ZOETIS INC (ZTS) Fundamental Analysis & Valuation

NYSE:ZTS • US98978V1035

Current stock price

117.94 USD
+0.65 (+0.55%)
At close:
117.94 USD
0 (0%)
After Hours:

This ZTS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. ZTS Profitability Analysis

1.1 Basic Checks

  • In the past year ZTS was profitable.
  • ZTS had a positive operating cash flow in the past year.
  • Each year in the past 5 years ZTS has been profitable.
  • In the past 5 years ZTS always reported a positive cash flow from operatings.
ZTS Yearly Net Income VS EBIT VS OCF VS FCFZTS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 17.28%, ZTS belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
  • ZTS's Return On Equity of 80.25% is amongst the best of the industry. ZTS outperforms 99.48% of its industry peers.
  • The Return On Invested Capital of ZTS (21.95%) is better than 97.40% 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 13.06%.
Industry RankSector Rank
ROA 17.28%
ROE 80.25%
ROIC 21.95%
ROA(3y)17.05%
ROA(5y)15.99%
ROE(3y)59.76%
ROE(5y)54.42%
ROIC(3y)22.23%
ROIC(5y)21.04%
ZTS Yearly ROA, ROE, ROICZTS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • ZTS has a Profit Margin of 28.23%. This is amongst the best in the industry. ZTS outperforms 93.75% of its industry peers.
  • In the last couple of years the Profit Margin of ZTS has grown nicely.
  • ZTS has a Operating Margin of 38.54%. This is amongst the best in the industry. ZTS outperforms 97.40% of its industry peers.
  • In the last couple of years the Operating Margin of ZTS has grown nicely.
  • ZTS's Gross Margin of 71.89% is fine compared to the rest of the industry. ZTS outperforms 79.17% of its industry peers.
  • ZTS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 38.54%
PM (TTM) 28.23%
GM 71.89%
OM growth 3Y1.57%
OM growth 5Y2.33%
PM growth 3Y2.57%
PM growth 5Y2.85%
GM growth 3Y1.04%
GM growth 5Y0.73%
ZTS Yearly Profit, Operating, Gross MarginsZTS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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6

2. ZTS Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ZTS is creating value.
  • ZTS has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ZTS has less shares outstanding
  • Compared to 1 year ago, ZTS has a worse debt to assets ratio.
ZTS Yearly Shares OutstandingZTS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ZTS Yearly Total Debt VS Total AssetsZTS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • ZTS has an Altman-Z score of 5.45. This indicates that ZTS is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ZTS (5.45) is better than 78.13% of its industry peers.
  • The Debt to FCF ratio of ZTS is 3.96, which is a good value as it means it would take ZTS, 3.96 years of fcf income to pay off all of its debts.
  • ZTS's Debt to FCF ratio of 3.96 is amongst the best of the industry. ZTS outperforms 85.94% of its industry peers.
  • A Debt/Equity ratio of 2.71 is on the high side and indicates that ZTS has dependencies on debt financing.
  • ZTS has a worse Debt to Equity ratio (2.71) than 80.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.71
Debt/FCF 3.96
Altman-Z 5.45
ROIC/WACC2.44
WACC8.99%
ZTS Yearly LT Debt VS Equity VS FCFZTS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 3.03 indicates that ZTS has no problem at all paying its short term obligations.
  • ZTS has a Current ratio (3.03) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.94 indicates that ZTS should not have too much problems paying its short term obligations.
  • ZTS's Quick ratio of 1.94 is in line compared to the rest of the industry. ZTS outperforms 45.83% of its industry peers.
Industry RankSector Rank
Current Ratio 3.03
Quick Ratio 1.94
ZTS Yearly Current Assets VS Current LiabilitesZTS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ZTS Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.45% 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 10.77% yearly.
  • ZTS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.28%.
  • 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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.80% yearly.
  • ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.30% yearly.
EPS Next Y10.25%
EPS Next 2Y8.92%
EPS Next 3Y8.7%
EPS Next 5Y7.8%
Revenue Next Year4.9%
Revenue Next 2Y4.87%
Revenue Next 3Y4.84%
Revenue Next 5Y5.3%

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.
ZTS Yearly Revenue VS EstimatesZTS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
ZTS Yearly EPS VS EstimatesZTS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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6

4. ZTS Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.37, the valuation of ZTS can be described as rather expensive.
  • Based on the Price/Earnings ratio, ZTS is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
  • ZTS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
  • ZTS is valuated correctly with a Price/Forward Earnings ratio of 16.66.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 81.77% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.84. ZTS is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.37
Fwd PE 16.66
ZTS Price Earnings VS Forward Price EarningsZTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ZTS is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • 83.85% of the companies in the same industry are more expensive than ZTS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 21.81
EV/EBITDA 13.66
ZTS Per share dataZTS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

  • ZTS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of ZTS may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)1.71
EPS Next 2Y8.92%
EPS Next 3Y8.7%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. ZTS Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.64%, ZTS has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.68, ZTS pays a better dividend. On top of this ZTS pays more dividend than 91.15% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, ZTS has a dividend comparable with the average S&P500 company.
Industry RankSector 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 been paying a dividend for at least 10 years, so it has a reliable track record.
  • ZTS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.56%
Div Incr Years11
Div Non Decr Years11
ZTS Yearly Dividends per shareZTS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 33.26% 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.
DP33.26%
EPS Next 2Y8.92%
EPS Next 3Y8.7%
ZTS Yearly Income VS Free CF VS DividendZTS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
ZTS Dividend Payout.ZTS Dividend Payout, showing the Payout Ratio.ZTS Dividend Payout.PayoutRetained Earnings

