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ZTS

Zoetis NYSE:ZTS Stock Report

Last Price

US$165.90

Market Cap

US$78.1b

7D

4.6%

1Y

-5.0%

Updated

26 May, 2022

Data

Company Financials +
ZTS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends0/6

ZTS Stock 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$165.90
52 Week HighUS$249.27
52 Week LowUS$156.67
Beta0.76
1 Month Change-6.25%
3 Month Change-14.80%
1 Year Change-5.02%
3 Year Change62.12%
5 Year Change164.85%
Change since IPO434.99%

Recent News & Updates

May 20

Zoetis: Animal Health Leader Now Cheapest Since April 2021

Zoetis shares are the cheapest since April 2021, having fallen by another 17% since we upgraded our rating in February. Petcare has strong long-term structural growth, and we believe Zoetis can grow its EPS at a low-teens CAGR for the foreseeable future. Q1 results were strong and Zoetis still expects 9-11% operational revenue growth in 2022, but currency has become a larger headwind. Zoetis is making strong progress with new products and expanding its U.S. salesforce. Livestock growth should normalize in 2023. With Zoetis shares at $158.63 and a 31.5x P/E, we expect a total return of 69% (15.7%annualized) by 2025 year-end. Buy.

May 17
An Intrinsic Calculation For Zoetis Inc. (NYSE:ZTS) Suggests It's 21% Undervalued

An Intrinsic Calculation For Zoetis Inc. (NYSE:ZTS) Suggests It's 21% Undervalued

Today we will run through one way of estimating the intrinsic value of Zoetis Inc. ( NYSE:ZTS ) by taking the forecast...

Shareholder Returns

ZTSUS PharmaceuticalsUS Market
7D4.6%1.6%1.0%
1Y-5.0%13.6%-15.1%

Return vs Industry: ZTS underperformed the US Pharmaceuticals industry which returned 13.6% over the past year.

Return vs Market: ZTS exceeded the US Market which returned -15.1% over the past year.

Price Volatility

Is ZTS's price volatile compared to industry and market?
ZTS volatility
ZTS Average Weekly Movement4.3%
Pharmaceuticals Industry Average Movement11.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: ZTS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ZTS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195212,100Kristin 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 also 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, which 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$78.08b
Earnings (TTM)US$2.07b
Revenue (TTM)US$7.89b

37.7x

P/E Ratio

9.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZTS income statement (TTM)
RevenueUS$7.89b
Cost of RevenueUS$2.32b
Gross ProfitUS$5.58b
Other ExpensesUS$3.50b
EarningsUS$2.07b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.40
Gross Margin70.66%
Net Profit Margin26.27%
Debt/Equity Ratio141.5%

How did ZTS perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

25%

Payout Ratio

Does ZTS pay a reliable dividends?

See ZTS dividend history and benchmarks
When do you need to buy ZTS by to receive an upcoming dividend?
Zoetis dividend dates
Ex Dividend DateJul 20 2022
Dividend Pay DateSep 01 2022
Days until Ex dividend53 days
Days until Dividend pay date96 days

Does ZTS pay a reliable dividends?

See ZTS dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


20.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ZTS ($165.9) is trading below our estimate of fair value ($208.96)

Significantly Below Fair Value: ZTS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZTS is poor value based on its Price-To-Earnings Ratio (37.7x) compared to the US Pharmaceuticals industry average (21x).

PE vs Market: ZTS is poor value based on its Price-To-Earnings Ratio (37.7x) compared to the US market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: ZTS is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: ZTS is overvalued based on its Price-To-Book Ratio (16.8x) compared to the US Pharmaceuticals industry average (1.8x).


Future Growth

How is Zoetis forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


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 (1.9%).

Earnings vs Market: ZTS's earnings (11.4% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: ZTS's revenue (7.6% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: ZTS's revenue (7.6% 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 (41.4%).


Past Performance

How has Zoetis performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


17.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZTS has high quality earnings.

Growing Profit Margin: ZTS's current net profit margins (26.3%) are higher than last year (25.3%).


Past Earnings Growth Analysis

Earnings Trend: ZTS's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: ZTS's earnings growth over the past year (16.9%) is below its 5-year average (17.6% per year).

Earnings vs Industry: ZTS earnings growth over the past year (16.9%) underperformed the Pharmaceuticals industry 16.9%.


Return on Equity

High ROE: Whilst ZTS's Return on Equity (44.44%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Zoetis's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ZTS's short term assets ($6.8B) exceed its short term liabilities ($3.0B).

Long Term Liabilities: ZTS's short term assets ($6.8B) exceed its long term liabilities ($6.2B).


Debt to Equity History and Analysis

Debt Level: ZTS's net debt to equity ratio (73%) is considered high.

Reducing Debt: ZTS's debt to equity ratio has reduced from 273.5% to 141.5% over the past 5 years.

Debt Coverage: ZTS's debt is well covered by operating cash flow (32.2%).

Interest Coverage: ZTS's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.78%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 27 2022Ex Dividend DateJul 20 2022Dividend Pay DateSep 01 202243 days from Ex DividendBuy in the next 53 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ZTS's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: ZTS's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (4.01%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure


CEO

Kristin Peck (50 yo)

2.33yrs

Tenure

US$13,098,491

Compensation

Ms. Kristin C. Peck serves as an Independent Director at BlackRock, Inc. since joining in September 29, 2021. She has been the Chief Executive Officer of Zoetis Inc. since January 01, 2020 and its Director...


CEO Compensation Analysis

Compensation vs Market: Kristin's total compensation ($USD13.10M) is about average for companies of similar size in the US market ($USD13.20M).

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 considered experienced (2.3 years average tenure).


Board Members

Experienced Board: ZTS's board of directors are considered experienced (8.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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
  • Implied Market Cap: US$78.077b
  • Shares outstanding: 470.63m
  • 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 Analysis2022/05/26 00:00
End of Day Share Price2022/05/26 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.