ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - BIT:1ZTS - US98978V1035 - Common Stock
125.64 EUR
+1.12 (+0.9%)
Overall 1ZTS gets a fundamental rating of 6 out of 10. We evaluated 1ZTS against 53 industry peers in the Pharmaceuticals industry. 1ZTS has an excellent profitability rating, but there are some minor concerns on its financial health. 1ZTS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1ZTS was profitable.
In the past year 1ZTS had a positive cash flow from operations.
1ZTS had positive earnings in each of the past 5 years.
1ZTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1ZTS has a better Return On Assets (18.04%) than 92.45% of its industry peers.
1ZTS has a Return On Equity of 52.48%. This is amongst the best in the industry. 1ZTS outperforms 90.57% of its industry peers.
The Return On Invested Capital of 1ZTS (25.36%) is better than 90.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ZTS is significantly above the industry average of 14.46%.
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 90.57% of its industry peers.
1ZTS's Profit Margin has improved in the last couple of years.
1ZTS has a Operating Margin of 37.69%. This is amongst the best in the industry. 1ZTS outperforms 90.57% of its industry peers.
In the last couple of years the Operating Margin of 1ZTS has grown nicely.
1ZTS has a Gross Margin (71.50%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1ZTS is creating value.
Compared to 1 year ago, 1ZTS has less shares outstanding
Compared to 5 years ago, 1ZTS has less shares outstanding
1ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.97 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.97, 1ZTS belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
1ZTS has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as 1ZTS would need 2.97 years to pay back of all of its debts.
The Debt to FCF ratio of 1ZTS (2.97) is better than 62.26% of its industry peers.
A Debt/Equity ratio of 1.05 is on the high side and indicates that 1ZTS has dependencies on debt financing.
1ZTS's Debt to Equity ratio of 1.05 is on the low side compared to the rest of the industry. 1ZTS is outperformed by 67.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 6.97 |
ROIC/WACC2.94
WACC8.63%
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.
The Current ratio of 1ZTS (1.76) is better than 67.92% of its industry peers.
1ZTS has a Quick Ratio of 1.04. This is a normal value and indicates that 1ZTS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.04, 1ZTS is doing good in the industry, outperforming 64.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
1ZTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.27%, which is quite good.
Measured over the past years, 1ZTS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.22% on average per year.
Looking at the last year, 1ZTS shows a small growth in Revenue. The Revenue has grown by 5.27% in the last year.
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 9.00% yearly.
Based on estimates for the next years, 1ZTS will show a small growth in Revenue. The Revenue will grow by 5.30% on average per year.
EPS Next Y8.41%
EPS Next 2Y8.37%
EPS Next 3Y8.78%
EPS Next 5Y9%
Revenue Next Year2.87%
Revenue Next 2Y4.37%
Revenue Next 3Y4.8%
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 stable.
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
With a Price/Earnings ratio of 23.35, 1ZTS is valued on the expensive side.
1ZTS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of 1ZTS to the average of the S&P500 Index (26.11), we can say 1ZTS is valued inline with the index average.
A Price/Forward Earnings ratio of 20.88 indicates a rather expensive valuation of 1ZTS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ZTS indicates a slightly more expensive valuation: 1ZTS is more expensive than 60.38% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. 1ZTS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.35 | ||
| Fwd PE | 20.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ZTS indicates a slightly more expensive valuation: 1ZTS is more expensive than 60.38% of the companies listed in the same industry.
1ZTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.99 | ||
| EV/EBITDA | 17.27 |
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 1ZTS may justify a higher PE ratio.
PEG (NY)2.78
PEG (5Y)2.29
EPS Next 2Y8.37%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, 1ZTS has a reasonable but not impressive dividend return.
1ZTS's Dividend Yield is comparable with the industry average which is at 2.99.
With a Dividend Yield of 1.31, 1ZTS pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of 1ZTS grows each year by 21.42%, which is quite nice.
Dividend Growth(5Y)21.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1ZTS pays out 32.08% of its income as dividend. This is a 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 2Y8.37%
EPS Next 3Y8.78%
BIT:1ZTS (10/23/2025, 7:00:00 PM)
125.64
+1.12 (+0.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners98.55%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap55.68B
Revenue(TTM)9.38B
Net Income(TTM)2.61B
Analysts79.17
Price Target167.73 (33.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.5
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)2.67%
PT rev (3m)-3.71%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-2.12%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.35 | ||
| Fwd PE | 20.88 | ||
| P/S | 6.85 | ||
| P/FCF | 28.99 | ||
| P/OCF | 21.96 | ||
| P/B | 12.93 | ||
| P/tB | 56.24 | ||
| EV/EBITDA | 17.27 |
EPS(TTM)5.38
EY4.28%
EPS(NY)6.02
Fwd EY4.79%
FCF(TTM)4.33
FCFY3.45%
OCF(TTM)5.72
OCFY4.55%
SpS18.33
BVpS9.72
TBVpS2.23
PEG (NY)2.78
PEG (5Y)2.29
Graham Number34.3
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%
ROICexgc growth 3Y2.53%
ROICexgc 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 | 6.97 |
F-Score8
WACC8.63%
ROIC/WACC2.94
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 Y8.41%
EPS Next 2Y8.37%
EPS Next 3Y8.78%
EPS Next 5Y9%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
Revenue Next Year2.87%
Revenue Next 2Y4.37%
Revenue Next 3Y4.8%
Revenue Next 5Y5.3%
EBIT growth 1Y10.05%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.77%
EBIT Next 3Y10.41%
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%
ZOETIS INC / 1ZTS.MI FAQ
What is the ChartMill fundamental rating of ZOETIS INC (1ZTS.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1ZTS.MI.
What is the valuation status for 1ZTS stock?
ChartMill assigns a valuation rating of 2 / 10 to ZOETIS INC (1ZTS.MI). This can be considered as Overvalued.
How profitable is ZOETIS INC (1ZTS.MI) stock?
ZOETIS INC (1ZTS.MI) has a profitability rating of 9 / 10.
How financially healthy is ZOETIS INC?
The financial health rating of ZOETIS INC (1ZTS.MI) is 6 / 10.
Can you provide the expected EPS growth for 1ZTS stock?
The Earnings per Share (EPS) of ZOETIS INC (1ZTS.MI) is expected to grow by 8.41% in the next year.