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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Zoetis Inc. (NYSE:ZTS).Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. See our latest analysis for Zoetis How Is ROE Calculated?Return on equity can be calculated by using the formula:Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' EquitySo, based on the above formula, the ROE for Zoetis is:46% = US$2.1b ÷ US$4.5b (Based on the trailing twelve months to March 2023).The 'return' is the income the business earned over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.46.Does Zoetis Have A Good Return On Equity?By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. Pleasingly, Zoetis has a superior ROE than the average (18%) in the Pharmaceuticals industry.roeThat is a good sign. With that said, a high ROE doesn't always indicate high profitability. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk.How Does Debt Impact ROE?Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used.Story continuesZoetis' Debt And Its 46% ROEIt's worth noting the high use of debt by Zoetis, leading to its debt to equity ratio of 1.47. Its ROE is pretty impressive but, it would have probably been lower without the use of debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.SummaryReturn on equity is one way we can compare its business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.Of course Zoetis may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Join A Paid User Research SessionYou’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Simply Wall St.

Should We Be Delighted With Zoetis Inc.'s (NYSE:ZTS) ROE Of 46%?

https://finance.yahoo.com/news/delighted-zoetis-inc-nyse-zts-110013322.html

2bce59c9-4d1f-3ad7-bade-428b3d2d68a5

ZTS

$7.4 million in corporate giving invested in communities, and an additional $5.7 million distributed through Zoetis Foundation grants to support veterinarians and farmersContinued progress toward colleague diversity aspirations, including increased representation of women at the director level and above globally from 32% in 2020 to 37% in 2022, aspiring to reach 40% by 2025Received approval for several livestock vaccines in additional markets, which support reducing the need to use antibioticsAchieved target to reduce energy intensity in manufacturing and R&D 5% by 2025, with a 13.5% reductionOutlined roadmap to carbon neutrality by 2030, and 31% of manufacturing sites operating with 100% renewable electricityPARSIPPANY, N.J., June 15, 2023--(BUSINESS WIRE)--Zoetis today published its 2022 Sustainability Report "Together We Are Making a Difference for a Better World", describing the company’s progress toward achieving its Driven to Care long-term sustainability aspirations and continued disclosure on environmental, social and governance (ESG) topics. The report highlights the company’s journey to advance sustainability in Animal Health for a better future through specific actions that support Communities, Animals and the Planet. These commitments build on Zoetis’ purpose and help achieve the United Nations’ Sustainable Development Goals (SDGs). Included in the report is the company’s ESG Index, which shares key ESG performance indicators, including those identified by the Sustainability Accounting Standards Board (SASB) for the healthcare – biotechnology and pharmaceuticals industry. The Index also includes environmental and social data as well as details on how Zoetis supports the Taskforce on Climate-related Financial Disclosure (TCFD) and its commitment to disclosing progress aligned with TCFD recommendations."In our third year of reporting to our Driven to Care aspirations and targets, we continue to make significant progress in our journey toward building a healthier future for our communities, animals and the planet," said Jeannette Ferran Astorga, Executive Vice President, Corporate Affairs, Communications and Chief Sustainability Officer at Zoetis and President of the Zoetis Foundation. "The progress we’ve made toward our sustainability commitments would not be possible without the dedication, creativity and innovation of our colleagues who champion our purpose by contributing to a better future for us all."Story continuesCommunities – Care and CollaborationZoetis invested $7.4 million in communities through corporate giving in 2022, with approximately $2.2 million in monetary and in-kind contributions to support approximately 186,000 pet owners in need and approximately $1.7 million in monetary and product contributions to help more than 560,000 animals impacted by disaster. The Zoetis Foundation also distributed $5.7 million in grants supporting 25 initiatives across 20 countries in 2022, significantly increasing grant funding to advance farmer and veterinary education, livelihoods, and well-being. Specifically, the Zoetis Foundation provided grants of $2.5 million in scholarships to veterinary students to support more than 500 students. In its commitment to advancing an inclusive veterinary profession, the Zoetis Foundation is the Founding Sponsor of the It Takes a Village Foundation's "Vet for a Day" program, helping advance diversity and inclusion in the veterinary field. In 2022, the "Vet for a Day" program reached approximately 300 students, enabling kids from diverse backgrounds to learn about veterinary medicine.The report also highlights progress made since 2020 toward the company’s diversity, equity and inclusion (DE&I) aspirations for 2025, including:Increased representation of women at the director level and above globally from 32% to 37%, aspiring to reach 40% by 2025Increased representation of Black colleagues in the U.S. from 4.0% to 4.8%, aspiring to reach 5% by 2025Increased representation of people of color at all levels in the U.S. from 21.0% to 24.6%, aspiring to reach 25% by 2025Increased representation of Latinx colleagues from 5.0% to 6.4%, exceeding our aspiration of reaching 6% by 2025The Zoetis executive team is now 60% women and 40% from racially or ethnically diverse backgrounds, including Asian, Black and Hispanic/Latinx.As part of ongoing efforts to support colleagues, Zoetis signed on to PrideVMC’s Gender Identity Bill of Rights (GIBOR), a document that affirms the rights of transgender, non-binary, and gender non-conforming persons, and provides guidance on how workplaces can support their employees by identifying and eliminating discriminatory practices. Zoetis engaged with 1,236 global active members across eight Colleague Resource Groups and launched Cultural Explorer training in eight languages to encourage respectful curiosity and open conversation about differences to deepen mutual understanding and value for colleagues’ unique contributions to the workplace.Animals - Innovation in Animal HealthWith the world’s population approaching the United Nations projected 10 billion people by 2050, some of our greatest challenges are emerging at the intersection of human, animal, environmental and economic health. By enhancing the health of livestock, innovative solutions can help contribute to the economic and environmental well-being of farmers and communities as well as support global food security.In 2022, Zoetis received approval for several livestock vaccines in additional markets, which support the Health for Animals Roadmap to Reducing the Need for Antibiotics. This includes recombinant vector vaccines in Brazil, India, Mexico, and the U.S. that can positively impact welfare and productivity of poultry, as well as expanded regulatory approval for a vaccine to help protect cattle against Mycoplasma bovis. Additional new products support cattle producers’ health and productivity goals as well as pork producers’ animal welfare and productivity goals, all to improve their sustainability. Zoetis also announced a research collaboration with scientists in New Zealand to explore mechanisms that may inhibit methane emissions from grazing ruminants and, in turn, reduce greenhouse gas (GHG) emissions. Furthermore, the company invested in research to support understanding how genetic testing and genomic predictions can help improve dairy cattle health outcomes by reducing disease incidence and antibiotic use while also improving productivity.Zoetis reported progress on five years of its African Livestock Productivity and Health Advancement (A.L.P.H.A.) initiative with the aim to help improve livestock health and positively impact farmers’ livelihoods in Sub-Saharan Africa. At the completion of the initiative, Zoetis trained over 30,000 farmers, veterinary professionals, distributors and lab personnel – 30% were women – and treated 9.7 million cows and 196 million chickens in the region. With continued support from the Bill & Melinda Gates Foundation, Zoetis launched A.L.P.H.A. Plus - a new five-year initiative that will scale up the initial efforts with expansion into seven additional countries in Africa and aquaculture in addition to cattle and poultry. The success of the A.L.P.H.A. initiative is further supported by Zoetis’ inclusion in Fortune’s 2022 Change the World list, underscoring the initiative’s impact to grow access to veterinary care in emerging markets and to help achieve the UN SDGs for No Poverty, Zero Hunger and Gender Equality, among others.Planet – the Drive to Protect our PlanetTo reduce GHG emissions throughout the company’s operations and manage climate risks, Zoetis set a goal in 2022 to achieve carbon neutrality in its own operations by 2030, with a focus on Scope 1 and 2 emissions from its manufacturing and R&D operations, office locations and fleet vehicles. Aligned with its RE100 commitment, Zoetis reported 14.7% renewable electricity sourced to date and installed four photovoltaic solar arrays at three manufacturing sites and one R&D site. To date, 31% of the company’s manufacturing sites operate with 100% renewable electricity. Zoetis exceeded and retired its target to reduce energy intensity by 5% at its manufacturing and R&D sites, with a 13.5% reduction. In 2022, the company developed a roadmap to achieve its carbon neutrality target that includes short-, medium- and long-term initiatives, including capital expense planning. Specifically, Zoetis conducted energy and carbon assessments at 10 of its largest energy consuming sites, accounting for approximately 90% of the company’s energy footprint, which helped identify more than 100 energy efficiency projects. Minimizing fleet emissions also are part of the company’s journey to carbon neutrality in its own operations, and in 2022, electric vehicles represented 1.2% of Zoetis’ total fleet, while hybrids accounted for 10%.The company continued to take meaningful steps to reduce its environmental footprint and improve its products’ environmental impact throughout their life cycle in markets around the world. The report highlights initiatives in Japan, Canada and the U.S. that help streamline Zoetis’ process, reduce packaging and divert packaging from landfills, including by transitioning prescription labeling to QR codes, and removing cotton from product packaging. Zoetis also created a sustainable packaging guidance document for suppliers to provide packaging specification guidelines for all products delivered to Zoetis.For more detailed disclosure on the company’s ESG programs, practices and policies, please see zoetis.com/sustainability or download Zoetis’ 2022 Sustainability Report. Zoetis will continue to share updates on its sustainability activities, including progress against its Driven to Care goals, and report annually.About ZoetisAs the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock farmers and ranchers. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $8.1 billion in 2022 with approximately 13,800 employees. For more information, visit www.zoetis.com.DISCLOSURE NOTICESForward-Looking Statements: This press release and the 2022 Sustainability Report (including the 2022 SASB and ESG Index) contain forward-looking statements which reflect the current views of Zoetis with respect to: our progress toward our Driven to Care aspirations; our sustainability, energy and climate goals, targets and plans; our business plans or prospects; expectations regarding future operating or financial performance; the plans and future work of the Zoetis Foundation, and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned "Forward-Looking Statements and Factors That May Affect Future Results" and "Item 1A. Risk Factors," in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com, or on request from Zoetis.All trademarks are the property of Zoetis Services LLC or a related company or a licensor unless otherwise noted.© 2023 Zoetis Services LLC. All rights reserved.ZTS-CORZTS-IRView source version on businesswire.com: https://www.businesswire.com/news/home/20230614296226/en/ContactsMedia Contacts:Christina Lood1-973-822-7249 (o)christina.lood@zoetis.com Bill Price1-973-443-2742 (o)william.price@zoetis.com Investor Contacts:Steve Frank1-973-822-7141 (o)steve.frank@zoetis.com Nick Soonthornchai1-973-443-2792 (o)nick.soonthornchai@zoetis.com

