ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
BIT:1ZTS - Euronext Milan - US98978V1035 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1ZTS. 1ZTS was compared to 52 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 valued expensive and it does not seem to be growing.
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.
1ZTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1ZTS has a better Return On Assets (16.93%) than 93.75% of its industry peers.
1ZTS has a Return On Equity of 46.43%. This is amongst the best in the industry. 1ZTS outperforms 89.58% of its industry peers.
The Return On Invested Capital of 1ZTS (20.99%) is better than 91.67% 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 13.62%.
The 3 year average ROIC (19.47%) for 1ZTS is below the current ROIC(20.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.93% | ||
| ROE | 46.43% | ||
| ROIC | 20.99% |
ROA(3y)15.08%
ROA(5y)14.05%
ROE(3y)46.58%
ROE(5y)47.72%
ROIC(3y)19.47%
ROIC(5y)18.17%
1.3 Margins
1ZTS has a Profit Margin of 26.55%. This is amongst the best in the industry. 1ZTS outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of 1ZTS has grown nicely.
1ZTS has a better Operating Margin (36.46%) than 93.75% of its industry peers.
1ZTS's Operating Margin has improved in the last couple of years.
1ZTS's Gross Margin of 70.13% is in line compared to the rest of the industry. 1ZTS outperforms 54.17% of its industry peers.
1ZTS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.46% | ||
| PM (TTM) | 26.55% | ||
| GM | 70.13% |
OM growth 3Y2.15%
OM growth 5Y1.93%
PM growth 3Y3.79%
PM growth 5Y2.28%
GM growth 3Y0.52%
GM growth 5Y0.81%
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.
1ZTS has less shares outstanding than it did 1 year ago.
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 7.68. This indicates that 1ZTS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.68, 1ZTS belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
1ZTS has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as 1ZTS would need 2.85 years to pay back of all of its debts.
1ZTS's Debt to FCF ratio of 2.85 is fine compared to the rest of the industry. 1ZTS outperforms 75.00% of its industry peers.
1ZTS has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.26, 1ZTS is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 7.68 |
ROIC/WACC2.22
WACC9.45%
2.3 Liquidity
1ZTS has a Current Ratio of 3.69. This indicates that 1ZTS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.69, 1ZTS belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
A Quick Ratio of 2.27 indicates that 1ZTS has no problem at all paying its short term obligations.
1ZTS has a better Quick ratio (2.27) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
1ZTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.28%, 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.
EPS 1Y (TTM)11.28%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.9%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.7%
3.2 Future
The Earnings Per Share is expected to grow by 9.32% on average over the next years. This is quite good.
Based on estimates for the next years, 1ZTS will show a small growth in Revenue. The Revenue will grow by 6.04% on average per year.
EPS Next Y7.25%
EPS Next 2Y9.17%
EPS Next 3Y9.93%
EPS Next 5Y9.32%
Revenue Next Year4.17%
Revenue Next 2Y5.49%
Revenue Next 3Y6.14%
Revenue Next 5Y6.04%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.48, which means the current valuation is very expensive for 1ZTS.
1ZTS's Price/Earnings is on the same level as the industry average.
1ZTS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 25.62, 1ZTS can be considered very expensive at the moment.
1ZTS's Price/Forward Earnings is on the same level as the industry average.
1ZTS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.48 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ZTS.
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 | 31.8 | ||
| EV/EBITDA | 20.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1ZTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.79
PEG (5Y)2.69
EPS Next 2Y9.17%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, 1ZTS has a reasonable but not impressive dividend return.
1ZTS's Dividend Yield is comparable with the industry average which is at 2.86.
Compared to an average S&P500 Dividend Yield of 2.33, 1ZTS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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 YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1ZTS pays out 31.44% 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.
