ZOETIS INC (1ZTS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ZTS - US98978V1035 - Common Stock
101.74 EUR
-8.34 (-7.58%)
Taking everything into account, 1ZTS scores 6 out of 10 in our fundamental rating. 1ZTS was compared to 54 industry peers in the Pharmaceuticals industry. 1ZTS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1ZTS is quite expensive at the moment. It does show a decent growth rate. With these ratings, 1ZTS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1ZTS was profitable.
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
Looking at the Return On Assets, with a value of 17.49%, 1ZTS belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
1ZTS's Return On Equity of 49.11% is amongst the best of the industry. 1ZTS outperforms 92.73% of its industry peers.
The Return On Invested Capital of 1ZTS (21.45%) is better than 89.09% 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 13.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 49.11% | ||
| ROIC | 21.45% |
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 Profit Margin of 28.21%. This is amongst the best in the industry. 1ZTS outperforms 89.09% of its industry peers.
1ZTS's Profit Margin has improved in the last couple of years.
The Operating Margin of 1ZTS (38.25%) is better than 92.73% of its industry peers.
1ZTS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 71.71%, 1ZTS perfoms like the industry average, outperforming 54.55% of the companies in the same 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 | 38.25% | ||
| PM (TTM) | 28.21% | ||
| GM | 71.71% |
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
The debt/assets ratio for 1ZTS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.25 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
1ZTS has a better Altman-Z score (6.25) than 83.64% of its industry peers.
1ZTS has a debt to FCF ratio of 3.16. This is a good value and a sign of high solvency as 1ZTS would need 3.16 years to pay back of all of its debts.
1ZTS has a Debt to FCF ratio of 3.16. This is in the better half of the industry: 1ZTS outperforms 69.09% of its industry peers.
1ZTS has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
1ZTS's Debt to Equity ratio of 1.31 is on the low side compared to the rest of the industry. 1ZTS is outperformed by 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.25 |
ROIC/WACC2.41
WACC8.91%
2.3 Liquidity
1ZTS has a Current Ratio of 3.64. This indicates that 1ZTS is financially healthy and has no problem in meeting its short term obligations.
1ZTS's Current ratio of 3.64 is amongst the best of the industry. 1ZTS outperforms 90.91% of its industry peers.
1ZTS has a Quick Ratio of 2.28. This indicates that 1ZTS is financially healthy and has no problem in meeting its short term obligations.
1ZTS has a Quick ratio of 2.28. This is amongst the best in the industry. 1ZTS outperforms 87.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
1ZTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.07%, which is quite good.
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 been growing slightly by 2.68% in the past year.
Measured over the past years, 1ZTS shows a quite strong growth in Revenue. The Revenue has been growing by 8.14% on average per year.
EPS 1Y (TTM)10.07%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%7.59%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
3.2 Future
The Earnings Per Share is expected to grow by 8.09% on average over the next years. This is quite good.
Based on estimates for the next years, 1ZTS will show a small growth in Revenue. The Revenue will grow by 4.60% on average per year.
EPS Next Y8.23%
EPS Next 2Y7.52%
EPS Next 3Y8.09%
EPS Next 5Y8.09%
Revenue Next Year2.14%
Revenue Next 2Y3.63%
Revenue Next 3Y4.33%
Revenue Next 5Y4.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.70 indicates a rather expensive valuation of 1ZTS.
Compared to the rest of the industry, the Price/Earnings ratio of 1ZTS is on the same level as its industry peers.
1ZTS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.31 indicates a rather expensive valuation of 1ZTS.
1ZTS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1ZTS to the average of the S&P500 Index (23.56), we can say 1ZTS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.31 |
4.2 Price Multiples
1ZTS's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ZTS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.31 | ||
| EV/EBITDA | 14.01 |
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)2.27
PEG (5Y)1.83
EPS Next 2Y7.52%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
1ZTS has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 2.90, 1ZTS has a dividend in line with its industry peers.
With a Dividend Yield of 1.31, 1ZTS pays less dividend than the S&P500 average, which is at 2.31.
| 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 32.55% 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.
DP32.55%
EPS Next 2Y7.52%
EPS Next 3Y8.09%
BIT:1ZTS (11/20/2025, 7:00:00 PM)
101.74
-8.34 (-7.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners97.47%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap44.84B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts80.83
Price Target146.83 (44.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.49
Dividend Growth(5Y)21.42%
DP32.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-12.46%
PT rev (3m)-13.95%
EPS NQ rev (1m)-6.26%
EPS NQ rev (3m)-6.35%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)-2.81%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.31 | ||
| P/S | 5.56 | ||
| P/FCF | 23.31 | ||
| P/OCF | 17.91 | ||
| P/B | 9.67 | ||
| P/tB | 32.75 | ||
| EV/EBITDA | 14.01 |
EPS(TTM)5.44
EY5.35%
EPS(NY)5.88
Fwd EY5.78%
FCF(TTM)4.36
FCFY4.29%
OCF(TTM)5.68
OCFY5.59%
SpS18.31
BVpS10.52
TBVpS3.11
PEG (NY)2.27
PEG (5Y)1.83
Graham Number35.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 49.11% | ||
| ROCE | 26.92% | ||
| ROIC | 21.45% | ||
| ROICexc | 25.41% | ||
| ROICexgc | 38.35% | ||
| OM | 38.25% | ||
| PM (TTM) | 28.21% | ||
| GM | 71.71% | ||
| FCFM | 23.84% |
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-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector 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 | 6.25 |
F-Score6
WACC8.91%
ROIC/WACC2.41
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)10.07%
EPS 3Y8%
EPS 5Y10.22%
EPS Q2Q%7.59%
EPS Next Y8.23%
EPS Next 2Y7.52%
EPS Next 3Y8.09%
EPS Next 5Y8.09%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
Revenue Next Year2.14%
Revenue Next 2Y3.63%
Revenue Next 3Y4.33%
Revenue Next 5Y4.6%
EBIT growth 1Y7.7%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year16.53%
EBIT Next 3Y9.76%
EBIT Next 5Y7.94%
FCF growth 1Y50.13%
FCF growth 3Y9.8%
FCF growth 5Y11.47%
OCF growth 1Y32.73%
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 4 / 10 to ZOETIS INC (1ZTS.MI). This can be considered as Fairly Valued.
How profitable is ZOETIS INC (1ZTS.MI) stock?
ZOETIS INC (1ZTS.MI) has a profitability rating of 8 / 10.
How financially healthy is ZOETIS INC?
The financial health rating of ZOETIS INC (1ZTS.MI) is 7 / 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 8.23% in the next year.