ZOETIS INC (ZTS) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:ZTS • US98978V1035

128.13 USD
+0.83 (+0.65%)
At close: Feb 10, 2026
129.378 USD
+1.25 (+0.97%)
After Hours: 2/10/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall ZTS gets a fundamental rating of 7 out of 10. We evaluated ZTS against 191 industry peers in the Pharmaceuticals industry. ZTS gets an excellent profitability rating and is at the same time showing great financial health properties. ZTS has a correct valuation and a medium growth rate. Finally ZTS also has an excellent dividend rating. This makes ZTS very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

9

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.
  • Each year in the past 5 years ZTS has been profitable.
  • In the past 5 years ZTS always reported a positive cash flow from operatings.
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 1B 2B 3B

1.2 Ratios

  • The Return On Assets of ZTS (17.49%) is better than 96.34% of its industry peers.
  • Looking at the Return On Equity, with a value of 49.11%, ZTS belongs to the top of the industry, outperforming 97.91% of the companies in the same industry.
  • ZTS has a Return On Invested Capital of 21.45%. This is amongst the best in the industry. ZTS outperforms 97.38% 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 12.66%.
Industry RankSector 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%
ZTS Yearly ROA, ROE, ROICZTS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

  • With an excellent Profit Margin value of 28.21%, ZTS belongs to the best 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.
  • ZTS has a Operating Margin of 38.25%. This is amongst the best in the industry. ZTS outperforms 96.86% 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 78.53% 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 38.25%
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%
ZTS Yearly Profit, Operating, Gross MarginsZTS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ZTS is creating value.
  • ZTS has less shares outstanding than it did 1 year ago.
  • ZTS has less shares outstanding than it did 5 years ago.
  • ZTS has a worse debt/assets ratio than last year.
ZTS Yearly Shares OutstandingZTS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B

2.2 Solvency

  • An Altman-Z score of 6.51 indicates that ZTS is not in any danger for bankruptcy at the moment.
  • ZTS's Altman-Z score of 6.51 is fine compared to the rest of the industry. ZTS outperforms 78.53% 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.
  • Looking at the Debt to FCF ratio, with a value of 3.16, ZTS belongs to the top of the industry, outperforming 90.05% of the companies in the same industry.
  • 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 74.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 3.16
Altman-Z 6.51
ROIC/WACC2.32
WACC9.25%
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 2B 4B 6B

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 (3.64) which is in line with its industry peers.
  • A Quick Ratio of 2.28 indicates that ZTS has no problem at all paying its short term obligations.
  • ZTS's Quick ratio of 2.28 is in line compared to the rest of the industry. ZTS outperforms 48.17% of its industry peers.
Industry RankSector Rank
Current Ratio 3.64
Quick Ratio 2.28
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 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 10.07% over the past year.
  • 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.
  • Looking at the last year, ZTS shows a small growth in Revenue. The Revenue has grown by 2.68% in the last 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

  • Based on estimates for the next years, ZTS will show a small growth in Earnings Per Share. The EPS will grow by 7.88% on average per year.
  • The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y8.19%
EPS Next 2Y7.71%
EPS Next 3Y8.12%
EPS Next 5Y7.88%
Revenue Next Year2.07%
Revenue Next 2Y3.52%
Revenue Next 3Y4.18%
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.
ZTS Yearly Revenue VS EstimatesZTS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
ZTS Yearly EPS VS EstimatesZTS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

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6

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 20.21, ZTS is valued on the expensive side.
  • Based on the Price/Earnings ratio, ZTS is valued cheaper than 81.68% of the companies in the same industry.
  • ZTS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.03, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 18.66, ZTS is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, ZTS is valued a bit cheaper than the industry average as 79.58% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.97, ZTS is valued a bit cheaper.
Industry RankSector Rank
PE 20.21
Fwd PE 18.66
ZTS Price Earnings VS Forward Price EarningsZTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ZTS is valued cheaper than 83.25% of the companies 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 83.77% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 25.21
EV/EBITDA 15.05
ZTS Per share dataZTS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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)2.47
PEG (5Y)1.98
EPS Next 2Y7.71%
EPS Next 3Y8.12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

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 0.93. ZTS pays more dividend than 91.10% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, ZTS has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.64%

5.2 History

  • On average, the dividend of ZTS grows each year by 21.42%, which is quite nice.
  • 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)21.42%
Div Incr Years11
Div Non Decr Years11
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 32.55% 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.
DP32.55%
EPS Next 2Y7.71%
EPS Next 3Y8.12%
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 500M 1B 1.5B 2B
ZTS Dividend Payout.ZTS Dividend Payout, showing the Payout Ratio.ZTS Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

ZOETIS INC

NYSE:ZTS (2/10/2026, 8:04:00 PM)

After market: 129.378 +1.25 (+0.97%)

128.13

+0.83 (+0.65%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-04
Earnings (Next)02-12
Inst Owners97.58%
Inst Owner Change-0.9%
Ins Owners0.06%
Ins Owner Change-0.03%
Market Cap56.47B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts79.17
Price Target159.46 (24.45%)
Short Float %3.53%
Short Ratio2.95
Dividend
Industry RankSector 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
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)-17.47%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-2.8%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
Industry RankSector Rank
PE 20.21
Fwd PE 18.66
P/S 6.01
P/FCF 25.21
P/OCF 19.36
P/B 10.46
P/tB 35.42
EV/EBITDA 15.05
EPS(TTM)6.34
EY4.95%
EPS(NY)6.87
Fwd EY5.36%
FCF(TTM)5.08
FCFY3.97%
OCF(TTM)6.62
OCFY5.16%
SpS21.32
BVpS12.25
TBVpS3.62
PEG (NY)2.47
PEG (5Y)1.98
Graham Number41.8
Profitability
Industry RankSector 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 RankSector 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 6.51
F-Score6
WACC9.25%
ROIC/WACC2.32
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 Y8.19%
EPS Next 2Y7.71%
EPS Next 3Y8.12%
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 2Y3.52%
Revenue Next 3Y4.18%
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 8.19% 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%.