About Zoetis Inc.
Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry in the United States and internationally. The company commercializes products primarily across companion animals comprising dogs, cats, and horses; and species, including livestock, such as cattle, swine, poultry, fish, and sheep. It also offers parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical, and animal health diagnostics. In addition, the company provides animal health diagnostics, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services, and blood glucose monitors; and other non-pharmaceutical products, which include nutritionals, as well as products and services in biodevices, genetic tests, and precision animal health. It markets its products to veterinarians, livestock producers, and pet owners. The company has collaborated with Blacksmith Medicines, Inc. to discover and develop novel antibiotics for animal health. Zoetis Inc. was incorporated in 2012 and is headquartered in Parsippany, New Jersey.
Zoetis Inc. (ZTS) is a Healthcare company in the Drug Manufacturers - Specialty & Generic industry with a market capitalisation of $28.8B. The stock trades at 11.37x trailing earnings and yields 3.07%.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - Specialty & Generic
- Market cap
- $28.8B
- P/E ratio
- 11.37
- Forward P/E
- 10.67
- EPS (TTM)
- $6.13
- Revenue (TTM)
- $9.5B
- Free cash flow
- $2B
- Profit margin
- 27.7%
- Dividend yield
- 3.07%
- Beta
- 0.73
- Shares outstanding
- 413.2M
Financial health: Fair6.8/10
7 strengths, 3 concerns. Weakest points: debt to equity, revenue growth, peg ratio.
- Debt to equity: 2.71 (Concern, benchmark < 0.5) — Debt of 2.71x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 2.9y (Strong, benchmark < 4 years) — Net debt of $6.7B is 2.9x annual free cash flow — about 3 years of cash flow to repay.
- Current ratio: 3.03 (Strong, benchmark > 1.5) — Short-term assets cover 3.03x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 64.9% (Strong, benchmark > 15%) — Earns 64.9% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 71.7% (Strong, benchmark > 40%) — Keeps 71.7% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 27.7% (Strong, benchmark > 10%) — Turns 27.7% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $2.3B (Strong, benchmark positive) — Generated $2.3B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: -0.2% (Concern, benchmark > 10%) — Revenue changed -0.2% year on year, well short of the > 10% mark.
- Earnings growth: 1.2% (Watch, benchmark > 10%) — Earnings changed 1.2% year on year, short of the > 10% mark.
- PEG ratio: 6.66 (Concern, benchmark < 1) — At 6.66, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 33.6% (Strong, benchmark < 60%) — Pays out 33.6% of earnings as dividends, leaving room to keep paying.