Business Wire

Zoetis Releases 2022 Sustainability Report to Share Progress in Building a Better Future for People, Animals and the Planet

https://finance.yahoo.com/news/zoetis-releases-2022-sustainability-report-120000607.html

e8b171a6-6797-3ca1-907c-0899e6cc0f0c

ZTS

Good morning.“I was learning accounting about the same time I was still learning how to speak English,” Wetteny Joseph, EVP and CFO of Zoetis Inc., a global animal health company, tells me. Although Joseph originally thought he’d become a business lawyer, accounting and finance classes in high school changed his mind. “I felt like it was a strong foundation to really understand a business.”Joseph’s road to becoming a CPA and a Fortune 500 CFO started in Haiti. During his youth, his parents struggled to make ends meet and feed their children, he says. “My father was a carpenter,” Joseph explains. “He was extremely focused. By the crack of dawn, he was already back from a two-hour trip buying materials to make something. My mom was extremely hardworking as well. She was always calm and poised. So, no matter what the circumstance, I'm usually the calmest person in the room.”Joseph came to the U.S. at age 12. “I have nine siblings,” he says. “I left seven of them behind, six of them older than me. And I think maybe those initial years accelerated some level of maturity for me.”Joseph joined Zoetis (the former animal health business of Pfizer Inc.) as CFO in June 2021. The company, led by CEO Kristin C. Peck, landed at No. 463 on this year’s Fortune 500 list, bringing in $8 billion in revenue in 2022, up 4% from a year ago. Zoetis has a portfolio of vaccines and medicines and other technologies used to keep farm animals and pets healthy. The company develops, manufactures, and distributes veterinary products in over 100 countries.Wetteny Joseph, EVP and CFO of Zoetis Inc.‘It’s almost like I'm seeing myself on stage’Before joining Zoetis, Joseph was SVP and CFO of Catalent for three years, having spent a total of 13 years in executive positions at the pharmaceutical, biologics, and consumer health products provider. Before that, he was CFO of the plumbing and HVAC business unit of HD Supply. He also served as corporate controller for Hughes Supply, which was acquired by Home Depot and became part of HD Supply.Story continuesExecutive search firm Crist Kolder and Associates found that there were just 18 companies out of 679 Fortune 500 and S&P 500 companies with Black CFOs in 2022, a slight decrease from 20 in 2021. The low representation of Black leaders at big corporations is “not just in finance,” Joseph says. “You can look at those stats in a number of different industries. That's unfortunate. I think in any field, where a group is underrepresented, it's going to have one challenge—you don't look up in the organization and see people who look like you.”“I still get a real positive impact from being in the audience and seeing a Ken Chenault [former CEO and chairman of American Express], or Dick Parsons [former chairman of Citigroup and the former chairman and CEO of Time Warner], or any other former Black CEO or senior executive,” Joseph says. “And it's almost like I'm seeing myself on stage.” Joseph is a member of the Executive Leadership Council, an organization for Black C-suite leaders and other senior executives, with the goal of building a global business leadership pipeline of Black talent.‘You’ve got to take the role’In Joseph’s career, sponsors—"The people who would be pounding the table when I wasn't in the room, saying, ‘Give him a shot at this’”—were critical, he says. One such sponsor was the late David Bearman, a former CFO of Hughes Supply, Cardinal Health, and NCR Corporation. “I wouldn't be a CFO here today if it wasn't for him,” Joseph says. About 20 years ago, Bearman promoted Joseph to controller, which was his first time in the role.“I pretty much tried to talk him out of it,” he quips. “David said to me, ‘Look, I'm a great judge of talent, and I've actually never been wrong, so you’ve got to take the role.’”As Joseph’s career progressed, what prepared him for his first CFO role? He made a deliberate move from controller to being the VP of finance for a business unit, he says. “I made it known to the CFO I was working for that this was something I wanted.”With his finance team at Zoetis, Joseph emphasizes learning the business and its customers, he says."I speak to my team about really understanding 'the outside-in,' meaning—what is the state of the customer?" Joseph explains. "What are the things that they're still wrestling with? Then we can have a more fruitful and impactful conversation on how that information feeds into the shaping of our strategy. Then, we’re stewards of the execution of that strategy to bring it to reality.”And Joseph works with a calm determination to make it happen.The next CFO Daily will be in your inbox on Tuesday as Fortune offices are closed on Monday for the Juneteenth holiday. See you next week.Sheryl Estradasheryl.estrada@fortune.comThis story was originally featured on Fortune.comMore from Fortune: 5 side hustles where you may earn over $20,000 per year—all while working from homeLooking to make extra cash? This CD has a 5.15% APY right nowBuying a house? Here's how much to saveThis is how much money you need to earn annually to comfortably buy a $600,000 home 

Fortune

Zoetis’s Wetteny Joseph—one of the few Black CFOs in the Fortune 500—began his journey to finance chief in Haiti

https://finance.yahoo.com/news/zoetis-wetteny-joseph-one-few-104602199.html

a5520cf0-14b5-3cd9-a9cb-6f551f024194

ZTS

Zoetis (ZTS) closed at $170.74 in the latest trading session, marking a -0.4% move from the prior day. This move lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 1.18%.Prior to today's trading, shares of the animal health company had lost 4.61% over the past month. This has lagged the Medical sector's loss of 0.17% and the S&P 500's gain of 7.18% in that time.Investors will be hoping for strength from Zoetis as it approaches its next earnings release. In that report, analysts expect Zoetis to post earnings of $1.31 per share. This would mark year-over-year growth of 9.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.17 billion, up 5.74% from the year-ago period.For the full year, our Zacks Consensus Estimates are projecting earnings of $5.41 per share and revenue of $8.64 billion, which would represent changes of +10.86% and +6.9%, respectively, from the prior year.Investors might also notice recent changes to analyst estimates for Zoetis. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% higher. Zoetis is currently sporting a Zacks Rank of #3 (Hold).Investors should also note Zoetis's current valuation metrics, including its Forward P/E ratio of 31.72. This valuation marks a premium compared to its industry's average Forward P/E of 17.12.Story continuesAlso, we should mention that ZTS has a PEG ratio of 2.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Drugs industry currently had an average PEG ratio of 1.37 as of yesterday's close.The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% of all 250+ industries.The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportZoetis Inc. (ZTS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Zoetis (ZTS) Dips More Than Broader Markets: What You Should Know

https://finance.yahoo.com/news/zoetis-zts-dips-more-broader-221522195.html

988005de-f3df-371a-9f32-99c529539a5b

ZTS

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. As with many other companies Zoetis Inc. (NYSE:ZTS) makes use of debt. But the real question is whether this debt is making the company risky.What Risk Does Debt Bring?Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together. Check out our latest analysis for Zoetis How Much Debt Does Zoetis Carry?As you can see below, Zoetis had US$6.59b of debt, at March 2023, which is about the same as the year before. You can click the chart for greater detail. However, it does have US$2.11b in cash offsetting this, leading to net debt of about US$4.48b.debt-equity-history-analysisHow Strong Is Zoetis' Balance Sheet?According to the last reported balance sheet, Zoetis had liabilities of US$1.92b due within 12 months, and liabilities of US$7.35b due beyond 12 months. Offsetting this, it had US$2.11b in cash and US$1.19b in receivables that were due within 12 months. So its liabilities total US$5.97b more than the combination of its cash and short-term receivables.Story continuesGiven Zoetis has a humongous market capitalization of US$78.9b, it's hard to believe these liabilities pose much threat. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse.In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.Zoetis has a low net debt to EBITDA ratio of only 1.4. And its EBIT covers its interest expense a whopping 19.2 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse. While Zoetis doesn't seem to have gained much on the EBIT line, at least earnings remain stable for now. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Zoetis's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So we always check how much of that EBIT is translated into free cash flow. During the last three years, Zoetis produced sturdy free cash flow equating to 58% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.Our ViewThe good news is that Zoetis's demonstrated ability to cover its interest expense with its EBIT delights us like a fluffy puppy does a toddler. And its conversion of EBIT to free cash flow is good too. Taking all this data into account, it seems to us that Zoetis takes a pretty sensible approach to debt. While that brings some risk, it can also enhance returns for shareholders. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. For instance, we've identified 1 warning sign for Zoetis that you should be aware of.When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Join A Paid User Research SessionYou’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Simply Wall St.

Does Zoetis (NYSE:ZTS) Have A Healthy Balance Sheet?

https://finance.yahoo.com/news/does-zoetis-nyse-zts-healthy-120021220.html

71d37049-a5ed-3769-aeb0-6e1838e6d2ca

ZTS

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund posted a return of 5.35% net of fees compared to a 7.50% return for the S&P 500 Index. The fund’s underperformance in the quarter was primarily because of the security selection and allocation effects. Holdings in Consumer Discretionary, Industrials, and Energy detracted from relative performance. On the other hand, holdings in Information Technology and Health Care, as well as an underweight exposure in Energy, contributed towards the relative performance of the strategy in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.Aristotle Atlantic Core Equity Strategy highlighted stocks like Zoetis Inc. (NYSE:ZTS) in the first quarter 2023 investor letter. Headquartered in Parsippany, New Jersey, Zoetis Inc. (NYSE:ZTS) is an animal health medicines, vaccines, and diagnostic products manufacturer. On June 20, 2023, Zoetis Inc. (NYSE:ZTS) stock closed at $168.91 per share. One-month return of Zoetis Inc. (NYSE:ZTS) was -5.91%, and its shares gained 6.35% of their value over the last 52 weeks. Zoetis Inc. (NYSE:ZTS) has a market capitalization of $78.055 billion.Aristotle Atlantic Core Equity Strategy made the following comment about Zoetis Inc. (NYSE:ZTS) in its first quarter 2023 investor letter:"Zoetis Inc. (NYSE:ZTS) is a global leader in the animal health industry, focused on the discovery, development, manufacture and commercialization of medicines, vaccines, diagnostic products, and services, biodevices, genetic tests and precision animal health technology. It has a diversified business, commercializing products across eight core species: dogs, cats, horses, cattle, swine, poultry, fish, and sheep within seven major product categories: vaccines, parasiticides, anti-infectives, dermatology, other pharmaceutical products, medicated feed additives and animal health diagnostics. Zoetis boasts approximately 300 product lines sold in more than 100 countries around the world, making it one of the world's largest animal health businesses. Approximately 53% of the company's total revenue is generated from the US.We believe that Zoetis is working to help improve the lives of animals, which has societal benefits in the companion animal arena. Within livestock, healthier animals can provide increased productivity and yield as the growing world population seeks more safe food sources and additional sources of protein."Story continuesVet, cat, animalwerzk-luuu-tDlo2ZPlQlU-unsplashZoetis Inc. (NYSE:ZTS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Zoetis Inc. (NYSE:ZTS) at the end of first quarter 2023 which was 58 in the previous quarter.We discussed Zoetis Inc. (NYSE:ZTS) in another article and shared Baron Health Care Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors. Suggested Articles:20 Countries With Highest Tea Consumption Per Capita20 Countries with Highest Rice Consumption Per CapitaTop 20 Largest Consumer Staples Companies in the WorldDisclosure: None. This article is originally published at Insider Monkey.

