ZOETIS INC (ZTS) Fundamental Analysis & Valuation

NYSE:ZTS • US98978V1035

Current stock price

113.83 USD
-2.82 (-2.42%)
At close:
113.83 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.
  • ZTS had positive earnings in each of the past 5 years.
  • 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 2025 1B 2B 3B

1.2 Ratios

  • ZTS's Return On Assets of 17.28% is amongst the best of the industry. ZTS outperforms 95.29% of its industry peers.
  • ZTS's Return On Equity of 80.25% is amongst the best of the industry. ZTS outperforms 99.48% of its industry peers.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital 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

  • ZTS has a Profit Margin of 28.23%. This is amongst the best in the industry. ZTS outperforms 93.72% of its industry peers.
  • In the last couple of years the Profit Margin of ZTS has grown nicely.
  • ZTS has a Operating Margin of 38.54%. This is amongst the best in the industry. ZTS outperforms 97.38% of its industry peers.
  • In the last couple of years the Operating Margin of ZTS has grown nicely.
  • ZTS has a Gross Margin of 71.89%. This is in the better half of the industry: ZTS outperforms 79.06% 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 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

  • ZTS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • ZTS has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ZTS has been reduced compared to 5 years ago.
  • 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 5.41. 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 5.41, ZTS is in the better half of the industry, outperforming 74.87% of the companies in the same industry.
  • ZTS has a debt to FCF ratio of 3.96. This is a good value and a sign of high solvency as ZTS would need 3.96 years to pay back of all of its debts.
  • ZTS's Debt to FCF ratio of 3.96 is amongst the best of the industry. ZTS outperforms 86.39% of its industry peers.
  • ZTS has a Debt/Equity ratio of 2.71. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of ZTS (2.71) is worse than 84.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.71
Debt/FCF 3.96
Altman-Z 5.41
ROIC/WACC2.38
WACC9.23%
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

  • A Current Ratio of 3.03 indicates that ZTS has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 3.03, ZTS is in line with its industry, outperforming 50.79% of the companies in the same industry.
  • ZTS has a Quick Ratio of 1.94. 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 Quick ratio (1.94) which is in line with its industry peers.
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

  • The Earnings Per Share has grown by an nice 8.45% over the past year.
  • The Earnings Per Share has been growing by 10.77% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 2.28% in the past 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.
  • Based on estimates for the next years, ZTS will show a small growth in Revenue. The Revenue will grow by 4.92% on average per year.
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

  • 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.
  • 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

  • With a Price/Earnings ratio of 17.73, ZTS is valued on the expensive side.
  • 84.82% of the companies in the same industry are more expensive than ZTS, based on the Price/Earnings ratio.
  • ZTS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
  • The Price/Forward Earnings ratio is 16.09, which indicates a correct valuation of ZTS.
  • 80.63% of the companies in the same industry are more expensive than ZTS, based on the Price/Forward Earnings ratio.
  • ZTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.73
Fwd PE 16.09
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

  • ZTS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZTS is cheaper than 82.72% of the companies in the same industry.
  • ZTS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZTS is cheaper than 84.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.97
EV/EBITDA 13.49
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.
  • The excellent profitability rating of ZTS may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)1.65
EPS Next 2Y8.84%
EPS Next 3Y8.56%

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7

5. ZTS Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.64%, ZTS has a reasonable but not impressive dividend return.
  • 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 1.82.
Industry RankSector Rank
Dividend Yield 1.64%

5.2 History

  • On average, the dividend of ZTS grows each year by 20.56%, which is quite nice.
  • 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 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 (4/29/2026, 7:00:00 PM)

After market: 113.83 0 (0%)

113.83

-2.82 (-2.42%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Industry Strength65.84
Industry Growth15.53
Earnings (Last)02-12
Earnings (Next)05-07
Inst Owners101.23%
Inst Owner Change-0.55%
Ins Owners0.07%
Ins Owner Change3.93%
Market Cap47.87B
Revenue(TTM)9.47B
Net Income(TTM)2.67B
Analysts76.8
Price Target150.27 (32.01%)
Short Float %3.22%
Short Ratio3.5
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 17.73
Fwd PE 16.09
P/S 5.06
P/FCF 20.97
P/OCF 16.48
P/B 14.37
P/tB N/A
EV/EBITDA 13.49
EPS(TTM)6.42
EY5.64%
EPS(NY)7.07
Fwd EY6.21%
FCF(TTM)5.43
FCFY4.77%
OCF(TTM)6.91
OCFY6.07%
SpS22.51
BVpS7.92
TBVpS-1.03
PEG (NY)1.74
PEG (5Y)1.65
Graham Number33.8262 (-70.28%)
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 5.41
F-Score6
WACC9.23%
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 17.73 and the Price/Book (PB) ratio is 14.37.


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.