ZOETIS INC (ZTS) Stock Fundamental Analysis
NYSE:ZTS • US98978V1035
128.96 USD
-2.14 (-1.63%)
At close: Mar 2, 2026
128.96 USD
0 (0%)
After Hours: 3/2/2026, 7:00:00 PM
ZTS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 193 industry peers in the Pharmaceuticals industry. ZTS scores excellent on profitability, but there are some minor concerns on its financial health. ZTS has a correct valuation and a medium growth rate. Finally ZTS also has an excellent dividend rating. With these ratings, ZTS could be worth investigating further 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.
- ZTS had positive earnings in each of the past 5 years.
- 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 17.28%, ZTS belongs to the best of the industry, outperforming 96.37% of the companies in the same industry.
- ZTS has a better Return On Equity (80.25%) than 99.48% of its industry peers.
- ZTS's Return On Invested Capital of 21.95% is amongst the best of the industry. ZTS outperforms 97.41% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ZTS is significantly above the industry average of 12.91%.
| Industry Rank | Sector 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%
1.3 Margins
- ZTS has a better Profit Margin (28.23%) than 93.26% of its industry peers.
- In the last couple of years the Profit Margin of ZTS has grown nicely.
- With an excellent Operating Margin value of 38.54%, ZTS belongs to the best of the industry, outperforming 96.89% of the companies in the same industry.
- ZTS's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 71.89%, ZTS is in the better half of the industry, outperforming 78.76% 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 | 38.54% | ||
| 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ZTS is creating value.
- Compared to 1 year ago, ZTS has less shares outstanding
- 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.
2.2 Solvency
- An Altman-Z score of 5.84 indicates that ZTS is not in any danger for bankruptcy at the moment.
- ZTS has a better Altman-Z score (5.84) than 78.24% of its industry peers.
- 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 87.56% 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 79.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.71 | ||
| Debt/FCF | 3.96 | ||
| Altman-Z | 5.84 |
ROIC/WACC2.49
WACC8.81%
2.3 Liquidity
- A Current Ratio of 3.03 indicates that ZTS has no problem at all paying its short term obligations.
- ZTS has a Current ratio (3.03) which is comparable to the rest of the industry.
- A Quick Ratio of 1.94 indicates that ZTS should not have too much problems paying its short term obligations.
- ZTS's Quick ratio of 1.94 is in line compared to the rest of the industry. ZTS outperforms 45.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.45% 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 10.77% on average per year.
- Looking at the last year, ZTS shows a small growth in Revenue. The Revenue has grown by 2.28% in the last 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
- Based on estimates for the next years, ZTS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.41% on average per year.
- Based on estimates for the next years, ZTS will show a small growth in Revenue. The Revenue will grow by 5.25% on average per year.
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 20.09, the valuation of ZTS can be described as rather expensive.
- Based on the Price/Earnings ratio, ZTS is valued cheaply inside the industry as 82.90% of the companies are valued more expensively.
- ZTS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 18.78, ZTS is valued on the expensive side.
- ZTS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ZTS is cheaper than 79.79% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.11, ZTS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.09 | ||
| Fwd PE | 18.78 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 83.42% of the companies listed 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 83.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.89 | ||
| EV/EBITDA | 15.6 |
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)1.87
EPS Next 2Y7.95%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
- ZTS has a Yearly Dividend Yield of 1.64%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.67, ZTS pays a better dividend. On top of this ZTS pays more dividend than 91.71% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 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
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 2Y7.95%
EPS Next 3Y8.12%
128.96
-2.14 (-1.63%)
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 Change3.97%
Ins Owners0.06%
Ins Owner Change3.93%
Market Cap56.83B
Revenue(TTM)9.47B
Net Income(TTM)2.67B
Analysts78.33
Price Target155.47 (20.56%)
Short Float %3.21%
Short Ratio2.67
Dividend
| Industry Rank | Sector 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 2026-04-20 (0.53)
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)-4.66%
PT rev (3m)-11.18%
EPS NQ rev (1m)2.55%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.09 | ||
| Fwd PE | 18.78 | ||
| P/S | 6 | ||
| P/FCF | 24.89 | ||
| P/OCF | 19.57 | ||
| P/B | 17.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.6 |
EPS(TTM)6.42
EY4.98%
EPS(NY)6.87
Fwd EY5.33%
FCF(TTM)5.18
FCFY4.02%
OCF(TTM)6.59
OCFY5.11%
SpS21.48
BVpS7.56
TBVpS-0.98
PEG (NY)2.88
PEG (5Y)1.87
Graham Number33.04
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.84 |
F-Score6
WACC8.81%
ROIC/WACC2.49
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 1Y7.54%
EBIT growth 3Y7.08%
EBIT growth 5Y9.74%
EBIT Next Year18.85%
EBIT Next 3Y9.75%
EBIT Next 5Y8.42%
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 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 33.26%.