Zoetis Inc.

Health Care
Biotechnology: Pharmaceutical Preparations
www.zoetis.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $79.68B
PE 33
Debt $6.65B
Cash $1.71B
EV $84.62B
FCF $2.31B

Earnings

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Sales & Net Margins

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Earnings	$2.43B
EBIT	$3.05B
ROE	46%
ROA	21%
FCF	$2.31B
Equity	$5.23B
Growth Stability	100%
PE	32.82
PEG	3.21
PB	15.22
P/FCF	34.52
P/S	8.71
Price/Cash	0.02
Debt/Equity	1.27
Debt/FCF	2.88
Net Margins	27%
Gross Margins	70%
Op. Margins	33%
Earnings CAGR	20%
Sales Growth YoY	11%
Sales Growth QoQ	1%
Sales CAGR	8%
FCF CAGR	16%
Equity CAGR	19%
Earnings Stability	0.86
Earnings Growth YoY	14%
Earnings Growth QoQ	9%

Earnings CAGR 5Y	10%
Sales CAGR 5Y	8%
FCF CAGR 5Y	4%
Equity CAGR 5Y	12%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	13%
Equity CAGR 3Y	5%
Market Cap	$79.68B
Revenue	$9.15B
Assets	$14.36B
Total Debt	$6.65B
Cash	$1.71B
Shares Outstanding	451.55M
EV	84.62B
Earnings Score	94%
Moat Score	97%
Safety Score	88%
Final Score	93%
Working Capital	4.58B
Current Ratio	3.69
Gross Profit	$6.41B
Shares Growth 3y	-2%
Equity Growth QoQ	5%
Equity Growth YoY	3%

Assets & ROA

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Stockholders Equity & ROE

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Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The firm earns slightly less than half of total revenue from production animals (cattle, pigs, poultry, and so on), and more than half from companion animal (dogs, horses, cats) products make up the other half. 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.

SEC Filings

Direct access to Zoetis Inc. (ZTS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Zoetis Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Zoetis Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 20%

Stability 86%

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Zoetis Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Zoetis Inc..

Years

Calculation mode

= $68B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.3B	$2.7B	$3.1B	$3.6B	$4.1B	$4.8B	$5.5B	$6.4B	$7.4B	$8.5B	$9.8B	$98B
DCF		$2.4B	$2.5B	$2.7B	$2.8B	$3B	$3.1B	$3.3B	$3.4B	$3.6B	$3.8B	$38B
Value	$68B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	12%	7%	17%	16%	24%	24%	25%	26%	26%	27%	27%
ROA	-	7%	16%	18%	16%	16%	15%	18%	18%	21%	21%
ROE	-	31%	55%	48%	65%	55%	43%	45%	48%	47%	46%

Good Net Margins (27.45%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	12.05	9.05	4.46	4.48	5.24	4.69	3.83	7.05	4.1	2.88
Debt over Equity	2.74	4.86	3	2.8	2.98	2.58	2.08	1.46	2.12	1.33	1.27
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (2.88)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (1.27)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-0%	3%	9%	10%	7%	7%	16%	4%	6%	8%
Earnings YoY growth	-	-42%	142%	5%	65%	5%	9%	24%	4%	11%	10%
Equity YoY growth	-	-18%	37%	19%	22%	24%	39%	20%	-3%	13%	12%
FCF YoY growth	-	-1%	13%	126%	29%	-8%	25%	4%	-24%	22%	4%