ZOETIS INC (ZTS) Stock Fundamental Analysis

NYSE:ZTS • US98978V1035

128.78 USD
+1.5 (+1.18%)
At close: Feb 20, 2026
128.78 USD
0 (0%)
After Hours: 2/20/2026, 8:11:42 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

ZTS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 191 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 correct valuation and a medium growth rate. ZTS also has an excellent dividend rating. These ratings would make ZTS suitable for dividend investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

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.
  • Each year in the past 5 years ZTS had a positive operating cash flow.
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

  • The Return On Assets of ZTS (17.49%) is better than 96.34% of its industry peers.
  • With an excellent Return On Equity value of 49.11%, ZTS belongs to the best of the industry, outperforming 97.91% of the companies in the same industry.
  • ZTS's Return On Invested Capital of 21.43% is amongst the best of the industry. ZTS outperforms 97.38% of its industry peers.
  • ZTS had an Average Return On Invested Capital over the past 3 years of 22.17%. This is significantly above the industry average of 12.64%.
Industry RankSector Rank
ROA 17.49%
ROE 49.11%
ROIC 21.43%
ROA(3y)17.05%
ROA(5y)15.99%
ROE(3y)59.76%
ROE(5y)54.42%
ROIC(3y)22.17%
ROIC(5y)21%
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 28.21%. 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.
  • With an excellent Operating Margin value of 38.25%, ZTS belongs to the best of the industry, outperforming 96.86% 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 71.71%, ZTS is in the better half of the industry, outperforming 78.53% of the companies in the same industry.
  • ZTS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 38.25%
PM (TTM) 28.21%
GM 71.71%
OM growth 3Y1.3%
OM growth 5Y2.17%
PM growth 3Y2.57%
PM growth 5Y2.85%
GM growth 3Y1.01%
GM growth 5Y0.71%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

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.
  • ZTS has less shares outstanding than it did 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 6.48. This indicates that ZTS is financially healthy and has little risk of bankruptcy at the moment.
  • ZTS's Altman-Z score of 6.48 is fine compared to the rest of the industry. ZTS outperforms 79.58% of its industry peers.
  • The Debt to FCF ratio of ZTS is 3.16, which is a good value as it means it would take ZTS, 3.16 years of fcf income to pay off all of its debts.
  • ZTS has a Debt to FCF ratio of 3.16. This is amongst the best in the industry. ZTS outperforms 90.05% of its industry peers.
  • ZTS has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.31, ZTS is not doing good in the industry: 75.39% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 3.16
Altman-Z 6.48
ROIC/WACC2.39
WACC8.97%
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 3.64 indicates that ZTS has no problem at all paying its short term obligations.
  • With a Current ratio value of 3.64, ZTS perfoms like the industry average, outperforming 55.50% of the companies in the same industry.
  • ZTS has a Quick Ratio of 2.28. This indicates that ZTS is financially healthy and has no problem in meeting its short term obligations.
  • With a Quick ratio value of 2.28, ZTS perfoms like the industry average, outperforming 48.17% of the companies in the same industry.
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 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. 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.
  • The Revenue has been growing slightly by 7.24% on average over the past years.
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 8.41% on average over the next years. This is quite good.
  • 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.
  • 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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 20.06 indicates a rather expensive valuation of ZTS.
  • Based on the Price/Earnings ratio, ZTS is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of ZTS to the average of the S&P500 Index (26.99), we can say ZTS is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 18.75 indicates a rather expensive valuation of ZTS.
  • ZTS's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZTS is cheaper than 80.63% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ZTS to the average of the S&P500 Index (28.06), we can say ZTS is valued slightly cheaper.
Industry RankSector Rank
PE 20.06
Fwd PE 18.75
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

  • 83.25% of the companies in the same industry are more expensive than ZTS, based on the Enterprise Value to EBITDA ratio.
  • ZTS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZTS is cheaper than 83.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.34
EV/EBITDA 14.96
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 an expensive valuation of the company.
  • ZTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.88
PEG (5Y)1.86
EPS Next 2Y7.95%
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%. Purely for dividend investing, there may be better candidates out there.
  • ZTS's Dividend Yield is rather good when compared to the industry average which is at 1.18. ZTS pays more dividend than 91.62% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.85, 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 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 2Y7.95%
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 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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Find the best dividend stocksShow peers with best dividend

ZOETIS INC

NYSE:ZTS (2/20/2026, 8:11:42 PM)

After market: 128.78 0 (0%)

128.78

+1.5 (+1.18%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners97.58%
Inst Owner Change-1.74%
Ins Owners0.06%
Ins Owner Change1.52%
Market Cap56.75B
Revenue(TTM)9.47B
Net Income(TTM)2.65B
Analysts78.33
Price Target159.46 (23.82%)
Short Float %3.21%
Short Ratio2.67
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
Yearly Dividend2.04
Dividend Growth(5Y)20.56%
DP32.55%
Div Incr Years11
Div Non Decr Years11
Ex-Date04-20
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 20.06
Fwd PE 18.75
P/S 6.04
P/FCF 25.34
P/OCF 19.46
P/B 10.51
P/tB 35.6
EV/EBITDA 14.96
EPS(TTM)6.42
EY4.99%
EPS(NY)6.87
Fwd EY5.33%
FCF(TTM)5.08
FCFY3.95%
OCF(TTM)6.62
OCFY5.14%
SpS21.32
BVpS12.25
TBVpS3.62
PEG (NY)2.88
PEG (5Y)1.86
Graham Number42.06
Profitability
Industry RankSector Rank
ROA 17.49%
ROE 49.11%
ROCE 26.92%
ROIC 21.43%
ROICexc 25.38%
ROICexgc 38.31%
OM 38.25%
PM (TTM) 28.21%
GM 71.71%
FCFM 23.84%
ROA(3y)17.05%
ROA(5y)15.99%
ROE(3y)59.76%
ROE(5y)54.42%
ROIC(3y)22.17%
ROIC(5y)21%
ROICexc(3y)26.87%
ROICexc(5y)27.06%
ROICexgc(3y)44.52%
ROICexgc(5y)48.34%
ROCE(3y)27.85%
ROCE(5y)26.38%
ROICexgc growth 3Y-11.62%
ROICexgc growth 5Y-5.39%
ROICexc growth 3Y-3.01%
ROICexc growth 5Y2.53%
OM growth 3Y1.3%
OM growth 5Y2.17%
PM growth 3Y2.57%
PM growth 5Y2.85%
GM growth 3Y1.01%
GM growth 5Y0.71%
F-Score7
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 6.48
F-Score7
WACC8.97%
ROIC/WACC2.39
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 1Y7.7%
EBIT growth 3Y6.79%
EBIT growth 5Y9.56%
EBIT Next Year18.57%
EBIT Next 3Y10.5%
EBIT Next 5Y8.4%
FCF growth 1Y-2.95%
FCF growth 3Y19.85%
FCF growth 5Y6.41%
OCF growth 1Y-0.98%
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 32.55%.