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ZTS Stock: High Profitability Vs. Lagging Growth | 2-Minute Analysis (undefined:ZTS)

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This video’s transcript was generated by a third party. It is not curated or reviewed and is provided for convenience and information purposes only. The accuracy and completeness of the transcript are not guaranteed.

Welcome to 2 Minute Analysis. Our goal is to not only entertain, but provide value and insights about the investments you care about. Today’s episode is from this request. So, let’s throw 2 minutes on the clock and dive-in.

Today, we are looking at Zoetis Inc., ticker symbol ZTS. Kicking things off here with the Quant rating system, it is currently a Hold rating on the stock, and we’re going to dive through some metrics here in just a moment.

Jumping over to the Seeking Alpha Analysts, they currently have a Hold in aggregate on the stock, and that’s from five analysts providing coverage in the last 90-days. Lastly, Wall Street is a Buy on the stock and that’s from 20 analysts providing coverage in the last 90-days. To learn more about how the Seeking Alpha Quant system and the Seeking Alpha Analysts outperform the market, visit the link in the description of this video.

So, let’s dive deeper. This is a $54.92 billion market capitalization company found within the healthcare sector and the pharmaceuticals industry. Kicking things off with the Valuation is currently a D- grade, and we’re going to look at the Enterprise Value-to-EBITDA here currently at 14.65, compared to the sector at 12.71 and feeling in-line there. But if we look at that PEG non-GAAP Forward, that is 2.58 compared to the sector at 1.76. Most would consider that a bit of over valuation.

The Growth grade is currently a D-. Year-over-year revenue growth of 2.68% is below the sector median at 6.38%. Also want to highlight that this is below the five-year average of 8.06% for this company.

Profitability is currently an A+ grade. Net income margin of 28.21% dramatically beats the sector of only about half of a full percentage point here. Nice profitability for Zoetis.

Momentum is a D+ grade. One year price performance is down 25.07%, compared to the sector, which is mainly flat. Not a good thing to see there.

Lastly, Revisions is a D+ with three up revisions and 12 down revisions for earnings per share over the last three months. And one up revision and 14 down revisions for revenue over the last three months.

Now, this is a dividend paying stock. It pays a yield of 1.70%, and the five year growth rate is 20.11%. Looking at the safety grade, it is an A, the growth grade is an A+. The yield is a C, and consistency is a B-. Jumping into consistency, they’ve been paying their dividend for 12 years here. Looking at dividend safety, looks like the cash flow is going to keep this dividend pretty stable. $2.92 billion of cash from operations here for Zoetis. So, go ahead and follow Zoetis here on Seeking Alpha to get free breaking news alerts. The link is found beneath this video, and that’s going to wrap it up for this episode.

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Past performance is no guarantee of future results. Content provided for informational purposes only. Seeking Alpha does not offer any personalized investment advice and is not a licensed securities dealer, broker, US investment adviser, or investment bank.

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