Zoetis Inc (ZTS, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $192.33 per share, Zoetis Inc has experienced a daily increase of 1.64% and a notable three-month growth of 9.05%. A detailed analysis using the GF Score indicates that Zoetis Inc is poised for significant future growth.
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 been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher 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: 7/10
- Momentum rank: 7/10
Understanding Zoetis Inc's Business
Zoetis Inc, with a market cap of $87.13 billion and annual sales of $8.92 billion, leads the industry in animal health products, including anti-infectives, vaccines, and diagnostics. The company, which was once a part of Pfizer, generates approximately 35% of its revenue from production animals and 65% from companion animals. Its U.S. operations focus more on companion animals, while internationally, it has a balanced focus. Zoetis Inc's operating margin stands impressively at 36.05%, showcasing its efficiency and market dominance.
Financial Strength Breakdown
Zoetis Inc's financial robustness is evident through its Interest Coverage ratio of 13.68 and an Altman Z-Score of 8.42, indicating a strong shield against financial distress. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.76, further solidifying its financial health.
Profitability and Growth Metrics
Zoetis Inc's profitability is unmatched, with an increasing Operating Margin over the past five years and a consistent rise in Gross Margin. The company's 3-Year Revenue Growth Rate of 9.8% and EBITDA growth underscore its expanding capabilities and market reach.
Conclusion
Considering Zoetis Inc's impressive financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for robust investment opportunities may find Zoetis Inc an attractive option. For more insights into companies with strong GF Scores, consider exploring our 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.
