ZOETIS INC (ZTS) Stock Fundamental Analysis
NYSE:ZTS • US98978V1035
128.78 USD
+1.5 (+1.18%)
At close: Feb 20, 2026
128.78 USD
0 (0%)
After Hours: 2/20/2026, 8:11:42 PM
We assign a fundamental rating of 7 out of 10 to ZTS. ZTS was compared to 192 industry peers in the Pharmaceuticals industry. ZTS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ZTS is not valued too expensively and it also shows a decent growth rate. Finally ZTS also has an excellent dividend rating. This makes ZTS very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
- ZTS had positive earnings in the past year.
- ZTS had a positive operating cash flow in the past year.
- ZTS had positive earnings in each of the past 5 years.
- 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.
- ZTS has a better Return On Invested Capital (21.43%) than 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
- ZTS has a Profit Margin of 28.21%. This is amongst the best in the industry. ZTS outperforms 93.23% 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.
- ZTS's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 71.71%, ZTS is doing good in the industry, outperforming 79.17% 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 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.
- Compared to 1 year ago, ZTS has less shares outstanding
- ZTS has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ZTS has a worse debt to assets ratio.
2.2 Solvency
- ZTS has an Altman-Z score of 6.52. This indicates that ZTS is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.52, ZTS belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.
- The Debt to FCF ratio of ZTS is 3.16, which is a good value as it means it would take ZTS, 3.16 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ZTS (3.16) is better than 90.63% 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's Debt to Equity ratio of 1.31 is on the low side compared to the rest of the industry. ZTS is outperformed by 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.
- With a Current ratio value of 3.64, ZTS perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- ZTS has a Quick Ratio of 2.28. This indicates that ZTS is financially healthy and has no problem in meeting its short term obligations.
- ZTS's Quick ratio of 2.28 is in line compared 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.
- ZTS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.28%.
- 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
- The Earnings Per Share is expected to grow by 8.41% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.25% on average over the next years.
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
- ZTS is valuated rather expensively with a Price/Earnings ratio of 20.06.
- 82.81% of the companies in the same industry are more expensive than ZTS, based on the Price/Earnings ratio.
- 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 18.75, which indicates a rather expensive current valuation of ZTS.
- ZTS's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZTS is cheaper than 80.21% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.02, ZTS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 18.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZTS is valued cheaper than 83.33% of the companies in the same industry.
- 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 | 25.34 | ||
| EV/EBITDA | 15.12 |
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)2.88
PEG (5Y)1.86
EPS Next 2Y7.95%
EPS Next 3Y8.12%
5. Dividend
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 1.07, ZTS pays a better dividend. On top of this ZTS pays more dividend than 91.67% of the companies listed in the same industry.
- ZTS's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
- ZTS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
128.78
+1.5 (+1.18%)
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 Cap56.75B
Revenue(TTM)9.47B
Net Income(TTM)2.65B
Analysts78.33
Price Target159.46 (23.82%)
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 | 20.06 | ||
| Fwd PE | 18.75 | ||
| P/S | 6.04 | ||
| P/FCF | 25.34 | ||
| P/OCF | 19.46 | ||
| P/B | 10.51 | ||
| P/tB | 35.6 | ||
| EV/EBITDA | 15.12 |
EPS(TTM)6.42
EY4.99%
EPS(NY)6.87
Fwd EY5.33%
FCF(TTM)5.08
FCFY3.95%
OCF(TTM)6.62
OCFY5.14%
SpS21.32
BVpS12.25
TBVpS3.62
PEG (NY)2.88
PEG (5Y)1.86
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%.