ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ZTS - US98978V1035 - Common Stock
101.74 EUR
-23.9 (-19.02%)
1ZTS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 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 is not valued too expensively and it also shows a decent growth rate. 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.
Each year in the past 5 years 1ZTS had a positive operating cash flow.
1.2 Ratios
1ZTS's Return On Assets of 17.49% is amongst the best of the industry. 1ZTS outperforms 92.59% of its industry peers.
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.
1ZTS had an Average Return On Invested Capital over the past 3 years of 21.64%. This is significantly above the industry average of 14.51%.
| 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's Profit Margin of 28.21% is amongst the best of the industry. 1ZTS outperforms 87.04% of its industry peers.
1ZTS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 38.25%, 1ZTS belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
1ZTS's Operating Margin has improved in the last couple of years.
1ZTS has a Gross Margin (71.71%) which 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ZTS is creating value.
1ZTS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1ZTS has less shares outstanding
1ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.53 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.53, 1ZTS belongs to the best of the industry, outperforming 87.04% 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.
The Debt to FCF ratio of 1ZTS (3.16) is better than 66.67% 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 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.53 |
ROIC/WACC2.47
WACC8.67%
2.3 Liquidity
A Current Ratio of 3.64 indicates that 1ZTS has no problem at all paying its short term obligations.
The Current ratio of 1ZTS (3.64) is better than 87.04% 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's Quick ratio of 2.28 is amongst the best of the industry. 1ZTS outperforms 83.33% 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.
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)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 8.61% on average per year.
Based on estimates for the next years, 1ZTS will show a small growth in Revenue. The Revenue will grow by 5.06% on average per year.
EPS Next Y8.38%
EPS Next 2Y8.35%
EPS Next 3Y8.76%
EPS Next 5Y8.61%
Revenue Next Year2.86%
Revenue Next 2Y4.36%
Revenue Next 3Y4.79%
Revenue Next 5Y5.06%
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
The Price/Earnings ratio is 18.70, which indicates a rather expensive current valuation of 1ZTS.
The rest of the industry has a similar Price/Earnings ratio as 1ZTS.
1ZTS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.05, the valuation of 1ZTS can be described as rather expensive.
1ZTS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, 1ZTS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.05 |
4.2 Price Multiples
1ZTS's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ZTS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.45 | ||
| EV/EBITDA | 15.14 |
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)2.23
PEG (5Y)1.83
EPS Next 2Y8.35%
EPS Next 3Y8.76%
5. Dividend
5.1 Amount
1ZTS has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 2.96, 1ZTS has a dividend in line with its industry peers.
With a Dividend Yield of 1.31, 1ZTS pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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 2Y8.35%
EPS Next 3Y8.76%
BIT:1ZTS (11/20/2025, 7:00:00 PM)
101.74
-23.9 (-19.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners98.55%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap45.09B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts79.17
Price Target166.02 (63.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)-0.15%
PT rev (3m)-0.75%
EPS NQ rev (1m)-3.42%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)-2%
Revenue NQ rev (3m)-2.44%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.05 | ||
| P/S | 5.59 | ||
| P/FCF | 23.45 | ||
| P/OCF | 18.01 | ||
| P/B | 9.73 | ||
| P/tB | 32.95 | ||
| EV/EBITDA | 15.14 |
EPS(TTM)5.44
EY5.35%
EPS(NY)5.97
Fwd EY5.86%
FCF(TTM)4.34
FCFY4.27%
OCF(TTM)5.65
OCFY5.55%
SpS18.2
BVpS10.46
TBVpS3.09
PEG (NY)2.23
PEG (5Y)1.83
Graham Number35.78
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 | 6.53 |
F-Score6
WACC8.67%
ROIC/WACC2.47
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 Y8.38%
EPS Next 2Y8.35%
EPS Next 3Y8.76%
EPS Next 5Y8.61%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
Revenue Next Year2.86%
Revenue Next 2Y4.36%
Revenue Next 3Y4.79%
Revenue Next 5Y5.06%
EBIT growth 1Y7.7%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.77%
EBIT Next 3Y10.41%
EBIT Next 5Y8.66%
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.
What is the valuation status for 1ZTS stock?
ChartMill assigns a valuation rating of 3 / 10 to ZOETIS INC (1ZTS.MI). This can be considered as Overvalued.
How profitable is ZOETIS INC (1ZTS.MI) stock?
ZOETIS INC (1ZTS.MI) has a profitability rating of 9 / 10.
How financially healthy is ZOETIS INC?
The financial health rating of ZOETIS INC (1ZTS.MI) is 6 / 10.
Can you provide the expected EPS growth for 1ZTS stock?
The Earnings per Share (EPS) of ZOETIS INC (1ZTS.MI) is expected to grow by 8.38% in the next year.