Zoetis Inc (ZTS, Financial), a leading player in the Drug Manufacturers industry, is currently trading at $183.51 with a market capitalization of $84.8 billion. The company's stock price has seen a gain of 6.93% today and an increase of 8.26% over the past four weeks. In this article, we will delve into the company's GF Score and its implications for the company's future performance potential.
Understanding Zoetis Inc's GF Score
Zoetis Inc's GF Score stands at an impressive 96 out of 100, indicating the highest outperformance potential. The GF Score is a stock performance ranking system developed by GuruFocus, which is closely correlated to the long-term performances of stocks. It takes into consideration five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. A higher GF Score generally suggests higher returns, making Zoetis Inc an attractive investment option.
Financial Strength Analysis
Zoetis Inc's Financial Strength Rank is 6 out of 10. This rank measures the company's financial situation based on its debt burden, debt to revenue ratio, and Altman Z-Score. Zoetis Inc's interest coverage stands at 12.41, indicating a strong ability to cover its interest expenses. The company's debt to revenue ratio is 0.83, suggesting a moderate level of debt relative to its revenue. Furthermore, its Altman Z-Score of 7.71 indicates a low risk of bankruptcy.
Profitability Rank Analysis
The company's Profitability Rank is a perfect 10 out of 10. This rank 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 financial situation. The company has also demonstrated consistent profitability over the past 10 years.
Growth Rank Analysis
Zoetis Inc's Growth Rank is 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 its business operations.
GF Value Rank Analysis
The company's GF Value Rank is 7 out of 10, suggesting that the stock is fairly 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 7 out of 10, indicating a positive momentum in its stock price performance. 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 66, and Elanco Animal Health Inc (ELAN, Financial) has a GF Score of 58. This comparison further underscores Zoetis Inc's strong performance potential.
In conclusion, Zoetis Inc's high GF Score, strong financial strength, impressive profitability, robust growth, fair valuation, and positive momentum make it a compelling investment option. However, as with any investment, it's crucial to conduct thorough research and consider various factors before making a decision.
