ZOETIS INC (ZTS) Stock Fundamental Analysis
NYSE:ZTS • US98978V1035
127 USD
-1.67 (-1.3%)
Last: Feb 12, 2026, 03:24 PM
Taking everything into account, ZTS scores 7 out of 10 in our fundamental rating. ZTS was compared to 191 industry peers in the Pharmaceuticals industry. ZTS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ZTS is not valued too expensively and it also shows a decent growth rate. ZTS also has an excellent dividend rating. This makes ZTS very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year ZTS was profitable.
- In the past year ZTS had a positive cash flow from operations.
- In the past 5 years ZTS has always been profitable.
- In the past 5 years ZTS always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 17.49%, ZTS belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
- With an excellent Return On Equity value of 49.11%, ZTS belongs to the best of the industry, outperforming 97.91% of the companies in the same industry.
- ZTS has a Return On Invested Capital of 21.45%. This is amongst the best in the industry. ZTS outperforms 97.38% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ZTS is significantly above the industry average of 12.66%.
| 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
- ZTS has a better Profit Margin (28.21%) than 93.72% of its industry peers.
- In the last couple of years the Profit Margin of ZTS has grown nicely.
- Looking at the Operating Margin, with a value of 38.25%, ZTS belongs to the top of the industry, outperforming 96.86% of the companies in the same industry.
- In the last couple of years the Operating Margin of ZTS has grown nicely.
- ZTS has a Gross Margin of 71.71%. This is in the better half of the industry: ZTS outperforms 78.53% of its industry peers.
- ZTS's Gross Margin has been stable in the last couple of years.
| 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
- ZTS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- ZTS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ZTS has been reduced compared to 5 years ago.
- ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.52 indicates that ZTS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.52, ZTS is in the better half of the industry, outperforming 78.53% of the companies in the same industry.
- ZTS has a debt to FCF ratio of 3.16. This is a good value and a sign of high solvency as ZTS would need 3.16 years to pay back of all of its debts.
- ZTS's Debt to FCF ratio of 3.16 is amongst the best of the industry. ZTS outperforms 90.05% of its industry peers.
- A Debt/Equity ratio of 1.31 is on the high side and indicates that ZTS has dependencies on debt financing.
- ZTS's Debt to Equity ratio of 1.31 is on the low side compared to the rest of the industry. ZTS is outperformed by 74.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.52 |
ROIC/WACC2.33
WACC9.2%
2.3 Liquidity
- ZTS has a Current Ratio of 3.64. This indicates that ZTS is financially healthy and has no problem in meeting its short term obligations.
- ZTS's Current ratio of 3.64 is in line compared to the rest of the industry. ZTS outperforms 56.02% of its industry peers.
- ZTS has a Quick Ratio of 2.28. This indicates that ZTS is financially healthy and has no problem in meeting its short term obligations.
- ZTS has a Quick ratio of 2.28. This is comparable to the rest of the industry: ZTS outperforms 48.17% 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.
- ZTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.22% yearly.
- The Revenue has been growing slightly by 2.68% in the past year.
- Measured over the past years, ZTS 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
- ZTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.88% yearly.
- ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y8.19%
EPS Next 2Y7.71%
EPS Next 3Y8.12%
EPS Next 5Y7.88%
Revenue Next Year2.07%
Revenue Next 2Y3.52%
Revenue Next 3Y4.18%
Revenue Next 5Y4.67%
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
- ZTS is valuated rather expensively with a Price/Earnings ratio of 20.03.
- Based on the Price/Earnings ratio, ZTS is valued cheaply inside the industry as 81.68% of the companies are valued more expensively.
- ZTS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- ZTS is valuated rather expensively with a Price/Forward Earnings ratio of 18.49.
- Based on the Price/Forward Earnings ratio, ZTS is valued cheaply inside the industry as 80.10% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 28.01. ZTS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 18.49 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 83.25% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ZTS is valued cheaper than 83.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.99 | ||
| EV/EBITDA | 15.11 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZTS does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of ZTS may justify a higher PE ratio.
PEG (NY)2.45
PEG (5Y)1.96
EPS Next 2Y7.71%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
- ZTS has a Yearly Dividend Yield of 1.64%. Purely for dividend investing, there may be better candidates out there.
- ZTS's Dividend Yield is rather good when compared to the industry average which is at 0.93. ZTS pays more dividend than 91.10% of the companies in the same industry.
- ZTS's Dividend Yield is comparable with the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
- On average, the dividend of ZTS grows each year by 21.42%, which is quite nice.
- ZTS has been paying a dividend for at least 10 years, so it has a reliable track record.
- ZTS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)21.42%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 32.55% of the earnings are spent on dividend by ZTS. This is a low number and sustainable payout ratio.
- The dividend of ZTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.55%
EPS Next 2Y7.71%
EPS Next 3Y8.12%
NYSE:ZTS (2/12/2026, 3:24:06 PM)
127
-1.67 (-1.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-12 2026-02-12/bmo
Inst Owners97.58%
Inst Owner Change-0.9%
Ins Owners0.06%
Ins Owner Change-0.03%
Market Cap55.97B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts79.17
Price Target159.46 (25.56%)
Short Float %3.53%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend1.73
Dividend Growth(5Y)21.42%
DP32.55%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-20 2026-01-20 (0.53)
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)-2.21%
PT rev (3m)-17.47%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-2.8%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 18.49 | ||
| P/S | 5.96 | ||
| P/FCF | 24.99 | ||
| P/OCF | 19.19 | ||
| P/B | 10.37 | ||
| P/tB | 35.11 | ||
| EV/EBITDA | 15.11 |
EPS(TTM)6.34
EY4.99%
EPS(NY)6.87
Fwd EY5.41%
FCF(TTM)5.08
FCFY4%
OCF(TTM)6.62
OCFY5.21%
SpS21.32
BVpS12.25
TBVpS3.62
PEG (NY)2.45
PEG (5Y)1.96
Graham Number41.8
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 | 6.52 |
F-Score6
WACC9.2%
ROIC/WACC2.33
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 Y8.19%
EPS Next 2Y7.71%
EPS Next 3Y8.12%
EPS Next 5Y7.88%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
Revenue Next Year2.07%
Revenue Next 2Y3.52%
Revenue Next 3Y4.18%
Revenue Next 5Y4.67%
EBIT growth 1Y7.7%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year16.84%
EBIT Next 3Y9.66%
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 / ZTS FAQ
What is the ChartMill fundamental rating of ZOETIS INC (ZTS) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ZTS.
Can you provide the valuation status for ZOETIS INC?
ChartMill assigns a valuation rating of 6 / 10 to ZOETIS INC (ZTS). This can be considered as Fairly Valued.
How profitable is ZOETIS INC (ZTS) stock?
ZOETIS INC (ZTS) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for ZTS stock?
The Earnings per Share (EPS) of ZOETIS INC (ZTS) is expected to grow by 8.19% in the next year.
Is the dividend of ZOETIS INC sustainable?
The dividend rating of ZOETIS INC (ZTS) is 7 / 10 and the dividend payout ratio is 32.55%.