DP31.44%
EPS Next 2Y9.17%
EPS Next 3Y9.93%
BIT:1ZTS (3/7/2025, 7:00:00 PM)
155.28
-12.08 (-7.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners95.58%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap70.06B
Analysts81.6
Price Target204.49 (31.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1.67
Dividend Growth(5Y)21.42%
DP31.44%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.71%
Min EPS beat(2)3.91%
Max EPS beat(2)7.51%
EPS beat(4)3
Avg EPS beat(4)1.69%
Min EPS beat(4)-6.94%
Max EPS beat(4)7.51%
EPS beat(8)6
Avg EPS beat(8)2.95%
EPS beat(12)8
Avg EPS beat(12)2.27%
EPS beat(16)12
Avg EPS beat(16)4.57%
Revenue beat(2)2
Avg Revenue beat(2)2.24%
Min Revenue beat(2)1.16%
Max Revenue beat(2)3.33%
Revenue beat(4)3
Avg Revenue beat(4)1.53%
Min Revenue beat(4)-0.05%
Max Revenue beat(4)3.33%
Revenue beat(8)4
Avg Revenue beat(8)0.33%
Revenue beat(12)5
Avg Revenue beat(12)-0.19%
Revenue beat(16)9
Avg Revenue beat(16)0.99%
PT rev (1m)-0.23%
PT rev (3m)-0.23%
EPS NQ rev (1m)-2.62%
EPS NQ rev (3m)-2.62%
EPS NY rev (1m)0.32%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.48 | ||
| Fwd PE | 25.62 | ||
| P/S | 8.02 | ||
| P/FCF | 31.8 | ||
| P/OCF | 24.92 | ||
| P/B | 14.02 | ||
| P/tB | 56.29 | ||
| EV/EBITDA | 20.06 |
EPS(TTM)5.65
EY3.64%
EPS(NY)6.06
Fwd EY3.9%
FCF(TTM)4.88
FCFY3.14%
OCF(TTM)6.23
OCFY4.01%
SpS19.36
BVpS11.07
TBVpS2.76
PEG (NY)3.79
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.93% | ||
| ROE | 46.43% | ||
| ROCE | 26.37% | ||
| ROIC | 20.99% | ||
| ROICexc | 24.27% | ||
| ROICexgc | 37.86% | ||
| OM | 36.46% | ||
| PM (TTM) | 26.55% | ||
| GM | 70.13% | ||
| FCFM | 25.22% |
ROA(3y)15.08%
ROA(5y)14.05%
ROE(3y)46.58%
ROE(5y)47.72%
ROIC(3y)19.47%
ROIC(5y)18.17%
ROICexc(3y)26.18%
ROICexc(5y)24.48%
ROICexgc(3y)49.18%
ROICexgc(5y)49.79%
ROCE(3y)24.47%
ROCE(5y)22.84%
ROICexcg growth 3Y-9.2%
ROICexcg growth 5Y-3.26%
ROICexc growth 3Y1.07%
ROICexc growth 5Y4.11%
OM growth 3Y2.15%
OM growth 5Y1.93%
PM growth 3Y3.79%
PM growth 5Y2.28%
GM growth 3Y0.52%
GM growth 5Y0.81%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 127.4% | ||
| Cap/Sales | 6.96% | ||
| Interest Coverage | 12.13 | ||
| Cash Conversion | 76.75% | ||
| Profit Quality | 94.98% | ||
| Current Ratio | 3.69 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 7.68 |
F-Score7
WACC9.45%
ROIC/WACC2.22
Cap/Depr(3y)127.19%
Cap/Depr(5y)119.19%
Cap/Sales(3y)7.32%
Cap/Sales(5y)7.22%
Profit Quality(3y)72.37%
Profit Quality(5y)81.65%
High Growth Momentum
Growth
EPS 1Y (TTM)11.28%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.9%
EPS Next Y7.25%
EPS Next 2Y9.17%
EPS Next 3Y9.93%
EPS Next 5Y9.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.7%
Revenue Next Year4.17%
Revenue Next 2Y5.49%
Revenue Next 3Y6.14%
Revenue Next 5Y6.04%
EBIT growth 1Y8.1%
EBIT growth 3Y10.91%
EBIT growth 5Y10.05%
EBIT Next Year21.4%
EBIT Next 3Y12.07%
EBIT Next 5Y10.04%
FCF growth 1Y82.16%
FCF growth 3Y-1.05%
FCF growth 5Y2.23%
OCF growth 1Y59.19%
OCF growth 3Y3.44%
OCF growth 5Y5.62%