Zoetis Inc. (ZTS) 10-K Red Flags
Risk signals extracted deterministically from Zoetis Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (11)
- Receivables outpacing revenue: Accounts receivable grew +20.8% YoY vs revenue growth of +2.3%. The +18.5% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Leverage is building — debt rising while equity contracts: Long-term debt grew +73.2% while stockholders equity declined -30.2%. The debt-to-equity ratio is deteriorating, increasing financial risk and interest burden. This may constrain future borrowing capacity.
- Endogenous analysis: Revenue grew +2.3% but receivables grew +20.8% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- 3 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- Price $73.96 — downtrend (below 200-DMA); 1-month momentum negative.
- RSI(14) 40.40.
- Composite risk: Elevated.
- Leverage debt/equity 2.87 (high).
- Receivables outpacing revenue: Accounts receivable grew +20.8% YoY vs revenue growth of +2.3%. The +18.5% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Leverage is building — debt rising while equity contracts: Long-term debt grew +73.2% while stockholders equity declined -30.2%. The debt-to-equity ratio is deteriorating, increasing financial risk and interest burden. This may constrain future borrowing capacity.
Filings & ownership
- Latest annual report (10-K) filed Feb 12, 2026.
- Latest quarterly report (10-Q) filed Aug 6, 2026.
- 7 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference Zoetis Inc.; broad institutional reporting.
- Recent filers include Westchester Capital Management, LLC, Axiom Investment Management LLC, Axiom Investment Management LLC.
- 3 recent 13D activist/beneficial-ownership filings — potential catalyst.
- 17 recent 13G passive institutional ownership notices.
Full ZTS analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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