Insider Monkey

What Makes Zoetis (ZTS) an Attractive Investment?

https://finance.yahoo.com/news/makes-zoetis-zts-attractive-investment-060115520.html

b0099110-18c7-3abb-b458-dcc4635bd0cc

ZTS

This highly profitable dividend growth stock could stack the odds of beating the market in your favor.Continue reading

Motley Fool

History Suggests This S&P 500 Dividend Stock Is Perfect to Buy and Hold Forever

https://finance.yahoo.com/m/b0d475e9-04e3-311b-8d0d-7c5875cd3fcd/history-suggests-this-s-p-500.html

b0d475e9-04e3-311b-8d0d-7c5875cd3fcd

ZTS

In this article, we discuss 12 stocks billionaire Chris Rokos is selling in 2023. If you want to skip our detailed analysis of Rokos’ investment philosophy and portfolio construction, go directly to the Billionaire Chris Rokos is Selling These 5 Stocks in 2023.Rokos Capital Management, led by billionaire trader Chris Rokos, made headlines earlier this year amid reports that the fund posted gains of approximately 51% in 2022. This performance was attributed to bets on rising interest rates and volatility across various asset classes. It was Rokos' best annual performance since 2015, the year he started trading for his own firm, and it helped the fund recover from a record 26% loss suffered in the previous year.However, Rokos Capital Management faced challenges in early 2023. The hedge fund experienced a 15% decline in March. Year-to-date, the macro hedge fund is down by approximately 9.5% as of March. The firm was caught off-guard by the bond market turmoil, and its bets on US government bonds backfired. This led to concerns from the US Securities and Exchange Commission (SEC) regarding the size of potential margin calls on the firm.In response to the losses, Rokos Capital Management decided to de-risk its portfolio and reduce exposure to market volatility. The firm stated that its cash levels remained healthy, and it emphasized its open and collaborative engagement with regulatory authorities such as the Financial Conduct Authority (FCA) and the SEC. The SEC chair, Gary Gensler, reportedly discussed Rokos with the UK regulators, highlighting the concerns over margin calls and the potential impact on the US government bond market.According to Forbes, Chris Rokos, the CEO and founder of Rokos Capital Management, has a net worth of $1.5 billion. Rokos is a macro investor who specializes in commodities, currencies, interest rates, and equities. He is known for advocating a strict approach to fund management, including immediate termination of unsuccessful traders and considering a trader's first year as an extended interview. Rokos is recognized as an exceptional manager in handling large debt and option holdings. Chris Rokos’ Rokos Capital Management 13F portfolio value decreased from $2.28 billion in Q4 2022 to $1.35 billion in Q1 2023. The fund made 29 new purchases in the first quarter, increased its stakes in 13 stocks, sold out 30 equities and reduced holdings in six stocks. Some of the famous companies which Chris Rokos sold in Q1 include Zoetis Inc. (NYSE:ZTS), PG&E Corporation (NYSE:PCG), and Bunge Limited (NYSE:BG).Story continuesWall Street BullOur MethodologyTaking into account this background information and the overall industry outlook, we will now present the stocks billionaire Chris Rokos is selling in 2023. In this article, we examined Rokos' 13F filings for the first quarter of 2023 and identified the stocks that he completely sold during that period.Billionaire Chris Rokos is Selling These Stocks in 202312. Novavax, Inc. (NASDAQ:NVAX)Number of Hedge Fund Holders: 12Novavax, Inc. (NASDAQ:NVAX) is a global biotech company headquartered in Gaithersburg, Md., U.S.H.C. Wainwright lowered Novavax, Inc. (NASDAQ:NVAX)'s price target to $35 on May 10, maintaining a ‘Buy’ rating after Q1 results. The company's commercialization strategy requires restructuring and cost reduction, but it has established itself as a significant player in the COVID vaccines market.Chris Rokos bought 28,925 shares of Novavax, Inc. (NASDAQ:NVAX) in the fourth quarter of 2022. However, he sold all the shares in Q1 2023.Along with Zoetis Inc. (NYSE:ZTS), PG&E Corporation (NYSE:PCG), and Bunge Limited (NYSE:BG), Novavax, Inc. (NASDAQ:NVAX) is one of the stocks billionaire Chris Rokos sold in 2023.As of the first quarter of 2023, 12 hedge funds in Insider Monkey’s database held stakes in Novavax, Inc. (NASDAQ:NVAX). The most prominent shareholder in Novavax, Inc. (NASDAQ:NVAX) is Philippe Laffont’s Coatue Management, with 1.77 million shares valued at $12.24 million.11. The RealReal, Inc. (NASDAQ:REAL)Number of Hedge Fund Holders: 19The RealReal, Inc. (NASDAQ:REAL) is a US-based online marketplace for luxury goods resale, including women's and men's fashion, jewelery, and watches. RealReal has a consensus rating of 'Moderate Buy,' derived from 4 buy ratings, one hold rating, and one sell rating.Rokos Capital Management acquired a stake in The RealReal, Inc. (NASDAQ:REAL) in Q1 2022 as it bought 1.11 million shares, worth about $8.60 million at the time. However, the hedge fund offloaded the shares in the first quarter of 2023.10. Leslie's, Inc. (NASDAQ:LESL)Number of Hedge Fund Holders: 22Leslie's, Inc. (NASDAQ:LESL) is a prominent direct-to-consumer brand within the U.S. pool and spa care sector. Their extensive selection of essential pool and spa care products serves residential and professional clientele. Through their network of 1,000+ physical stores and robust digital platform, Leslie's offers customers the convenience of shopping in-person or online, accommodating their preferred purchase method.The hedge fund first initiated stake in the company in Q3 2021 by purchasing 127,302 shares. However, Rokos Capital Management chose to part ways with Leslie's, Inc. (NASDAQ: LESL) and call it quits in Q1 2023.On May 8, Stifel analyst W. Andrew Carter reduced the price target on Leslie's, Inc. (NASDAQ:LESL) to $11 from $12 while maintaining a ‘Hold’ rating on the shares. The analyst attributed the stock's performance impact to "disappointing" fiscal Q2 results and ongoing uncertainty.  According to Insider Monkey’s first quarter 2023 database, 22 hedge funds were long Leslie's, Inc. (NASDAQ:LESL), compared to 27 funds in the prior quarter. John W. Rogers’ Ariel Investments is the leading stakeholder of the company, with 11.85 million shares.In its Q4 2022 investor letter, Ariel Investments shared its insights on Leslie's, Inc. (NASDAQ: LESL) and made the following comment:“We also added Leslie’s, Inc. (NASDAQ:LESL), the leading direct-to-consumer pool and spa care services company in the U.S. The company differentiates itself through its loyal client base, vertically integrated supply chain, scale advantage and seamless customer experience. Shares have recently sold off on near-term operational issues at a distribution facility, as well as concerns around the sustainability of the company’s growth profile in a normalized, post-pandemic environment. Although we believe new pool installments will likely experience a slowdown, the install base has materially increased and ~80% of LESL’s business is tied to recurring maintenance. We found this entry point as an attractive opportunity to own a differentiated retailer, well positioned to benefit from secular tailwinds in an industry, permanently elevated by the pandemic.”9. Mobileye Global Inc. (NASDAQ:MBLY)Number of Hedge Fund Holders: 22Mobileye Global Inc. (NASDAQ:MBLY) is a global leader in developing and deploying advanced driver assistance systems (ADAS) and autonomous driving technologies. Mizuho increased the price target on Mobileye Global Inc. (NASDAQ:MBLY) from $39 to $43 and retained a ‘Buy’ rating on the shares following the announcement of a collaboration with Porsche to integrate SuperVision into future models.As of the end of 2022, Rokos Capital Management held a total of 50,000 shares in Mobileye Global Inc. (NASDAQ:MBLY). However, in the first quarter of 2023, the company decided to break all ties and let go of its entire stake in the company.According to Insider Monkey’s first quarter database, 22 hedge funds were bullish on Mobileye Global Inc. (NASDAQ:MBLY), compared to 29 funds in the prior quarter.Baron Funds made the following comment about Mobileye Global Inc. (NASDAQ:MBLY) in its Q4 2022 investor letter:“During the fourth quarter, we participated in Mobileye Global Inc. (NASDAQ:MBLY)’s IPO. Mobileye is a leading ADAS and autonomous driving technologies and solutions provider with over 125 million vehicles across 800 models that have incorporated its products to date across 50-plus vehicle manufacturers (OEMs) including 13 of the top 15 global OEMs. The company was founded in 1999 and effectively pioneered the ADAS market introducing its first EyeQ system-on-chip (SoC) in 2007, enabling the vehicle to gain ADAS capabilities (such as real-time detection of vehicles, pedestrians, and lane markings) for a price of around $50. While the company remains a leader in ADAS today (with an approximate 70% market share), we believe the bigger opportunity is in leading the autonomous driving revolution. This would, in our view, significantly improve safety; meaningfully increase the vehicle utilization rate, which today is only around 4%; and dramatically grow the company’s content per vehicle. Mobileye’s SuperVision, a fully operational point-to-point assisted driving navigation solution, is the next step in the company’s progress towards autonomous driving, and it has a price tag of over 20 times that of its basic ADAS SoC. At the last Consumer Electronics Conference, the company announced a $3.5 billion backlog for its SuperVision solution across six OEMs and nine vehicle models. In addition, the company announced a $1.5 billion design win for its consumer AV program and a $3.5 billion backlog for its Mobility-as-a-Service or robotaxi solution. CEO and Founder, Amnon Shashua discussed his long-term vision in the company’s shareholder letter:“More than two decades ago, I founded Mobileye on the belief that computer vision technology could help prevent automobile crashes and save lives. From that simple idea, a global industry was born… By 2030, we expect Mobileye driver-assistance systems to be deployed in another 270 million vehicles globally… We believe that we will be positioned to deliver an autonomous driving solution that can enable the mass adoption of AVs [Autonomous Vehicles] including both Mobileye-powered robotaxis and consumer-owned autonomous driving vehicles. And Mobileye will be well on the way to delivering the future I first envisioned more than two decades ago.””8. New Fortress Energy Inc. (NASDAQ:NFE)Number of Hedge Fund Holders: 28New Fortress Energy Inc. (NASDAQ:NFE) is a global energy infrastructure company that offers integrated gas-to-power solutions and development services to end-users worldwide. Chris Rokos first bought New Fortress Energy Inc. (NASDAQ:NFE) shares worth $123,000 in Q1 2022. However, he completely sold his position in the company in Q1 2023.Barclays reduced New Fortress Energy Inc. (NASDAQ:NFE)'s price target to $34 on April 24, maintaining an ‘Equal Weight’ rating. The analyst believed the company's Q1 earnings update, along with its subdued positioning, offered a favorable setup for the quarter.As of the end of the first quarter, there were 28 hedge funds in Insider Monkey’s database that held stakes in New Fortress Energy Inc. (NASDAQ:NFE), compared to 43 funds in the prior quarter. Fortress Investment Group, with 13.4 million shares, is the biggest stakeholder in the company.7. Teladoc Health, Inc. (NYSE:TDOC)Number of Hedge Fund Holders: 30Teladoc Health, Inc. (NYSE:TDOC) is a global provider of virtual healthcare services operating in the United States and internationally. The company is structured into two segments: Integrated Care and BetterHelp. Following the Q1 report, Deutsche Bank analyst George Hill increased the price target on Teladoc Health, Inc. (NYSE:TDOC) to $29 from $27 while maintaining a ‘Hold’ rating on the shares.After maintaining a position in Teladoc Health, Inc. (NYSE:TDOC) since Q1 2022, Rokos Capital Management divested its stake in the company during Q1 2023. The hedge fund held shares worth $4.23 million in the company at the end of the fourth quarter of 2022.According to Insider Monkey’s first quarter database, 30 hedge funds held stakes worth $890.2 million in Teladoc Health, Inc. (NYSE:TDOC), compared to 33 funds in the prior quarter worth $849.8 million. Catherine D. Wood’s ARK Investment Management holds the most stock in Teladoc Health, Inc. (NYSE:TDOC), with 20.58 million shares.6. PACCAR Inc (NASDAQ:PCAR)Number of Hedge Fund Holders: 33PACCAR Inc (NASDAQ:PCAR) is a global technology leader in manufacturing and supporting high-quality trucks under the Kenworth, Peterbilt, and DAF brands. They also specialize in advanced powertrains, financial services, information technology, and truck parts distribution.Argus downgraded PACCAR Inc (NASDAQ:PCAR) to ‘Hold’ on May 2 due to concerns about slower economic growth affecting the global trucking industry. Rokos Capital Management initiated its investment in PACCAR Inc (NASDAQ:PCAR) by purchasing shares worth $9.45 million in the fourth quarter of 2022. However, the hedge fund offloaded the entire stake in Q1 2023. Out of the hedge funds tracked by Insider Monkey, 33 hedge funds were long PACCAR Inc (NASDAQ:PCAR) during the first quarter with aggregate stakes worth $886.3 million. This compares to 38 hedge funds holding $712.8 million in PACCAR Inc (NASDAQ:PCAR) in the previous quarter.Like Zoetis Inc. (NYSE:ZTS), PG&E Corporation (NYSE:PCG), and Bunge Limited (NYSE:BG), PACCAR Inc (NASDAQ:PCAR) is one of the stocks billionaire Chris Rokos sold in 2023.In its Q1 2023 investor letter, Madison Investments stated the following regarding PACCAR Inc (NASDAQ:PCAR):“Heavy duty truck manufacturer PACCAR Inc (NASDAQ:PCAR) has quietly been one of our best performers over the past year. It, too, has surprised us to some extent, with the resiliency that it’s showing in a slowing trucking market. We think there’s a decent chance that weakness in its end markets will eventually catch up with PACCAR, but we believe the stock is cheap, and its steady parts business will act as a moderate stabilizer in such a scenario.”Click to continue reading and see Billionaire Chris Rokos is Selling These 5 Stocks in 2023.Suggested articles:10 Best Value Stocks to Buy in 2023 According to Billionaire Mario GabelliBillionaire John Paulson’s 2023 Portfolio: Top 15 Stock PicksBillionaire David Tepper’s 2023 Portfolio: Top 15 Stock PicksDisclosure: None. Billionaire Chris Rokos is Selling These 12 Stocks in 2023 is originally published on Insider Monkey.

