ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ZTS - US98978V1035 - Common Stock
104.34 EUR
+2.6 (+2.56%)
We assign a fundamental rating of 6 out of 10 to 1ZTS. 1ZTS was compared to 52 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 quite expensive at the moment. It does show a decent growth rate. These ratings would make 1ZTS suitable for quality investing!
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.
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
1ZTS has a Return On Assets of 17.49%. This is amongst the best in the industry. 1ZTS outperforms 94.23% of its industry peers.
1ZTS's Return On Equity of 49.11% is amongst the best of the industry. 1ZTS outperforms 94.23% of its industry peers.
1ZTS has a better Return On Invested Capital (21.45%) than 90.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ZTS is significantly above the industry average of 13.72%.
| 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 92.31% of its industry peers.
In the last couple of years the Profit Margin of 1ZTS has grown nicely.
Looking at the Operating Margin, with a value of 38.25%, 1ZTS belongs to the top of the industry, outperforming 94.23% of the companies in the same industry.
In the last couple of years the Operating Margin of 1ZTS has grown nicely.
1ZTS has a Gross Margin of 71.71%. This is comparable to the rest of the industry: 1ZTS outperforms 57.69% of its industry peers.
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 | 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
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
1ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.36 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.36, 1ZTS belongs to the best of the industry, outperforming 86.54% 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.
1ZTS has a Debt to FCF ratio of 3.16. This is in the better half of the industry: 1ZTS outperforms 65.38% 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.
1ZTS has a Debt to Equity ratio of 1.31. This is in the lower half of the industry: 1ZTS underperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.36 |
ROIC/WACC2.35
WACC9.12%
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 90.38% of its industry peers.
A Quick Ratio of 2.28 indicates that 1ZTS has no problem at all paying its short term obligations.
1ZTS has a better Quick ratio (2.28) than 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
1ZTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.07%, which is quite good.
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 8.09% on average per year.
1ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.60% yearly.
EPS Next Y8.23%
EPS Next 2Y7.52%
EPS Next 3Y8.09%
EPS Next 5Y8.09%
Revenue Next Year2.14%
Revenue Next 2Y3.63%
Revenue Next 3Y4.33%
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
A Price/Earnings ratio of 19.32 indicates a rather expensive valuation of 1ZTS.
1ZTS's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of 1ZTS to the average of the S&P500 Index (26.51), we can say 1ZTS is valued slightly cheaper.
1ZTS is valuated rather expensively with a Price/Forward Earnings ratio of 17.91.
The rest of the industry has a similar Price/Forward Earnings ratio as 1ZTS.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, 1ZTS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.32 | ||
| Fwd PE | 17.91 |
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.
1ZTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.12 | ||
| EV/EBITDA | 14.45 |
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)2.35
PEG (5Y)1.89
EPS Next 2Y7.52%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
1ZTS has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 2.20, 1ZTS has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.00, 1ZTS is paying slightly less dividend.
| 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 2Y7.52%
EPS Next 3Y8.09%
BIT:1ZTS (12/23/2025, 7:00:00 PM)
104.34
+2.6 (+2.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners97.47%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap45.98B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts80.83
Price Target146.83 (40.72%)
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)-12.46%
PT rev (3m)-13.95%
EPS NQ rev (1m)-6.26%
EPS NQ rev (3m)-6.35%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)-2.81%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.32 | ||
| Fwd PE | 17.91 | ||
| P/S | 5.75 | ||
| P/FCF | 24.12 | ||
| P/OCF | 18.53 | ||
| P/B | 10.01 | ||
| P/tB | 33.89 | ||
| EV/EBITDA | 14.45 |
EPS(TTM)5.4
EY5.18%
EPS(NY)5.82
Fwd EY5.58%
FCF(TTM)4.33
FCFY4.15%
OCF(TTM)5.63
OCFY5.4%
SpS18.15
BVpS10.42
TBVpS3.08
PEG (NY)2.35
PEG (5Y)1.89
Graham Number35.59
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 | 6.36 |
F-Score6
WACC9.12%
ROIC/WACC2.35
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 Y8.23%
EPS Next 2Y7.52%
EPS Next 3Y8.09%
EPS Next 5Y8.09%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
Revenue Next Year2.14%
Revenue Next 2Y3.63%
Revenue Next 3Y4.33%
Revenue Next 5Y4.6%
EBIT growth 1Y7.7%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year16.53%
EBIT Next 3Y9.76%
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 3 / 10 to ZOETIS INC (1ZTS.MI). This can be considered as Overvalued.
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 8.23% 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%.