ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ZTS - US98978V1035 - Common Stock
101.74 EUR
-8.34 (-7.58%)
We assign a fundamental rating of 6 out of 10 to 1ZTS. 1ZTS was compared to 53 industry peers in the Pharmaceuticals industry. 1ZTS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1ZTS is valied quite expensively at the moment, while it does show a decent growth rate. This makes 1ZTS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
1ZTS had positive earnings in the past year.
In the past year 1ZTS had a positive cash flow from operations.
1ZTS had positive earnings in each of the past 5 years.
Each year in the past 5 years 1ZTS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 17.49%, 1ZTS belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
1ZTS's Return On Equity of 49.11% is amongst the best of the industry. 1ZTS outperforms 92.73% of its industry peers.
1ZTS has a better Return On Invested Capital (21.45%) than 89.09% 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 13.94%.
| 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 89.09% of its industry peers.
1ZTS's Profit Margin has improved in the last couple of years.
1ZTS's Operating Margin of 38.25% is amongst the best of the industry. 1ZTS outperforms 92.73% of its industry peers.
1ZTS's Operating Margin has improved in the last couple of years.
1ZTS has a Gross Margin (71.71%) which is comparable to the rest of the 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 | 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.
1ZTS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1ZTS has been reduced compared to 5 years ago.
The debt/assets ratio for 1ZTS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.25 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
1ZTS's Altman-Z score of 6.25 is amongst the best of the industry. 1ZTS outperforms 83.64% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.16, 1ZTS is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that 1ZTS has dependencies on debt financing.
1ZTS's Debt to Equity ratio of 1.31 is on the low side compared to the rest of the industry. 1ZTS is outperformed by 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.25 |
ROIC/WACC2.41
WACC8.91%
2.3 Liquidity
1ZTS has a Current Ratio of 3.64. This indicates that 1ZTS is financially healthy and has no problem in meeting its short term obligations.
1ZTS has a Current ratio of 3.64. This is amongst the best in the industry. 1ZTS outperforms 90.91% of its industry peers.
A Quick Ratio of 2.28 indicates that 1ZTS has no problem at all paying its short term obligations.
The Quick ratio of 1ZTS (2.28) is better than 87.27% of its industry peers.
| 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.
The Revenue has been growing by 8.14% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 4.60% on average over the next years.
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
1ZTS is valuated rather expensively with a Price/Earnings ratio of 18.70.
1ZTS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.38, 1ZTS is valued a bit cheaper.
1ZTS is valuated rather expensively with a Price/Forward Earnings ratio of 17.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ZTS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.83. 1ZTS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.31 |
4.2 Price Multiples
1ZTS's Enterprise Value to EBITDA ratio is in line with the industry average.
1ZTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.31 | ||
| EV/EBITDA | 14.01 |
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)2.27
PEG (5Y)1.83
EPS Next 2Y7.52%
EPS Next 3Y8.09%
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 1.85.
Compared to the average S&P500 Dividend Yield of 1.87, 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
32.55% 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.
DP32.55%
EPS Next 2Y7.52%
EPS Next 3Y8.09%
BIT:1ZTS (11/20/2025, 7:00:00 PM)
101.74
-8.34 (-7.58%)
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 Cap44.84B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts80.83
Price Target146.83 (44.32%)
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 | 18.7 | ||
| Fwd PE | 17.31 | ||
| P/S | 5.56 | ||
| P/FCF | 23.31 | ||
| P/OCF | 17.91 | ||
| P/B | 9.67 | ||
| P/tB | 32.75 | ||
| EV/EBITDA | 14.01 |
EPS(TTM)5.44
EY5.35%
EPS(NY)5.88
Fwd EY5.78%
FCF(TTM)4.36
FCFY4.29%
OCF(TTM)5.68
OCFY5.59%
SpS18.31
BVpS10.52
TBVpS3.11
PEG (NY)2.27
PEG (5Y)1.83
Graham Number35.88
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 | 6.25 |
F-Score6
WACC8.91%
ROIC/WACC2.41
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.
What is the valuation status for 1ZTS stock?
ChartMill assigns a valuation rating of 4 / 10 to ZOETIS INC (1ZTS.MI). This can be considered as Fairly Valued.
How profitable is ZOETIS INC (1ZTS.MI) stock?
ZOETIS INC (1ZTS.MI) has a profitability rating of 8 / 10.
How financially healthy is ZOETIS INC?
The financial health rating of ZOETIS INC (1ZTS.MI) is 7 / 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 8.23% in the next year.