Insider Monkey

Billionaire Investor Who Returned 51% in 2022 is Selling These 12 Stocks in 2023

https://finance.yahoo.com/news/billionaire-investor-returned-51-2022-204743627.html

73591031-bc1c-3c32-83d9-4e6d95294639

ZTS

Zoetis Inc. (NYSE:ZTS) is a leading animal health company with a diversified product portfolio of medicines and vaccines that aim to treat and protect livestock and companion animals.The stock has gained around 14% so far this year.There Are Plenty of Reasons to Like ZoetisZTS 15-Year Financial DataThe intrinsic value of ZTSPeter Lynch Chart of ZTSI see plenty of reasons to like Zoetis currently, with the first being management's ambitious plan to create value.A plan to create value and growth In May, Zoetis' management team revealed its plans to create value and growth during its Investor Day. The company has plenty of growth opportunities in its dermatology, pet parasiticides and osteoarthritis pain franchises that can boost revenue."Our growth and value creation is rooted in the right strategy, a diverse portfolio, our leadership in innovation, and global capabilities that allow us to capitalize on the opportunities we see in an attractive Animal Health market," CEO Kristin Peck said. "We pride ourselves on shaping animal health and creating new markets based on game-changing innovations. Based on our track record and talented colleagues, we are confident in our ability to broaden our existing billion-dollar franchises, while innovating and building new ones through continued investments in R&D, supply chain, and commercial excellence,"At the same time, it is nice to see the Parsippany, New Jersey-based company has a vision to create value for shareholders over the next three to five years based on several catalysts. These catalysts include growing revenue as a result of the franchises, improving return on invested capital and expanding margins.Zoetis also has strong fundamentals, which show its stock performs very well in not just one, but several important financial metrics.High profitability and growthAt $168.24, Zoetis shares trade with a price-earnings ratio of 37.82, a price-sales ratio of 9.7 and a price-book ratio of 17.24.Story continuesThe GF Value of $203.93 indicates the stock is modestly undervalued based on its historical ratios, past financial performance and analysts' future earnings projections. Further, is has an upside potential of nearly 22% should the gap between the GF Value and the current share price close completely.There Are Plenty of Reasons to Like ZoetisThe GF Score of 98 out of 100 indicates Zoetis has very high outperformance potential, driven by solid ratings for profitability, growth, momentum and value as well as a more moderate financial strength rank.There Are Plenty of Reasons to Like ZoetisThe predictability rank of four out of five is also very good. According to GuruFocus research, companies with this rank return an average of 9.80% annually over a 10-year period.Before analyzing the profitability and growth, a quick look at Zoetis' financial health is essential.The company has a debt-to-equity ratio of 1.5, which seems a bit high at first glance. However, despite being a bit volatile over the past five years, Zoetis generates consistent positive free cash flow. Further, its interest coverage ratio of 12.41 is very high and is not a concern. Liquidity is also very strong. The current ratio of 3.27 and quick ratio of 1.94 are very healthy. Due to the fact the company has been very profitable over the past five years, which is reflected in its rising retained earnings, growing from $3.27 billion in 2018 to $8.67 billion in 2022, it can repay its debt.Turning now to profitability, Zoetis operating margin is expanding. It was 36.40% as of March, with a five-year average growth rate of 2.70% per year. The gross margin of 70.60% and net margin of 27.60% are also very high.The company's return on equity of 49.62% is also exceptionally high and is ranked better than 97.46% of the 1,022 companies operating in the drug manufacturers industry. The ROE was high over the past four consecutive quarters, and only back in March 2022 was it higher at 51.73%.Zoetis has plenty of growth ahead, too. The three-year revenue growth rate is 9.8% and the three-year earnings per share without non-recurring items growth rate is 13%. The future three to five-year total revenue growth rate is 6.51%, which is considered strong.Final thoughtsOverall, Zoetis' shares look attractive. The company's profitability is very strong, there is growth ahead and management is focused on creating value for shareholders with a number of strategic business priorities. As a result, the future looks exciting for this animal health company.This article first appeared on GuruFocus.

