ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
BIT:1ZTS - Euronext Milan - US98978V1035 - Common Stock - Currency: EUR
1ZTS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 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
In the past year 1ZTS was profitable.
In the past year 1ZTS had a positive cash flow from operations.
In the past 5 years 1ZTS has always been profitable.
In the past 5 years 1ZTS always reported a positive cash flow from operatings.
1.2 Ratios
1ZTS has a better Return On Assets (17.86%) than 92.16% of its industry peers.
With an excellent Return On Equity value of 54.09%, 1ZTS belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
1ZTS's Return On Invested Capital of 25.63% is amongst the best of the industry. 1ZTS outperforms 90.20% 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 15.16%.
The last Return On Invested Capital (25.63%) for 1ZTS is above the 3 year average (21.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.86% | ||
| ROE | 54.09% | ||
| ROIC | 25.63% |
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
With an excellent Profit Margin value of 27.12%, 1ZTS belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
1ZTS's Profit Margin has improved in the last couple of years.
1ZTS has a better Operating Margin (37.11%) than 88.24% of its industry peers.
1ZTS's Operating Margin has improved in the last couple of years.
1ZTS has a Gross Margin (70.98%) which is comparable to the rest of the industry.
1ZTS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.11% | ||
| PM (TTM) | 27.12% | ||
| GM | 70.98% |
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
1ZTS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 1ZTS has less shares outstanding
The number of shares outstanding for 1ZTS has been reduced compared to 5 years ago.
The debt/assets ratio for 1ZTS is higher compared to a year ago.
2.2 Solvency
1ZTS has an Altman-Z score of 7.20. This indicates that 1ZTS is financially healthy and has little risk of bankruptcy at the moment.
1ZTS has a Altman-Z score of 7.20. This is amongst the best in the industry. 1ZTS outperforms 94.12% of its industry peers.
1ZTS has a debt to FCF ratio of 2.88. This is a good value and a sign of high solvency as 1ZTS would need 2.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.88, 1ZTS is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
1ZTS has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
1ZTS has a Debt to Equity ratio of 1.12. This is in the lower half of the industry: 1ZTS underperforms 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 2.88 | ||
| Altman-Z | 7.2 |
ROIC/WACC2.68
WACC9.55%
2.3 Liquidity
1ZTS has a Current Ratio of 1.74. 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 Current ratio value of 1.74, 1ZTS is doing good in the industry, outperforming 70.59% of the companies in the same industry.
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 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| 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.
The Revenue has grown by 8.33% in the past year. This is quite good.
1ZTS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.14% yearly.
EPS 1Y (TTM)12.27%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.82%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
3.2 Future
Based on estimates for the next years, 1ZTS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
The Revenue is expected to grow by 5.61% on average over the next years.
EPS Next Y6.2%
EPS Next 2Y7.94%
EPS Next 3Y8.66%
EPS Next 5Y9.5%
Revenue Next Year2.65%
Revenue Next 2Y4.38%
Revenue Next 3Y4.87%
Revenue Next 5Y5.61%
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.
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
1ZTS is valuated rather expensively with a Price/Earnings ratio of 24.43.
1ZTS's Price/Earnings ratio is in line with the industry average.
1ZTS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.03, which indicates a rather expensive current valuation of 1ZTS.
Based on the Price/Forward Earnings ratio, 1ZTS is valued a bit more expensive than the industry average as 60.78% of the companies are valued more cheaply.
1ZTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 22.03 |
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 60.78% 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 | 29.66 | ||
| EV/EBITDA | 18.42 |
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.
The excellent profitability rating of 1ZTS may justify a higher PE ratio.
PEG (NY)3.94
PEG (5Y)2.39
EPS Next 2Y7.94%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, 1ZTS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.12, 1ZTS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, 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
1ZTS pays out 32.25% of its income as dividend. This is a sustainable payout ratio.
1ZTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.25%
EPS Next 2Y7.94%
EPS Next 3Y8.66%
BIT:1ZTS (7/28/2025, 7:00:00 PM)
130.44
+2.9 (+2.27%)
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 Cap58.07B
Analysts79.17
Price Target167.27 (28.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.49
Dividend Growth(5Y)21.42%
DP32.25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.4%
Min EPS beat(2)3.63%
Max EPS beat(2)5.17%
EPS beat(4)4
Avg EPS beat(4)5.06%
Min EPS beat(4)3.63%
Max EPS beat(4)7.51%
EPS beat(8)6
Avg EPS beat(8)2.6%
EPS beat(12)8
Avg EPS beat(12)2.24%
EPS beat(16)12
Avg EPS beat(16)3.55%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.36%
Revenue beat(4)3
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)3.33%
Revenue beat(8)4
Avg Revenue beat(8)0.48%
Revenue beat(12)5
Avg Revenue beat(12)-0.19%
Revenue beat(16)8
Avg Revenue beat(16)0.35%
PT rev (1m)-4.21%
PT rev (3m)-11.73%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)1.29%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 22.03 | ||
| P/S | 7.28 | ||
| P/FCF | 29.66 | ||
| P/OCF | 22.97 | ||
| P/B | 14.53 | ||
| P/tB | 78.93 | ||
| EV/EBITDA | 18.42 |
EPS(TTM)5.34
EY4.09%
EPS(NY)5.92
Fwd EY4.54%
FCF(TTM)4.4
FCFY3.37%
OCF(TTM)5.68
OCFY4.35%
SpS17.91
BVpS8.98
TBVpS1.65
PEG (NY)3.94
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.86% | ||
| ROE | 54.09% | ||
| ROCE | 32.17% | ||
| ROIC | 25.63% | ||
| ROICexc | 30.53% | ||
| ROICexgc | 52.86% | ||
| OM | 37.11% | ||
| PM (TTM) | 27.12% | ||
| GM | 70.98% | ||
| FCFM | 24.56% |
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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 2.88 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 135.51% | ||
| Cap/Sales | 7.15% | ||
| Interest Coverage | 12.58 | ||
| Cash Conversion | 74.82% | ||
| Profit Quality | 90.59% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 7.2 |
F-Score8
WACC9.55%
ROIC/WACC2.68
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 Y6.2%
EPS Next 2Y7.94%
EPS Next 3Y8.66%
EPS Next 5Y9.5%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
Revenue Next Year2.65%
Revenue Next 2Y4.38%
Revenue Next 3Y4.87%
Revenue Next 5Y5.61%
EBIT growth 1Y9.64%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.06%
EBIT Next 3Y10.76%
EBIT Next 5Y9.07%
FCF growth 1Y56.45%
FCF growth 3Y9.8%
FCF growth 5Y11.47%
OCF growth 1Y36.85%
OCF growth 3Y10.09%
OCF growth 5Y10.47%