ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
BIT:1ZTS - Euronext Milan - US98978V1035 - Common Stock - Currency: EUR
Overall 1ZTS gets a fundamental rating of 6 out of 10. We evaluated 1ZTS against 51 industry peers in the Pharmaceuticals industry. While 1ZTS has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, 1ZTS is valued expensive at the moment.
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.
In the past 5 years 1ZTS has always 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 17.46%, 1ZTS belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
Looking at the Return On Equity, with a value of 52.12%, 1ZTS belongs to the top of the industry, outperforming 90.74% of the companies in the same industry.
1ZTS has a better Return On Invested Capital (24.98%) than 90.74% 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 15.21%.
The 3 year average ROIC (21.64%) for 1ZTS is below the current ROIC(24.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | 52.12% | ||
| ROIC | 24.98% |
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 26.86%, 1ZTS belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
In the last couple of years the Profit Margin of 1ZTS has grown nicely.
1ZTS's Operating Margin of 36.66% is amongst the best of the industry. 1ZTS outperforms 88.89% of its industry peers.
1ZTS's Operating Margin has improved in the last couple of years.
1ZTS has a Gross Margin of 70.68%. This is comparable to the rest of the industry: 1ZTS outperforms 55.56% of 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 | 36.66% | ||
| PM (TTM) | 26.86% | ||
| GM | 70.68% |
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.
Compared to 1 year ago, 1ZTS has less shares outstanding
1ZTS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1ZTS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.14 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
1ZTS's Altman-Z score of 7.14 is amongst the best of the industry. 1ZTS outperforms 92.59% of its industry peers.
1ZTS has a debt to FCF ratio of 2.86. This is a good value and a sign of high solvency as 1ZTS would need 2.86 years to pay back of all of its debts.
1ZTS has a Debt to FCF ratio of 2.86. This is in the better half of the industry: 1ZTS outperforms 75.93% of its industry peers.
1ZTS has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
1ZTS's Debt to Equity ratio of 1.09 is on the low side compared to the rest of the industry. 1ZTS is outperformed by 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 2.86 | ||
| Altman-Z | 7.14 |
ROIC/WACC2.63
WACC9.5%
2.3 Liquidity
A Current Ratio of 1.75 indicates that 1ZTS should not have too much problems paying its short term obligations.
1ZTS has a Current ratio of 1.75. This is in the better half of the industry: 1ZTS outperforms 66.67% of its industry peers.
1ZTS has a Quick Ratio of 1.08. 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 Quick ratio of 1.08. This is in the better half of the industry: 1ZTS outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.28% over the past year.
The Earnings Per Share has been growing by 10.22% on average over the past years. This is quite good.
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)11.28%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.9%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.7%
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 10.07% yearly.
The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y4.39%
EPS Next 2Y8.03%
EPS Next 3Y8.66%
EPS Next 5Y10.07%
Revenue Next Year1.2%
Revenue Next 2Y3.86%
Revenue Next 3Y4.54%
Revenue Next 5Y5.57%
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
The Price/Earnings ratio is 25.74, which means the current valuation is very expensive for 1ZTS.
Compared to the rest of the industry, the Price/Earnings ratio of 1ZTS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.05, 1ZTS is valued at the same level.
With a Price/Forward Earnings ratio of 24.65, 1ZTS is valued on the expensive side.
1ZTS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.07. 1ZTS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 24.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ZTS.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1ZTS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.57 | ||
| EV/EBITDA | 18.65 |
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)5.87
PEG (5Y)2.52
EPS Next 2Y8.03%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
1ZTS has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.18, 1ZTS has a dividend in line with its industry peers.
With a Dividend Yield of 1.35, 1ZTS pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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 YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1ZTS pays out 31.62% 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.
DP31.62%
EPS Next 2Y8.03%
EPS Next 3Y8.66%
BIT:1ZTS (4/7/2025, 7:00:00 PM)
134.12
-21.16 (-13.63%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners95.58%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap59.83B
Analysts81.67
Price Target189.49 (41.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend1.53
Dividend Growth(5Y)21.42%
DP31.62%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.57%
Min EPS beat(2)3.63%
Max EPS beat(2)7.51%
EPS beat(4)4
Avg EPS beat(4)4.33%
Min EPS beat(4)2.28%
Max EPS beat(4)7.51%
EPS beat(8)6
Avg EPS beat(8)2.31%
EPS beat(12)8
Avg EPS beat(12)2.31%
EPS beat(16)12
Avg EPS beat(16)4.55%
Revenue beat(2)1
Avg Revenue beat(2)1.54%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)3.33%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)3.33%
Revenue beat(8)3
Avg Revenue beat(8)0.23%
Revenue beat(12)4
Avg Revenue beat(12)-0.28%
Revenue beat(16)8
Avg Revenue beat(16)0.77%
PT rev (1m)-4.36%
PT rev (3m)-7.55%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-5.91%
EPS NY rev (1m)-1.55%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.81%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)-3.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 24.65 | ||
| P/S | 7.34 | ||
| P/FCF | 29.57 | ||
| P/OCF | 23.01 | ||
| P/B | 14.25 | ||
| P/tB | 73.95 | ||
| EV/EBITDA | 18.65 |
EPS(TTM)5.21
EY3.88%
EPS(NY)5.44
Fwd EY4.06%
FCF(TTM)4.54
FCFY3.38%
OCF(TTM)5.83
OCFY4.35%
SpS18.27
BVpS9.41
TBVpS1.81
PEG (NY)5.87
PEG (5Y)2.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | 52.12% | ||
| ROCE | 31.34% | ||
| ROIC | 24.98% | ||
| ROICexc | 30.58% | ||
| ROICexgc | 54.19% | ||
| OM | 36.66% | ||
| PM (TTM) | 26.86% | ||
| GM | 70.68% | ||
| FCFM | 24.83% |
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 | 1.09 | ||
| Debt/FCF | 2.86 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 131.79% | ||
| Cap/Sales | 7.08% | ||
| Interest Coverage | 12.38 | ||
| Cash Conversion | 75.91% | ||
| Profit Quality | 92.44% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 7.14 |
F-Score8
WACC9.5%
ROIC/WACC2.63
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)11.28%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%12.9%
EPS Next Y4.39%
EPS Next 2Y8.03%
EPS Next 3Y8.66%
EPS Next 5Y10.07%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.7%
Revenue Next Year1.2%
Revenue Next 2Y3.86%
Revenue Next 3Y4.54%
Revenue Next 5Y5.57%
EBIT growth 1Y9.31%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.71%
EBIT Next 3Y10.54%
EBIT Next 5Y9.72%
FCF growth 1Y41.76%
FCF growth 3Y9.8%
FCF growth 5Y11.47%
OCF growth 1Y25.5%
OCF growth 3Y10.09%
OCF growth 5Y10.47%