ZOETIS INC (ZOE.DE) Stock Fundamental Analysis
FRA:ZOE - Deutsche Boerse Ag - US98978V1035 - Common Stock - Currency: EUR
ZOE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Pharmaceuticals industry. While ZOE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ZOE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ZOE was profitable.
In the past year ZOE had a positive cash flow from operations.
Each year in the past 5 years ZOE has been profitable.
In the past 5 years ZOE always reported a positive cash flow from operatings.
1.2 Ratios
ZOE has a better Return On Assets (17.46%) than 92.00% of its industry peers.
Looking at the Return On Equity, with a value of 52.12%, ZOE belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 24.98%, ZOE belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ZOE is significantly above the industry average of 14.89%.
The 3 year average ROIC (21.64%) for ZOE is below the current ROIC(24.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | 52.12% | ||
| ROIC | 24.98% |
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
ZOE's Profit Margin of 26.86% is amongst the best of the industry. ZOE outperforms 92.00% of its industry peers.
In the last couple of years the Profit Margin of ZOE has grown nicely.
With an excellent Operating Margin value of 36.66%, ZOE belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
ZOE's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 70.68%, ZOE perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
ZOE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.66% | ||
| PM (TTM) | 26.86% | ||
| GM | 70.68% |
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 ZOE is creating value.
Compared to 1 year ago, ZOE has less shares outstanding
Compared to 5 years ago, ZOE has less shares outstanding
Compared to 1 year ago, ZOE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.13 indicates that ZOE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.13, ZOE belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
The Debt to FCF ratio of ZOE is 2.86, which is a good value as it means it would take ZOE, 2.86 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.86, ZOE is doing good in the industry, outperforming 78.00% of the companies in the same industry.
ZOE has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
ZOE has a Debt to Equity ratio of 1.09. This is in the lower half of the industry: ZOE underperforms 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 2.86 | ||
| Altman-Z | 7.13 |
ROIC/WACC2.65
WACC9.42%
2.3 Liquidity
ZOE has a Current Ratio of 1.75. This is a normal value and indicates that ZOE is financially healthy and should not expect problems in meeting its short term obligations.
ZOE has a better Current ratio (1.75) than 66.00% of its industry peers.
ZOE has a Quick Ratio of 1.08. This is a normal value and indicates that ZOE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.08, ZOE is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.28% over the past year.
Measured over the past years, ZOE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.22% on average per year.
Looking at the last year, ZOE shows a quite strong growth in Revenue. The Revenue has grown by 8.33% 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)11.28%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.9%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.7%
3.2 Future
Based on estimates for the next years, ZOE will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.07% on average per year.
ZOE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
EPS Next Y4.39%
EPS Next 2Y8.03%
EPS Next 3Y8.66%
EPS Next 5Y10.07%
Revenue Next Year1.2%
Revenue Next 2Y3.86%
Revenue Next 3Y4.54%
Revenue Next 5Y5.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
ZOE is valuated quite expensively with a Price/Earnings ratio of 25.58.
ZOE's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ZOE to the average of the S&P500 Index (28.79), we can say ZOE is valued inline with the index average.
The Price/Forward Earnings ratio is 24.49, which indicates a rather expensive current valuation of ZOE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZOE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.38. ZOE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.58 | ||
| Fwd PE | 24.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZOE.
ZOE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.38 | ||
| EV/EBITDA | 18.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZOE does not grow enough to justify the current Price/Earnings ratio.
ZOE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.83
PEG (5Y)2.5
EPS Next 2Y8.03%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
ZOE has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.15, ZOE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, ZOE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
On average, the dividend of ZOE grows each year by 21.42%, which is quite nice.
Dividend Growth(5Y)21.42%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
31.62% of the earnings are spent on dividend by ZOE. This is a low number and sustainable payout ratio.
ZOE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.62%
EPS Next 2Y8.03%
EPS Next 3Y8.66%
FRA:ZOE (4/25/2025, 7:00:00 PM)
133.04
-0.66 (-0.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners95.58%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap59.34B
Analysts81.67
Price Target189.7 (42.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend1.53
Dividend Growth(5Y)21.42%
DP31.62%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.57%
Min EPS beat(2)3.63%
Max EPS beat(2)7.51%
EPS beat(4)4
Avg EPS beat(4)4.33%
Min EPS beat(4)2.28%
Max EPS beat(4)7.51%
EPS beat(8)6
Avg EPS beat(8)2.31%
EPS beat(12)8
Avg EPS beat(12)2.31%
EPS beat(16)12
Avg EPS beat(16)4.55%
Revenue beat(2)1
Avg Revenue beat(2)1.54%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)3.33%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)3.33%
Revenue beat(8)3
Avg Revenue beat(8)0.23%
Revenue beat(12)4
Avg Revenue beat(12)-0.28%
Revenue beat(16)8
Avg Revenue beat(16)0.77%
PT rev (1m)-4.65%
PT rev (3m)-11.34%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-4.05%
EPS NY rev (1m)-1.55%
EPS NY rev (3m)-4.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)-3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.58 | ||
| Fwd PE | 24.49 | ||
| P/S | 7.29 | ||
| P/FCF | 29.38 | ||
| P/OCF | 22.86 | ||
| P/B | 14.15 | ||
| P/tB | 73.46 | ||
| EV/EBITDA | 18.62 |
EPS(TTM)5.2
EY3.91%
EPS(NY)5.43
Fwd EY4.08%
FCF(TTM)4.53
FCFY3.4%
OCF(TTM)5.82
OCFY4.37%
SpS18.24
BVpS9.4
TBVpS1.81
PEG (NY)5.83
PEG (5Y)2.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | 52.12% | ||
| ROCE | 31.34% | ||
| ROIC | 24.98% | ||
| ROICexc | 30.58% | ||
| ROICexgc | 54.19% | ||
| OM | 36.66% | ||
| PM (TTM) | 26.86% | ||
| GM | 70.68% | ||
| FCFM | 24.83% |
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 | 1.09 | ||
| Debt/FCF | 2.86 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 131.79% | ||
| Cap/Sales | 7.08% | ||
| Interest Coverage | 12.38 | ||
| Cash Conversion | 75.91% | ||
| Profit Quality | 92.44% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 7.13 |
F-Score8
WACC9.42%
ROIC/WACC2.65
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)11.28%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.9%
EPS Next Y4.39%
EPS Next 2Y8.03%
EPS Next 3Y8.66%
EPS Next 5Y10.07%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.7%
Revenue Next Year1.2%
Revenue Next 2Y3.86%
Revenue Next 3Y4.54%
Revenue Next 5Y5.57%
EBIT growth 1Y9.31%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.71%
EBIT Next 3Y10.54%
EBIT Next 5Y9.72%
FCF growth 1Y41.76%
FCF growth 3Y9.8%
FCF growth 5Y11.47%
OCF growth 1Y25.5%
OCF growth 3Y10.09%
OCF growth 5Y10.47%