Stock analysis/Share presentation ⬇️
Today we are talking about the company Zoetis: $ZTS (+2.34%)
What is and does Zoetis anyway 🤔
Zoetis is a leading global animal health company specializing in the development, manufacturing and marketing of medicines and vaccines for animals. Zoetis offers a wide range of products for farm animal and companion animal health, including antibiotics, vaccines, analgesics and other medicines. Zoetis is committed to improving the health of animals around the world and helping pet owners keep their animals healthy.
When was Zoetis founded?
Zoetis was founded in 2013 when it was spun off from Pfizer to become an independent animal health company. Zoetis is headquartered in Parsippany, New Jersey, USA.
How many employees does the company have: 🙋🏽♂️🙋🏽♂️
Currently, Zoetis has a total of over 13,800 employees.
P/E RATIO:
Zoetis has a current P/E ratio of just under 37.20, which is not exactly the cheapest valuation.
Market capitalization: 💰
Currently, Zoetis has a market capitalization of around 71 billion euros.
Dividend yield: 💰
The company pays its shareholders a small but fine dividend of currently over 0.9%. This distribution is made on a quarterly basis. Zoetis shareholders receive their dividends in March, June, September and December.
Strengths of the share: 📈
Zoetis is an animal health company that has had strong performance in recent years. Some of Zoetis' strengths include:
- A wide range of products: Zoetis offers a wide range of products for farm animal and companion animal health, including antibiotics, vaccines, analgesics, and other medicines. This variety of products enables Zoetis to address different needs of pet owners and build a broad customer base.
- Strong market position: Zoetis is a global leader in animal health and has a strong market position in various regions around the world. Zoetis is committed to improving the health of animals around the world and helping pet owners keep their animals healthy.
- Innovation capability: Zoetis is committed to the research and development of new products and invests significant amounts each year in the development of new therapies and vaccines. Zoetis has also partnered with other companies and academic institutions to accelerate research and development of new products.
- Efficiency and profitability: Zoetis has demonstrated strong profitability in recent years and has been able to improve its efficiency through the introduction of automation and digitalization technologies. Zoetis also has a strong balance sheet and is able to reward its shareholders through dividends and share buybacks.
Weaknesses of the share: 📉
Some of Zoetis' weaknesses include:
- Dependence on a few products: Zoetis depends on a few products that account for a significant portion of its revenue. This can lead to higher risk if demand for these products changes or if competitors launch similar products.
- Regulatory risks: Zoetis operates in a highly regulated sector and is subject to various regulatory requirements and rules. Changes in or violations of these regulations could result in high costs or penalties.
- Currency risks: Zoetis is a global company and is subject to fluctuations in foreign exchange rates. Fluctuations in foreign exchange rates may impact Zoetis' revenue and profitability.
- Dependence on a few markets: Zoetis is heavily focused on and dependent on markets in North America and Europe. Deteriorating economic conditions in these markets or changes in regulatory requirements could negatively impact Zoetis' performance.
A little more about the business model: ⬇️
Zoetis generates its revenues through the development, manufacture and marketing of animal health products and diagnostic devices. Its range of medicines can be broken down into anti-infectives, vaccines, anti-parasitics and medicated feed additives. Although Zoetis is active in over 120 countries worldwide, more than half of all sales are generated in the USA. China and Brazil follow at a considerable distance, each accounting for 4% of sales. In Germany, the company generates 2% of its sales. The range of products varies by region to meet the needs of customers.
The company reports in two segments.
Pets. This segment is mainly concerned with pets and farm animals such as dogs, cats and horses. As described earlier, the health of our four-legged friends is as important to us as our own. For this reason, we go to the vet at least once a year for a routine check-up. We also regularly have our pets vaccinated to protect them from infectious diseases. Zoetis offers here different vaccines adapted to each animal. Another area of application for Zoetis products is parasite control. This mainly involves fleas, ticks and worms. In addition to these common animal health products, Zoetis also has painkillers and sedatives, as well as oncology and antiemetic products. The companion animal segment accounts for about 60% of Zoetis' total sales.
Farm Animals. This segment focuses on animals used in the food industry. In this segment, the company offers products to prevent or treat conditions that adversely affect livestock. In particular, the aim is to prevent disease outbreaks from spreading to livestock. Mass livestock farming in particular provides good conditions for viruses and other pathogens to infect the entire livestock house in a short time. Veterinary medicines and vaccines are designed to prevent this. The company specializes in cattle and dairy cattle, pigs, poultry, sheep and fish. The livestock sector accounts for around 39% of the company's sales.
In addition to animal health products, the company also offers diagnostic systems for livestock and companion animals. Diagnostic instruments and tests enable veterinarians, livestock producers and pet owners to monitor animal health and detect diseases in animals within minutes. The diagnostics portfolio consists of more than 90 instruments and tests. Currently, the diagnostics segment accounts for only 5% of total sales. However, management also sees great potential in this area through digitalization.
Zoetis is located in a crisis-proof industry and is even the market leader in this sector. Since animal welfare must be ensured at all times, sales are not subject to cyclicality and ensure reliable and stable revenues. Because even in crises, we want our pets to be well. Likewise, meat continues to be consumed even in a crisis. The growing world population and increasing prosperity will continue to ensure growth in the animal health industry in the future.
Your opinion: 🤔🧐
Now I would like to hear your opinion on this stock in the comments.
What do you think of Zoetis and did you already know this company?
Do you guys maybe already have this stock in your portfolio?
Feel free to let me know in the comments.
Of course, this is not an investment advice but just my own opinion that I would like to share with you.
