ZTS - Embedded Expectations Analysis - 2021 07 30
Zoetis Inc. (ZTS:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 41.3x Uniform P/E, implying bullish expectations for the firm, and management is excited about substantial global growth and confident about their osteoarthritis products and China market opportunities.Specifically, management generated an excitement marker when saying they delivered substantial growth on a global basis, across species and therapeutic areas. Also, they are confident they expect more normalized revenue growth in the second half of the year, that they recently received approvals for several leading products in China, and that their increase in hiring supports the strength of key brand growth. In addition, they are confident Solensia provides antibodies for pain alleviations associated with osteoarthritis (OA) in cats and that their Librela product led to increased activity, social ability, and quality of life for dogs. Moreover, they are confident exported livestock product needs depend on the producer and species of animal and that poultry producers are scaling production.
Zoetis is a holding company. Through its subsidiaries, the company is engaged in the discovery, development, manufacture and commercialization of animal health medicines, vaccines, and diagnostic products with a focus on both livestock and companion animals. The company operates in two segments: the United States and International. The company's main product categories are vaccines, anti-infectives, parasiticides, other pharmaceutical products, dermatology products, medicated feed additives, and animal health diagnostics. The company's other non-pharmaceutical product categories include nutritionals and agribusiness, as well as products and services including biodevices, genetic tests and precision livestock farming.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.