's nice to see that Veeva Systems shareholders have received a total shareholder return of 59% over the last year. Having said that, the five-year TSR of 61% a year, is even better. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Veeva Systems you should be aware of.
Of course Veeva Systems may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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