ZOETIS INC (ZTS) Stock Fundamental Analysis
NYSE:ZTS • US98978V1035
125.79 USD
-2.99 (-2.32%)
At close: Feb 23, 2026
125.79 USD
0 (0%)
After Hours: 2/23/2026, 5:05:00 PM
ZTS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making ZTS a very profitable company, without any liquidiy or solvency issues. ZTS is not valued too expensively and it also shows a decent growth rate. ZTS also has an excellent dividend rating. These ratings would make ZTS suitable 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.
- Each year in the past 5 years ZTS has been profitable.
- Each year in the past 5 years ZTS had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 17.49%, ZTS belongs to the top of the industry, outperforming 96.35% of the companies in the same industry.
- ZTS has a Return On Equity of 49.11%. This is amongst the best in the industry. ZTS outperforms 97.92% of its industry peers.
- ZTS has a Return On Invested Capital of 21.43%. This is amongst the best in the industry. ZTS outperforms 97.40% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ZTS is significantly above the industry average of 12.95%.
| 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
- The Profit Margin of ZTS (28.21%) is better than 93.23% of its industry peers.
- In the last couple of years the Profit Margin of ZTS has grown nicely.
- ZTS has a Operating Margin of 38.25%. This is amongst the best in the industry. ZTS outperforms 96.88% of its industry peers.
- ZTS's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 71.71%, ZTS is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ZTS is creating value.
- The number of shares outstanding for ZTS has been reduced compared to 1 year ago.
- Compared to 5 years ago, ZTS has less shares outstanding
- The debt/assets ratio for ZTS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.52 indicates that ZTS is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ZTS (6.52) is better than 80.21% of its industry peers.
- 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.
- With an excellent Debt to FCF ratio value of 3.16, ZTS belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
- A Debt/Equity ratio of 1.31 is on the high side and indicates that ZTS has dependencies on debt financing.
- ZTS has a Debt to Equity ratio of 1.31. This is in the lower half of the industry: ZTS underperforms 73.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.52 |
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.
- ZTS has a Current ratio of 3.64. This is comparable to the rest of the industry: ZTS outperforms 56.25% of its industry peers.
- A Quick Ratio of 2.28 indicates that ZTS has no problem at all paying its short term obligations.
- ZTS has a Quick ratio of 2.28. This is comparable to the rest of the industry: ZTS outperforms 49.48% of 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.
- Measured over the past years, ZTS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.77% on average per year.
- Looking at the last year, ZTS shows a small growth in Revenue. The Revenue has grown by 2.28% in the last year.
- ZTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.24% yearly.
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
- Based on estimates for the next years, ZTS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.41% on average per year.
- 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
- Based on the Price/Earnings ratio of 19.59, the valuation of ZTS can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 82.81% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ZTS to the average of the S&P500 Index (26.99), we can say ZTS is valued slightly cheaper.
- The Price/Forward Earnings ratio is 18.32, which indicates a rather expensive current valuation of ZTS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 80.21% of the companies listed in the same industry.
- ZTS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 18.32 |
4.2 Price Multiples
- ZTS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZTS is cheaper than 83.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ZTS is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.75 | ||
| EV/EBITDA | 15.12 |
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.
- ZTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)1.82
EPS Next 2Y7.95%
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 1.07. ZTS pays more dividend than 91.67% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ZTS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
- The dividend of ZTS is nicely growing with an annual growth rate of 20.56%!
- 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
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 2Y7.95%
EPS Next 3Y8.12%
125.79
-2.99 (-2.32%)
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 Change3.98%
Ins Owners0.06%
Ins Owner Change1.52%
Market Cap55.43B
Revenue(TTM)9.47B
Net Income(TTM)2.65B
Analysts78.33
Price Target159.46 (26.77%)
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)-8.9%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 18.32 | ||
| P/S | 5.9 | ||
| P/FCF | 24.75 | ||
| P/OCF | 19.01 | ||
| P/B | 10.27 | ||
| P/tB | 34.78 | ||
| EV/EBITDA | 15.12 |
EPS(TTM)6.42
EY5.1%
EPS(NY)6.87
Fwd EY5.46%
FCF(TTM)5.08
FCFY4.04%
OCF(TTM)6.62
OCFY5.26%
SpS21.32
BVpS12.25
TBVpS3.62
PEG (NY)2.81
PEG (5Y)1.82
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 | 6.52 |
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%.