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Zoetis Inc Class A ZTS

Morningstar Rating
$153.36 +2.48 (1.64%)
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Company Report

Zoetis Is King of the Animal Health Jungle

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on its impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.

Price vs Fair Value

ZTS is trading at a 12% discount.
Price
$149.56
Fair Value
$995.00
Uncertainty
Medium
1-Star Price
$528.20
5-Star Price
$246.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Growing interest in probiotics, antibacterial peptides, and immune modulators as alternatives to antibiotics offer many targets for innovation.

Bears

Strict regulation or restriction of antibiotic use in animals could harm Zoetis' production-animal product sales.

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News

Trading Information

Previous Close Price
$150.88
Day Range
$150.04153.59
52-Week Range
$144.80201.92
Bid/Ask
$153.50 / $159.00
Market Cap
$70.08 Bil
Volume/Avg
1 / 3.6 Mil

Key Statistics

Price/Earnings (Normalized)
28.11
Price/Sales
8.09
Dividend Yield (Trailing)
1.08%
Dividend Yield (Forward)
1.16%
Total Yield
2.65%

Company Profile

Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The firm earns roughly 35% of total revenue from production animals (cattle, pigs, poultry, and so on), and nearly 65% from companion animal (dogs, horses, cats) products. Its U.S. business is heavily skewed toward companion animals, while its international business is slightly skewed toward production animals. The firm has the largest market share in the industry and was previously Pfizer's animal health unit.
Sector
Healthcare
Industry
Drug Manufacturers - Specialty & Generic
Stock Style Box
Large Core
Total Number of Employees
14,100

Competitors

Valuation

Metric
ZTS
MRK
SNY
Price/Earnings (Normalized)
28.1184.6610.04
Price/Book Value
13.728.561.56
Price/Sales
8.095.382.38
Price/Cash Flow
24.1321.2711.66
Price/Earnings
ZTS
MRK
SNY

Financial Strength

Metric
ZTS
MRK
SNY
Quick Ratio
1.770.680.83
Current Ratio
3.361.251.27
Interest Coverage
12.852.3311.03
Quick Ratio
ZTS
MRK
SNY

Profitability

Metric
ZTS
MRK
SNY
Return on Assets (Normalized)
17.35%3.59%8.05%
Return on Equity (Normalized)
52.06%9.12%14.38%
Return on Invested Capital (Normalized)
21.87%5.88%10.85%
Return on Assets
ZTS
MRK
SNY
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