0.61%
5.28%
-5.50%
-4.79%
-9.59%
-14.42%
26.87%

Company Description

Zoetis Inc.discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally.It commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep; and companion animals comprising dogs, cats, and horses.


The company also offers vaccines, which are biological preparations to prevent diseases of the respiratory, gastrointestinal, and reproductive tracts or induce a specific immune response; anti-infectives that prevent, kill, or slow the growth of bacteria, fungi, or protozoa; and parasiticides that prevent or eliminate external and internal parasites, which include fleas, ticks, and worms.It also provides other pharmaceutical products that comprise pain and sedation, antiemetic, reproductive, and oncology products; dermatology products for itch associated with allergic conditions and atopic dermatitis; and medicated feed additives, which offer medicines to livestock.In addition, the company provides portable blood and urine analysis testing, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services, and blood glucose monitors; and other non-pharmaceutical products, including nutritionals and agribusiness services, as well as products and services in areas, such as biodevices, genetics tests, and precision animal health.


It markets its products to veterinarians, livestock producers, and retail outlets, as well as third-party veterinary distributors through its sales representatives, and technical and veterinary operations specialists.The company was founded in 1952 and is headquartered in Parsippany, New Jersey.

Market Data

Last Price 171.94
Change Percentage 0.61%
Open 169.06
Previous Close 170.9
Market Cap ( Millions) 77573
Volume 2601858
Year High 200.53
Year Low 144.8
M A 50 170.54
M A 200 176.4

Financial Ratios

FCF Yield 2.98%
Dividend Yield 1.04%
ROE 47.99%
Debt / Equity 129.06%
Net Debt / EBIDTA 130.90%
Price To Book 14.88
Price Earnings Ratio 32.05
Price To FCF 33.61
Price To sales 8.48
EV / EBITDA 21.45

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Parasiticides

Expected Growth : 5 %

What the company do ?

Parasiticides from Zoetis Inc. are medications that kill parasites, such as fleas, ticks, and worms, to protect animals from infestations and diseases.

Why we expect these perspectives ?

Zoetis Inc.'s parasiticide segment growth is driven by increasing pet ownership, rising awareness of parasitic diseases, and growing demand for convenient and effective treatments. Additionally, the company's strong R&D pipeline, strategic partnerships, and expanding distribution channels in emerging markets contribute to its 5% growth rate.

Segment nΒ°2 -> Vaccines

Expected Growth : 7 %

What the company do ?

Zoetis Inc. develops and manufactures veterinary vaccines to protect animals from various diseases, improving animal health and well-being.

Why we expect these perspectives ?

Zoetis Inc.'s vaccine segment growth is driven by increasing demand for animal health products, rising prevalence of diseases in livestock, and growing adoption of veterinary care in emerging markets. Additionally, the company's innovative product pipeline, strategic acquisitions, and strong distribution network contribute to its 7% growth rate.

Segment nΒ°3 -> Dermatology

Expected Growth : 4 %

What the company do ?

Dermatology from Zoetis Inc. provides veterinary dermatology solutions, offering a range of products and services to diagnose, treat, and manage skin conditions in animals.

Why we expect these perspectives ?

Zoetis' Dermatology segment growth is driven by increasing pet owner spending on animal health, rising prevalence of skin conditions in pets, and the company's strong product portfolio, including Apoquel and Cytopoint. Additionally, the growing demand for veterinary care services and Zoetis' expanding distribution network contribute to the segment's 4% growth.

Segment nΒ°4 -> Other Pharmaceuticals

Expected Growth : 3 %

What the company do ?

Other Pharmaceuticals from Zoetis Inc. includes a range of products for companion animals, livestock, and poultry, such as vaccines, anti-infectives, and parasiticides.

Why we expect these perspectives ?

Zoetis' Other Pharmaceuticals segment growth is driven by increasing demand for parasiticides, vaccines, and medicated feed additives, particularly in emerging markets. Strong product pipeline, strategic acquisitions, and partnerships also contribute to growth. Additionally, rising pet ownership and humanization of pets lead to increased spending on animal health products, further boosting segment growth.

Segment nΒ°5 -> Anti-infectives

Expected Growth : 5 %

What the company do ?

Anti-infectives from Zoetis Inc. are veterinary medicines that help prevent and treat bacterial, viral, and fungal infections in animals, promoting healthy outcomes.

Why we expect these perspectives ?

Zoetis Inc.'s Anti-infectives segment growth is driven by increasing demand for veterinary care, rising prevalence of zoonotic diseases, and growing awareness of animal health. Additionally, the company's strong R&D pipeline, strategic acquisitions, and expanding presence in emerging markets contribute to its 5% growth rate.

