ZOETIS INC (ZTS) Stock Fundamental Analysis
USA - NYSE:ZTS - US98978V1035 - Common Stock
145.64 USD
-1.46 (-0.99%)
Overall ZTS gets a fundamental rating of 7 out of 10. We evaluated ZTS against 196 industry peers in the Pharmaceuticals industry. While ZTS has a great profitability rating, there are some minor concerns on its financial health. ZTS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ZTS was profitable.
ZTS had a positive operating cash flow in the past year.
ZTS had positive earnings in each of the past 5 years.
Each year in the past 5 years ZTS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ZTS (18.04%) is better than 96.43% of its industry peers.
The Return On Equity of ZTS (52.48%) is better than 97.45% of its industry peers.
ZTS has a Return On Invested Capital of 25.36%. This is amongst the best in the industry. ZTS outperforms 97.45% 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 15.28%.
The last Return On Invested Capital (25.36%) for ZTS is above the 3 year average (21.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.04% | ||
| ROE | 52.48% | ||
| ROIC | 25.36% |
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
ZTS has a Profit Margin of 27.83%. This is amongst the best in the industry. ZTS outperforms 96.43% of its industry peers.
In the last couple of years the Profit Margin of ZTS has grown nicely.
The Operating Margin of ZTS (37.69%) is better than 96.94% of its industry peers.
ZTS's Operating Margin has improved in the last couple of years.
ZTS's Gross Margin of 71.50% is fine compared to the rest of the industry. ZTS outperforms 78.57% 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 | 37.69% | ||
| PM (TTM) | 27.83% | ||
| GM | 71.5% |
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.
Compared to 5 years ago, ZTS has less shares outstanding
ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.03 indicates that ZTS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.03, ZTS belongs to the best of the industry, outperforming 82.65% of the companies in the same industry.
ZTS has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as ZTS would need 2.97 years to pay back of all of its debts.
ZTS has a Debt to FCF ratio of 2.97. This is amongst the best in the industry. ZTS outperforms 90.31% of its industry peers.
ZTS has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
ZTS has a worse Debt to Equity ratio (1.05) than 72.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 7.03 |
ROIC/WACC2.63
WACC9.63%
2.3 Liquidity
ZTS has a Current Ratio of 1.76. This is a normal value and indicates that ZTS is financially healthy and should not expect problems in meeting its short term obligations.
ZTS has a Current ratio of 1.76. This is in the lower half of the industry: ZTS underperforms 64.29% of its industry peers.
A Quick Ratio of 1.04 indicates that ZTS should not have too much problems paying its short term obligations.
ZTS has a worse Quick ratio (1.04) than 72.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
ZTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.27%, 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.
ZTS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.27%.
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)12.27%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.82%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
3.2 Future
The Earnings Per Share is expected to grow by 8.88% on average over the next years. This is quite good.
ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.34% yearly.
EPS Next Y8.32%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
EPS Next 5Y8.88%
Revenue Next Year2.92%
Revenue Next 2Y4.41%
Revenue Next 3Y4.84%
Revenue Next 5Y5.34%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.41, 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 80.61% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ZTS to the average of the S&P500 Index (27.41), we can say ZTS is valued inline with the index average.
A Price/Forward Earnings ratio of 20.97 indicates a rather expensive valuation of ZTS.
ZTS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ZTS is cheaper than 76.02% of the companies in the same industry.
ZTS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 20.97 |
4.2 Price Multiples
81.63% of the companies in the same industry are more expensive than ZTS, based on the Enterprise Value to EBITDA ratio.
79.59% of the companies in the same industry are more expensive than ZTS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.09 | ||
| EV/EBITDA | 17.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ZTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)2.29
EPS Next 2Y8.32%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, ZTS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.04, ZTS pays a better dividend. On top of this ZTS pays more dividend than 90.82% of the companies listed in the same industry.
With a Dividend Yield of 1.31, ZTS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
ZTS pays out 32.08% of its income as dividend. This is a sustainable payout ratio.
ZTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.08%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
NYSE:ZTS (9/19/2025, 12:49:49 PM)
145.64
-1.46 (-0.99%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner Change0.66%
Ins Owners0.06%
Ins Owner Change0.13%
Market Cap64.54B
Analysts79.17
Price Target195.62 (34.32%)
Short Float %1.75%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.73
Dividend Growth(5Y)21.42%
DP32.08%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.46%
Min EPS beat(2)5.17%
Max EPS beat(2)7.75%
EPS beat(4)4
Avg EPS beat(4)6.02%
Min EPS beat(4)3.63%
Max EPS beat(4)7.75%
EPS beat(8)6
Avg EPS beat(8)2.8%
EPS beat(12)9
Avg EPS beat(12)3.1%
EPS beat(16)12
Avg EPS beat(16)3.49%
Revenue beat(2)2
Avg Revenue beat(2)0.74%
Min Revenue beat(2)0.36%
Max Revenue beat(2)1.11%
Revenue beat(4)3
Avg Revenue beat(4)1.14%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)3.33%
Revenue beat(8)5
Avg Revenue beat(8)0.65%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)-0.39%
PT rev (3m)-2.66%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)1.99%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 20.97 | ||
| P/S | 6.88 | ||
| P/FCF | 29.09 | ||
| P/OCF | 22.04 | ||
| P/B | 12.97 | ||
| P/tB | 56.42 | ||
| EV/EBITDA | 17.48 |
EPS(TTM)6.22
EY4.27%
EPS(NY)6.95
Fwd EY4.77%
FCF(TTM)5.01
FCFY3.44%
OCF(TTM)6.61
OCFY4.54%
SpS21.18
BVpS11.23
TBVpS2.58
PEG (NY)2.82
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.04% | ||
| ROE | 52.48% | ||
| ROCE | 31.83% | ||
| ROIC | 25.36% | ||
| ROICexc | 29.12% | ||
| ROICexgc | 48.22% | ||
| OM | 37.69% | ||
| PM (TTM) | 27.83% | ||
| GM | 71.5% | ||
| FCFM | 23.64% |
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%
ROICexcg growth 3Y2.53%
ROICexcg 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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 146.09% | ||
| Cap/Sales | 7.57% | ||
| Interest Coverage | 12.96 | ||
| Cash Conversion | 72.81% | ||
| Profit Quality | 84.95% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 7.03 |
F-Score8
WACC9.63%
ROIC/WACC2.63
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)12.27%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.82%
EPS Next Y8.32%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
EPS Next 5Y8.88%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
Revenue Next Year2.92%
Revenue Next 2Y4.41%
Revenue Next 3Y4.84%
Revenue Next 5Y5.34%
EBIT growth 1Y10.05%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.06%
EBIT Next 3Y10.76%
EBIT Next 5Y8.69%
FCF growth 1Y72.68%
FCF growth 3Y9.8%
FCF growth 5Y11.47%
OCF growth 1Y46.52%
OCF growth 3Y10.09%
OCF growth 5Y10.47%