Zoetis Inc (ZTS, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance. With a current share price of $179.15 and a daily gain of 1.26%, despite a slight dip of -1.75% over the past three months, Zoetis Inc demonstrates resilience and potential for future growth. A detailed analysis using the GF Score indicates that Zoetis Inc is poised for substantial advancement in the coming years.
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 97, reflecting its high 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 $81.75 billion and annual sales of $8.73 billion, leads the industry in animal health products, including anti-infectives, vaccines, and diagnostics. The company, which was once a part of Pfizer, earns about 35% of its revenue from production animals and 65% from companion animals. Its U.S. operations focus more on companion animals, whereas internationally, it leans slightly towards production animals. Zoetis Inc's dominant market share underscores its industry leadership.
Financial Strength Breakdown
Zoetis Inc's financial robustness is evident through its impressive Interest Coverage ratio of 13.43, significantly above the benchmark set by investment guru Benjamin Graham. Additionally, its Altman Z-Score of 7.98 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.78 showcases prudent debt management.
Profitability and Growth Metrics
Zoetis Inc's profitability is highlighted by its increasing Operating Margin, which has grown consistently over the past five years. The company's Gross Margin also reflects a rising trend, emphasizing its efficiency in converting revenue into profit. Furthermore, Zoetis Inc's growth is demonstrated by a 9.8% 3-Year Revenue Growth Rate, outperforming a significant portion of its industry peers.
Conclusion
Considering Zoetis Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score distinctly highlights the company's superior position for potential market outperformance. Investors looking for robust investment opportunities may find Zoetis Inc an attractive option.
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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.