Segment nΒ°6 -> Animal Health Diagnostics

Expected Growth : 8 %

What the company do ?

Animal Health Diagnostics from Zoetis Inc. provides veterinary diagnostic solutions, including tests and instruments, to help veterinarians diagnose and manage animal diseases.

Why we expect these perspectives ?

Zoetis Inc.'s Animal Health Diagnostics segment growth is driven by increasing pet ownership, rising demand for animal health monitoring, and advancements in diagnostic technologies. The growing need for disease prevention and control, coupled with the increasing adoption of precision livestock farming, further fuels growth. Additionally, the company's strategic acquisitions and partnerships expand its product portfolio and geographic reach, contributing to the 8% growth rate.

Segment nΒ°7 -> Medicated Feed Additives

Expected Growth : 4 %

What the company do ?

Medicated Feed Additives from Zoetis Inc. are pharmaceutical products added to animal feed to prevent or treat diseases, promoting health and productivity in livestock.

Why we expect these perspectives ?

Zoetis Inc.'s Medicated Feed Additives segment growth is driven by increasing demand for animal health products, rising awareness of disease prevention, and growing livestock production. Additionally, the company's strong R&D pipeline, strategic acquisitions, and expanding distribution network contribute to its growth.

Segment nΒ°8 -> Other Non-pharmaceuticals

Expected Growth : 2 %

What the company do ?

Other Non-pharmaceuticals from Zoetis Inc. refers to a range of animal health products and services, excluding pharmaceuticals, that improve animal care and well-being.

Why we expect these perspectives ?

Zoetis' Other Non-pharmaceuticals segment growth is driven by increasing demand for diagnostic products, vaccines, and nutritional health products for livestock and companion animals. Expanding distribution channels, strategic partnerships, and innovative product offerings also contribute to growth. Additionally, rising awareness about animal health and wellness, as well as growing pet ownership, support segment expansion.

Segment nΒ°9 -> Contract Manufacturing and Human Health

Expected Growth : 6 %

What the company do ?

Contract Manufacturing from Zoetis Inc. provides outsourced manufacturing services for animal health products, while Human Health focuses on developing and commercializing medicines for human diseases.

Why we expect these perspectives ?

Zoetis Inc.'s Contract Manufacturing and Human Health segment growth is driven by increasing demand for outsourced manufacturing services, expansion into emerging markets, and a growing need for human health products. Additionally, strategic partnerships, investments in R&D, and a strong product pipeline contribute to the 6% growth rate.

Zoetis Inc. Products

Product Range What is it ?
Vaccines Zoetis offers a range of vaccines for livestock, poultry, and companion animals to protect against various diseases.
Parasiticides Zoetis provides parasiticides to control internal and external parasites in livestock, poultry, and companion animals.
Anti-Infectives Zoetis offers anti-infective products to treat bacterial, viral, and fungal infections in animals.
Medicated Feed Additives Zoetis provides medicated feed additives to promote animal health and productivity.
Dermatology Products Zoetis offers dermatology products to treat skin conditions in companion animals.
Pain Management Products Zoetis provides pain management products to alleviate pain and discomfort in animals.
Reproductive Health Products Zoetis offers reproductive health products to improve fertility and reproductive health in animals.
Diagnostics Zoetis provides diagnostic products and services to detect and monitor diseases in animals.
Genetic Testing Zoetis offers genetic testing services to identify genetic traits and improve animal breeding.

Zoetis Inc.'s Porter Forces

Zoetis Inc. operates in a highly competitive industry, but the threat of substitutes is moderate due to the company's strong brand recognition and customer loyalty.

Zoetis Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often essential for animal health, giving it an upper hand in negotiations.

Zoetis Inc. relies on a network of suppliers for raw materials and services. While the company has some bargaining power due to its size, suppliers can still exert some pressure, particularly for specialized or high-demand inputs.

The animal health industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants.

The animal health industry is highly competitive, with several established players vying for market share. Zoetis Inc. faces intense competition from companies like Merck Animal Health and Elanco Animal Health.

Capital Structure

Value
Debt Weight 56.97%
Debt Cost 5.26%
Equity Weight 43.03%
Equity Cost 8.20%
WACC 6.52%
Leverage 132.38%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
CVS CVS Health Corporation provides health services in the United States. The company's Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer …
MRK Merck & Co., Inc. operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health. The Pharmaceutical segment offers human health pharmaceutical products in the areas …
GILD Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, …
BMY Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, and markets biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience, and covid-19 diseases. The company's products include Revlimid, …
BSX Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular. The company …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
171.94$
Current Price
171.94$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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