VETOQUINOL (VETO) AI Stock Analysis

• Market Cap: €870.41M
• Dividend Yield: 1.2%
• Average Volume (3M): 2.69K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.49
• Revenue Growth: 1.88%
• EPS Growth: 5.79%
• Country: FR
• Employees: 2,519
• Sector: Healthcare
• Sector Strength: 55
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 4.97
• Shares Outstanding: 11,881,902
• 10 Day Avg. Volume: 2,562
• 30 Day Avg. Volume: 2,692
• PEG Ratio: 0.59
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €120.00
• Price Target Upside: 69.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: €82.00 ▲(15.49%Upside)

VETOQUINOL's solid financial performance and fair valuation are the primary strengths, providing stability. However, technical trends indicate potential short-term challenges. Continued focus on expanding market presence and optimizing cash flow management could enhance long-term growth prospects.

Positive Factors

Earnings Growth

The company's high gross margin and strong financial resources are expected to accelerate EPS growth.

Financial Performance

Vetoquinol's adjusted EBIT has returned to growth for the first time in 3 years, marking the start of a positive upturn.

Negative Factors

Company Valuation

The company's low valuation multiple presents a compelling opportunity to buy before a likely strong re-rating.

VETOQUINOL Business Overview & Revenue Model

Company Description

Vetoquinol SA, a veterinary pharmaceutical company, designs, develops, and sells veterinary drugs and non-medicinal products in Europe, the Americas, and the Asia Pacific region. It provides products in the areas of mobility, pain, and inflammation; dermatology, hygiene, and care; anti-parasite; udder health; infectious diseases; reproduction; behavior management; internal medicine; and cardiology-nephrology for cattle, sheep, pigs, poultry, and dogs. The company was founded in 1933 and is headquartered in Lure, France. Vetoquinol SA is a subsidiary of Soparfin SCA.

How the Company Makes Money

Vetoquinol generates revenue primarily through the sale of its animal health products, which are distributed to veterinarians, farmers, and pet owners. The company's key revenue streams include pharmaceuticals for disease prevention and treatment, vaccines to protect against infectious diseases, and nutraceuticals to support animal health and performance. In addition to direct sales, Vetoquinol benefits from strategic partnerships and collaborations with research institutions and other companies to enhance its product offerings and expand market reach. The company's earnings are also influenced by factors such as regulatory approvals, market demand for veterinary products, and advancements in veterinary medicine.

VETOQUINOL Financial Statement Overview

Summary

VETOQUINOL demonstrates strong profitability and efficient operations. The income statement shows robust profit margins and consistent growth, while the balance sheet reflects a stable capital structure with low leverage. Cash flows are positive, though there is room for improvement in cash flow growth.

Income Statement

VETOQUINOL shows strong financial performance in its income statement. The gross profit margin is healthy, reflecting efficient production and service delivery. There is consistent revenue growth with a notable increase in net income, signaling robust profitability. EBIT and EBITDA margins are also solid, indicating effective operational management and cost control. However, the revenue growth rate has been moderate, highlighting the need for further expansion in market reach.

Balance Sheet

The balance sheet of VETOQUINOL is solid, characterized by a low debt-to-equity ratio, which underscores the company's prudent financial management and low leverage risk. The return on equity is commendable, showcasing effective use of shareholders' equity to generate profits. The equity ratio is strong, demonstrating a solid capital structure. Nonetheless, a slight increase in total liabilities warrants monitoring to maintain financial stability.

Cash Flow

VETOQUINOL maintains a positive cash flow position, with stable operating cash flows and a healthy free cash flow to net income ratio. The operating cash flow to net income ratio indicates efficient cash generation relative to net income. However, there has been a decrease in free cash flow growth rate, which suggests a need for enhanced cash flow management to support future investments and operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
539.20M	529.27M	539.78M	521.27M	427.47M
	Gross Profit
387.45M	291.38M	172.37M	167.37M	123.98M
	EBIT
77.32M	74.26M	79.31M	77.27M	52.49M
	EBITDA
114.08M	112.33M	103.46M	116.86M	59.29M
	Net Income Common Stockholders
58.69M	55.56M	47.99M	62.86M	19.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
206.33M	147.46M	93.71M	69.00M	129.44M
	Total Assets
744.13M	692.23M	651.85M	624.56M	646.09M
	Total Debt
21.12M	17.63M	17.42M	15.38M	124.86M
	Net Debt
-185.21M	-129.84M	-76.29M	-53.62M	-4.58M
	Total Liabilities
168.20M	165.12M	167.19M	183.21M	274.26M
	Stockholders Equity
575.84M	527.01M	484.57M	441.26M	371.75M
Cash Flow		Free Cash Flow
68.15M	70.38M	39.90M	56.76M	-53.45M
	Operating Cash Flow
85.83M	89.39M	62.39M	89.17M	92.01M
	Investing Cash Flow
-15.65M	-18.88M	-21.52M	-33.45M	-145.14M
	Financing Cash Flow
-16.03M	-15.50M	-15.60M	-120.31M	102.20M

VETOQUINOL Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VETO, the sentiment is Negative. The current price of 71 is below the 20-day moving average (MA) of 73.08, below the 50-day MA of 73.79, and below the 200-day MA of 76.71, indicating a bearish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 31.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:VETO.

VETOQUINOL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VETO	74 Outperform	€870.41M	14.79	10.64%	1.20%	1.88%	5.79%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
0DTF		€403.80M	35.30	2.94%	5.21%	―	―
0MH6		€8.55B	24.72	8.89%	1.16%	―	―
0OB3		€463.93M	―	-44.11%	―	―	―
0NM7		€2.68B	18.56	14.95%	0.41%	―	―
MEDCL	37 Underperform	€522.49M	―		―	-1.66%	-6.31%