ZOETIS INC (ZTS) Fundamental Analysis & Valuation

NYSE:ZTS • US98978V1035

Current stock price

116.69 USD
+0.76 (+0.66%)
Last:

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.
  • Each year in the past 5 years ZTS has been profitable.
  • ZTS had a positive operating cash flow in each of the past 5 years.
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 has a better Return On Assets (17.28%) than 95.85% of its industry peers.
  • ZTS has a better Return On Equity (80.25%) than 99.48% of its industry peers.
  • With an excellent Return On Invested Capital value of 21.95%, ZTS belongs to the best of the industry, outperforming 97.41% of the companies in the same industry.
  • ZTS had an Average Return On Invested Capital over the past 3 years of 22.23%. This is significantly above the industry average of 13.06%.
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 93.78% of its industry peers.
  • In the last couple of years the Profit Margin of ZTS has grown nicely.
  • The Operating Margin of ZTS (38.54%) is better than 97.41% of its industry peers.
  • In the last couple of years the Operating Margin of ZTS has grown nicely.
  • Looking at the Gross Margin, with a value of 71.89%, ZTS is in the better half of the industry, outperforming 79.79% of the companies in the same industry.
  • ZTS's Gross Margin has been stable in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ZTS 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.
  • 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 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

  • An Altman-Z score of 5.41 indicates that ZTS is not in any danger for 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 78.76% of the companies in the same industry.
  • The Debt to FCF ratio of ZTS is 3.96, which is a good value as it means it would take ZTS, 3.96 years of fcf income to pay off all of its debts.
  • ZTS has a better Debt to FCF ratio (3.96) than 86.53% of its industry peers.
  • A Debt/Equity ratio of 2.71 is on the high side and indicates that ZTS has dependencies on debt financing.
  • ZTS has a Debt to Equity ratio of 2.71. This is in the lower half of the industry: ZTS underperforms 79.27% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.71
Debt/FCF 3.96
Altman-Z 5.41
ROIC/WACC2.42
WACC9.09%
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 53.89% of the companies in the same industry.
  • A Quick Ratio of 1.94 indicates that ZTS should not have too much problems paying its short term obligations.
  • ZTS has a Quick ratio of 1.94. This is comparable to the rest of the industry: ZTS outperforms 46.63% of 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ZTS Growth Analysis

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.
  • The Revenue has been growing slightly by 2.28% in the past year.
  • Measured over the past years, ZTS shows a small growth in Revenue. The Revenue has been growing by 7.24% on average per year.
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 7.80% on average over the next years.
  • Based on estimates for the next years, ZTS will show a small growth in Revenue. The Revenue will grow by 5.30% on average per year.
EPS Next Y10.25%
EPS Next 2Y8.92%
EPS Next 3Y8.7%
EPS Next 5Y7.8%
Revenue Next Year4.9%
Revenue Next 2Y4.87%
Revenue Next 3Y4.84%
Revenue Next 5Y5.3%

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

  • ZTS is valuated rather expensively with a Price/Earnings ratio of 18.18.
  • Based on the Price/Earnings ratio, ZTS is valued cheaper than 84.46% of the companies in the same industry.
  • ZTS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.50, which is the current average of the S&P500 Index.
  • ZTS is valuated correctly with a Price/Forward Earnings ratio of 16.49.
  • Based on the Price/Forward Earnings ratio, ZTS is valued cheaper than 81.35% of the companies in the same industry.
  • ZTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.18
Fwd PE 16.49
ZTS Price Earnings VS Forward Price EarningsZTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ZTS is valued cheaper than 83.42% of the companies in the same industry.
  • 83.94% of the companies in the same industry are more expensive than ZTS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 21.58
EV/EBITDA 13.46
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

  • The 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)1.77
PEG (5Y)1.69
EPS Next 2Y8.92%
EPS Next 3Y8.7%

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

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.
  • Compared to an average industry Dividend Yield of 0.79, ZTS pays a better dividend. On top of this ZTS pays more dividend than 91.19% of the companies listed 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 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.56%
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 33.26% 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.
DP33.26%
EPS Next 2Y8.92%
EPS Next 3Y8.7%
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 (3/25/2026, 1:40:40 PM)

116.69

+0.76 (+0.66%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners100.79%
Inst Owner Change4.39%
Ins Owners0.07%
Ins Owner Change3.87%
Market Cap49.26B
Revenue(TTM)9.47B
Net Income(TTM)2.67B
Analysts77.6
Price Target155.47 (33.23%)
Short Float %4.12%
Short Ratio3.88
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
Yearly Dividend2.04
Dividend Growth(5Y)20.56%
DP33.26%
Div Incr Years11
Div Non Decr Years11
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)-2.51%
PT rev (3m)-8.55%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)2.69%
EPS NY rev (1m)3.06%
EPS NY rev (3m)3.41%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.31%
Valuation
Industry RankSector Rank
PE 18.18
Fwd PE 16.49
P/S 5.2
P/FCF 21.58
P/OCF 16.96
P/B 14.79
P/tB N/A
EV/EBITDA 13.46
EPS(TTM)6.42
EY5.5%
EPS(NY)7.08
Fwd EY6.07%
FCF(TTM)5.41
FCFY4.63%
OCF(TTM)6.88
OCFY5.9%
SpS22.43
BVpS7.89
TBVpS-1.03
PEG (NY)1.77
PEG (5Y)1.69
Graham Number33.76
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
WACC9.09%
ROIC/WACC2.42
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 Y10.25%
EPS Next 2Y8.92%
EPS Next 3Y8.7%
EPS Next 5Y7.8%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y5.42%
Revenue growth 5Y7.24%
Sales Q2Q%3.02%
Revenue Next Year4.9%
Revenue Next 2Y4.87%
Revenue Next 3Y4.84%
Revenue Next 5Y5.3%
EBIT growth 1Y7.54%
EBIT growth 3Y7.08%
EBIT growth 5Y9.74%
EBIT Next Year18.93%
EBIT Next 3Y9.75%
EBIT Next 5Y8.5%
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.


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 10.25% 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 33.26%.