Added to YB: 2026-08-27
Pitch date: 2026-08-18
ZTS [bullish]
Zoetis Inc.
+3.87%
current return
Author Info
DB_Silver_Fox is a CFO and value investor interested in: European & US hidden champions, simple and effective business models, and US Banks. Sign up for the newsletter.
Company Info
Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry in the United States and internationally.
Market Cap
$31.9B
Pitch Price
$74.63
Price Target
N/A
Dividend
2.75%
EV/EBITDA
9.43
P/E
12.59
EV/Sales
4.14
Sector
Pharmaceuticals
Category
value
DB_Silver_Fox | Portfolio update as of 11.08.2026 - Zoetis Inc.
ZTS: Tactical/speculative long on world's #1 animal-health co; ~70% off ATH looks like emotional overreaction + capital outflows vs. weakening-but-dominant fundamentals. Thesis: Mr. Market offering opportunistic quotes on the industry leader plus LT animal-pharma tailwind; author expects violent short-term price recovery. Concedes low-quality story: mgmt manages for the street — buybacks 69% of 5yr CFO vs 25% reinvestment, EPS growth mostly share-count-driven and value-destructive (retired 77M shrs avg $138 vs $77 price; $2bn Dec-2025 convertibles to keep buying). Risks: 37% margins ride expiring patents (US companion-animal rev -11% last qtr on generics/derm competition) — moat rented not owned; capital allocation a forward risk. NetDebt/EBITDA 1.68x (12/31/25).
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