GuruFocus.com

There Are Plenty of Reasons to Like Zoetis

https://finance.yahoo.com/news/plenty-reasons-zoetis-165038342.html

b9ca7407-dde7-37c8-b30c-b5c67ca0ac05

ZTS

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.What if you'd invested in Zoetis (ZTS) ten years ago? It may not have been easy to hold on to ZTS for all that time, but if you did, how much would your investment be worth today?Zoetis' Business In-DepthWith that in mind, let's take a look at Zoetis' main business drivers.Florham Park, NJ-based Zoetis Inc. came into existence following Pfizer’s decision to spin off its animal health business. The entity started trading on NYSE on Feb 1, 2013, under the name Zoetis. The company is a leader in the animal health space with a focus on both livestock and companion animals in seven major product categories: vaccines, anti-infectives, parasiticides, dermatology, other pharmaceutical products, medicated feed additives and animal health diagnostics. Zoetis has a diversified business, which caters to eight core species — cattle, swine, poultry, fish and sheep (collectively, livestock) and dogs, cats and horses (collectively, companion animals).The outstanding growth rate in the companion animal medicines, vaccines and diagnostics sector is being driven by economic development, related increases in disposable income and a rise in pet ownership and spending on pet care.Zoetis has been working on strengthening its product portfolio through acquisitions and deals. In 2022, the company completed the acquisition of Jurox, an animal health company based in Australia, which brings the company a range of companion animal and livestock products and provides the company with future growth opportunities, manufacturing capacity and increased capabilities in Australia. Also in 2022, the company acquired Basepaws, a petcare genetics company that provides pet owners with genetic tests, analytics and early health risk assessments, which help pet owners and veterinarians understand an individual pet’s risk for disease and can lead to more meaningful engagements and increased likelihood of early detection and treatment of disease.Zoetis has consolidated its four-region structure into a two-region structure, namely the United States and International. Total revenues grew 4% year over year to $8.1 billion in 2022. The United States contributed 53% of total revenues in 2022 while international revenues contributed the rest.In 2022, Zoetis’ two top-selling products and product lines were Simparica/Simparica Trio and Apoquel, which contributed approximately 12% and 10%, respectively, of its revenue. Also in 2022, Zoetis recorded 15 products and product lines with revenues of $100 million or more.Story continuesBottom LineWhile anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Zoetis ten years ago, you're probably feeling pretty good about your investment today.According to our calculations, a $1000 investment made in June 2013 would be worth $5,528.67, or a gain of 452.87%, as of June 28, 2023, and this return excludes dividends but includes price increases.Compare this to the S&P 500's rally of 171.41% and gold's return of 49.18% over the same time frame.Going forward, analysts are expecting more upside for ZTS. Zoetis has an innovative portfolio of pet care parasiticides, including Simparica Trio and key dermatology products that maintain momentum for the company. The strong uptake of Librela and Solensia in Europe, its new monoclonal antibody therapies for osteoarthritis pain in dogs and cats, is encouraging. The launch of innovative products bolstered the portfolio and should fuel growth. The recent approval of the Apoquel chewable tablet for dermatitis indication should boost sales. However, the company had earlier faced supply challenges which impacted demand. Despite constraints being eased out, a similar situation will restrain growth. Stiff competition from animal health business wings of Merck and Bayer remains a woe. Shares have outperformed in the industry in the year-to-date period. Our estimates for Zoetis’ revenues suggest a CAGR growth of 7.4% over the next three years. The stock has jumped 6.05% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2023; the consensus estimate has moved up as well.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportZoetis Inc. (ZTS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

If You Invested $1000 in Zoetis a Decade Ago, This is How Much It'd Be Worth Now

https://finance.yahoo.com/news/invested-1000-zoetis-decade-ago-123007686.html

f76e1820-abfa-3c8f-84e6-76f512e3607b

ZTS

After reaching an important support level, Zoetis (ZTS) could be a good stock pick from a technical perspective. ZTS surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.Shares of ZTS have been moving higher over the past four weeks, up 6.1%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that ZTS could be poised for a continued surge.The bullish case only gets stronger once investors take into account ZTS's positive earnings estimate revisions. There have been 6 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on ZTS for more gains in the near future.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportZoetis Inc. (ZTS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Zoetis (ZTS) Just Reclaimed the 20-Day Moving Average

https://finance.yahoo.com/news/zoetis-zts-just-reclaimed-20-133504329.html

10a11462-3372-3b92-8d56-0b91094ea4f5

ZTS

If your eczema is making you itchy, your doctor might prescribe Dupixent, a Sanofi monoclonal antibody therapy with a U.S. list price of around $43,000 a year. On a biological level, there’s little difference between them: Dupixent targets proteins in the human immune system called interleukin-4 and interleukin- 13, while Cytopoint targets a protein in the dog immune system called interleukin-31. While Cytopoint was licensed by the U.S. Department of Agriculture, Zoetis’ (ticker: ZTS) other two monoclonal antibodies were approved by the Food and Drug Administration.Continue reading

Barrons.com

A Drug for Itchy Dogs Costs $1,200. Why Is the Human Equivalent $43,000?

https://finance.yahoo.com/m/cf800392-fdc5-3b52-a7c9-03c3a24c5956/a-drug-for-itchy-dogs-costs.html

cf800392-fdc5-3b52-a7c9-03c3a24c5956

ZTS

Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, long term Zoetis Inc. (NYSE:ZTS) shareholders have enjoyed a 98% share price rise over the last half decade, well in excess of the market return of around 50% (not including dividends).Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. Check out our latest analysis for Zoetis In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.During five years of share price growth, Zoetis achieved compound earnings per share (EPS) growth of 17% per year. So the EPS growth rate is rather close to the annualized share price gain of 15% per year. That suggests that the market sentiment around the company hasn't changed much over that time. Indeed, it would appear the share price is reacting to the EPS.You can see how EPS has changed over time in the image below (click on the chart to see the exact values).earnings-per-share-growthDive deeper into Zoetis' key metrics by checking this interactive graph of Zoetis's earnings, revenue and cash flow.What About Dividends?As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Zoetis' TSR for the last 5 years was 105%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!Story continuesA Different PerspectiveInvestors in Zoetis had a tough year, with a total loss of 4.6% (including dividends), against a market gain of about 13%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 15%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Zoetis is showing 1 warning sign in our investment analysis , you should know about...Of course Zoetis may not be the best stock to buy. So you may wish to see this free collection of growth stocks.Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Join A Paid User Research SessionYou’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Simply Wall St.

Investing in Zoetis (NYSE:ZTS) five years ago would have delivered you a 105% gain

https://finance.yahoo.com/news/investing-zoetis-nyse-zts-five-110050576.html

66cc415e-0f0d-3914-854d-ec7e21c82f88

ZTS

PARSIPPANY, N.J., July 10, 2023--(BUSINESS WIRE)--Zoetis Inc. (NYSE:ZTS) today announced the addition of Ester Banque as Executive Vice President and President, U.S. Operations, for the company, effective July 10, 2023. Ms. Banque is an accomplished global senior executive with over 30 years of experience in health sciences with top tier pharmaceutical companies. Ester will be a member of the Zoetis Executive team and report to Chief Executive Officer Kristin Peck.This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230709430714/en/Ester Banque joins Zoetis as Executive Vice President and President, U.S. Operations, effective July 10, 2023. Source: Zoetis"We are excited to welcome Ester Banque to lead our U.S. business after a thoughtful and extensive search process," said Kristin Peck, CEO of Zoetis. "We were impressed by Ester’s diverse, global experience, leadership of high performing teams, and above-market growth achievements. She is a passionate, purpose-driven leader who brings diverse experience and an impressive track record of driving results, which will promote Zoetis’ long-term sustainable growth."In this role, Ms. Banque will have responsibility for the company’s U.S. commercial operations, continuing to broaden and expand the company’s key franchises and shape the market for future innovation - providing exceptional experiences for companion animal and livestock customers."I am proud to join Zoetis and be part of an organization that is built on the foundation of a purpose-driven culture, powered by an innovative, robust pipeline and high-performing teams. This new challenge will allow me to further expand my commitment to healthcare, and advance Zoetis’ purpose ‘to nurture our world and humankind by advancing care for animals. I am looking forward to building on Zoetis’ leadership in animal health and capitalizing on opportunities to make a positive impact on our customers, colleagues and communities," said Ms. Banque.Story continuesIn connection with Ester’s appointment, William ("Chip") Dorsey, interim Head of U.S. Operations since February 2023, will continue in his finance leadership role and be a resource to Ms. Banque as she onboards. "On behalf of the Zoetis Executive Team, I also want to thank Chip for his leadership over the past five months," said Ms. Peck.About Ester BanqueMost recently, Ester has served as Senior Vice President and General Manager of Bristol Myers-Squibb’s U.S. Hematology & Cell Therapy Business, where she led the transformation of a portfolio -- from major losses of patent exclusivity to accelerating the launch of five products -- while managing a $14 billion1 P&L for the company. Before joining Bristol Myers-Squibb, Ester spent 25 years at Novartis where she held a variety of senior commercial positions and spearheaded the most successful product launch in the company’s history, before taking on the role of General Manager of Oncology, Germany.1Based on 2022 annual revenue.About ZoetisAs the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock farmers and ranchers. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $8.1 billion in 2022 with approximately 13,800 employees. For more information, visit www.zoetis.com.DISCLOSURE NOTICESForward-Looking Statements: This press release contains forward-looking statements which reflect the current views of Zoetis with respect to business plans or prospects, including potential future innovation, and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned "Forward-Looking Statements and Factors That May Affect Future Results" and "Item 1A. Risk Factors," in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov , www.zoetis.com , or on request from Zoetis.ZTS-CORZTS-IRView source version on businesswire.com: https://www.businesswire.com/news/home/20230709430714/en/ContactsMedia Contacts:Bill Price1-973-443-2742 (o)william.price@zoetis.comKristen Seely1-973-443-2777 (o)kristen.seely@zoetis.comInvestor Contact (if applicable):Steve Frank1-973-822-7141 (o)steve.frank@zoetis.comNick Soonthornchai1-973-443-2792 (o)nick.soonthornchai@zoetis.com

Business Wire

Zoetis Announces Appointment of Ester Banque as President of U.S. Operations for World Leader in Animal Health

https://finance.yahoo.com/news/zoetis-announces-appointment-ester-banque-120000167.html

ad60fad0-55c7-35fc-9062-34b473b30b93

ZTS

Investors interested in stocks from the Medical - Drugs sector have probably already heard of Jazz Pharmaceuticals (JAZZ) and Zoetis (ZTS). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.Jazz Pharmaceuticals and Zoetis are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.JAZZ currently has a forward P/E ratio of 7.10, while ZTS has a forward P/E of 31.49. We also note that JAZZ has a PEG ratio of 0.59. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ZTS currently has a PEG ratio of 2.75.Another notable valuation metric for JAZZ is its P/B ratio of 2.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZTS has a P/B of 17.51.Story continuesThese metrics, and several others, help JAZZ earn a Value grade of A, while ZTS has been given a Value grade of C.Both JAZZ and ZTS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JAZZ is the superior value option right now.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportJazz Pharmaceuticals PLC (JAZZ) : Free Stock Analysis ReportZoetis Inc. (ZTS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

