ScoreWhy is Zoetis, Inc. ?
1
High Management Efficiency with a high ROCE of 33.61%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.22 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 8.16%
4
The company has declared Positive results for the last 6 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 2,929 MM
- ROCE(HY) Highest at 52.54%
- DIVIDEND PER SHARE(HY) Highest at USD 6.42
5
With ROCE of 36.14%, it has a fair valuation with a 8.99 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -31.32%, its profits have risen by 6.1% ; the PEG ratio of the company is 3.7
6
Below par performance in long term as well as near term
- Along with generating -31.32% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Zoetis, Inc. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zoetis, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Zoetis, Inc.
-31.32%
-1.12
29.19%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.16%
EBIT Growth (5y)
10.30%
EBIT to Interest (avg)
12.16
Debt to EBITDA (avg)
1.22
Net Debt to Equity (avg)
1.04
Sales to Capital Employed (avg)
0.77
Tax Ratio
20.90%
Dividend Payout Ratio
32.86%
Pledged Shares
0
Institutional Holding
98.14%
ROCE (avg)
33.61%
ROE (avg)
48.44%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
17.32
EV to EBIT
24.87
EV to EBITDA
21.76
EV to Capital Employed
8.99
EV to Sales
9.20
PEG Ratio
3.69
Dividend Yield
78.17%
ROCE (Latest)
36.14%
ROE (Latest)
55.54%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,929 MM
ROCE(HY)
Highest at 52.54%
DIVIDEND PER SHARE(HY)
Highest at USD 6.42
INTEREST COVERAGE RATIO(Q)
Highest at 1,917.24
RAW MATERIAL COST(Y)
Fallen by -2.98% (YoY
NET SALES(Q)
Highest at USD 2,460 MM
OPERATING PROFIT(Q)
Highest at USD 1,112 MM
OPERATING PROFIT MARGIN(Q)
Highest at 45.2 %
PRE-TAX PROFIT(Q)
Highest at USD 877 MM
NET PROFIT(Q)
Highest at USD 698.1 MM
EPS(Q)
Highest at USD 1.61
-1What is not working for the Company
CASH AND EQV(HY)
Lowest at USD 3,156 MM
Here's what is working for Zoetis, Inc.
Operating Cash Flow
Highest at USD 2,929 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 1,917.24
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 6.42 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 2,460 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 1,112 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 45.2 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 877 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 698.1 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.61
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -2.98% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Zoetis, Inc.
Cash and Eqv
Lowest at USD 3,156 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
