ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ZTS - US98978V1035 - Common Stock
107.18 EUR
-1.2 (-1.11%)
Overall 1ZTS gets a fundamental rating of 6 out of 10. We evaluated 1ZTS against 53 industry peers in the Pharmaceuticals industry. 1ZTS gets an excellent profitability rating and is at the same time showing great financial health properties. 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
- In the past year 1ZTS was profitable.
- 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
- With an excellent Return On Assets value of 17.49%, 1ZTS belongs to the best of the industry, outperforming 92.45% 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 90.57% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 21.45%, 1ZTS belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
- 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
- 1ZTS has a Profit Margin of 28.21%. This is amongst the best in the industry. 1ZTS outperforms 88.68% of its industry peers.
- In the last couple of years the Profit Margin of 1ZTS has grown nicely.
- 1ZTS has a better Operating Margin (38.25%) than 90.57% of its industry peers.
- 1ZTS's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 71.71%, 1ZTS is in line with its industry, outperforming 49.06% of the companies in the same 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
- 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 6.42 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.42, 1ZTS belongs to the top of the industry, outperforming 84.91% of the companies in the same industry.
- 1ZTS has a debt to FCF ratio of 3.16. This is a good value and a sign of high solvency as 1ZTS would need 3.16 years to pay back of all of its debts.
- 1ZTS's Debt to FCF ratio of 3.16 is fine compared to the rest of the industry. 1ZTS outperforms 69.81% of its industry peers.
- 1ZTS has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of 1ZTS (1.31) is worse than 71.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.42 |
ROIC/WACC2.34
WACC9.16%
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 better Current ratio (3.64) than 90.57% of its industry peers.
- A Quick Ratio of 2.28 indicates that 1ZTS has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.28, 1ZTS belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
| 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
- The Earnings Per Share is expected to grow by 8.09% on average over the next years. This is quite good.
- 1ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.60% yearly.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1ZTS is valuated rather expensively with a Price/Earnings ratio of 19.70.
- 1ZTS's Price/Earnings ratio is in line with the industry average.
- 1ZTS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.33.
- A Price/Forward Earnings ratio of 18.28 indicates a rather expensive valuation of 1ZTS.
- 1ZTS's Price/Forward Earnings ratio is in line with the industry average.
- 1ZTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ZTS is on the same level as its industry peers.
- 62.26% of the companies in the same industry are more expensive than 1ZTS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.57 | ||
| EV/EBITDA | 14.7 |
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.
- The excellent profitability rating of 1ZTS may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)1.93
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 1.91.
| 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 (1/13/2026, 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)02-11 2026-02-11/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
Analysts80.83
Price Target140.78 (31.35%)
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 | 19.7 | ||
| Fwd PE | 18.28 | ||
| P/S | 5.86 | ||
| P/FCF | 24.57 | ||
| P/OCF | 18.88 | ||
| P/B | 10.2 | ||
| P/tB | 34.53 | ||
| EV/EBITDA | 14.7 |
EPS(TTM)5.44
EY5.08%
EPS(NY)5.86
Fwd EY5.47%
FCF(TTM)4.36
FCFY4.07%
OCF(TTM)5.68
OCFY5.3%
SpS18.3
BVpS10.51
TBVpS3.1
PEG (NY)2.42
PEG (5Y)1.93
Graham Number35.87
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 | 6.42 |
F-Score6
WACC9.16%
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 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 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%.