JAZZ vs. ZTS: Which Stock Is the Better Value Option?

https://finance.yahoo.com/news/jazz-vs-zts-stock-better-154013770.html

48911a08-006e-376a-80f1-f6d7953d3798

ZTS

PARSIPPANY, N.J., July 12, 2023--(BUSINESS WIRE)--Zoetis Inc. (NYSE:ZTS) has been named to Fast Company’s list of Best Workplaces for Innovators for 2023. Zoetis is the only stand-alone animal health company to be included on this year’s list which honors businesses that demonstrate a commitment to encouraging innovation at all levels."Our innovative culture means we are always seeking to understand how we can meet our customers’ next unmet need," said Rob Polzer, Executive Vice President and President, Research & Development. "As the world leader in animal health, our scientists are exploring innovations across the continuum of animal healthcare - from prediction to prevention, detection and treatment – so we can help pets live longer, healthier lives and keep farm animals healthier and more productive."Driven by a purpose to nurture the world and humankind by advancing care for animals and underscored by a strong culture, several initiatives contributed to Zoetis being named to the list:Developing game-changing innovation for pets, including leading dermatology products for dogs and, most recently, monoclonal antibody treatments for controlling pain associated with osteoarthritis in dogs and cats.Rapid development of a COVID-19 vaccine for animals and subsequent donation of more than 26,000 doses of the vaccine to hundreds of zoos in over a dozen countries, including the U.S., Canada and Chile, to help protect the health and well-being of more than 300 mammalian species of zoo animals.Expanded operations at the company’s location in Durham, N.C., hiring additional engineers and opening a new site dedicated to diagnostics and biodevices R&D. The new site, including 23,000 square feet of total lab space allotted for science, engineering testing and support, serves as a hub for science and engineering talent within Zoetis.Collaborating with the partners to the Pastoral Greenhouse Gas Research Consortium (PGgRC) and New Zealand Agricultural Greenhouse Gas Research Centre (NZAGRC) to explore research mechanisms that may inhibit methane emissions from cattle and reduce greenhouse gas emissions.Unique colleague learning and development opportunities at the company’s R&D location in Spain, where colleagues rotate through assignments, instead of a more traditional and siloed approach, to learn all aspects of vaccine research and development, and in Brazil where colleagues use electronic devices and technology to promote and nurture an innovative idea-sharing culture across functions including research, manufacturing and commercial operations.Story continues"Our innovative culture at Zoetis is supported by our core beliefs. In particular, "Run It Like You Own It" stands for accountability and ownership from each colleague," said Evelyn Ortiz, Chief Talent, Diversity and Inclusion Officer at Zoetis. "As part of our commitment to our colleagues, we strive to create an environment where they feel valued and cared for, which fosters innovation and our colleagues’ best work."Developed in collaboration with Accenture, the 2023 Best Workplaces for Innovators ranks 100 winners from a variety of industries, including entertainment, biotech, consumer packaged goods, marketing, education, healthcare, and many more. Zoetis ranked 60th on this year’s list. Fast Company editors and Accenture researchers worked together to score nearly 1,000 submissions, and a panel of eight distinguished judges reviewed and endorsed the top 100 companies. The 2023 awards feature workplaces from around the world.About ZoetisAs the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock farmers and ranchers. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $8.1 billion in 2022 with approximately 13,800 employees. For more information, visit www.zoetis.com.DISCLOSURE NOTICESForward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects; R&D commitments, goals and aspirations; and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned "Forward-Looking Statements and Factors That May Affect Future Results" and "Item 1A. Risk Factors," in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov , www.zoetis.com , or on request from Zoetis.ZTS-CORZTS-IRView source version on businesswire.com: https://www.businesswire.com/news/home/20230711002774/en/ContactsMedia Contacts:Christina Lood1-973-822-7249 (o)christina.lood@zoetis.comBill Price1-973-443-2742 (o)william.price@zoetis.comInvestor Contacts:Steve Frank1-973-822-7141 (o)steve.frank@zoetis.comNick Soonthornchai1-973-443-2792 (o)nick.soonthornchai@zoetis.com

Business Wire

Zoetis Named One of the Best Workplaces for Innovators by Fast Company

https://finance.yahoo.com/news/zoetis-named-one-best-workplaces-120000332.html

55e818b8-206a-339b-a48b-c1badf56ff0d

ZTS

Key InsightsZoetis' estimated fair value is US$158 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$170 suggests Zoetis is potentially trading close to its fair value The US$212 analyst price target for ZTS is 34% more than our estimate of fair valueToday we will run through one way of estimating the intrinsic value of Zoetis Inc. (NYSE:ZTS) by taking the forecast future cash flows of the company and discounting them back to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don't get put off by the jargon, the math behind it is actually quite straightforward.Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Check out our latest analysis for Zoetis Is Zoetis Fairly Valued?We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:10-year free cash flow (FCF) forecast2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$2.44bUS$2.62bUS$3.03bUS$3.36bUS$3.61bUS$3.82bUS$3.99bUS$4.15bUS$4.29bUS$4.42bGrowth Rate Estimate SourceAnalyst x6Analyst x6Analyst x4Analyst x4Est @ 7.32%Est @ 5.76%Est @ 4.66%Est @ 3.90%Est @ 3.36%Est @ 2.99% Present Value ($, Millions) Discounted @ 6.9% US$2.3kUS$2.3kUS$2.5kUS$2.6kUS$2.6kUS$2.6kUS$2.5kUS$2.4kUS$2.4kUS$2.3k("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$24bStory continuesWe now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.1%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.9%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$4.4b× (1 + 2.1%) ÷ (6.9%– 2.1%) = US$95bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$95b÷ ( 1 + 6.9%)10= US$49bThe total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$73b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of US$170, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.dcfImportant AssumptionsNow the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Zoetis as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.9%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.SWOT Analysis for ZoetisStrengthDebt is well covered by earnings and cashflows.Dividends are covered by earnings and cash flows.WeaknessEarnings declined over the past year.Dividend is low compared to the top 25% of dividend payers in the Pharmaceuticals market.Expensive based on P/E ratio and estimated fair value.OpportunityAnnual earnings are forecast to grow for the next 3 years.ThreatAnnual earnings are forecast to grow slower than the American market.Next Steps:Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Zoetis, we've put together three important aspects you should further research:Risks: For example, we've discovered 1 warning sign for Zoetis that you should be aware of before investing here.Future Earnings: How does ZTS's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Join A Paid User Research SessionYou’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Simply Wall St.

Estimating The Intrinsic Value Of Zoetis Inc. (NYSE:ZTS)

https://finance.yahoo.com/news/estimating-intrinsic-value-zoetis-inc-120052673.html

33a56361-e0c9-3cf2-8bb5-b4727aee3e67

ZTS

One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Zoetis Inc. (NYSE:ZTS), by way of a worked example.ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital. View our latest analysis for Zoetis How To Calculate Return On Equity?The formula for return on equity is:Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' EquitySo, based on the above formula, the ROE for Zoetis is:46% = US$2.1b ÷ US$4.5b (Based on the trailing twelve months to March 2023).The 'return' is the yearly profit. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.46.Does Zoetis Have A Good ROE?One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As you can see in the graphic below, Zoetis has a higher ROE than the average (17%) in the Pharmaceuticals industry.roeThat is a good sign. Bear in mind, a high ROE doesn't always mean superior financial performance. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk.The Importance Of Debt To Return On EquityVirtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.Story continuesCombining Zoetis' Debt And Its 46% Return On EquityIt's worth noting the high use of debt by Zoetis, leading to its debt to equity ratio of 1.47. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.SummaryReturn on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.But note: Zoetis may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Join A Paid User Research SessionYou’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Simply Wall St.

Is Zoetis Inc.'s (NYSE:ZTS) ROE Of 46% Impressive?

https://finance.yahoo.com/news/zoetis-inc-nyse-zts-roe-140020873.html

08d4a23c-e750-3808-a651-b8871f744fa6

ZTS

Hosting the call today is Steve Frank, vice president of investor relations for Zoetis. Before we begin, I will remind you that the slides presented on this call are available on the investor relations section of our website and that our remarks today will include forward-looking statements and that actual results could differ materially from those projections.Continue reading

Motley Fool

Zoetis (ZTS) Q2 2023 Earnings Call Transcript

https://finance.yahoo.com/m/e1ccc710-23ab-3bc6-ad9c-8e62debb51e7/zoetis-zts-q2-2023-earnings.html

e1ccc710-23ab-3bc6-ad9c-8e62debb51e7

ZTS

Zoetis trimmed its sales outlook Tuesday, but ZTS stock reversed a premarket dip and climbed on the easy second-quarter beat.Continue reading

Investor's Business Daily

Spot's Drugmaker, Zoetis, Digs Up A Breakout On Its Second-Quarter Beat

https://finance.yahoo.com/m/ba3e3899-fd84-35a6-9c98-4609a6d536b1/spot-s-drugmaker-zoetis-.html

ba3e3899-fd84-35a6-9c98-4609a6d536b1

ZTS

When considering what names to put on your watch list, look for stocks with an 80 or higher RS Rating. Zoetis stock just cleared that benchmark with an upgrade from 70 to 81. When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.Continue reading

