Zoetis Inc. [NYSE:ZTS]: Analyst Rating and Earnings
Pro stock traders frequently make sure to pay attention what expert market analysts are saying about a potential stock buy. Regarding Zoetis Inc. [ZTS] right now, the most recent ratings from Wall St. analysts that we can see right now is regarding the quarter that’s slated to end in December. On average, stock market experts give ZTS an Outperform rating. Its stock price has been found in the range of 78.90 to 103.97. This is compared to its latest closing price of $102.93.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Zoetis Inc. [ZTS] is sitting at 1.88. This is compared to 1 month ago, when its average rating was 1.88.
For the quarter ending in Mar-19 Zoetis Inc. [ZTS] generated $1.46 billion in sales. That’s 0.18% higher than the average estimate of $1.45 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the next scheduled financial results to be made public for this company, which are scheduled to be released on Thu 1 Aug (In 76 Days).
Fundamental Analysis of Zoetis Inc. [ZTS]
Now let’s turn to look at profitability: with a current Operating Margin for Zoetis Inc. [ZTS] sitting at +32.29 and its Gross Margin at +65.18, this company’s Net Margin is now 23.50%. These measurements indicate that Zoetis Inc. [ZTS] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 24.47, and its Return on Invested Capital has reached 16.00%. Its Return on Equity is 72.21, and its Return on Assets is 14.75. These metrics all suggest that Zoetis Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Zoetis Inc. [ZTS] has generated a Total Debt to Total Equity ratio of 295.29. Similarly, its Total Debt to Total Capital is 74.70, while its Total Debt to Total Assets stands at 59.87. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 294.87, and its Long-Term Debt to Total Capital is 74.60. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 24.54 and its Total Debt to EBITDA Value is 2.95. The Enterprise Value to Sales for this firm is now 9.08, and its Total Debt to Enterprise Value stands at 0.14. Zoetis Inc. [ZTS] has a Price to Book Ratio of 18.77, a Price to Cash Flow Ratio of 23.27 and P/E Ratio of 35.63. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Zoetis Inc. [ZTS] earns $582,500 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.73 and its Total Asset Turnover is 0.60. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.46 and its Current Ratio is 3.60. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Zoetis Inc. [ZTS] has 479.60M shares outstanding, amounting to a total market cap of $49.37B. Its stock price has been found in the range of 78.90 to 103.97. At its current price, it has moved by -1.90% from its 52-week high, and it has moved 29.26% from its 52-week low.
This stock’s Beta value is currently 0.90, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.76. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Zoetis Inc. [ZTS] a Reliable Buy?
Shares of Zoetis Inc. [ZTS], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.