ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ZTS - US98978V1035 - Common Stock
101.74 EUR
-8.34 (-7.58%)
Taking everything into account, 1ZTS scores 6 out of 10 in our fundamental rating. 1ZTS was compared to 55 industry peers in the Pharmaceuticals industry. 1ZTS gets an excellent profitability rating and is at the same time showing great financial health properties. 1ZTS has a decent growth rate and is not valued too expensively. 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.
1ZTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1ZTS (17.49%) is better than 94.55% of its industry peers.
With an excellent Return On Equity value of 49.11%, 1ZTS belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
1ZTS has a Return On Invested Capital of 21.45%. This is amongst the best in the industry. 1ZTS outperforms 89.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ZTS is significantly above the industry average of 13.92%.
| 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
The Profit Margin of 1ZTS (28.21%) is better than 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.
In the last couple of years the Operating Margin of 1ZTS has grown nicely.
Looking at the Gross Margin, with a value of 71.71%, 1ZTS is in line with its industry, outperforming 54.55% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ZTS is creating value.
The number of shares outstanding for 1ZTS has been reduced compared to 1 year ago.
1ZTS has less shares outstanding than it did 5 years ago.
1ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
1ZTS has an Altman-Z score of 6.25. This indicates that 1ZTS is financially healthy and has little risk of bankruptcy at the moment.
1ZTS has a Altman-Z score of 6.25. This is amongst the best in the industry. 1ZTS outperforms 83.64% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.16, 1ZTS is doing good in the industry, outperforming 69.09% of the companies in the same industry.
1ZTS has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.31, 1ZTS is doing worse than 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.25 |
ROIC/WACC2.41
WACC8.91%
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 Current ratio of 3.64. This is amongst the best in the industry. 1ZTS outperforms 90.91% of its industry peers.
1ZTS has a Quick Ratio of 2.28. This indicates that 1ZTS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.28, 1ZTS belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
| 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.
Measured over the past years, 1ZTS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.22% on average per year.
The Revenue has been growing slightly by 2.68% in the past 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
1ZTS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.09% yearly.
Based on estimates for the next years, 1ZTS will show a small growth in Revenue. The Revenue will grow by 4.60% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 18.70, 1ZTS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 1ZTS is on the same level as its industry peers.
1ZTS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.46.
1ZTS is valuated rather expensively with a Price/Forward Earnings ratio of 17.31.
1ZTS's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, 1ZTS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.31 |
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.
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 | 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
1ZTS has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
1ZTS's Dividend Yield is comparable with the industry average which is at 2.82.
Compared to an average S&P500 Dividend Yield of 2.32, 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 32.55% 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 (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.