Zoetis Inc (ZTS, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $175.44 per share, Zoetis Inc has experienced a daily gain of 1.65% and a three-month increase of 6.54%. A detailed analysis, supported by the GF Score, indicates that Zoetis Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Zoetis Inc boasts a GF Score of 96, reflecting its strong potential for market outperformance.
- Financial strength rank: 6/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 5/10
Understanding Zoetis Inc's Business
Zoetis Inc, with a market cap of $80.05 billion and annual sales of $8.734 billion, leads the industry in animal health products, including anti-infectives, vaccines, and diagnostics. The company generates approximately 35% of its revenue from production animals and 65% from companion animals. Zoetis Inc, formerly a part of Pfizer, holds the largest market share in the animal health sector, demonstrating a strong presence both in the U.S. and internationally.
Financial Strength Breakdown
Zoetis Inc's financial robustness is evident through its impressive Interest Coverage ratio of 13.43 and an Altman Z-Score of 7.87, indicating a strong shield against financial distress. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.78.
Profitability and Growth Metrics
Zoetis Inc's profitability is highlighted by its increasing Operating Margin and Gross Margin, which have consistently improved over the past five years. The company's commitment to growth is further evidenced by its 9.8% 3-Year Revenue Growth Rate and significant EBITDA growth, outperforming 59% of its industry peers.
Conclusion
Considering Zoetis Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
