Below is a snapshot that helps in Analysis of North American Pet Products Market.
Out of ~125 million families in North America it shows more than 100 million cats and dogs are owned. I suspect many same families own both a dog and a cat. Even if we estimate 80 million unique per owning families it is 2/3 of the families.
The total Pet Care market is worth $70B in annual sales. Companies like PetSmart and Perco who operate in this space are owned by Private Equity now. Amazon is a growing presence in this market as well for pet supplies. This is a sector to watch.
Zoetis (ZTS) which is now $45B market cap is a company that produces medicines and vaccines for pets and livestock. This is the best company to invest in this space as it gives expose to the pet market but also has diversification due to its exposure to livestock market as well. ZTS has always traded at a premium since it’s spinoff from Pfizer (PFE) in 2013. Company is up from $31 to $95 now as earnings have kept growing and the company is much better run as an independent company. Company trades for 27 times forward earnings. Mritik Capital recommends a purchase price at the 20 times multiple of forward earnings or better is a recommended entry point for ZTS. Based on 2019 projected EPS of $3.5 the recommended purchase price is $70.
Zoetis (ZTS) which is now $45B market cap is a company that produces medicines and vaccines for pets and livestock. This is the best company to invest in this space as it gives expose to the pet market but also has diversification due to its exposure to livestock market as well. ZTS has always traded at a premium since it’s spinoff from Pfizer (PFE) in 2013. Company is up from $31 to $95 now as earnings have kept growing and the company is much better run as an independent company. Company trades for 27 times forward earnings. Mritik Capital recommends a purchase price at the 20 times multiple of forward earnings or better is a recommended entry point for ZTS. Based on 2019 projected EPS of $3.5 the recommended purchase price is $70.
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