ZOETIS INC (ZTS) Fundamental Analysis & Valuation

NYSE:ZTS • US98978V1035

Current stock price

116.87 USD
+0.81 (+0.7%)
At close:
116.87 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.
  • In the past 5 years ZTS has always been profitable.
  • Each year in the past 5 years ZTS had a positive operating cash flow.
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 95.29% of the companies in the same industry.
  • With an excellent Return On Equity value of 80.25%, ZTS belongs to the best of the industry, outperforming 99.48% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 21.95%, ZTS belongs to the top of the industry, outperforming 97.38% 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 13.10%.
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

  • Looking at the Profit Margin, with a value of 28.23%, ZTS belongs to the top of the industry, outperforming 93.72% of the companies in the same industry.
  • ZTS's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 38.54%, ZTS belongs to the best of the industry, outperforming 97.38% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ZTS has grown nicely.
  • With a decent Gross Margin value of 71.89%, ZTS is doing good in the industry, outperforming 79.06% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ZTS has remained more or less at the same level.
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.
  • 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.
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 5.42. This indicates that ZTS is financially healthy and has little risk of bankruptcy at the moment.
  • ZTS's Altman-Z score of 5.42 is fine compared to the rest of the industry. ZTS outperforms 74.87% 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 has a Debt to FCF ratio of 3.96. This is amongst the best in the industry. ZTS outperforms 86.39% 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's Debt to Equity ratio of 2.71 is on the low side compared to the rest of the industry. ZTS is outperformed by 84.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.71
Debt/FCF 3.96
Altman-Z 5.42
ROIC/WACC2.38
WACC9.21%
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

  • ZTS has a Current Ratio of 3.03. This indicates that ZTS is financially healthy and has no problem in meeting its short term obligations.
  • ZTS has a Current ratio of 3.03. This is comparable to the rest of the industry: ZTS outperforms 50.79% of its industry peers.
  • A Quick Ratio of 1.94 indicates that ZTS should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.94, ZTS is in line with its industry, outperforming 41.36% of the companies in the same industry.
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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4

3. ZTS Growth Analysis

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.
  • ZTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.77% yearly.
  • 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

  • ZTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.84% yearly.
  • ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.92% yearly.
EPS Next Y10.17%
EPS Next 2Y8.84%
EPS Next 3Y8.56%
EPS Next 5Y7.84%
Revenue Next Year4.85%
Revenue Next 2Y4.81%
Revenue Next 3Y4.79%
Revenue Next 5Y4.92%

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

  • The Price/Earnings ratio is 18.20, which indicates a rather expensive current valuation of ZTS.
  • Compared to the rest of the industry, the Price/Earnings ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 84.82% of the companies listed in the same industry.
  • ZTS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.42.
  • With a Price/Forward Earnings ratio of 16.52, ZTS is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 81.15% 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 22.29.
Industry RankSector Rank
PE 18.2
Fwd PE 16.52
ZTS Price Earnings VS Forward Price EarningsZTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 84.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 21.53
EV/EBITDA 13.51
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.
  • ZTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)1.69
EPS Next 2Y8.84%
EPS Next 3Y8.56%

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7

5. ZTS Dividend Analysis

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 0.73. ZTS pays more dividend than 91.62% of the companies in the same industry.
  • ZTS's Dividend Yield is comparable with the S&P500 average which is at 1.81.
Industry RankSector 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 Years12
Div Non Decr Years12
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

  • ZTS pays out 33.26% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of ZTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.26%
EPS Next 2Y8.84%
EPS Next 3Y8.56%
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 (4/24/2026, 8:15:38 PM)

After market: 116.87 0 (0%)

116.87

+0.81 (+0.7%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-12
Earnings (Next)05-07
Inst Owners101.23%
Inst Owner Change-0.55%
Ins Owners0.07%
Ins Owner Change3.93%
Market Cap49.15B
Revenue(TTM)9.47B
Net Income(TTM)2.67B
Analysts76.8
Price Target150.27 (28.58%)
Short Float %3.59%
Short Ratio3.64
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
Yearly Dividend2.04
Dividend Growth(5Y)20.56%
DP33.26%
Div Incr Years12
Div Non Decr Years12
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)0.01%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 18.2
Fwd PE 16.52
P/S 5.19
P/FCF 21.53
P/OCF 16.92
P/B 14.75
P/tB N/A
EV/EBITDA 13.51
EPS(TTM)6.42
EY5.49%
EPS(NY)7.07
Fwd EY6.05%
FCF(TTM)5.43
FCFY4.65%
OCF(TTM)6.91
OCFY5.91%
SpS22.51
BVpS7.92
TBVpS-1.03
PEG (NY)1.79
PEG (5Y)1.69
Graham Number33.8262 (-71.06%)
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 5.42
F-Score6
WACC9.21%
ROIC/WACC2.38
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 Y10.17%
EPS Next 2Y8.84%
EPS Next 3Y8.56%
EPS Next 5Y7.84%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y5.42%
Revenue growth 5Y7.24%
Sales Q2Q%3.02%
Revenue Next Year4.85%
Revenue Next 2Y4.81%
Revenue Next 3Y4.79%
Revenue Next 5Y4.92%
EBIT growth 1Y7.54%
EBIT growth 3Y7.08%
EBIT growth 5Y9.74%
EBIT Next Year18.61%
EBIT Next 3Y9.66%
EBIT Next 5Y7.88%
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 18.2 and the Price/Book (PB) ratio is 14.75.


What is the earnings growth outlook for ZOETIS INC?

The Earnings per Share (EPS) of ZOETIS INC (ZTS) is expected to grow by 10.17% in the next year.