ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - BIT:1ZTS - US98978V1035 - Common Stock
125.64 EUR
+1.12 (+0.9%)
1ZTS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 53 industry peers in the Pharmaceuticals industry. 1ZTS has an excellent profitability rating, but 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
In the past year 1ZTS was profitable.
In the past year 1ZTS had a positive cash flow from operations.
1ZTS had positive earnings in each of the past 5 years.
1ZTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1ZTS has a better Return On Assets (18.04%) than 94.34% of its industry peers.
The Return On Equity of 1ZTS (52.48%) is better than 92.45% of its industry peers.
1ZTS has a better Return On Invested Capital (25.36%) than 92.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ZTS is significantly above the industry average of 15.19%.
The 3 year average ROIC (21.64%) for 1ZTS is below the current ROIC(25.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.04% | ||
| ROE | 52.48% | ||
| ROIC | 25.36% |
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 27.83% is amongst the best of the industry. 1ZTS outperforms 96.23% of its industry peers.
1ZTS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 37.69%, 1ZTS belongs to the best of the industry, outperforming 92.45% of the companies in the same industry.
1ZTS's Operating Margin has improved in the last couple of years.
1ZTS has a Gross Margin of 71.50%. This is comparable to the rest of the industry: 1ZTS outperforms 50.94% of its industry peers.
1ZTS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.69% | ||
| PM (TTM) | 27.83% | ||
| GM | 71.5% |
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.
Compared to 1 year ago, 1ZTS has less shares outstanding
Compared to 5 years ago, 1ZTS has less shares outstanding
The debt/assets ratio for 1ZTS is higher compared to a year ago.
2.2 Solvency
1ZTS has an Altman-Z score of 6.99. This indicates that 1ZTS is financially healthy and has little risk of bankruptcy at the moment.
1ZTS has a better Altman-Z score (6.99) than 86.79% of its industry peers.
The Debt to FCF ratio of 1ZTS is 2.97, which is a good value as it means it would take 1ZTS, 2.97 years of fcf income to pay off all of its debts.
1ZTS has a Debt to FCF ratio of 2.97. This is in the better half of the industry: 1ZTS outperforms 62.26% of its industry peers.
1ZTS has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.05, 1ZTS is doing worse than 66.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 6.99 |
ROIC/WACC2.96
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.76 indicates that 1ZTS should not have too much problems paying its short term obligations.
1ZTS has a better Current ratio (1.76) than 71.70% of its industry peers.
A Quick Ratio of 1.04 indicates that 1ZTS should not have too much problems paying its short term obligations.
The Quick ratio of 1ZTS (1.04) is better than 69.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| 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 12.27%, 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.
1ZTS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.27%.
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)12.27%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.82%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
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 9.00% yearly.
1ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.30% yearly.
EPS Next Y8.41%
EPS Next 2Y8.37%
EPS Next 3Y8.78%
EPS Next 5Y9%
Revenue Next Year2.87%
Revenue Next 2Y4.37%
Revenue Next 3Y4.8%
Revenue Next 5Y5.3%
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.
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 23.44.
1ZTS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.91. 1ZTS is around the same levels.
A Price/Forward Earnings ratio of 20.99 indicates a rather expensive valuation of 1ZTS.
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 60.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, 1ZTS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 20.99 |
4.2 Price Multiples
1ZTS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1ZTS is more expensive than 60.38% of the companies in the same industry.
1ZTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.14 | ||
| EV/EBITDA | 17.35 |
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)2.79
PEG (5Y)2.29
EPS Next 2Y8.37%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
1ZTS has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
32.08% of the earnings are spent on dividend by 1ZTS. This is a low number and sustainable payout ratio.
1ZTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.08%
EPS Next 2Y8.37%
EPS Next 3Y8.78%
BIT:1ZTS (10/23/2025, 7:00:00 PM)
125.64
+1.12 (+0.9%)
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 Cap55.68B
Revenue(TTM)9.38B
Net Income(TTM)2.61B
Analysts79.17
Price Target166.26 (32.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.49
Dividend Growth(5Y)21.42%
DP32.08%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.46%
Min EPS beat(2)5.17%
Max EPS beat(2)7.75%
EPS beat(4)4
Avg EPS beat(4)6.02%
Min EPS beat(4)3.63%
Max EPS beat(4)7.75%
EPS beat(8)6
Avg EPS beat(8)2.8%
EPS beat(12)9
Avg EPS beat(12)3.1%
EPS beat(16)12
Avg EPS beat(16)3.49%
Revenue beat(2)2
Avg Revenue beat(2)0.74%
Min Revenue beat(2)0.36%
Max Revenue beat(2)1.11%
Revenue beat(4)3
Avg Revenue beat(4)1.14%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)3.33%
Revenue beat(8)5
Avg Revenue beat(8)0.65%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)-2.57%
PT rev (3m)-4.79%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 20.99 | ||
| P/S | 6.89 | ||
| P/FCF | 29.14 | ||
| P/OCF | 22.07 | ||
| P/B | 12.99 | ||
| P/tB | 56.52 | ||
| EV/EBITDA | 17.35 |
EPS(TTM)5.36
EY4.27%
EPS(NY)5.99
Fwd EY4.77%
FCF(TTM)4.31
FCFY3.43%
OCF(TTM)5.69
OCFY4.53%
SpS18.24
BVpS9.67
TBVpS2.22
PEG (NY)2.79
PEG (5Y)2.29
Graham Number34.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.04% | ||
| ROE | 52.48% | ||
| ROCE | 31.83% | ||
| ROIC | 25.36% | ||
| ROICexc | 29.12% | ||
| ROICexgc | 48.22% | ||
| OM | 37.69% | ||
| PM (TTM) | 27.83% | ||
| GM | 71.5% | ||
| FCFM | 23.64% |
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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 146.09% | ||
| Cap/Sales | 7.57% | ||
| Interest Coverage | 12.96 | ||
| Cash Conversion | 72.81% | ||
| Profit Quality | 84.95% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 6.99 |
F-Score8
WACC8.56%
ROIC/WACC2.96
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)12.27%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.82%
EPS Next Y8.41%
EPS Next 2Y8.37%
EPS Next 3Y8.78%
EPS Next 5Y9%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
Revenue Next Year2.87%
Revenue Next 2Y4.37%
Revenue Next 3Y4.8%
Revenue Next 5Y5.3%
EBIT growth 1Y10.05%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.77%
EBIT Next 3Y10.41%
EBIT Next 5Y8.69%
FCF growth 1Y72.68%
FCF growth 3Y9.8%
FCF growth 5Y11.47%
OCF growth 1Y46.52%
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 2 / 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 8.41% in the next year.