ZOETIS INC (ZTS) Stock Fundamental Analysis
NYSE:ZTS • US98978V1035
127.28 USD
-1.85 (-1.43%)
At close: Feb 19, 2026
127.28 USD
0 (0%)
After Hours: 2/19/2026, 8:04:00 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 gets an excellent profitability rating and is at the same time showing great financial health properties. ZTS has a decent growth rate and is not valued too expensively. ZTS also has an excellent dividend rating. With these ratings, ZTS could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- ZTS had positive earnings in the past year.
- ZTS had a positive operating cash flow in the past year.
- 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
- ZTS has a better Return On Assets (17.49%) than 96.34% of its industry peers.
- Looking at the Return On Equity, with a value of 49.11%, ZTS belongs to the top of the industry, outperforming 97.91% of the companies in the same industry.
- The Return On Invested Capital of ZTS (21.43%) is better than 97.38% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ZTS is significantly above the industry average of 12.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 49.11% | ||
| ROIC | 21.43% |
ROA(3y)17.05%
ROA(5y)15.99%
ROE(3y)59.76%
ROE(5y)54.42%
ROIC(3y)22.17%
ROIC(5y)21%
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.
- ZTS's Operating Margin of 38.25% is amongst the best of the industry. ZTS outperforms 96.86% of its industry peers.
- ZTS's Operating Margin has improved in the last couple of years.
- ZTS has a better Gross Margin (71.71%) than 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 3Y1.3%
OM growth 5Y2.17%
PM growth 3Y2.57%
PM growth 5Y2.85%
GM growth 3Y1.01%
GM growth 5Y0.71%
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.
- ZTS has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ZTS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.48 indicates that ZTS is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 6.48, ZTS is doing good in the industry, outperforming 79.58% of the companies in the same industry.
- The Debt to FCF ratio of ZTS is 3.16, which is a good value as it means it would take ZTS, 3.16 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ZTS (3.16) is better than 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 has a worse Debt to Equity ratio (1.31) than 75.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.48 |
ROIC/WACC2.39
WACC8.97%
2.3 Liquidity
- A Current Ratio of 3.64 indicates that ZTS has no problem at all paying its short term obligations.
- The Current ratio of ZTS (3.64) is comparable to the rest of the industry.
- A Quick Ratio of 2.28 indicates that ZTS has no problem at all paying its short term obligations.
- ZTS has a Quick ratio (2.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
- ZTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
- The Earnings Per Share has been growing by 10.77% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 2.28% in the past year.
- The Revenue has been growing slightly by 7.24% on average over the past years.
EPS 1Y (TTM)8.45%
EPS 3Y9.57%
EPS 5Y10.77%
EPS Q2Q%5.71%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y5.42%
Revenue growth 5Y7.24%
Sales Q2Q%3.02%
3.2 Future
- ZTS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.41% yearly.
- Based on estimates for the next years, ZTS will show a small growth in Revenue. The Revenue will grow by 5.25% on average per year.
EPS Next Y6.97%
EPS Next 2Y7.95%
EPS Next 3Y8.12%
EPS Next 5Y8.41%
Revenue Next Year5.01%
Revenue Next 2Y5.09%
Revenue Next 3Y4.98%
Revenue Next 5Y5.25%
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
- ZTS is valuated rather expensively with a Price/Earnings ratio of 19.83.
- Compared to the rest of the industry, the Price/Earnings ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 82.72% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.09, ZTS is valued a bit cheaper.
- A Price/Forward Earnings ratio of 18.53 indicates a rather expensive valuation of ZTS.
- ZTS's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZTS is cheaper than 80.63% of the companies in the same industry.
- ZTS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
- ZTS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZTS is cheaper than 83.25% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ZTS is valued cheaper than 83.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.04 | ||
| EV/EBITDA | 14.96 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of ZTS may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)1.84
EPS Next 2Y7.95%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
- ZTS has a Yearly Dividend Yield of 1.64%.
