ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ZTS - US98978V1035 - Common Stock
107.18 EUR
-1.2 (-1.11%)
Taking everything into account, 1ZTS scores 6 out of 10 in our fundamental rating. 1ZTS was compared to 54 industry peers in the Pharmaceuticals industry. 1ZTS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1ZTS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- 1ZTS had positive earnings in the past year.
- 1ZTS had a positive operating cash flow in the past year.
- In the past 5 years 1ZTS has always been profitable.
- 1ZTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 17.49%, 1ZTS belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 49.11%, 1ZTS belongs to the top of the industry, outperforming 90.74% 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 87.04% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1ZTS is significantly above the industry average of 13.93%.
| 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
- 1ZTS has a Profit Margin of 28.21%. This is amongst the best in the industry. 1ZTS outperforms 88.89% of its industry peers.
- In the last couple of years the Profit Margin of 1ZTS has grown nicely.
- 1ZTS has a Operating Margin of 38.25%. This is amongst the best in the industry. 1ZTS outperforms 90.74% of its industry peers.
- 1ZTS's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1ZTS (71.71%) is comparable to the rest of the industry.
- 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.
- Compared to 1 year ago, 1ZTS has less shares outstanding
- The number of shares outstanding for 1ZTS has been reduced compared to 5 years ago.
- The debt/assets ratio for 1ZTS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.44 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.44, 1ZTS belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
- 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.
- 1ZTS has a Debt to FCF ratio of 3.16. This is in the better half of the industry: 1ZTS outperforms 72.22% 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.
- 1ZTS has a worse Debt to Equity ratio (1.31) than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.44 |
ROIC/WACC2.34
WACC9.15%
2.3 Liquidity
- A Current Ratio of 3.64 indicates that 1ZTS has no problem at all paying its short term obligations.
- 1ZTS has a Current ratio of 3.64. This is amongst the best in the industry. 1ZTS outperforms 90.74% of its industry peers.
- 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 87.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
- 1ZTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.07%, which is quite good.
- 1ZTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.22% yearly.
- The Revenue has been growing slightly by 2.68% in the past year.
- 1ZTS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.14% yearly.
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 small growth in Earnings Per Share. The EPS will grow by 7.88% on average per year.
- 1ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y8.15%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
EPS Next 5Y7.88%
Revenue Next Year2.07%
Revenue Next 2Y3.5%
Revenue Next 3Y4.21%
Revenue Next 5Y4.67%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 19.85 indicates a rather expensive valuation of 1ZTS.
- 1ZTS's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, 1ZTS is valued a bit cheaper.
- The Price/Forward Earnings ratio is 18.41, 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 24.32. 1ZTS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 18.41 |
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 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.75 | ||
| EV/EBITDA | 14.8 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of 1ZTS may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)1.94
EPS Next 2Y7.44%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
- 1ZTS has a Yearly Dividend Yield of 1.64%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.59, 1ZTS has a dividend in line with its industry peers.
- 1ZTS's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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 (1/13/2026, 7:00:00 PM)
107.18
-1.2 (-1.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-12 2026-02-12/amc
Inst Owners97.58%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap47.23B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts79.17
Price Target141.62 (32.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend1.49
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)-3.55%
PT rev (3m)-14.82%
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 | 19.85 | ||
| Fwd PE | 18.41 | ||
| P/S | 5.9 | ||
| P/FCF | 24.75 | ||
| P/OCF | 19.01 | ||
| P/B | 10.27 | ||
| P/tB | 34.78 | ||
| EV/EBITDA | 14.8 |
EPS(TTM)5.4
EY5.04%
EPS(NY)5.82
Fwd EY5.43%
FCF(TTM)4.33
FCFY4.04%
OCF(TTM)5.64
OCFY5.26%
SpS18.16
BVpS10.43
TBVpS3.08
PEG (NY)2.43
PEG (5Y)1.94
Graham Number35.61
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 | 6.44 |
F-Score6
WACC9.15%
ROIC/WACC2.34
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 5Y7.88%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
Revenue Next Year2.07%
Revenue Next 2Y3.5%
Revenue Next 3Y4.21%
Revenue Next 5Y4.67%
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 4 / 10 to ZOETIS INC (1ZTS.MI). This can be considered as Fairly Valued.
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%.