ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ZTS - US98978V1035 - Common Stock
108.26 EUR
+3.92 (+3.76%)
We assign a fundamental rating of 6 out of 10 to 1ZTS. 1ZTS was compared to 53 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making 1ZTS a very profitable company, without any liquidiy or solvency issues. 1ZTS has a decent growth rate and is not valued too expensively. These ratings could make 1ZTS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
1ZTS had positive earnings in the past year.
In the past year 1ZTS had a positive cash flow from operations.
In the past 5 years 1ZTS has always been profitable.
In the past 5 years 1ZTS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.49%, 1ZTS belongs to the top of the industry, outperforming 94.34% of the companies in the same industry.
With an excellent Return On Equity value of 49.11%, 1ZTS belongs to the best of the industry, outperforming 92.45% of the companies in the same industry.
1ZTS has a Return On Invested Capital of 21.45%. This is amongst the best in the industry. 1ZTS outperforms 88.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ZTS is significantly above the industry average of 14.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 49.11% | ||
| ROIC | 21.45% |
ROA(3y)16.01%
ROA(5y)14.94%
ROE(3y)49.01%
ROE(5y)47.06%
ROIC(3y)21.64%
ROIC(5y)19.86%
1.3 Margins
The Profit Margin of 1ZTS (28.21%) is better than 90.57% of its industry peers.
1ZTS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 38.25%, 1ZTS belongs to the top of the industry, outperforming 92.45% of the companies in the same industry.
In the last couple of years the Operating Margin of 1ZTS has grown nicely.
1ZTS has a Gross Margin (71.71%) which is in line with its industry peers.
1ZTS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.25% | ||
| PM (TTM) | 28.21% | ||
| GM | 71.71% |
OM growth 3Y0.39%
OM growth 5Y2.44%
PM growth 3Y0.84%
PM growth 5Y2.31%
GM growth 3Y0.03%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
1ZTS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1ZTS has less shares outstanding than it did 1 year ago.
1ZTS has less shares outstanding than it did 5 years ago.
1ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
1ZTS has an Altman-Z score of 6.45. This indicates that 1ZTS is financially healthy and has little risk of bankruptcy at the moment.
1ZTS has a Altman-Z score of 6.45. This is amongst the best in the industry. 1ZTS outperforms 83.02% of its industry peers.
The Debt to FCF ratio of 1ZTS is 3.16, which is a good value as it means it would take 1ZTS, 3.16 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1ZTS (3.16) is better than 71.70% of its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that 1ZTS has dependencies on debt financing.
The Debt to Equity ratio of 1ZTS (1.31) is worse than 69.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.45 |
ROIC/WACC2.35
WACC9.14%
2.3 Liquidity
A Current Ratio of 3.64 indicates that 1ZTS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.64, 1ZTS belongs to the top of the industry, outperforming 92.45% of the companies in the same industry.
1ZTS has a Quick Ratio of 2.28. This indicates that 1ZTS is financially healthy and has no problem in meeting its short term obligations.
1ZTS has a better Quick ratio (2.28) than 88.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.07% over the past year.
The Earnings Per Share has been growing by 10.22% on average over the past years. This is quite good.
Looking at the last year, 1ZTS shows a small growth in Revenue. The Revenue has grown by 2.68% in the last year.
The Revenue has been growing by 8.14% on average over the past years. This is quite good.
EPS 1Y (TTM)10.07%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%7.59%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
3.2 Future
Based on estimates for the next years, 1ZTS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.09% on average per year.
The Revenue is expected to grow by 4.60% on average over the next years.
EPS Next Y8.15%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
EPS Next 5Y8.09%
Revenue Next Year2.07%
Revenue Next 2Y3.51%
Revenue Next 3Y4.23%
Revenue Next 5Y4.6%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.86 indicates a rather expensive valuation of 1ZTS.
1ZTS's Price/Earnings is on the same level as the industry average.
1ZTS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 18.44, which indicates a rather expensive current valuation of 1ZTS.
1ZTS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.92. 1ZTS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 18.44 |
4.2 Price Multiples
1ZTS's Enterprise Value to EBITDA ratio is in line with the industry average.
1ZTS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1ZTS is cheaper than 64.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.8 | ||
| EV/EBITDA | 14.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1ZTS does not grow enough to justify the current Price/Earnings ratio.
1ZTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)1.94
EPS Next 2Y7.44%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
1ZTS has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 1.72, 1ZTS has a dividend in line with its industry peers.
1ZTS's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of 1ZTS is nicely growing with an annual growth rate of 21.42%!
Dividend Growth(5Y)21.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1ZTS pays out 32.55% of its income as dividend. This is a sustainable payout ratio.
1ZTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.55%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
BIT:1ZTS (1/5/2026, 7:00:00 PM)
108.26
+3.92 (+3.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners97.58%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap47.71B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts80.83
Price Target140.78 (30.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend1.48
Dividend Growth(5Y)21.42%
DP32.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.77%
Min EPS beat(2)3.79%
Max EPS beat(2)7.75%
EPS beat(4)4
Avg EPS beat(4)5.09%
Min EPS beat(4)3.63%
Max EPS beat(4)7.75%
EPS beat(8)7
Avg EPS beat(8)3.39%
EPS beat(12)10
Avg EPS beat(12)3.67%
EPS beat(16)12
Avg EPS beat(16)2.98%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)1.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)1.11%
Revenue beat(8)5
Avg Revenue beat(8)0.74%
Revenue beat(12)6
Avg Revenue beat(12)0.2%
Revenue beat(16)7
Avg Revenue beat(16)-0.15%
PT rev (1m)-6.34%
PT rev (3m)-15.32%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-6.21%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 18.44 | ||
| P/S | 5.91 | ||
| P/FCF | 24.8 | ||
| P/OCF | 19.05 | ||
| P/B | 10.29 | ||
| P/tB | 34.85 | ||
| EV/EBITDA | 14.83 |
EPS(TTM)5.45
EY5.03%
EPS(NY)5.87
Fwd EY5.42%
FCF(TTM)4.37
FCFY4.03%
OCF(TTM)5.68
OCFY5.25%
SpS18.32
BVpS10.52
TBVpS3.11
PEG (NY)2.44
PEG (5Y)1.94
Graham Number35.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 49.11% | ||
| ROCE | 26.92% | ||
| ROIC | 21.45% | ||
| ROICexc | 25.41% | ||
| ROICexgc | 38.35% | ||
| OM | 38.25% | ||
| PM (TTM) | 28.21% | ||
| GM | 71.71% | ||
| FCFM | 23.84% |
ROA(3y)16.01%
ROA(5y)14.94%
ROE(3y)49.01%
ROE(5y)47.06%
ROIC(3y)21.64%
ROIC(5y)19.86%
ROICexc(3y)27.73%
ROICexc(5y)26.47%
ROICexgc(3y)50.54%
ROICexgc(5y)50.93%
ROCE(3y)27.16%
ROCE(5y)24.93%
ROICexgc growth 3Y2.53%
ROICexgc growth 5Y2.14%
ROICexc growth 3Y5.51%
ROICexc growth 5Y8.06%
OM growth 3Y0.39%
OM growth 5Y2.44%
PM growth 3Y0.84%
PM growth 5Y2.31%
GM growth 3Y0.03%
GM growth 5Y0.65%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 138.24% | ||
| Cap/Sales | 7.19% | ||
| Interest Coverage | 12.22 | ||
| Cash Conversion | 71.42% | ||
| Profit Quality | 84.5% | ||
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 6.45 |
F-Score6
WACC9.14%
ROIC/WACC2.35
Cap/Depr(3y)135.63%
Cap/Depr(5y)123.22%
Cap/Sales(3y)7.63%
Cap/Sales(5y)7.16%
Profit Quality(3y)74.77%
Profit Quality(5y)82.34%
High Growth Momentum
Growth
EPS 1Y (TTM)10.07%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%7.59%
EPS Next Y8.15%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
EPS Next 5Y8.09%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
Revenue Next Year2.07%
Revenue Next 2Y3.51%
Revenue Next 3Y4.23%
Revenue Next 5Y4.6%
EBIT growth 1Y7.7%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year16.84%
EBIT Next 3Y9.66%
EBIT Next 5Y7.94%
FCF growth 1Y50.13%
FCF growth 3Y9.8%
FCF growth 5Y11.47%
OCF growth 1Y32.73%
OCF growth 3Y10.09%
OCF growth 5Y10.47%
ZOETIS INC / 1ZTS.MI FAQ
What is the ChartMill fundamental rating of ZOETIS INC (1ZTS.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1ZTS.MI.
Can you provide the valuation status for ZOETIS INC?
ChartMill assigns a valuation rating of 3 / 10 to ZOETIS INC (1ZTS.MI). This can be considered as Overvalued.
What is the profitability of 1ZTS stock?
ZOETIS INC (1ZTS.MI) has a profitability rating of 8 / 10.
What is the expected EPS growth for ZOETIS INC (1ZTS.MI) stock?
The Earnings per Share (EPS) of ZOETIS INC (1ZTS.MI) is expected to grow by 8.15% in the next year.
How sustainable is the dividend of ZOETIS INC (1ZTS.MI) stock?
The dividend rating of ZOETIS INC (1ZTS.MI) is 4 / 10 and the dividend payout ratio is 32.55%.