ZOETIS INC (ZOE.DE) Stock Fundamental Analysis
Europe - FRA:ZOE - US98978V1035 - Common Stock
124.76 EUR
-0.44 (-0.35%)
Taking everything into account, ZOE scores 6 out of 10 in our fundamental rating. ZOE was compared to 52 industry peers in the Pharmaceuticals industry. ZOE scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, ZOE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ZOE was profitable.
In the past year ZOE had a positive cash flow from operations.
In the past 5 years ZOE has always been profitable.
Each year in the past 5 years ZOE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ZOE (18.04%) is better than 94.23% of its industry peers.
ZOE's Return On Equity of 52.48% is amongst the best of the industry. ZOE outperforms 92.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.36%, ZOE belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ZOE is significantly above the industry average of 15.23%.
The last Return On Invested Capital (25.36%) for ZOE is above the 3 year average (21.64%), which is a sign of increasing profitability.
| 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
ZOE's Profit Margin of 27.83% is amongst the best of the industry. ZOE outperforms 96.15% of its industry peers.
ZOE's Profit Margin has improved in the last couple of years.
ZOE has a Operating Margin of 37.69%. This is amongst the best in the industry. ZOE outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of ZOE has grown nicely.
With a Gross Margin value of 71.50%, ZOE perfoms like the industry average, outperforming 51.92% of the companies in the same industry.
In the last couple of years the Gross Margin of ZOE 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ZOE is creating value.
The number of shares outstanding for ZOE has been reduced compared to 1 year ago.
The number of shares outstanding for ZOE has been reduced compared to 5 years ago.
The debt/assets ratio for ZOE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.96 indicates that ZOE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.96, ZOE belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
ZOE has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as ZOE would need 2.97 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.97, ZOE is doing good in the industry, outperforming 63.46% of the companies in the same industry.
ZOE has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.05, ZOE is doing worse than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 6.96 |
ROIC/WACC2.94
WACC8.63%
2.3 Liquidity
ZOE has a Current Ratio of 1.76. This is a normal value and indicates that ZOE is financially healthy and should not expect problems in meeting its short term obligations.
ZOE has a Current ratio of 1.76. This is in the better half of the industry: ZOE outperforms 71.15% of its industry peers.
A Quick Ratio of 1.04 indicates that ZOE should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.04, ZOE is doing good in the industry, outperforming 71.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
ZOE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.27%, which is quite good.
ZOE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.22% yearly.
ZOE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.27%.
Measured over the past years, ZOE shows a quite strong growth in Revenue. The Revenue has been growing by 8.14% on average per year.
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
ZOE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.00% yearly.
The Revenue is expected to grow by 5.30% on average over the next years.
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
ZOE is valuated rather expensively with a Price/Earnings ratio of 23.15.
ZOE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.10. ZOE is around the same levels.
The Price/Forward Earnings ratio is 20.73, which indicates a rather expensive current valuation of ZOE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZOE is on the same level as its industry peers.
ZOE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 20.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZOE.
The rest of the industry has a similar Price/Free Cash Flow ratio as ZOE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.78 | ||
| EV/EBITDA | 17.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZOE does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ZOE may justify a higher PE ratio.
PEG (NY)2.75
PEG (5Y)2.27
EPS Next 2Y8.37%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, ZOE has a reasonable but not impressive dividend return.
ZOE's Dividend Yield is comparable with the industry average which is at 2.98.
Compared to an average S&P500 Dividend Yield of 2.35, ZOE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of ZOE grows each year by 21.42%, which is quite nice.
Dividend Growth(5Y)21.42%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
ZOE pays out 32.08% of its income as dividend. This is a sustainable payout ratio.
ZOE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.08%
EPS Next 2Y8.37%
EPS Next 3Y8.78%
FRA:ZOE (10/31/2025, 7:00:00 PM)
124.76
-0.44 (-0.35%)
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 Cap55.29B
Revenue(TTM)9.38B
Net Income(TTM)2.61B
Analysts79.17
Price Target166.4 (33.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.49
Dividend Growth(5Y)21.42%
DP32.08%
Div Incr Years4
Div Non Decr Years4
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)1.9%
PT rev (3m)-4.2%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-1.86%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 20.73 | ||
| P/S | 6.8 | ||
| P/FCF | 28.78 | ||
| P/OCF | 21.8 | ||
| P/B | 12.83 | ||
| P/tB | 55.82 | ||
| EV/EBITDA | 17.21 |
EPS(TTM)5.39
EY4.32%
EPS(NY)6.02
Fwd EY4.82%
FCF(TTM)4.34
FCFY3.47%
OCF(TTM)5.72
OCFY4.59%
SpS18.33
BVpS9.72
TBVpS2.23
PEG (NY)2.75
PEG (5Y)2.27
Graham Number34.34
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 | 6.96 |
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 / ZOE.DE FAQ
What is the fundamental rating for ZOE stock?
ChartMill assigns a fundamental rating of 6 / 10 to ZOE.DE.
What is the valuation status of ZOETIS INC (ZOE.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to ZOETIS INC (ZOE.DE). This can be considered as Overvalued.
What is the profitability of ZOE stock?
ZOETIS INC (ZOE.DE) has a profitability rating of 9 / 10.
How financially healthy is ZOETIS INC?
The financial health rating of ZOETIS INC (ZOE.DE) is 6 / 10.
Can you provide the expected EPS growth for ZOE stock?
The Earnings per Share (EPS) of ZOETIS INC (ZOE.DE) is expected to grow by 8.41% in the next year.