Zoetis Inc (ZTS, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $189.15, Zoetis Inc has witnessed a daily gain of 2.08%, marked against a three-month change of 11.93%. A thorough analysis, underlined by the GF Score, suggests that Zoetis Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 6/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 7/10
GuruFocus assigned Zoetis Inc a GF Score of 97 out of 100, which signals the highest outperformance potential.
Understanding Zoetis Inc Business
Zoetis Inc, with a market cap of $85.69 billion and annual sales of $8.73 billion, leads the industry in animal health products. The company sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. Approximately 35% of its total revenue comes from production animals, while nearly 65% is derived from companion animals. The U.S. business is heavily skewed toward companion animals, whereas the international segment leans slightly toward production animals. Previously part of Pfizer, Zoetis Inc holds the largest market share in the industry.
Financial Strength Breakdown
Zoetis Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio stands impressively at 13.43, underscoring its strong capability to cover its interest obligations. With an Altman Z-Score of 7.91, Zoetis Inc exhibits a strong defense against financial distress. The favorable Debt-to-Revenue ratio of 0.78 further solidifies its financial health.
Profitability and Growth Metrics
Zoetis Inc's Operating Margin has consistently improved over the past five years, demonstrating its growing proficiency in transforming revenue into profit. The company's 3-Year Revenue Growth Rate of 9.8% outperforms 59.72% of peers in the Drug Manufacturers industry. This trend is further accentuated by a robust increase in EBITDA, highlighting the company's continued capability to drive growth.
Conclusion
Considering Zoetis Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking similar opportunities can explore more companies with strong GF Scores using 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.
