ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - BIT:1ZTS - US98978V1035 - Common Stock
133.62 EUR
-0.36 (-0.27%)
We assign a fundamental rating of 6 out of 10 to 1ZTS. 1ZTS was compared to 49 industry peers in the Pharmaceuticals industry. 1ZTS has an excellent profitability rating, but there are some minor concerns on its financial health. 1ZTS is valied quite expensively at the moment, while 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.
In the past 5 years 1ZTS has always been profitable.
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 18.04%, 1ZTS belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
1ZTS's Return On Equity of 52.48% is amongst the best of the industry. 1ZTS outperforms 90.00% of its industry peers.
The Return On Invested Capital of 1ZTS (25.36%) is better than 90.00% 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 15.25%.
The last Return On Invested Capital (25.36%) for 1ZTS is above the 3 year average (21.64%), which is a sign of increasing profitability.
| 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
The Profit Margin of 1ZTS (27.83%) is better than 92.00% of its industry peers.
1ZTS's Profit Margin has improved in the last couple of years.
1ZTS's Operating Margin of 37.69% is amongst the best of the industry. 1ZTS outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of 1ZTS has grown nicely.
Looking at the Gross Margin, with a value of 71.50%, 1ZTS is in line with its industry, outperforming 50.00% of the companies in the same 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 | 37.69% | ||
| 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
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
1ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.28 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
1ZTS has a better Altman-Z score (7.28) than 94.00% 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.
Looking at the Debt to FCF ratio, with a value of 2.97, 1ZTS is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
A Debt/Equity ratio of 1.05 is on the high side and indicates that 1ZTS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.05, 1ZTS is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 7.28 |
ROIC/WACC2.6
WACC9.74%
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 68.00% 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 better than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.27% over the past year.
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 5.27% 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)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
Based on estimates for the next years, 1ZTS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.88% on average per year.
Based on estimates for the next years, 1ZTS will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
EPS Next Y8.32%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
EPS Next 5Y8.88%
Revenue Next Year2.92%
Revenue Next 2Y4.45%
Revenue Next 3Y4.86%
Revenue Next 5Y5.34%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
1ZTS is valuated quite expensively with a Price/Earnings ratio of 25.12.
Compared to the rest of the industry, the Price/Earnings ratio of 1ZTS is on the same level as its industry peers.
1ZTS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.50, 1ZTS is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as 1ZTS.
The average S&P500 Price/Forward Earnings ratio is at 22.88. 1ZTS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 22.5 |
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 60.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1ZTS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.22 | ||
| EV/EBITDA | 18.5 |
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)3.02
PEG (5Y)2.46
EPS Next 2Y8.32%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, 1ZTS has a reasonable but not impressive dividend return.
1ZTS's Dividend Yield is comparable with the industry average which is at 3.04.
Compared to an average S&P500 Dividend Yield of 2.38, 1ZTS's dividend is way lower than the S&P500 average.
| 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
1ZTS pays out 32.08% 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.
DP32.08%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
BIT:1ZTS (8/26/2025, 7:00:00 PM)
133.62
-0.36 (-0.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap59.22B
Analysts79.17
Price Target170.64 (27.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.48
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)-2.04%
PT rev (3m)-5.92%
EPS NQ rev (1m)-1.35%
EPS NQ rev (3m)0.8%
EPS NY rev (1m)1.99%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 22.5 | ||
| P/S | 7.38 | ||
| P/FCF | 31.22 | ||
| P/OCF | 23.65 | ||
| P/B | 13.92 | ||
| P/tB | 60.55 | ||
| EV/EBITDA | 18.5 |
EPS(TTM)5.32
EY3.98%
EPS(NY)5.94
Fwd EY4.44%
FCF(TTM)4.28
FCFY3.2%
OCF(TTM)5.65
OCFY4.23%
SpS18.1
BVpS9.6
TBVpS2.21
PEG (NY)3.02
PEG (5Y)2.46
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%
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 Turnover0.65
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 | 7.28 |
F-Score8
WACC9.74%
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)12.27%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.82%
EPS Next Y8.32%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
EPS Next 5Y8.88%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
Revenue Next Year2.92%
Revenue Next 2Y4.45%
Revenue Next 3Y4.86%
Revenue Next 5Y5.34%
EBIT growth 1Y10.05%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.06%
EBIT Next 3Y10.76%
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%