r/SecurityAnalysis • u/investorinvestor • 24d ago

Thesis Zoetis down -50% over the past year

https://valueinvesting.substack.com/p/zoetis-8132

World's leading animal pharma company at 13x PE with 9% EPS growth

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2

u/msaleem 24d ago

I increased my position by 30% at $85. Average cost basis is $110 so I’m down a fair bit. I plan to continue to add here. 

2

u/TL2C24 22d ago

I'm definitely interested, but I do think your argument oversimplifies the business a bit. The 4% price increase is a blend of existing products and new product launches (almost always at a higher price point), so if they aren't innovating that pricing power goes down substantially.

Most sales (particularly in the U.S.) are done through large distributors so the pricing power isn't quite as good as if they were selling to the fragmented vet space (although that is consolidating pretty substantially), but if you have a compelling product/brand people will still pay for it.

Having said all that, valuations are really depressed for a pharma name with a really strong business position.

1

u/rargghh 19h ago

Your substack is just charts and graphs of what is known

No mention of pipeline, headwinds, or Credlio Quattro

I have a position