Is NYSE:ZTS a Suitable Choice for Quality Investing?

In this article we will dive into ZOETIS INC (NYSE:ZTS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ZOETIS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• ZOETIS INC has demonstrated significant revenue growth over the past 5 years, with a 8.77% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• ZOETIS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 37.77% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• ZOETIS INC maintains a healthy Debt/Free Cash Flow Ratio of 4.39, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• ZOETIS INC exhibits impressive Profit Quality (5-year) with a 88.15% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• The 5-year EBIT growth of ZOETIS INC has been remarkable, with 11.0% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• The EBIT 5-year growth of ZOETIS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of NYSE:ZTS?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to ZTS. ZTS was compared to 203 industry peers in the Pharmaceuticals industry. ZTS gets an excellent profitability rating and is at the same time showing great financial health properties. ZTS has a decent growth rate and is not valued too expensively. These ratings would make ZTS suitable for quality investing!

Check the latest full fundamental report of ZTS for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.