Investor's Business Daily

Drugmaker Zoetis Stock Shows Rising Relative Strength

https://finance.yahoo.com/m/de58f2c0-d31a-310c-a293-02e6c4206e8c/drugmaker-zoetis-stock-shows.html

de58f2c0-d31a-310c-a293-02e6c4206e8c

ZTS

LINCOLN, Neb., August 09, 2023--(BUSINESS WIRE)--Zoetis:This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230809927875/en/Zoetis CEO Kristin Peck (center), cuts the ribbon, marking the official opening of the company's new monoclonal antibodies (mAbs) expansion. Ms. Peck is pictured with Zoetis leadership and local officials. Source: ZoetisNEWS FACTSToday, Zoetis, the world leader in Animal Health, marked the official opening of its new monoclonal antibodies (mAbs) expansion with a ribbon cutting ceremony at its site in Lincoln, Neb.The ceremony was attended by local officials, including U.S. Senator Pete Ricketts, Lincoln Mayor Gaylor Baird and key company leaders including Zoetis CEO Kristin Peck, and President of Global Manufacturing and Supply, Nick Ashton.This new facility will enable the Lincoln manufacturing site to increase production of products that control osteoarthritis pain in dogs and cats – the company’s largest growing area of need for pet care customers.The new facility will also be a home for future innovation and serve as a Veterinary Medicine R&D registration facility for the company as it looks to expand its portfolio with future innovations.ZOETIS IN LINCOLNZoetis’ Lincoln site in Neb. is a crucial manufacturing plant within the Zoetis supply network. It plays a vital role in producing biologics, biopharmaceuticals and pharmaceutical products for animals.With a workforce of nearly 950 colleagues operating 24/7, year-round, the site manufactures an impressive 1,239 finished goods, or stock keeping units (SKUs), for distribution to more than 100 countries worldwide.Located on 145 acres in the west side of Lincoln, Neb., the campus spans 1.4 million square feet, housing manufacturing, testing, and facility support buildings.Zoetis produces some of its flagship vaccines and pharmaceutical products in Lincoln, including:Cytopoint® - a monoclonal antibody that provides effective treatment for dogs against allergic or atopic dermatitis,Vanguard® - a line of vaccines to keep dogs and cats protected from common diseases,BoviShield® - a line of vaccines shown to be efficacious against respiratory diseases, and reproductive diseases for the specific BoviShield FP line, in cattle,Simparica® (sarolaner) - a parasiticide that protects dogs from ticks and fleas. Simparica® belongs to the Isoxazoline drug class and has been associated with neurologic adverse reactions including seizures. Use with caution in dogs with a history of these conditions. The most common side effects are vomiting and diarrhea.Rimadyl® (carprofen) - a pharmaceutical product for relief of pain associated with osteoarthritis in dogs. Rimadyl® belongs to the NSAIDS drug class and has been associated with gastrointestinal, kidney and liver side effects; contact your dog’s veterinarian if side effects occur. Evaluation for pre-existing conditions and regular monitoring are recommended for pets on Rimadyl®. Use with other NSAIDS or corticosteroids should be avoided.Zoetis and its predecessors have long maintained a presence in the Lincoln area. In the early 20th century, pharmaceutical firms and distributors such as Norden Laboratories established facilities in Nebraska that evolved over time. More recent incarnations of these animal health companies, including Zoetis, have continued to play an important economic role in the Lincoln community.Story continuesQUOTES"We are excited to celebrate the opening of our new facility right here in Nebraska! This community is important to us as we have been welcomed to do business here for over a decade as Zoetis, delivering high quality, reliable supply of our animal health products for customers around the world," said Chris Rasmussen, Zoetis Site Leader, Lincoln. "For the last 10 years, we have been able to grow our business, expand our site and bring more than 900 jobs to the site in Lincoln based on the world’s fundamental need for ways to keep animals healthy.""Our Zoetis Lincoln team has always demonstrated a commitment to the world’s veterinary community and livestock producers by delivering purpose-driven innovation that transforms the lives of animals from cats to cattle -- and it’s why we continue to invest in the operations and colleagues here," said Kristin Peck, CEO Zoetis. "This new monoclonal antibody (mAbs) expansion will enable us to continue meeting the needs of our customers in one of the fastest growing areas of animal health, and our team in Lincoln will be critical to that future."ABOUT ZOETISAs the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide -- from veterinarians and pet owners to livestock farmers and ranchers. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $8.1 billion in 2022 with approximately 13,800 employees. For more information, visit www.zoetis.com.View source version on businesswire.com: https://www.businesswire.com/news/home/20230809927875/en/ContactsMedia:Bill PriceMobile: 908-251-1972william.price@zoetis.comRobyn VelardoMobile: 973-936-0481Robyn.velardo@zoetis.com

Business Wire

Zoetis Welcomes Officials to Open New State-of-the-Art Facility in Lincoln

https://finance.yahoo.com/news/zoetis-welcomes-officials-open-state-223300756.html

51662184-e4c7-3e7f-a6a2-7b0666de92cd

ZTS

Investors interested in stocks from the Medical - Drugs sector have probably already heard of USANA Health Sciences (USNA) and Zoetis (ZTS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.Currently, USANA Health Sciences has a Zacks Rank of #1 (Strong Buy), while Zoetis has a Zacks Rank of #3 (Hold). This means that USNA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.USNA currently has a forward P/E ratio of 20.56, while ZTS has a forward P/E of 34.93. We also note that USNA has a PEG ratio of 1.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ZTS currently has a PEG ratio of 3.05.Another notable valuation metric for USNA is its P/B ratio of 2.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ZTS has a P/B of 18.93.Based on these metrics and many more, USNA holds a Value grade of A, while ZTS has a Value grade of C.Story continuesUSNA sticks out from ZTS in both our Zacks Rank and Style Scores models, so value investors will likely feel that USNA is the better option right now.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportUSANA Health Sciences, Inc. (USNA) : Free Stock Analysis ReportZoetis Inc. (ZTS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

USNA or ZTS: Which Is the Better Value Stock Right Now?

