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ZTS

ZoetisNYSE:ZTS Stock Report

Market Cap

US$93.7b

7D

-0.4%

1Y

22.6%

Updated

27 Sep, 2021

Data

Company Financials +
ZTS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends0/6

ZTS Overview

Zoetis Inc. discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally.

Zoetis Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zoetis
Historical stock prices
Current Share PriceUS$197.80
52 Week HighUS$141.41
52 Week LowUS$210.10
Beta0.63
1 Month Change-2.95%
3 Month Change5.22%
1 Year Change22.61%
3 Year Change115.80%
5 Year Change277.77%
Change since IPO537.86%

Recent News & Updates

Shareholder Returns

ZTSUS PharmaceuticalsUS Market
7D-0.4%-0.06%2.0%
1Y22.6%12.8%32.8%

Return vs Industry: ZTS exceeded the US Pharmaceuticals industry which returned 12.8% over the past year.

Return vs Market: ZTS underperformed the US Market which returned 32.8% over the past year.

Price Volatility

Is ZTS's price volatile compared to industry and market?
ZTS volatility
ZTS Beta0.63
Industry Beta0.64
Market Beta1

Stable Share Price: ZTS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ZTS's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195211,300Kristin Peckhttps://www.zoetis.com

Zoetis Inc. discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally. It commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep; and companion animals comprising dogs, cats, and horses. The company offers vaccines, which are biological preparations to prevent diseases of the respiratory, gastrointestinal, and reproductive tracts or induce a specific immune response; anti-infectives that prevent, kill, or slow the growth of bacteria, fungi, or protozoa; and parasiticides that prevent or eliminate external and internal parasites that include fleas, ticks, and worms.

Zoetis Fundamentals Summary

How do Zoetis's earnings and revenue compare to its market cap?
ZTS fundamental statistics
Market CapUS$93.75b
Earnings (TTM)US$1.91b
Revenue (TTM)US$7.41b

49.1x

P/E Ratio

12.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZTS income statement (TTM)
RevenueUS$7.41b
Cost of RevenueUS$2.24b
Gross ProfitUS$5.17b
ExpensesUS$3.26b
EarningsUS$1.91b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.03
Gross Margin69.74%
Net Profit Margin25.76%
Debt/Equity Ratio165.4%

How did ZTS perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is Zoetis undervalued compared to its fair value and its price relative to the market?

49.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZTS ($197.8) is trading above our estimate of fair value ($176.38)

Significantly Below Fair Value: ZTS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZTS is poor value based on its PE Ratio (49.1x) compared to the US Pharmaceuticals industry average (22x).

PE vs Market: ZTS is poor value based on its PE Ratio (49.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: ZTS is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: ZTS is overvalued based on its PB Ratio (21.6x) compared to the US Pharmaceuticals industry average (3.3x).


Future Growth

How is Zoetis forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZTS's forecast earnings growth (11.4% per year) is above the savings rate (2%).

Earnings vs Market: ZTS's earnings (11.4% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: ZTS's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZTS's revenue (7.3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: ZTS's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZTS's Return on Equity is forecast to be very high in 3 years time (43.7%).


Past Performance

How has Zoetis performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZTS has high quality earnings.

Growing Profit Margin: ZTS's current net profit margins (25.8%) are higher than last year (25.5%).


Past Earnings Growth Analysis

Earnings Trend: ZTS's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: ZTS's earnings growth over the past year (18.1%) is below its 5-year average (19.6% per year).

Earnings vs Industry: ZTS earnings growth over the past year (18.1%) exceeded the Pharmaceuticals industry 17.5%.


Return on Equity

High ROE: Whilst ZTS's Return on Equity (43.8%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Zoetis's financial position?


Financial Position Analysis

Short Term Liabilities: ZTS's short term assets ($7.0B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: ZTS's short term assets ($7.0B) do not cover its long term liabilities ($7.6B).


Debt to Equity History and Analysis

Debt Level: ZTS's debt to equity ratio (165.4%) is considered high.

Reducing Debt: ZTS's debt to equity ratio has reduced from 327.3% to 165.4% over the past 5 years.

Debt Coverage: ZTS's debt is well covered by operating cash flow (30%).

Interest Coverage: ZTS's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Dividend

What is Zoetis's current dividend yield, its reliability and sustainability?

0.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZTS's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: ZTS's dividend (0.51%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: ZTS is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ZTS is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ZTS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZTS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Kristin Peck (50 yo)

1.67yrs

Tenure

US$10,374,312

Compensation

Ms. Kristin C. Peck serves as Chief Executive Officer of Zoetis Inc. since January 01, 2020 and serves as its Director since October 3, 2019. Ms. Peck served as Group President of U.S. Operations, Business...


CEO Compensation Analysis

Compensation vs Market: Kristin's total compensation ($USD10.37M) is about average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Kristin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ZTS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: ZTS's board of directors are considered experienced (8.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ZTS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Zoetis Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Zoetis Inc.
  • Ticker: ZTS
  • Exchange: NYSE
  • Founded: 1952
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$93.746b
  • Shares outstanding: 473.94m
  • Website: https://www.zoetis.com

Number of Employees


Location

  • Zoetis Inc.
  • 10 Sylvan Way
  • Parsippany
  • New Jersey
  • 7054
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:05
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.