ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - BIT:1ZTS - US98978V1035 - Common Stock
122.26 EUR
-1.76 (-1.42%)
Taking everything into account, 1ZTS scores 6 out of 10 in our fundamental rating. 1ZTS was compared to 50 industry peers in the Pharmaceuticals industry. While 1ZTS has a great profitability rating, there are some minor concerns on its financial health. 1ZTS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1ZTS had positive earnings in the past year.
1ZTS had a positive operating cash flow in the past year.
Each year in the past 5 years 1ZTS has been profitable.
1ZTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 18.04%, 1ZTS belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
With an excellent Return On Equity value of 52.48%, 1ZTS belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 25.36%, 1ZTS belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1ZTS is significantly above the industry average of 15.33%.
The 3 year average ROIC (21.64%) for 1ZTS is below the current ROIC(25.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.04% | ||
| ROE | 52.48% | ||
| ROIC | 25.36% |
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
1ZTS has a better Profit Margin (27.83%) than 92.00% of its industry peers.
1ZTS's Profit Margin has improved in the last couple of years.
The Operating Margin of 1ZTS (37.69%) is better than 90.00% of its industry peers.
1ZTS's Operating Margin has improved in the last couple of years.
1ZTS has a Gross Margin (71.50%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1ZTS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.69% | ||
| PM (TTM) | 27.83% | ||
| GM | 71.5% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ZTS is creating value.
1ZTS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1ZTS has less shares outstanding
1ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
1ZTS has an Altman-Z score of 6.95. This indicates that 1ZTS is financially healthy and has little risk of bankruptcy at the moment.
1ZTS's Altman-Z score of 6.95 is amongst the best of the industry. 1ZTS outperforms 90.00% of its industry peers.
The Debt to FCF ratio of 1ZTS is 2.97, which is a good value as it means it would take 1ZTS, 2.97 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.97, 1ZTS is doing good in the industry, outperforming 68.00% of the companies in the same industry.
A Debt/Equity ratio of 1.05 is on the high side and indicates that 1ZTS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.05, 1ZTS is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 6.95 |
ROIC/WACC2.64
WACC9.6%
2.3 Liquidity
1ZTS has a Current Ratio of 1.76. This is a normal value and indicates that 1ZTS is financially healthy and should not expect problems in meeting its short term obligations.
1ZTS has a better Current ratio (1.76) than 66.00% of its industry peers.
A Quick Ratio of 1.04 indicates that 1ZTS should not have too much problems paying its short term obligations.
1ZTS has a Quick ratio of 1.04. This is in the better half of the industry: 1ZTS outperforms 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.27% over the past year.
1ZTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.22% yearly.
1ZTS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.27%.
The Revenue has been growing by 8.14% on average over the past years. This is quite good.
EPS 1Y (TTM)12.27%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.82%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
3.2 Future
1ZTS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.88% yearly.
1ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.34% yearly.
EPS Next Y8.32%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
EPS Next 5Y8.88%
Revenue Next Year2.92%
Revenue Next 2Y4.45%
Revenue Next 3Y4.86%
Revenue Next 5Y5.34%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 23.20 indicates a rather expensive valuation of 1ZTS.
The rest of the industry has a similar Price/Earnings ratio as 1ZTS.
Compared to an average S&P500 Price/Earnings ratio of 27.41, 1ZTS is valued at the same level.
With a Price/Forward Earnings ratio of 20.76, 1ZTS is valued on the expensive side.
1ZTS's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, 1ZTS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 20.76 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than 1ZTS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1ZTS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.8 | ||
| EV/EBITDA | 17.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1ZTS does not grow enough to justify the current Price/Earnings ratio.
1ZTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)2.27
EPS Next 2Y8.32%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
1ZTS has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 3.07, 1ZTS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, 1ZTS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of 1ZTS is nicely growing with an annual growth rate of 21.42%!
Dividend Growth(5Y)21.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
32.08% of the earnings are spent on dividend by 1ZTS. This is a low number and sustainable payout ratio.
The dividend of 1ZTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.08%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
BIT:1ZTS (9/23/2025, 7:00:00 PM)
122.26
-1.76 (-1.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap54.18B
Analysts79.17
Price Target170.64 (39.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.48
Dividend Growth(5Y)21.42%
DP32.08%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.46%
Min EPS beat(2)5.17%
Max EPS beat(2)7.75%
EPS beat(4)4
Avg EPS beat(4)6.02%
Min EPS beat(4)3.63%
Max EPS beat(4)7.75%
EPS beat(8)6
Avg EPS beat(8)2.8%
EPS beat(12)9
Avg EPS beat(12)3.1%
EPS beat(16)12
Avg EPS beat(16)3.49%
Revenue beat(2)2
Avg Revenue beat(2)0.74%
Min Revenue beat(2)0.36%
Max Revenue beat(2)1.11%
Revenue beat(4)3
Avg Revenue beat(4)1.14%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)3.33%
Revenue beat(8)5
Avg Revenue beat(8)0.65%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)-2.04%
PT rev (3m)-5.92%
EPS NQ rev (1m)-1.35%
EPS NQ rev (3m)0.8%
EPS NY rev (1m)1.99%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 20.76 | ||
| P/S | 6.81 | ||
| P/FCF | 28.8 | ||
| P/OCF | 21.82 | ||
| P/B | 12.84 | ||
| P/tB | 55.86 | ||
| EV/EBITDA | 17.16 |
EPS(TTM)5.27
EY4.31%
EPS(NY)5.89
Fwd EY4.82%
FCF(TTM)4.25
FCFY3.47%
OCF(TTM)5.6
OCFY4.58%
SpS17.96
BVpS9.52
TBVpS2.19
PEG (NY)2.79
PEG (5Y)2.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.04% | ||
| ROE | 52.48% | ||
| ROCE | 31.83% | ||
| ROIC | 25.36% | ||
| ROICexc | 29.12% | ||
| ROICexgc | 48.22% | ||
| OM | 37.69% | ||
| PM (TTM) | 27.83% | ||
| GM | 71.5% | ||
| FCFM | 23.64% |
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%
ROICexcg growth 3Y2.53%
ROICexcg 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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 146.09% | ||
| Cap/Sales | 7.57% | ||
| Interest Coverage | 12.96 | ||
| Cash Conversion | 72.81% | ||
| Profit Quality | 84.95% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 6.95 |
F-Score8
WACC9.6%
ROIC/WACC2.64
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)12.27%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.82%
EPS Next Y8.32%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
EPS Next 5Y8.88%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
Revenue Next Year2.92%
Revenue Next 2Y4.45%
Revenue Next 3Y4.86%
Revenue Next 5Y5.34%
EBIT growth 1Y10.05%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.06%
EBIT Next 3Y10.76%
EBIT Next 5Y8.69%
FCF growth 1Y72.68%
FCF growth 3Y9.8%
FCF growth 5Y11.47%
OCF growth 1Y46.52%
OCF growth 3Y10.09%
OCF growth 5Y10.47%