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Stock Analysis & ValuationVetoquinol S.A. (VETO.PA)

Professional Stock Screener
Previous Close
86.90
Sector Valuation Confidence Level
High
Valuation methodValue, Upside, %
Artificial intelligence (AI)118.1836
Intrinsic value (DCF)37.01-57
Graham-Dodd Method54.43-37
Graham Formula49.02-44

Strategic Investment Analysis

Company Overview

Vetoquinol SA is a leading veterinary pharmaceutical company headquartered in Lure, France, specializing in the design, development, and sale of veterinary drugs and non-medicinal products. Founded in 1933, the company operates across Europe, the Americas, and the Asia Pacific region, offering a diverse portfolio targeting mobility, pain, inflammation, dermatology, hygiene, anti-parasite, udder health, infectious diseases, reproduction, behavior management, internal medicine, and cardiology-nephrology for livestock and companion animals. As a subsidiary of Soparfin SCA, Vetoquinol SA is well-positioned in the growing global veterinary healthcare market, benefiting from increasing pet ownership and livestock health awareness. The company’s strong R&D capabilities and strategic geographic presence make it a key player in the specialty veterinary pharmaceuticals sector.

Investment Summary

Vetoquinol SA presents a stable investment opportunity with a market capitalization of €856.6 million and a beta of 0.783, indicating lower volatility compared to the broader market. The company reported €539.2 million in revenue and €58.7 million in net income for the latest fiscal year, with a diluted EPS of €4.98. Strong operating cash flow of €85.8 million and a healthy cash position of €206.3 million provide financial flexibility. However, investors should note the modest dividend yield (€0.85 per share) and the competitive pressures in the veterinary pharmaceutical industry. The company’s focus on innovation and geographic diversification could drive long-term growth, but regulatory risks and market competition remain key considerations.

Competitive Analysis

Vetoquinol SA competes in the global veterinary pharmaceutical market, leveraging its strong R&D capabilities and diversified product portfolio. The company’s competitive advantage lies in its specialized focus on both livestock and companion animals, catering to a broad customer base. Its geographic presence across Europe, the Americas, and Asia Pacific provides resilience against regional market fluctuations. However, the industry is highly competitive, with larger players like Zoetis and Elanco dominating market share. Vetoquinol’s smaller scale may limit its ability to compete on pricing and marketing spend, but its niche expertise in certain therapeutic areas (e.g., udder health, anti-parasite) allows for differentiation. The company’s financial stability and low debt (€21.1 million) provide a solid foundation, but it must continue investing in innovation to maintain its competitive edge.

Major Competitors

  • Zoetis Inc. (ZTS): Zoetis is the global leader in veterinary pharmaceuticals, with a broad product portfolio and strong R&D capabilities. Its scale and brand recognition give it a significant advantage over smaller players like Vetoquinol. However, Zoetis’s focus on premium-priced products may limit its appeal in cost-sensitive markets.
  • Elanco Animal Health Inc. (ELAN): Elanco is a major competitor with a strong presence in livestock and companion animal health. Its recent acquisitions have expanded its market share, but integration challenges and debt levels could pose risks. Vetoquinol’s more focused approach may allow for agility in niche markets.
  • Virbac SA (VIRP.PA): Virbac is a French peer with a similar focus on veterinary pharmaceuticals. Its strong dermatology and parasitology portfolios compete directly with Vetoquinol. Virbac’s larger size and international footprint make it a formidable competitor, but Vetoquinol’s profitability metrics are stronger.
  • Boehringer Ingelheim (Animal Health Division) (BAH): Boehringer Ingelheim’s animal health division is a key player in vaccines and pharmaceuticals. Its extensive R&D budget and global distribution network outpace Vetoquinol, but its focus on livestock may leave gaps in companion animal segments where Vetoquinol competes.
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