This animal healthcare stocks is fairly valued

Zoetis is the largest global animal health company, holding a significant market share. Its strong brand recognition and extensive portfolio of products for livestock and pets give it a competitive edge. Zoetis has demonstrated strong and consistent financial performance, with steady revenue and profit growth. This stability is attractive for long-term investors seeking reliable returns. Zoetis offers a wide range of products including vaccines, medicines, diagnostics, and genetic tests for both livestock and companion animals. This diversification helps mitigate risk and ensures multiple revenue streams. The pet care market has been growing steadily, driven by increasing pet ownership and higher spending on pet health and wellness. Zoetis is well-positioned to benefit from this trend with its extensive range of pet health products. Zoetis invests heavily in research and development, continuously bringing new and innovative products to market. This focus on innovation helps maintain its competitive edge and drives future growth. Zoetis has a strong international presence and continues to expand into new markets, particularly in emerging economies where demand for animal health products is increasing. The company has a history of strategic acquisitions that enhance its product offerings and market reach. These acquisitions help drive growth and improve the company's competitive position. Zoetis is committed to sustainable business practices, which can enhance its reputation and appeal to socially responsible investors. This includes efforts in environmental sustainability and ethical animal treatment. The animal health industry tends to be more resilient during economic downturns compared to other sectors, as spending on animal health is often considered essential. This stability can provide a buffer against economic volatility. Zoetis has a strong and experienced management team with a clear vision for long-term growth and value creation. Effective leadership is crucial for navigating challenges and capitalizing on opportunities.

$ZTS - Zoestis, an animal healthcare company looks fairly valued. 

PE ratio: 29.65

Dividend Payout ratio: 29.98%

FCF payout ratio: 49.29%

5 yr revenue CAGR: +7.96%

5 yr EPS CAGR: +11.41%

5 yr FCF CAGR: +3.18%

5 yr dividend CAGR: +24.37%

FCF yield: 2.05%

FCF margin: 18.94%

12 months Analyst avg. price target: $209.33 (22.35% upside)

$ZTS: Since 2010, the EPS has been growing by double digits.

5 yr EPS CAGR: +11.41%

10 yr EPS CAGR: +17.53%

EPS growth forecast for 

2024: +14.82% (19 analysts)

2025: +10.67% (19 analysts)

2026: +9.71% (14 analysts)

$ZTS: Since 2010, the revenue has been growing.

5 yr revenue CAGR: +7.96%

10 yr revenue CAGR: +6.48%

Revenue growth forecast for

2024: +8.19% (19 analysts)

2025: +6.17% (19 analysts)

2026: +6.61% (14 analysts)

$ZTS - The net income has been growing by double digits. 5 yr net income CAGR: +10.42% 10 yr net income CAGR: +16.61% Net income is increasing while the outstanding shares are decreasing which indicates a positive financial trend for the company, leading to an increase in EPS and share buybacks.

$ZTS - The debt-to-equity is dropping fast.

$ZTS - so far is an outstanding dividend grower. 5 yr dividend CAGR: +24.37% 10 yr dividend CAGR: +22.63% Dividend Payout ratio: 29.98% FCF payout ratio: 49.29%

AMAT - Applied Materials a good stock to buy

 $AMAT- Applied Materials is looking like a good stock to buy.

Its current PE is 25.71. This is a good value for a tech stock.

The Price to Earnings (P/E) ratio is a financial metric used to evaluate the relative value of a company’s shares. It is calculated by dividing the market value per share by the earnings per share (EPS). Here’s the formula:

P/E Ratio=Earnings per share / Market value per share​

This ratio can give you an idea of what the market is willing to pay for a company’s earnings. A higher P/E ratio might indicate that the market expects future growth in earnings, while a lower P/E ratio could suggest that the stock is undervalued or that the company’s growth prospects are not as strong.

Dividend payout ratio: 19.39%.

The Dividend Payout Ratio is a financial metric that measures the percentage of a company’s net income that is distributed to shareholders in the form of dividends. It’s an indicator of how much money a company is returning to shareholders, versus how much it is retaining to reinvest in the business, pay off debt, or add to cash reserves.

The formula to calculate the Dividend Payout Ratio is:

Dividend Payout Ratio=Net Income / Dividends Paid​

Free cash flow payout ratio: 17.70%

The Free Cash Flow Payout Ratio is a financial metric that compares the dividends a company pays out to its shareholders to the free cash flow it generates. This ratio is particularly useful for investors who are interested in the sustainability of a company’s dividend payments. It can be calculated using the following formula:

Free Cash Flow Payout Ratio = (Free Cash Flow / Dividends Paid)​×100

A lower ratio suggests that a company is using a smaller portion of its free cash flow to pay dividends, which may indicate a more sustainable dividend policy. Conversely, a higher ratio could mean that a company is returning most of its free cash flow to shareholders, which might not be sustainable in the long term

Free Cashflow yield: 4.26%

Free cash flow margin: 28.63%

ROIC: 31.04%

ROE: 41.04%

Debt-to-equity: 0.34

$AMAT - Applied Materials has consistently demonstrated growth in revenue over the years. The revenue has been growing since 2013. Its 5-year revenue growth CAGR is 8.98%

$AMAT - Applied Materials, Inc. has demonstrated strong free cash flow performance over the years. Its 5-yr free cashflow CAGR is 23.68%

$AMAT - Applied Materials continues to reward its shareholders with steady dividend payments and growth. Its 5 year dividend CAGR is 11.75%.

$AMAT - Applied materials companies' outstanding share numbers keep dropping while the net income keeps going up which means the EPS will increase.

When a company’s outstanding shares decrease while net income increases, it has several implications:

1. Earnings Per Share (EPS) Impact: EPS, which represents profit per share, tends to rise. Since net income is divided among fewer shares, each share “owns” a larger portion of the profit.

2. Positive Signal: Investors often view this as a positive sign. It suggests that the company is efficiently managing its capital structure and returning value to shareholders through buybacks or other means