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ZTS Fundamentals: All Metrics, Ratios and Statistics

ZOETIS INC

NYSE:ZTS (4/2/2026, 8:04:00 PM)

After market: 117.94 0 (0%)

117.94

+0.65 (+0.55%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners100.79%
Inst Owner Change4.39%
Ins Owners0.07%
Ins Owner Change3.87%
Market Cap49.79B
Revenue(TTM)9.47B
Net Income(TTM)2.67B
Analysts77.6
Price Target150.27 (27.41%)
Short Float %3.73%
Short Ratio3.45
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
Yearly Dividend2.04
Dividend Growth(5Y)20.56%
DP33.26%
Div Incr Years11
Div Non Decr Years11
Ex-Date04-20
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.16%
Min EPS beat(2)3.79%
Max EPS beat(2)4.53%
EPS beat(4)4
Avg EPS beat(4)5.31%
Min EPS beat(4)3.79%
Max EPS beat(4)7.75%
EPS beat(8)8
Avg EPS beat(8)4.82%
EPS beat(12)10
Avg EPS beat(12)3.31%
EPS beat(16)12
Avg EPS beat(16)3.06%
Revenue beat(2)1
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)0.13%
Revenue beat(4)3
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)1.11%
Revenue beat(8)6
Avg Revenue beat(8)0.76%
Revenue beat(12)6
Avg Revenue beat(12)0.17%
Revenue beat(16)7
Avg Revenue beat(16)-0.2%
PT rev (1m)-3.34%
PT rev (3m)-7.85%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)2.91%
EPS NY rev (1m)3.06%
EPS NY rev (3m)3.57%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 18.37
Fwd PE 16.66
P/S 5.26
P/FCF 21.81
P/OCF 17.14
P/B 14.95
P/tB N/A
EV/EBITDA 13.66
EPS(TTM)6.42
EY5.44%
EPS(NY)7.08
Fwd EY6%
FCF(TTM)5.41
FCFY4.59%
OCF(TTM)6.88
OCFY5.83%
SpS22.43
BVpS7.89
TBVpS-1.03
PEG (NY)1.79
PEG (5Y)1.71
Graham Number33.76
Profitability
Industry RankSector Rank
ROA 17.28%
ROE 80.25%
ROCE 27.58%
ROIC 21.95%
ROICexc 26.6%
ROICexgc 40.59%
OM 38.54%
PM (TTM) 28.23%
GM 71.89%
FCFM 24.12%
ROA(3y)17.05%
ROA(5y)15.99%
ROE(3y)59.76%
ROE(5y)54.42%
ROIC(3y)22.23%
ROIC(5y)21.04%
ROICexc(3y)26.94%
ROICexc(5y)27.11%
ROICexgc(3y)44.63%
ROICexgc(5y)48.4%
ROCE(3y)27.92%
ROCE(5y)26.43%
ROICexgc growth 3Y-11.38%
ROICexgc growth 5Y-5.24%
ROICexc growth 3Y-2.74%
ROICexc growth 5Y2.7%
OM growth 3Y1.57%
OM growth 5Y2.33%
PM growth 3Y2.57%
PM growth 5Y2.85%
GM growth 3Y1.04%
GM growth 5Y0.73%
F-Score6
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 2.71
Debt/FCF 3.96
Debt/EBITDA 2.19
Cap/Depr 127.52%
Cap/Sales 6.56%
Interest Coverage 13.98
Cash Conversion 70.21%
Profit Quality 85.41%
Current Ratio 3.03
Quick Ratio 1.94
Altman-Z 5.45
F-Score6
WACC8.99%
ROIC/WACC2.44
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 Y10.25%
EPS Next 2Y8.92%
EPS Next 3Y8.7%
EPS Next 5Y7.8%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y5.42%
Revenue growth 5Y7.24%
Sales Q2Q%3.02%
Revenue Next Year4.9%
Revenue Next 2Y4.87%
Revenue Next 3Y4.84%
Revenue Next 5Y5.3%
EBIT growth 1Y7.54%
EBIT growth 3Y7.08%
EBIT growth 5Y9.74%
EBIT Next Year18.93%
EBIT Next 3Y9.75%
EBIT Next 5Y8.5%
FCF growth 1Y-0.65%
FCF growth 3Y19.85%
FCF growth 5Y6.41%
OCF growth 1Y-1.66%
OCF growth 3Y14.95%
OCF growth 5Y6.44%

ZOETIS INC / ZTS Fundamental Analysis 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.


Can you provide the profitability details for ZOETIS INC?

ZOETIS INC (ZTS) has a profitability rating of 9 / 10.


What are the PE and PB ratios of ZOETIS INC (ZTS) stock?

The Price/Earnings (PE) ratio for ZOETIS INC (ZTS) is 18.37 and the Price/Book (PB) ratio is 14.95.


What is the earnings growth outlook for ZOETIS INC?

The Earnings per Share (EPS) of ZOETIS INC (ZTS) is expected to grow by 10.25% in the next year.