ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
BIT:1ZTS - Euronext Milan - US98978V1035 - Common Stock - Currency: EUR
1ZTS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Pharmaceuticals industry. While 1ZTS has a great profitability rating, there are some minor concerns on its financial health. 1ZTS is quite expensive at the moment. It does show a decent growth rate.
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.
1ZTS had positive earnings in each of the past 5 years.
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 17.86%, 1ZTS belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.
With an excellent Return On Equity value of 54.09%, 1ZTS belongs to the best of the industry, outperforming 90.57% of the companies in the same industry.
The Return On Invested Capital of 1ZTS (25.63%) is better than 90.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ZTS is significantly above the industry average of 14.75%.
The 3 year average ROIC (21.64%) for 1ZTS is below the current ROIC(25.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.86% | ||
| ROE | 54.09% | ||
| ROIC | 25.63% |
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 better Profit Margin (27.12%) than 88.68% of its industry peers.
1ZTS's Profit Margin has improved in the last couple of years.
The Operating Margin of 1ZTS (37.11%) is better than 90.57% of its industry peers.
In the last couple of years the Operating Margin of 1ZTS has grown nicely.
The Gross Margin of 1ZTS (70.98%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1ZTS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.11% | ||
| PM (TTM) | 27.12% | ||
| GM | 70.98% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1ZTS is creating value.
1ZTS has less shares outstanding than it did 1 year ago.
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 7.68 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
1ZTS's Altman-Z score of 7.68 is amongst the best of the industry. 1ZTS outperforms 90.57% of its industry peers.
The Debt to FCF ratio of 1ZTS is 2.88, which is a good value as it means it would take 1ZTS, 2.88 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.88, 1ZTS is in the better half of the industry, outperforming 67.92% of the companies in the same industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that 1ZTS has dependencies on debt financing.
1ZTS has a Debt to Equity ratio of 1.12. This is in the lower half of the industry: 1ZTS underperforms 67.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 2.88 | ||
| Altman-Z | 7.68 |
ROIC/WACC2.6
WACC9.85%
2.3 Liquidity
A Current Ratio of 1.74 indicates that 1ZTS should not have too much problems paying its short term obligations.
1ZTS has a better Current ratio (1.74) than 71.70% of its industry peers.
1ZTS has a Quick Ratio of 1.04. This is a normal value and indicates that 1ZTS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1ZTS (1.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
1ZTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.69%, which is quite good.
The Earnings Per Share has been growing by 10.22% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.32% in the past year.
Measured over the past years, 1ZTS shows a quite strong growth in Revenue. The Revenue has been growing by 8.14% on average per year.
EPS 1Y (TTM)11.69%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%7.25%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%1.37%
3.2 Future
1ZTS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
1ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.61% yearly.
EPS Next Y6.12%
EPS Next 2Y7.68%
EPS Next 3Y8.56%
EPS Next 5Y9.5%
Revenue Next Year2.57%
Revenue Next 2Y4.33%
Revenue Next 3Y4.81%
Revenue Next 5Y5.61%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 28.05, 1ZTS can be considered very expensive at the moment.
1ZTS's Price/Earnings ratio is in line with the industry average.
1ZTS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 24.60, the valuation of 1ZTS can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ZTS indicates a slightly more expensive valuation: 1ZTS is more expensive than 62.26% of the companies listed in the same industry.
1ZTS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 24.6 |
4.2 Price Multiples
66.04% of the companies in the same industry are cheaper than 1ZTS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1ZTS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.96 | ||
| EV/EBITDA | 20.33 |
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)4.58
PEG (5Y)2.75
EPS Next 2Y7.68%
EPS Next 3Y8.56%
5. Dividend
5.1 Amount
1ZTS has a Yearly Dividend Yield of 1.18%.
Compared to an average industry Dividend Yield of 3.04, 1ZTS has a dividend in line with its industry peers.
With a Dividend Yield of 1.18, 1ZTS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
On average, the dividend of 1ZTS grows each year by 21.42%, which is quite nice.
Dividend Growth(5Y)21.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1ZTS pays out 32.25% 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.
DP32.25%
EPS Next 2Y7.68%
EPS Next 3Y8.56%
BIT:1ZTS (5/29/2025, 7:00:00 PM)
146.68
+5.12 (+3.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners96.42%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap65.30B
Analysts81.67
Price Target174.63 (19.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend1.51
Dividend Growth(5Y)21.42%
DP32.25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.4%
Min EPS beat(2)3.63%
Max EPS beat(2)5.17%
EPS beat(4)4
Avg EPS beat(4)5.06%
Min EPS beat(4)3.63%
Max EPS beat(4)7.51%
EPS beat(8)6
Avg EPS beat(8)2.6%
EPS beat(12)8
Avg EPS beat(12)2.24%
EPS beat(16)12
Avg EPS beat(16)3.55%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.36%
Revenue beat(4)3
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)3.33%
Revenue beat(8)4
Avg Revenue beat(8)0.48%
Revenue beat(12)5
Avg Revenue beat(12)-0.19%
Revenue beat(16)8
Avg Revenue beat(16)0.35%
PT rev (1m)-7.85%
PT rev (3m)-14.6%
EPS NQ rev (1m)0.89%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)1.66%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 24.6 | ||
| P/S | 8.1 | ||
| P/FCF | 32.96 | ||
| P/OCF | 25.53 | ||
| P/B | 16.15 | ||
| P/tB | 87.72 | ||
| EV/EBITDA | 20.33 |
EPS(TTM)5.23
EY3.57%
EPS(NY)5.96
Fwd EY4.07%
FCF(TTM)4.45
FCFY3.03%
OCF(TTM)5.75
OCFY3.92%
SpS18.12
BVpS9.08
TBVpS1.67
PEG (NY)4.58
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.86% | ||
| ROE | 54.09% | ||
| ROCE | 32.17% | ||
| ROIC | 25.63% | ||
| ROICexc | 30.53% | ||
| ROICexgc | 52.86% | ||
| OM | 37.11% | ||
| PM (TTM) | 27.12% | ||
| GM | 70.98% | ||
| FCFM | 24.56% |
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%
ROICexcg growth 3Y2.53%
ROICexcg 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-Score8
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 2.88 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 135.51% | ||
| Cap/Sales | 7.15% | ||
| Interest Coverage | 12.58 | ||
| Cash Conversion | 74.82% | ||
| Profit Quality | 90.59% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 7.68 |
F-Score8
WACC9.85%
ROIC/WACC2.6
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)11.69%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%7.25%
EPS Next Y6.12%
EPS Next 2Y7.68%
EPS Next 3Y8.56%
EPS Next 5Y9.5%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%1.37%
Revenue Next Year2.57%
Revenue Next 2Y4.33%
Revenue Next 3Y4.81%
Revenue Next 5Y5.61%
EBIT growth 1Y9.64%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year16.87%
EBIT Next 3Y10.58%
EBIT Next 5Y9.07%
FCF growth 1Y56.45%
FCF growth 3Y9.8%
FCF growth 5Y11.47%
OCF growth 1Y36.85%
OCF growth 3Y10.09%
OCF growth 5Y10.47%