https://finance.yahoo.com/news/usna-zts-better-value-stock-154011646.html

14a5e82f-6510-30a5-bbf1-cc4982348c42

ZTS

In this article, we will be taking a look at the top 20 drug companies in the US by revenue. To skip our detailed analysis, you can go directly to see the Top 5 Drug Companies in the US by Revenue.Following the Covid-19 pandemic, which drastically altered the way of living, the top pharmaceutical or drug companies in the world became the center of attention for people everywhere due to the spike in demand for drugs and vaccines. To be on top of the game in 2020, some of the best pharmaceutical companies invested $200 billion in the research and development (R&D) of new drugs. Furthermore, in light of the sustained trend of spending on Covid-related medications through 2022, some of the leading firms in the sector are projected to have made about $100 billion in revenues last year.Don’t Miss: Top 20 Most Profitable Pharmaceutical Companies in The WorldNevertheless, with the pandemic now behind us, the pharmaceutical industry is now focusing on cutting edge technologies such as artificial intelligence to transform the drug discovery process and expedite the release of new treatments to cure diseases like cancer, which was the leading cause of death globally in 2020. This will open up new revenue streams for the industry, according to a report by Bayer Aktiengesellschaft, a German multinational pharmaceutical and biotechnology company. The global population of people 65 years of age or older is expected to double to over 1.5 billion by 2050. Meanwhile, it is anticipated that the prevalence of chronic illnesses will rise at a similarly rapid rate, with patients frequently experiencing multiple ailments. Moreover, by 2030, the prevalence of diseases like cancer and cardiovascular diseases is expected to rise by at least 40%, accounting for nearly 80% of all deaths in people 60 years of age or older. Therefore, because of the aforementioned reasons, the report estimates that the global pharmaceutical market is projected to grow at a compound annual growth rate of 3-6% through 2025.Story continuesSimilarly, another report estimates that the global pharmaceutical market was valued at $1454.7 billion in 2021, and is anticipated to reach $2135.18 billion by 2026 at a compound annual growth rate of 7.7%. The primary factor propelling this growth will be the rising ageing population since it will result in a greater number of patients with various chronic conditions like diabetes, cancer, rheumatoid arthritis, and hypertension. As a result, there will be a greater demand for drugs used to treat these illnesses. Per the report, North America remained the largest region in the pharmaceuticals market in 2021.You can also check out our article on the 25 Biggest Pharmaceutical Companies in the World for further information on the sector’s outlook.The US Drug MarketThe United States has one of the biggest pharmaceutical markets in the world, accounting for 42% of global sales in 2022 ($630 billion). Moreover, as per a report published by Public Citizen, an advocacy group for consumer rights, the nation's sales of the 20 top-selling drugs worldwide in 2020 amounted to 101.1 billion, which was almost twice the amount paid by the rest of the world for the same drugs ($57 billion). For some medications, there was a greater revenue disparity. For example, sales of Gilead Sciences, Inc. (NASDAQ:GILD)’s HIV medicine Biktarvy generated $6.1 billion in the country, which is five times higher than the $1.2 billion it made globally. Similarly, AbbVie Inc. (NYSE:ABBV)’s autoimmune disease drug Humira had U.S. sales revenue four times greater than the rest of the world. Furthermore, Trulicity, a type 2 diabetes drug, by Eli Lilly and Company (NYSE:LLY) had U.S. sales revenue of $3.9 billion, more than triple the rest of the world ($1.2 billion).It is interesting to note that all of the above-mentioned companies are also some of the top drug companies in the US by revenue.Meanwhile, In America, the cost of prescription drugs is two to three times higher than in other wealthy nations. Besides, Medicare— federal health insurance for people 65 or older, and some people under 65 with certain disabilities or conditions — was prohibited from negotiating prices with the pharmaceutical companies until recently.President Joe Biden’s signature Inflation Reduction Act (IRA) passed last year, granted federal government the power to negotiate prices for certain high-cost drugs under Medicare. With the goal of saving $25 billion annually on drug costs by 2031, the program has drawn a lot of criticism from the pharmaceutical industry, which has since filed lawsuits against it.This August, the Biden administration announced the list of the first 10 drugs, used to treat diabetes, heart disease, blood cancer, blood clots and rheumatoid arthritis, whose new prices will go into effect in 2026.Today we will take a look at the top drug companies in the US by revenue which include Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ), and Merck & Co., Inc. (NYSE:MRK), among others.Pharmacy, Medicines, HealthTop 20 Drug Companies in the US by RevenueOur MethodologyTo identify the top 20 drug companies in the US by revenue, we compiled a comprehensive list of renowned US-based drug manufacturers. We then narrowed it down to only include companies with a significant market share, research and development efforts, production capacity, and a diversity of product lines to evaluate the commercial success of these companies. This was accomplished by carrying out a thorough analysis of numerous industry papers, financial reports, company websites, journals, and news articles.The companies have been ranked in ascending order of their annual revenues based on data from their financial reports as of 2022.Top Drug Companies in the US by Revenue20. United Therapeutics Corporation (NASDAQ:UTHR)2022 Revenue: $1.94 billionFirst up on our list of the top drug companies in the US by revenue is United Therapeutics Corporation (NASDAQ:UTHR).The company develops pharmaceuticals to treat cardiovascular disorders, particularly pulmonary arterial hypertension, and infectious diseases.United Therapeutics Corporation (NASDAQ:UTHR) made $1.94 billion in revenue in 2022, up 14.88% from the previous year.19. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)2022 Revenue: $2.1 billionBioMarin Pharmaceutical Inc. (NASDAQ:BMRN), founded in 1997, develops and markets innovative medicines for the treatment of rare genetic diseases and medical conditions such as Duchenne muscular dystrophy (DMD), achondroplasia, phenylketonuria (PKU), late infantile neuronal ceroid lipofuscinosis (CLN2) and hemophilia A.Hedge funds like the stock. According to Insider Monkey’s second quarter database, 58 hedge funds were bullish on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), compared to 56 funds in the prior quarter.18. Incyte Corporation (NASDAQ:INCY)2022 Revenue: $3.4 billionAnother significant US drug company is Incyte Corporation (NASDAQ:INCY) that develops and manufacturers prescription biopharmaceutical medications in multiple therapeutic areas including oncology, inflammation, and autoimmunity.The company's best-selling medication, Jakafi, used to treat certain bone marrow disorders (myelofibrosis and polycythemia vera), generated $2.41 billion in sales last year.17. Elanco Animal Health Incorporated (NYSE:ELAN)2022 Revenue: $4.4 billionElanco Animal Health Incorporated (NYSE:ELAN), founded in 1954, is an American pharmaceutical company which produces medicines and vaccinations for pets and livestock. Its products are available in more than 90 countries worldwide.The number of hedge funds tracked by Insider Monkey owning stakes in Elanco Animal Health Incorporated (NYSE:ELAN) grew to 31 in Q2 2023, from 28 in the previous quarter. The collective value of these stakes is $738.9 million.16. Organon & Co. (NYSE:OGN)2022 Revenue: $6.2 billionOrganon & Co. (NYSE:OGN), among the top drug companies in the US by revenue on our list, is based in Jersey City, New Jersey. The company's primary therapeutic areas of expertise are anesthesia, hormone replacement therapy, psychiatry, reproductive medicine, and contraception.The company has around 10,000 employees, and its products are available to people in more than 135 countries.15. Zoetis Inc. (NYSE:ZTS)2022 Revenue: $8.1 billionZoetis Inc. (NYSE:ZTS), one of the world's largest producers of medicine and vaccines for pets and animals, has a market capitalization of $71.8 billion as of October 30.Moreover, the company is well-liked by a number of hedge funds. According to Insider Monkey’s second quarter database, 65 hedge funds were bullish on Zoetis Inc. (NYSE:ZTS), compared to 55 funds in the prior quarter. William Von Mueffling’s Cantillon Capital Management is the leading position holder in the company, with 1.5 million shares worth $251.5 million.14. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)2022 Revenue: 8.93 billionVertex Pharmaceuticals Incorporated (NASDAQ:VRTX), based in Boston, Massachusetts, is a biopharmaceutical company  that specializes in the development and commercialization of therapies for the treatment of a variety of conditions, including cystic fibrosis, neurological disorders, autoimmune diseases, infectious diseases, cancer, and inflammatory bowel disease. As of November 3, the stock has returned 30.39% to investors on a year-to-date basis.The company beat market expectations on earnings per share and revenue in the second fiscal quarter. Moreover, it also raised its full year CF product revenue guidance to $9.7 to $9.8 billion, compared to a prior forecast of $9.55 billion to $9.7 billion.13. Biogen Inc. (NASDAQ:BIIB)2022 Revenue: 10.1 billionBiogen Inc. (NASDAQ:BIIB), Massachusetts-based biotechnology company, discovers and manufactures treatments for neurological and neurodegenerative diseases. According to Insider Monkey’s second quarter database, a total of 64 hedge funds were bullish on Biogen Inc. (NASDAQ:BIIB). D. E. Shaw’s D E Shaw held the largest position in the company, with 846,444 shares worth $241.2 million.12. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)2022 Revenue: 12.17 billionNext on our list of top drug companies in the US by revenue is Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN). Based in Tarrytown, New York, it discovers, develops, and commercializes drugs for the treatment of serious medical conditions. The company sells a number of well-known drugs, including Libtayo, EYLEA, Dupixent, ARCALYST, and ZALTRAP among others.The company was founded in 1988 and currently employs 11,851 people.11. Viatris Inc. (NASDAQ:VTRS)2022 Revenue: 16.26 billionViatris Inc. (NASDAQ:VTRS), a Pennsylvania-based pharmaceutical and healthcare company, produces medicines for patients across broad range of major therapeutic areas spanning both noncommunicable and infectious diseases.It is one of the major drug companies in the US. In addition, Viatris Inc. (NASDAQ:VTRS) beat market expectations on earnings per share and revenue in the second fiscal quarter, and reaffirmed FY23 outlook.10. Moderna, Inc. (NASDAQ:MRNA)2022 Revenue: 19.3 billionModerna, Inc. (NASDAQ:MRNA), founded in 2010, is one of biggest pharmaceutical companies in the US by revenue. It is located in Cambridge, Massachusetts, and specializes in RNA therapeutics, especially mRNA vaccines.It is also among the biggest vaccine manufacturers globally and, as previously noted, produced a successful vaccine for battling the Covid-19 pandemic.9. Amgen Inc. (NASDAQ:AMGN)2022 Revenue: 26.3 billionAmgen Inc. (NASDAQ:AMGN) is a Thousand Oaks, California-based biopharmaceutical firm that develops drugs to treat high cholesterol, leukemia, and osteoporosis, among many other medical problems.On October 24, Amgen Inc. (NASDAQ:AMGN) declared a quarterly dividend of $2.13 per share, which was in line with its previous dividend. On the other hand, the company is also popular among several hedge funds. According to Insider Monkey’s second quarter database, a total of 57 hedge funds were bullish on Amgen Inc. (NASDAQ:AMGN) and disclosed positions worth $1.6 billion in the company.8. Eli Lilly and Company (NYSE:LLY)2022 Revenue: $28.5 billionFounded in 1876, Eli Lilly and Company (NYSE:LLY) is one of the leading pharmaceutical companies in the United States and around the world. Over 7 billion dollars, or more than 25% of the company's $28.5 billion in revenue, were made last year from its diabetes medication Trulicity.7. Gilead Sciences, Inc. (NASDAQ:GILD)2022 Revenue: $27.3 billionBiopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD) is based in Foster City, California and focuses primarily on HIV, AIDS, liver disease, and serious cardiovascular and respiratory conditions. As one of the leading drug companies in the US by revenue, Gilead Sciences, Inc. (NASDAQ:GILD) recorded $27.3 billion in revenue last year.During this year's second quarter, 56 hedge funds among the 910 polled by Insider Monkey had bought and invested in Gilead Sciences, Inc. (NASDAQ:GILD)'s shares. Cliff Asness’ AQR Capital Management is the biggest investor among these since it owns 4.2 million shares that are worth $324.7 million.6. Abbott Laboratories (NYSE:ABT)2022 Revenue: $43.7 billionFounded in 1888, Abbott Laboratories (NYSE:ABT) sells medical devices, diagnostics, branded generic drugs and nutritional products.On October 18, Abbott Laboratories (NYSE:ABT) posted earnings for the third quarter of 2023, reporting a NON-GAAP EPS of $1.14, beating market estimates by $0.04. The revenue over the period was $10.14 billion, down 2.5% compared to the revenue over the same period last year.Click to continue reading and see Top 5 Drug Companies in the US by Revenue.Suggested articles:12 Best Performing Biotech Stocks in 202312 Best Health Insurance Stocks to Buy12 Cheap Biotech Stocks Smart Investors Are Piling IntoDisclosure. None. Top 20 Drug Companies in the US by Revenue is originally published on Insider Monkey.

Insider Monkey

Top 20 Drug Companies in the US by Revenue

https://finance.yahoo.com/news/top-20-drug-companies-us-084940196.html

636f3ccc-872c-3532-ad4b-675b269c4602

ZTS

Key InsightsUsing the 2 Stage Free Cash Flow to Equity, Zoetis fair value estimate is US$176Zoetis' US$169 share price indicates it is trading at similar levels as its fair value estimateOur fair value estimate is 18% lower than Zoetis' analyst price target of US$215Does the November share price for Zoetis Inc. (NYSE:ZTS) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. View our latest analysis for Zoetis What's The Estimated Valuation?We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:10-year free cash flow (FCF) forecast2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$2.33bUS$2.56bUS$2.90bUS$3.17bUS$3.38bUS$3.56bUS$3.71bUS$3.85bUS$3.98bUS$4.09bGrowth Rate Estimate SourceAnalyst x6Analyst x7Analyst x4Analyst x4Est @ 6.56%Est @ 5.26%Est @ 4.35%Est @ 3.71%Est @ 3.26%Est @ 2.95% Present Value ($, Millions) Discounted @ 6.2% US$2.2kUS$2.3kUS$2.4kUS$2.5kUS$2.5kUS$2.5kUS$2.4kUS$2.4kUS$2.3kUS$2.2k("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$24bStory continuesThe second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.2%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.2%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$4.1b× (1 + 2.2%) ÷ (6.2%– 2.2%) = US$105bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$105b÷ ( 1 + 6.2%)10= US$57bThe total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$81b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$169, the company appears about fair value at a 3.9% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.dcfThe AssumptionsThe calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Zoetis as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.2%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.SWOT Analysis for ZoetisStrengthEarnings growth over the past year exceeded the industry.Debt is well covered by earnings and cashflows.WeaknessEarnings growth over the past year is below its 5-year average.Dividend is low compared to the top 25% of dividend payers in the Pharmaceuticals market.OpportunityAnnual earnings are forecast to grow for the next 3 years.Current share price is below our estimate of fair value.ThreatAnnual earnings are forecast to grow slower than the American market.Next Steps:Although the valuation of a company is important, it ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Zoetis, we've compiled three additional factors you should consider:Risks: Take risks, for example - Zoetis has 1 warning sign we think you should be aware of.Future Earnings: How does ZTS's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Estimating The Fair Value Of Zoetis Inc. (NYSE:ZTS)

https://finance.yahoo.com/news/estimating-fair-value-zoetis-inc-110055647.html

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