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%)
We assign a fundamental rating of 7 out of 10 to ZTS. ZTS was compared to 190 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 has a decent growth rate and is not valued too expensively. ZTS also has an excellent dividend rating. These ratings could make ZTS a good candidate 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.
- Each year in the past 5 years ZTS had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 17.49%, ZTS belongs to the best of the industry, outperforming 96.32% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 49.11%, ZTS belongs to the top of the industry, outperforming 97.89% 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 96.84% 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 12.84%.
| 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
- ZTS has a better Profit Margin (28.21%) than 93.68% of its industry peers.
- In the last couple of years the Profit Margin of ZTS has grown nicely.
- ZTS's Operating Margin of 38.25% is amongst the best of the industry. ZTS outperforms 96.84% of its industry peers.
- In the last couple of years the Operating Margin of ZTS has grown nicely.
- With a decent Gross Margin value of 71.71%, ZTS is doing good in the industry, outperforming 78.42% of the companies in the same industry.
- ZTS's Gross Margin has been stable in the last couple of years.
| 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.
- The debt/assets ratio for ZTS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.43 indicates that ZTS is not in any danger for bankruptcy at the moment.
- ZTS has a Altman-Z score of 6.43. This is in the better half of the industry: ZTS outperforms 77.37% 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.
- With an excellent Debt to FCF ratio value of 3.16, ZTS belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
- A Debt/Equity ratio of 1.31 is on the high side and indicates that ZTS has dependencies on debt financing.
- The Debt to Equity ratio of ZTS (1.31) is worse than 75.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.43 |
ROIC/WACC2.33
WACC9.22%
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.
- Looking at the Current ratio, with a value of 3.64, ZTS is in line with its industry, outperforming 56.32% of the companies in the same industry.
- 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 47.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.07% over the past year.
- The Earnings Per Share has been growing by 10.22% on average over the past years. This is quite good.
- ZTS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.68%.
- The Revenue has been growing by 8.14% on average over the past years. This is quite good.
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
- ZTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.88% yearly.
- ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y8.15%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
EPS Next 5Y7.88%
Revenue Next Year2.07%
Revenue Next 2Y3.51%
Revenue Next 3Y4.23%
Revenue Next 5Y4.67%
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
- With a Price/Earnings ratio of 19.66, ZTS is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 82.63% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, ZTS is valued a bit cheaper.
- The Price/Forward Earnings ratio is 18.24, which indicates a rather expensive current valuation of ZTS.
- ZTS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ZTS is cheaper than 78.42% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. ZTS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 18.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZTS is valued cheaply inside the industry as 82.63% of the companies are valued more expensively.
- 83.16% 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 | 24.52 | ||
| EV/EBITDA | 14.74 |
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)2.41
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 0.35. ZTS pays more dividend than 92.11% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, ZTS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)21.42%
Div Incr Years11
Div Non Decr Years11
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 2Y7.44%
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 Change0.63%
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)0.04%
EPS NQ rev (3m)-6.21%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.5%
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 | 14.74 |
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 | 6.43 |
F-Score6
WACC9.22%
ROIC/WACC2.33
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 2Y3.51%
Revenue Next 3Y4.23%
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%.