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Is this Large Market Cap Stock target price reasonable for Zoetis Inc. (NYSE:ZTS)?

The company in question is, Zoetis Inc. (NYSE:ZTS) currently with a stock price of 50.03 (-0.30% today). The market cap for Zoetis Inc. is 25181.6, and is in the sector Healthcare, and Drugs – Generic industry. The target price for Zoetis Inc. is 55.15. Currently Zoetis Inc. is trading with a P/E of 39.09, and a forward P/E of 21.53. Average volume for Zoetis Inc. is 3372.88 and so far today it is 2642300.

Performance in the last year for Zoetis Inc. has been 14.83%. For EPS growth, Zoetis Inc. has seen a growth of -31.60%, and is looking to grow in the next year to 21.93%. More long term stats show that EPS growth has been 29.30% over the last five years and could be 12.88% for the next five years. Zoetis Inc. has seen sales growth quarter over quarter at 2.80%, with EPS growth quarter over quarter at 707.10%. The 20-day simple moving average is -2.57%, with the 200-day simple moving average coming to 6.48%.

Since the IPO date for Zoetis Inc. on the 2/1/2013, Zoetis Inc. has seen performance year to date to be 5.07%. With Zoetis Inc. trading at 50.03, the dividend yield is 0.76%, and the EPS is 1.28.

So could Zoetis Inc., be undervalued? Well as said before P/E is 39.09. The PEG is 3.03, P/S is 5.18 and the P/B is at 18.33. The P/cash is 38.27, with P/free cash flow at 51.39.

Zoetis Inc. ability to deal with debt shows that the current ratio is 3.2, and the quick ratio is 1.7. This is with long term debt/equity at 3.29, and total debt/equity at 3.29.

In terms of margins, Zoetis Inc. has a gross margin of 64.90%, an operating margin of 20.70% and a profit margin of 13.20%.Payout ratio for Zoetis Inc. is 35.10%. Return on assets come to 8.60% with return on investment coming to 5.70%.

Insider ownership for Zoetis Inc., is at 0.01% and institutional ownership comes to 94.90%. Outstanding shares are at 503.33. While shares float is 493.75. The float short is currently 1.75%, and short ratio is 2.57.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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