Zoetis Inc.

Health Care
Biotechnology: Pharmaceutical Preparations
www.zoetis.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $71.96B
PE 29
Debt $8.00B
Cash $1.99B
EV $77.97B
FCF $2.30B

Earnings

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Sales & Net Margins

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Earnings	$2.49B
EBIT	$3.13B
ROE	52%
ROA	22%
FCF	$2.30B
Equity	$4.77B
Growth Stability	100%
PE	28.95
PEG	2.98
PB	15.09
P/FCF	31.32
P/S	7.77
Price/Cash	0.03
Debt/Equity	1.68
Debt/FCF	3.48
Net Margins	27%
Gross Margins	71%
Op. Margins	34%
Earnings CAGR	18%
Sales Growth YoY	5%
Sales Growth QoQ	-3%
Sales CAGR	8%
FCF CAGR	15%
Equity CAGR	19%
Earnings Stability	0.88
Earnings Growth YoY	11%
Earnings Growth QoQ	-15%

Earnings CAGR 5Y	10%
Sales CAGR 5Y	8%
FCF CAGR 5Y	6%
Equity CAGR 5Y	10%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	21%
Equity CAGR 3Y	4%
Market Cap	$71.96B
Revenue	$9.26B
Assets	$14.24B
Total Debt	$8.00B
Cash	$1.99B
Shares Outstanding	448.47M
EV	77.97B
Earnings Score	94%
Moat Score	97%
Safety Score	85%
Final Score	92%
Working Capital	2.57B
Current Ratio	1.75
Gross Profit	$6.54B
Shares Growth 3y	-2%
Equity Growth QoQ	-9%
Equity Growth YoY	-5%

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-K Dec 31
- 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 18%

Stability 88%

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Zoetis Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Zoetis Inc..

Years

Calculation mode

= $64B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.3B	$2.6B	$3B	$3.5B	$4B	$4.6B	$5.2B	$6B	$6.9B	$7.9B	$9.1B	$91B
DCF		$2.4B	$2.5B	$2.6B	$2.7B	$2.8B	$3B	$3.1B	$3.2B	$3.4B	$3.5B	$35B
Value	$64B

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	7%	17%	16%	24%	24%	25%	26%	26%	27%	27%	27%
ROA	-	16%	18%	16%	16%	15%	18%	18%	21%	22%	22%
ROE	-	55%	48%	65%	55%	43%	45%	48%	47%	52%	52%

Good Net Margins (26.86%)

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	9.05	4.46	4.48	5.24	4.69	3.83	7.05	4.1	3.48	3.48
Debt over Equity	4.86	3	2.8	2.98	2.58	2.08	1.46	2.12	1.33	1.68	1.68
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (3.48)

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.

Bad Debt/Equity ratio (1.68)

The company is overleveraged and has a bad balance between equity and debt.

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	3%	9%	10%	7%	7%	16%	4%	6%	8%	8%
Earnings YoY growth	-	142%	5%	65%	5%	9%	24%	4%	11%	6%	10%
Equity YoY growth	-	37%	19%	22%	24%	39%	20%	-3%	13%	-5%	10%
FCF YoY growth	-	13%	126%	29%	-8%	25%	4%	-24%	22%	42%	6%