ZOETIS INC (ZTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZTS - US98978V1035 - Common Stock
124.65 USD
-0.63 (-0.5%)
124.596 USD
-0.05 (-0.04%)
Overall ZTS gets a fundamental rating of 7 out of 10. We evaluated ZTS against 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 has a decent growth rate and is not valued too expensively. 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.
- ZTS had a positive operating cash flow in the past year.
- In the past 5 years ZTS has always been profitable.
- ZTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ZTS (17.49%) is better than 96.35% of its industry peers.
- With an excellent Return On Equity value of 49.11%, ZTS belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 21.45%, ZTS belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ZTS is significantly above the industry average of 12.84%.
| 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
- The Profit Margin of ZTS (28.21%) is better than 93.75% of its industry peers.
- ZTS's Profit Margin has improved in the last couple of years.
- ZTS has a better Operating Margin (38.25%) than 96.88% of its industry peers.
- In the last couple of years the Operating Margin of ZTS has grown nicely.
- ZTS has a better Gross Margin (71.71%) than 78.65% of its industry peers.
- In the last couple of years the Gross Margin of ZTS has remained more or less at the same level.
| 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.
- The number of shares outstanding for ZTS has been reduced compared to 1 year ago.
- ZTS has less shares outstanding than it did 5 years ago.
- ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
- ZTS has an Altman-Z score of 6.41. This indicates that ZTS is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ZTS (6.41) is better than 77.08% 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.
- ZTS's Debt to FCF ratio of 3.16 is amongst the best of the industry. ZTS outperforms 89.58% of its industry peers.
- ZTS has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
- ZTS has a Debt to Equity ratio of 1.31. This is in the lower half of the industry: ZTS underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.41 |
ROIC/WACC2.34
WACC9.17%
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 has a Current ratio of 3.64. This is comparable to the rest of the industry: ZTS outperforms 56.77% of its industry peers.
- A Quick Ratio of 2.28 indicates that ZTS has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.28, ZTS is in line with its industry, outperforming 47.92% of the companies in the same industry.
| 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 10.07%, 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 10.22% on average per year.
- 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
- The Earnings Per Share is expected to grow by 7.88% on average over the next years.
- The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y8.15%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
EPS Next 5Y7.88%
Revenue Next Year2.07%
Revenue Next 2Y3.5%
Revenue Next 3Y4.21%
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.
- 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
- The Price/Earnings ratio is 19.66, which indicates a rather expensive current valuation of ZTS.
- Based on the Price/Earnings ratio, ZTS is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
- ZTS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- A Price/Forward Earnings ratio of 18.24 indicates a rather expensive valuation of ZTS.
- Based on the Price/Forward Earnings ratio, ZTS is valued a bit cheaper than the industry average as 78.65% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ZTS to the average of the S&P500 Index (24.29), we can say ZTS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 18.24 |
4.2 Price Multiples
- 82.81% of the companies in the same industry are more expensive than ZTS, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ZTS is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.52 | ||
| EV/EBITDA | 14.68 |
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)2.41
PEG (5Y)1.92
EPS Next 2Y7.44%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
- ZTS has a Yearly Dividend Yield of 1.64%.
- ZTS's Dividend Yield is rather good when compared to the industry average which is at 0.40. ZTS pays more dividend than 91.15% of the companies 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
- The dividend of ZTS is nicely growing with an annual growth rate of 21.42%!
- ZTS has paid a dividend for at least 10 years, which is a reliable track record.
- ZTS has not decreased their dividend for at least 10 years, which is a reliable track record.
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 2Y7.44%
EPS Next 3Y7.99%
124.65
-0.63 (-0.5%)
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/amc
Inst Owners97.58%
Inst Owner Change0.48%
Ins Owners0.06%
Ins Owner Change0.11%
Market Cap54.93B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts79.17
Price Target163.06 (30.81%)
Short Float %2.47%
Short Ratio2.09
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)-4.08%
PT rev (3m)-16.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.85%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 18.24 | ||
| P/S | 5.85 | ||
| P/FCF | 24.52 | ||
| P/OCF | 18.84 | ||
| P/B | 10.18 | ||
| P/tB | 34.46 | ||
| EV/EBITDA | 14.68 |
EPS(TTM)6.34
EY5.09%
EPS(NY)6.83
Fwd EY5.48%
FCF(TTM)5.08
FCFY4.08%
OCF(TTM)6.62
OCFY5.31%
SpS21.32
BVpS12.25
TBVpS3.62
PEG (NY)2.41
PEG (5Y)1.92
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 | 6.41 |
F-Score6
WACC9.17%
ROIC/WACC2.34
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 Y8.15%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
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 2Y3.5%
Revenue Next 3Y4.21%
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 8.15% 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%.