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 -33.42%, 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 -33.42% 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.
-54.91%
-1.17
29.29%
S&P 500
28.2%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.24%
EBIT Growth (5y)
9.65%
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
33.71%
Pledged Shares
0
Institutional Holding
98.17%
ROCE (avg)
33.61%
ROE (avg)
48.44%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
15.98
EV to EBIT
16.69
EV to EBITDA
14.70
EV to Capital Employed
5.93
EV to Sales
6.34
PEG Ratio
2.57
Dividend Yield
1.71%
ROCE (Latest)
35.56%
ROE (Latest)
80.42%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 37.25%
ROCE(HY)
Highest at 67.01%
INVENTORY TURNOVER RATIO(HY)
Highest at 1.14 times
DIVIDEND PER SHARE(HY)
Highest at USD 6.63
RAW MATERIAL COST(Y)
Fallen by 0.2% (YoY
-7What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,404.48
DEBT-EQUITY RATIO
(HY)
Highest at 225.7 %
INTEREST(Q)
Highest at USD 67 MM
OPERATING PROFIT(Q)
Lowest at USD 941 MM
PRE-TAX PROFIT(Q)
Lowest at USD 766 MM
NET PROFIT(Q)
Lowest at USD 607.34 MM
Here's what is working for Zoetis, Inc.
Inventory Turnover Ratio
Highest at 1.14 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at USD 6.63 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 37.25% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 0.2% (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.
Interest Coverage Ratio
Lowest at 1,404.48
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 67 MM
in the last five periods and Increased by 8.06% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit
Lowest at USD 941 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Pre-Tax Profit
Lowest at USD 766 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 607.34 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Debt-Equity Ratio
Highest at 225.7 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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