ZOETIS INC (ZOE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ZOE - US98978V1035 - Common Stock
106.72 EUR
+0.14 (+0.13%)
ZOE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Pharmaceuticals industry. ZOE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ZOE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- ZOE had positive earnings in the past year.
- ZOE had a positive operating cash flow in the past year.
- In the past 5 years ZOE has always been profitable.
- In the past 5 years ZOE always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 17.49%, ZOE belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
- The Return On Equity of ZOE (49.11%) is better than 92.59% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 21.45%, ZOE belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
- ZOE had an Average Return On Invested Capital over the past 3 years of 21.64%. This is significantly above the industry average of 13.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 49.11% | ||
| ROIC | 21.45% |
ROA(3y)16.01%
ROA(5y)14.94%
ROE(3y)49.01%
ROE(5y)47.06%
ROIC(3y)21.64%
ROIC(5y)19.86%
1.3 Margins
- ZOE's Profit Margin of 28.21% is amongst the best of the industry. ZOE outperforms 90.74% of its industry peers.
- In the last couple of years the Profit Margin of ZOE has grown nicely.
- Looking at the Operating Margin, with a value of 38.25%, ZOE belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
- ZOE's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 71.71%, ZOE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of ZOE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.25% | ||
| PM (TTM) | 28.21% | ||
| GM | 71.71% |
OM growth 3Y0.39%
OM growth 5Y2.44%
PM growth 3Y0.84%
PM growth 5Y2.31%
GM growth 3Y0.03%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ZOE is creating value.
- ZOE has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ZOE has less shares outstanding
- The debt/assets ratio for ZOE is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.42 indicates that ZOE is not in any danger for bankruptcy at the moment.
- ZOE has a better Altman-Z score (6.42) than 83.33% of its industry peers.
- The Debt to FCF ratio of ZOE is 3.16, which is a good value as it means it would take ZOE, 3.16 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ZOE (3.16) is better than 74.07% of its industry peers.
- ZOE has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
- ZOE's Debt to Equity ratio of 1.31 is on the low side compared to the rest of the industry. ZOE is outperformed by 68.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.42 |
ROIC/WACC2.33
WACC9.19%
2.3 Liquidity
- A Current Ratio of 3.64 indicates that ZOE has no problem at all paying its short term obligations.
- The Current ratio of ZOE (3.64) is better than 92.59% of its industry peers.
- A Quick Ratio of 2.28 indicates that ZOE has no problem at all paying its short term obligations.
- The Quick ratio of ZOE (2.28) is better than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.07% over the past year.
- Measured over the past years, ZOE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.22% on average per year.
- ZOE shows a small growth in Revenue. In the last year, the Revenue has grown by 2.68%.
- The Revenue has been growing by 8.14% on average over the past years. This is quite good.
EPS 1Y (TTM)10.07%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%7.59%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
3.2 Future
- ZOE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.88% yearly.
- ZOE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y8.15%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
EPS Next 5Y7.88%
Revenue Next Year2.07%
Revenue Next 2Y3.5%
Revenue Next 3Y4.21%
Revenue Next 5Y4.67%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 19.76, which indicates a rather expensive current valuation of ZOE.
- The rest of the industry has a similar Price/Earnings ratio as ZOE.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, ZOE is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 18.33, ZOE is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as ZOE.
- ZOE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.76 | ||
| Fwd PE | 18.33 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZOE is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, ZOE is valued a bit cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.65 | ||
| EV/EBITDA | 14.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ZOE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)1.93
EPS Next 2Y7.44%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
- ZOE has a Yearly Dividend Yield of 1.64%. Purely for dividend investing, there may be better candidates out there.
- ZOE's Dividend Yield is comparable with the industry average which is at 1.59.
- Compared to an average S&P500 Dividend Yield of 1.83, ZOE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
- On average, the dividend of ZOE grows each year by 21.42%, which is quite nice.
Dividend Growth(5Y)21.42%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 32.55% of the earnings are spent on dividend by ZOE. This is a low number and sustainable payout ratio.
- The dividend of ZOE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.55%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
ZOETIS INC / ZOE.DE FAQ
What is the fundamental rating for ZOE stock?
ChartMill assigns a fundamental rating of 6 / 10 to ZOE.DE.
What is the valuation status for ZOE stock?
ChartMill assigns a valuation rating of 4 / 10 to ZOETIS INC (ZOE.DE). This can be considered as Fairly Valued.
What is the profitability of ZOE stock?
ZOETIS INC (ZOE.DE) has a profitability rating of 8 / 10.
What is the financial health of ZOETIS INC (ZOE.DE) stock?
The financial health rating of ZOETIS INC (ZOE.DE) is 7 / 10.
How sustainable is the dividend of ZOETIS INC (ZOE.DE) stock?
The dividend rating of ZOETIS INC (ZOE.DE) is 4 / 10 and the dividend payout ratio is 32.55%.