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Zoetis Inc Class A ZTS

Morningstar Rating
$199.57 −0.41 (0.21%)
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Company Report

Zoetis Earnings: Librela Gets Off to Strong Start in U.S., but Simparica Trio Faces More Competition

Wide-moat Zoetis delivered fourth-quarter and full-year results that met our expectations on the top line and slightly exceeded our bottom-line projections. After minor adjustments to our model that were immaterial, we’re holding steady on our fair value estimate. Quarterly operational revenue growth of 8% offered a strong finish to 2023 where operational sales grew 7%. In particular, the companion animal segment grew 10% on an operational basis in the fourth quarter—outpacing the market. Further, quarterly livestock revenue increased 6% off a relatively soft prior-year period, which added some topspin.

Price vs Fair Value

ZTS is trading within a range we consider fairly valued.
Price
$199.94
Fair Value
$432.00
Uncertainty
Medium
1-Star Price
$927.20
5-Star Price
$987.00
Economic Moat
Mshs
Capital Allocation
Vwqbdbtmg

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
$199.98
Day Range
$198.31200.11
52-Week Range
$151.13201.91
Bid/Ask
$199.56 / $199.94
Market Cap
$91.39 Bil
Volume/Avg
424,023 / 2.0 Mil

Key Statistics

Price/Earnings (Normalized)
37.58
Price/Sales
10.82
Dividend Yield (Trailing)
0.78%
Dividend Yield (Forward)
0.86%
Total Yield
1.97%

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 Growth
Total Number of Employees
14,100

Competitors

Valuation

Metric
ZTS
LLY
MRK
Price/Earnings (Normalized)
37.5890.3085.45
Price/Book Value
18.3466.778.64
Price/Sales
10.8220.065.43
Price/Cash Flow
32.2693.8121.46
Price/Earnings
ZTS
LLY
MRK

Financial Strength

Metric
ZTS
LLY
MRK
Quick Ratio
1.770.520.68
Current Ratio
3.360.941.25
Interest Coverage
12.8514.132.33
Quick Ratio
ZTS
LLY
MRK

Profitability

Metric
ZTS
LLY
MRK
Return on Assets (Normalized)
17.35%10.22%3.59%
Return on Equity (Normalized)
52.06%52.03%9.12%
Return on Invested Capital (Normalized)
21.87%19.27%5.88%
Return on Assets
ZTS
LLY
MRK
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