ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ZTS - US98978V1035 - Common Stock
104.34 EUR
-5.74 (-5.21%)
We assign a fundamental rating of 6 out of 10 to 1ZTS. 1ZTS was compared to 54 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 quite expensive at the moment. It does show a decent growth rate. These ratings could make 1ZTS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year 1ZTS was profitable.
1ZTS had a positive operating cash flow in the past year.
1ZTS had positive earnings in each of the past 5 years.
In the past 5 years 1ZTS always reported a positive cash flow from operatings.
1.2 Ratios
1ZTS has a better Return On Assets (17.49%) than 94.55% of its industry peers.
1ZTS's Return On Equity of 49.11% is amongst the best of the industry. 1ZTS outperforms 92.73% of its industry peers.
With an excellent Return On Invested Capital value of 21.45%, 1ZTS belongs to the best of the industry, outperforming 89.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1ZTS is significantly above the industry average of 13.79%.
| 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 has a better Operating Margin (38.25%) than 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 in line with 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ZTS is creating value.
1ZTS has less shares outstanding than it did 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
An Altman-Z score of 6.25 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1ZTS (6.25) is better than 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.
1ZTS has a better Debt to FCF ratio (3.16) than 69.09% 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'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
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.
A Quick Ratio of 2.28 indicates that 1ZTS has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.28, 1ZTS belongs to the best 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
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
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.
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.
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
A Price/Earnings ratio of 19.18 indicates a rather expensive valuation of 1ZTS.
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 rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
1ZTS is valuated rather expensively with a Price/Forward Earnings ratio of 17.75.
1ZTS's Price/Forward Earnings is on the same level as the industry average.
1ZTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 17.75 |
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 | 23.9 | ||
| EV/EBITDA | 14.01 |
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)2.33
PEG (5Y)1.88
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.
Compared to an average industry Dividend Yield of 1.85, 1ZTS has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 1.88, 1ZTS is paying slightly less dividend.
| 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 (12/23/2025, 7:00:00 PM)
104.34
-5.74 (-5.21%)
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 | 19.18 | ||
| Fwd PE | 17.75 | ||
| P/S | 5.7 | ||
| P/FCF | 23.9 | ||
| P/OCF | 18.36 | ||
| P/B | 9.92 | ||
| P/tB | 33.59 | ||
| EV/EBITDA | 14.01 |
EPS(TTM)5.44
EY5.21%
EPS(NY)5.88
Fwd EY5.63%
FCF(TTM)4.36
FCFY4.18%
OCF(TTM)5.68
OCFY5.45%
SpS18.31
BVpS10.52
TBVpS3.11
PEG (NY)2.33
PEG (5Y)1.88
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.