Zoetis Inc. (ZTS) is a Healthcare company in the Pharmaceutical Preparations industry with a market capitalisation of $30.5B. The stock trades at 12.02x trailing earnings and yields 2.86%.
Sector
Healthcare
Industry
Pharmaceutical Preparations
Market cap
$30.5B
P/E ratio
12.02
EPS (TTM)
$6.02
Revenue (TTM)
$9.5B
Free cash flow
$2.3B
Profit margin
28.2%
Dividend yield
2.86%
Shares outstanding
413.2M
Financial health: Strong7.8/10
6 strengths, 1 concern. Weakest points: debt to equity.
Debt to equity: 2.71 (Concern, benchmark < 0.5) β 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) β Net debt of $6.7B is 2.9x annual free cash flow β about 3 years of cash flow to repay.
Current ratio: 3.03 (Strong, benchmark > 1.5) β 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: 80.2% (Strong, benchmark > 15%) β Earns 80.2% on shareholder equity, comfortably past the > 15% mark.
Gross margin: 71.5% (Strong, benchmark > 40%) β Keeps 71.5% of revenue after the direct cost of sales, comfortably past the > 40% mark.
Net margin: 28.2% (Strong, benchmark > 10%) β Turns 28.2% of revenue into profit, comfortably past the > 10% mark.
Free cash flow: $2.3B (Strong, benchmark positive) β Generated $2.3B of free cash flow after capital spending. It has improved over the last 4 years.
Revenue growth: 2.3% (Watch, benchmark > 10%) β Revenue changed 2.3% year on year, short of the > 10% mark.
Earnings growth: 7.5% (Watch, benchmark > 10%) β Earnings changed 7.5% year on year, short of the > 10% mark.