NYSE:ZTS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has Zoetis's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

NYSE:ZTS

-0.07%

US Pharmaceuticals

0.8%

US Market


1 Year Return

37.4%

NYSE:ZTS

-9.4%

US Pharmaceuticals

1.9%

US Market

ZTS outperformed the Pharmaceuticals industry which returned -8.5% over the past year.

ZTS outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

ZTSIndustryMarket
7 Day1.4%-0.07%0.8%
30 Day-3.4%0.4%3.4%
90 Day8.4%-5.8%2.1%
1 Year38.3%37.4%-7.2%-9.4%4.2%1.9%
3 Year144.6%139.8%12.3%4.4%46.7%37.2%
5 Year246.8%234.7%20.8%7.9%62.3%44.5%

Price Volatility Vs. Market

How volatile is Zoetis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zoetis undervalued based on future cash flows and its price relative to the stock market?

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Zoetis's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Zoetis's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Zoetis is overvalued based on earnings compared to the US Pharmaceuticals industry average.

Zoetis is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Zoetis is poor value based on expected growth next year.


Price Based on Value of Assets

Zoetis is overvalued based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

How is Zoetis expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Zoetis's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

Zoetis's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

Zoetis's revenue growth is positive but not above the United States of America market average.

Zoetis's earnings growth is positive but not above the United States of America market average.

Zoetis's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Zoetis is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Zoetis performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Zoetis has delivered over 20% year on year earnings growth in the past 5 years.

Zoetis's 1-year earnings growth is less than its 5-year average (23.3% vs 24.3%)

Zoetis's earnings growth has not exceeded the US Pharmaceuticals industry average in the past year (23.3% vs 24.3%).


Return on Equity

Whilst Zoetis made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Zoetis used its assets more efficiently than the US Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

Zoetis's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Zoetis's financial position?


Financial Position Analysis

Zoetis is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Zoetis's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Zoetis's level of debt (267.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (284.3% vs 267.4% today).

Debt is well covered by operating cash flow (28.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

0.56%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Zoetis's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Zoetis's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Zoetis is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Zoetis is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Zoetis's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of Zoetis's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Zoetis's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

Juan Alaix (68yo)

7.2yrs

Tenure

US$11,669,400

Compensation

Mr. Juan Ramón Alaix has been the Chief Executive Officer of Zoetis Inc. since July 2012. Mr. Alaix served as the President at Pfizer Animal Health Inc. at Microtek Int. Inc. since 2006, where he was respo ...


CEO Compensation Analysis

Juan 's remuneration is about average for companies of similar size in United States of America.

Juan 's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.9yrs

Average Tenure

53yo

Average Age

The average tenure for the Zoetis management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.3yrs

Average Tenure

67.5yo

Average Age

The tenure for the Zoetis board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$210,10217 Jun 19
Willie Reed
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,900
Max PriceUS$110.58
SellUS$512,30007 Jun 19
Roman Trawicki
EntityIndividual
Shares4,700
Max PriceUS$109.00
SellUS$260,57504 Jun 19
Heidi Chen
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,500
Max PriceUS$104.23
SellUS$1,500,14813 Mar 19
Heidi Chen
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares15,710
Max PriceUS$95.49
SellUS$217,96716 Jan 19
Clinton Lewis
EntityIndividual
Role
Senior Key Executive
EVP and Grp President of Intl. Ops.
Shares2,558
Max PriceUS$85.21
SellUS$233,77506 Dec 18
Heidi Chen
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,500
Max PriceUS$93.51
SellUS$300,43703 Dec 18
Willie Reed
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,205
Max PriceUS$93.74
SellUS$379,12013 Nov 18
Kristin Peck
EntityIndividual
Role
Senior Key Executive
Executive VP and Group President of U.S. Operations
Shares4,000
Max PriceUS$94.78

Ownership Breakdown


Management Team

  • Bill Price

    VP & Chief Communications Officer

    • Tenure: 0yrs
  • Kristin Peck (48yo)

    Executive VP and Group President of U.S. Operations

    • Tenure: 6.9yrs
    • Compensation: US$3.04m
  • Juan Alaix (68yo)

    CEO & Director

    • Tenure: 7.2yrs
    • Compensation: US$11.67m
  • Andrew Fenton (55yo)

    Executive VP and Chief Digital & Technology Officer

    • Tenure: 0yrs
  • Catherine Knupp (58yo)

    Executive VP and President of Research & Development

    • Tenure: 6.9yrs
    • Compensation: US$2.92m
  • Heidi Chen (52yo)

    Executive VP

    • Tenure: 6.9yrs
  • Clinton Lewis (52yo)

    EVP and Grp President of Intl. Ops.

    • Tenure: 6.9yrs
    • Compensation: US$4.63m
  • Roxanne Lagano (54yo)

    Executive VP and Chief Human Resources Officer & Communications

    • Tenure: 6.8yrs
  • Glenn David (47yo)

    Executive VP & CFO

    • Tenure: 3.1yrs
    • Compensation: US$3.04m
  • Steven Frank

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Louise Parent (69yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$300.00k
  • Mike McCallister (67yo)

    Non-Executive Chairman

    • Tenure: 6.3yrs
    • Compensation: US$475.00k
  • William Steere (82yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$300.00k
  • Paul Bisaro (58yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$325.00k
  • Frank D'Amelio (61yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$300.00k
  • Sanjay Khosla (68yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$300.00k
  • Bob Scully (69yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$325.00k
  • Greg Norden (61yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$325.00k
  • Juan Alaix (68yo)

    CEO & Director

    • Tenure: 7.2yrs
    • Compensation: US$11.67m
  • Willie Reed (64yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$300.00k

Company Information

Zoetis Inc.'s company bio, 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$58.463b
  • Shares outstanding: 477.56m
  • Website: https://www.zoetis.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZTSNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2013
ZOEDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2013
0M3QLSE (London Stock Exchange)YesCommon StockGBUSDFeb 2013
ZTS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 2013

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 01:04
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.