ZOETIS INC (1ZTS.MI) Fundamental Analysis & Valuation

BIT:1ZTS • US98978V1035

109.66 EUR
+3.02 (+2.83%)
Last: Mar 2, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This 1ZTS.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to 1ZTS. 1ZTS was compared to 54 industry peers in the Pharmaceuticals industry. 1ZTS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1ZTS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. 1ZTS.MI Profitability Analysis

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.
  • Each year in the past 5 years 1ZTS had a positive operating cash flow.
1ZTS.MI Yearly Net Income VS EBIT VS OCF VS FCF1ZTS.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

1.2 Ratios

  • 1ZTS's Return On Assets of 17.49% is amongst the best of the industry. 1ZTS outperforms 92.59% of its industry peers.
  • 1ZTS's Return On Equity of 49.11% is amongst the best of the industry. 1ZTS outperforms 90.74% of its industry peers.
  • 1ZTS's Return On Invested Capital of 21.45% is amongst the best of the industry. 1ZTS outperforms 85.19% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for 1ZTS is significantly above the industry average of 14.78%.
Industry RankSector 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%
1ZTS.MI Yearly ROA, ROE, ROIC1ZTS.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

  • The Profit Margin of 1ZTS (28.21%) is better than 87.04% of its industry peers.
  • In the last couple of years the Profit Margin of 1ZTS has grown nicely.
  • 1ZTS has a Operating Margin of 38.25%. This is amongst the best in the industry. 1ZTS outperforms 90.74% of its industry peers.
  • 1ZTS's Operating Margin has improved in the last couple of years.
  • 1ZTS has a Gross Margin (71.71%) which is in line with its industry peers.
  • 1ZTS's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
1ZTS.MI Yearly Profit, Operating, Gross Margins1ZTS.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. 1ZTS.MI Health Analysis

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
  • 1ZTS has less shares outstanding than it did 5 years ago.
  • 1ZTS has a worse debt/assets ratio than last year.
1ZTS.MI Yearly Shares Outstanding1ZTS.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
1ZTS.MI Yearly Total Debt VS Total Assets1ZTS.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

  • An Altman-Z score of 6.47 indicates that 1ZTS is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of 1ZTS (6.47) is better than 88.89% of its industry peers.
  • The Debt to FCF ratio of 1ZTS is 3.16, which is a good value as it means it would take 1ZTS, 3.16 years of fcf income to pay off all of its debts.
  • 1ZTS has a better Debt to FCF ratio (3.16) than 68.52% of its industry peers.
  • A Debt/Equity ratio of 1.31 is on the high side and indicates that 1ZTS has dependencies on debt 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 72.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 3.16
Altman-Z 6.47
ROIC/WACC2.34
WACC9.15%
1ZTS.MI Yearly LT Debt VS Equity VS FCF1ZTS.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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.
  • With an excellent Current ratio value of 3.64, 1ZTS belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
  • A Quick Ratio of 2.28 indicates that 1ZTS has no problem at all paying its short term obligations.
  • The Quick ratio of 1ZTS (2.28) is better than 87.04% of its industry peers.
Industry RankSector Rank
Current Ratio 3.64
Quick Ratio 2.28
1ZTS.MI Yearly Current Assets VS Current Liabilites1ZTS.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. 1ZTS.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.07% 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 2.68%.
  • 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 7.88% on average over the next years.
  • The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y8.19%
EPS Next 2Y7.71%
EPS Next 3Y8.12%
EPS Next 5Y7.88%
Revenue Next Year2.07%
Revenue Next 2Y3.52%
Revenue Next 3Y4.18%
Revenue Next 5Y4.67%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less 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.
1ZTS.MI Yearly Revenue VS Estimates1ZTS.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
1ZTS.MI Yearly EPS VS Estimates1ZTS.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

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3

4. 1ZTS.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.01, which indicates a rather expensive current 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.
  • When comparing the Price/Earnings ratio of 1ZTS to the average of the S&P500 Index (26.29), we can say 1ZTS is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 18.46, 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 24.60, 1ZTS is valued a bit cheaper.
Industry RankSector Rank
PE 20.01
Fwd PE 18.46
1ZTS.MI Price Earnings VS Forward Price Earnings1ZTS.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 1ZTS's Enterprise Value to EBITDA is on the same level as the industry average.
  • 1ZTS's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 24.94
EV/EBITDA 14.91
1ZTS.MI Per share data1ZTS.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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)2.44
PEG (5Y)1.96
EPS Next 2Y7.71%
EPS Next 3Y8.12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. 1ZTS.MI Dividend Analysis

5.1 Amount

  • 1ZTS has a Yearly Dividend Yield of 1.64%.
  • Compared to an average industry Dividend Yield of 1.91, 1ZTS has a dividend in line with its industry peers.
  • 1ZTS's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.64%

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.
  • The dividend of 1ZTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.55%
EPS Next 2Y7.71%
EPS Next 3Y8.12%
1ZTS.MI Yearly Income VS Free CF VS Dividend1ZTS.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
1ZTS.MI Dividend Payout.1ZTS.MI Dividend Payout, showing the Payout Ratio.1ZTS.MI Dividend Payout.PayoutRetained Earnings

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1ZTS.MI Fundamentals: All Metrics, Ratios and Statistics

ZOETIS INC

BIT:1ZTS (3/2/2026, 7:00:00 PM)

109.66

+3.02 (+2.83%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-04
Earnings (Next)02-12
Inst Owners97.58%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap48.33B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts79.17
Price Target133.48 (21.72%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
Yearly Dividend1.47
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)0%
PT rev (3m)-9.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
Industry RankSector Rank
PE 20.01
Fwd PE 18.46
P/S 5.95
P/FCF 24.94
P/OCF 19.16
P/B 10.35
P/tB 35.05
EV/EBITDA 14.91
EPS(TTM)5.48
EY5%
EPS(NY)5.94
Fwd EY5.42%
FCF(TTM)4.4
FCFY4.01%
OCF(TTM)5.72
OCFY5.22%
SpS18.44
BVpS10.6
TBVpS3.13
PEG (NY)2.44
PEG (5Y)1.96
Graham Number36.14
Profitability
Industry RankSector 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 RankSector 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 6.47
F-Score6
WACC9.15%
ROIC/WACC2.34
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 Y8.19%
EPS Next 2Y7.71%
EPS Next 3Y8.12%
EPS Next 5Y7.88%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
Revenue Next Year2.07%
Revenue Next 2Y3.52%
Revenue Next 3Y4.18%
Revenue Next 5Y4.67%
EBIT growth 1Y7.7%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year16.84%
EBIT Next 3Y9.66%
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.


Can you provide the valuation status for ZOETIS INC?

ChartMill assigns a valuation rating of 3 / 10 to ZOETIS INC (1ZTS.MI). This can be considered as Overvalued.


What is the profitability of 1ZTS stock?

ZOETIS INC (1ZTS.MI) has a profitability rating of 8 / 10.


What is the expected EPS growth for ZOETIS INC (1ZTS.MI) stock?

The Earnings per Share (EPS) of ZOETIS INC (1ZTS.MI) is expected to grow by 8.19% in the next year.


How sustainable is the dividend of ZOETIS INC (1ZTS.MI) stock?

The dividend rating of ZOETIS INC (1ZTS.MI) is 4 / 10 and the dividend payout ratio is 32.55%.