Zoetis Inc (ZTS, Financial), a leading player in the Drug Manufacturers industry, is currently trading at $186.3 with a market capitalization of $86.09 billion. The company's stock price has seen a gain of 3.1% today and an impressive 11.46% over the past four weeks. According to the GF Score, a stock performance ranking system developed by GuruFocus, Zoetis Inc has a score of 97 out of 100. This high score indicates a strong potential for outperformance in the future.
Financial Strength Analysis
Zoetis Inc's Financial Strength rank stands at 6 out of 10. This score is calculated based on several factors including the company's debt burden, debt to revenue ratio, and Altman Z-Score. Zoetis Inc has an interest coverage of 12.41, indicating a strong ability to cover its interest expenses. The company's debt to revenue ratio is 0.83, and its Altman Z score is 7.92, both of which suggest a healthy financial position.
Profitability Rank Analysis
The company's Profitability Rank is a perfect 10 out of 10. This score is based on factors such as operating margin, Piotroski F-Score, trend of the operating margin, consistency of profitability, and Predictability Rank. Zoetis Inc's operating margin is 35.42%, and its Piotroski F-Score is 6, indicating a healthy profitability.
Growth Rank Analysis
Zoetis Inc also boasts a Growth Rank of 10 out of 10, reflecting strong revenue and profitability growth. The company's 5-year revenue growth rate is 10.00%, and its 3-year revenue growth rate is 9.80%. Additionally, its 5-year EBITDA growth rate is 12.70%, indicating robust growth in the company's business operations.
GF Value Rank Analysis
The company's GF Value Rank is 7 out of 10, suggesting that the stock is reasonably valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
Zoetis Inc's Momentum Rank is 8 out of 10, indicating strong price momentum. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its main competitors, Zoetis Inc stands out with its high GF Score. Catalent Inc (CTLT, Financial) has a GF Score of 78, Viatris Inc (VTRS, Financial) has a GF Score of 67, and Elanco Animal Health Inc (ELAN, Financial) has a GF Score of 59. You can find more details about these competitors here.
Conclusion
In conclusion, Zoetis Inc's overall GF Score of 97 suggests a strong potential for outperformance. The company's robust financial strength, high profitability, strong growth, reasonable valuation, and strong price momentum all contribute to its high GF Score. Based on this analysis, Zoetis Inc's stock could be a promising investment for the future.