- Compared to an average industry Dividend Yield of 1.18, ZTS pays a better dividend. On top of this ZTS pays more dividend than 91.62% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, ZTS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
- On average, the dividend of ZTS grows each year by 20.56%, which is quite nice.
- ZTS has paid a dividend for at least 10 years, which is 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)20.56%
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.
- ZTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.55%
EPS Next 2Y7.95%
EPS Next 3Y8.12%
127.28
-1.85 (-1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-12 2026-02-12/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners97.58%
Inst Owner Change-1.74%
Ins Owners0.06%
Ins Owner Change1.52%
Market Cap56.09B
Revenue(TTM)9.47B
Net Income(TTM)2.65B
Analysts78.33
Price Target159.46 (25.28%)
Short Float %3.21%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend2.04
Dividend Growth(5Y)20.56%
DP32.55%
Div Incr Years11
Div Non Decr Years11
Ex-Date04-20 2026-04-20 (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 | 19.83 | ||
| Fwd PE | 18.53 | ||
| P/S | 5.97 | ||
| P/FCF | 25.04 | ||
| P/OCF | 19.24 | ||
| P/B | 10.39 | ||
| P/tB | 35.19 | ||
| EV/EBITDA | 14.96 |
EPS(TTM)6.42
EY5.04%
EPS(NY)6.87
Fwd EY5.4%
FCF(TTM)5.08
FCFY3.99%
OCF(TTM)6.62
OCFY5.2%
SpS21.32
BVpS12.25
TBVpS3.62
PEG (NY)2.84
PEG (5Y)1.84
Graham Number42.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 49.11% | ||
| ROCE | 26.92% | ||
| ROIC | 21.43% | ||
| ROICexc | 25.38% | ||
| ROICexgc | 38.31% | ||
| OM | 38.25% | ||
| PM (TTM) | 28.21% | ||
| GM | 71.71% | ||
| FCFM | 23.84% |
ROA(3y)17.05%
ROA(5y)15.99%
ROE(3y)59.76%
ROE(5y)54.42%
ROIC(3y)22.17%
ROIC(5y)21%
ROICexc(3y)26.87%
ROICexc(5y)27.06%
ROICexgc(3y)44.52%
ROICexgc(5y)48.34%
ROCE(3y)27.85%
ROCE(5y)26.38%
ROICexgc growth 3Y-11.62%
ROICexgc growth 5Y-5.39%
ROICexc growth 3Y-3.01%
ROICexc growth 5Y2.53%
OM growth 3Y1.3%
OM growth 5Y2.17%
PM growth 3Y2.57%
PM growth 5Y2.85%
GM growth 3Y1.01%
GM growth 5Y0.71%
F-Score7
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 | 6.48 |
F-Score7
WACC8.97%
ROIC/WACC2.39
Cap/Depr(3y)136.13%
Cap/Depr(5y)128.18%
Cap/Sales(3y)7.4%
Cap/Sales(5y)7.12%
Profit Quality(3y)82.33%
Profit Quality(5y)78.99%
High Growth Momentum
Growth
EPS 1Y (TTM)8.45%
EPS 3Y9.57%
EPS 5Y10.77%
EPS Q2Q%5.71%
EPS Next Y6.97%
EPS Next 2Y7.95%
EPS Next 3Y8.12%
EPS Next 5Y8.41%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y5.42%
Revenue growth 5Y7.24%
Sales Q2Q%3.02%
Revenue Next Year5.01%
Revenue Next 2Y5.09%
Revenue Next 3Y4.98%
Revenue Next 5Y5.25%
EBIT growth 1Y7.7%
EBIT growth 3Y6.79%
EBIT growth 5Y9.56%
EBIT Next Year18.57%
EBIT Next 3Y10.5%
EBIT Next 5Y8.4%
FCF growth 1Y-2.95%
FCF growth 3Y19.85%
FCF growth 5Y6.41%
OCF growth 1Y-0.98%
OCF growth 3Y14.95%
OCF growth 5Y6.44%
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 6.97% 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%.