ZOETIS INC (ZOE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ZOE - US98978V1035 - Common Stock
109.58 EUR
-1.72 (-1.55%)
Overall ZOE gets a fundamental rating of 6 out of 10. We evaluated ZOE against 55 industry peers in the Pharmaceuticals industry. ZOE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, ZOE is valued expensive at the moment. With these ratings, ZOE could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
ZOE had positive earnings in the past year.
ZOE had a positive operating cash flow in the past year.
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
ZOE has a Return On Assets of 17.49%. This is amongst the best in the industry. ZOE outperforms 94.55% of its industry peers.
ZOE has a better Return On Equity (49.11%) than 92.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.45%, ZOE belongs to the top of the industry, outperforming 89.09% 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 13.65%.
| 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
ZOE has a better Profit Margin (28.21%) than 89.09% of its industry peers.
In the last couple of years the Profit Margin of ZOE has grown nicely.
ZOE has a better Operating Margin (38.25%) than 92.73% of its industry peers.
In the last couple of years the Operating Margin of ZOE has grown nicely.
With a Gross Margin value of 71.71%, ZOE 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 ZOE 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ZOE is creating value.
The number of shares outstanding for ZOE has been reduced compared to 1 year ago.
Compared to 5 years ago, ZOE has less shares outstanding
The debt/assets ratio for ZOE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.50 indicates that ZOE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.50, ZOE belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
ZOE has a debt to FCF ratio of 3.16. This is a good value and a sign of high solvency as ZOE would need 3.16 years to pay back of all of its debts.
ZOE has a better Debt to FCF ratio (3.16) than 65.45% of its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that ZOE has dependencies on debt financing.
ZOE's Debt to Equity ratio of 1.31 is on the low side compared to the rest of the industry. ZOE is outperformed by 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.5 |
ROIC/WACC2.33
WACC9.21%
2.3 Liquidity
ZOE has a Current Ratio of 3.64. This indicates that ZOE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.64, ZOE belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
ZOE has a Quick Ratio of 2.28. This indicates that ZOE is financially healthy and has no problem in meeting its short term obligations.
ZOE has a better Quick ratio (2.28) than 87.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.07% over the past year.
The Earnings Per Share has been growing by 10.22% on average over the past years. This is quite good.
Looking at the last year, ZOE shows a small growth in Revenue. The Revenue has grown by 2.68% in the last year.
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)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
Based on estimates for the next years, ZOE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.09% on average per year.
ZOE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.60% yearly.
EPS Next Y8.15%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
EPS Next 5Y8.09%
Revenue Next Year2.07%
Revenue Next 2Y3.51%
Revenue Next 3Y4.23%
Revenue Next 5Y4.6%
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 decreasing.
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
ZOE is valuated rather expensively with a Price/Earnings ratio of 20.18.
The rest of the industry has a similar Price/Earnings ratio as ZOE.
ZOE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.74, ZOE is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as ZOE.
ZOE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZOE is on the same level as its industry peers.
ZOE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.19 | ||
| EV/EBITDA | 15.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ZOE may justify a higher PE ratio.
PEG (NY)2.48
PEG (5Y)1.98
EPS Next 2Y7.44%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
ZOE has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
ZOE's Dividend Yield is comparable with the industry average which is at 1.60.
Compared to an average S&P500 Dividend Yield of 1.94, ZOE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of ZOE is nicely growing with an annual growth rate of 21.42%!
Dividend Growth(5Y)21.42%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
32.55% of the earnings are spent on dividend by ZOE. This is a low number and sustainable payout ratio.
The dividend of ZOE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.55%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
FRA:ZOE (1/7/2026, 7:00:00 PM)
109.58
-1.72 (-1.55%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners97.58%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap48.29B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts80.83
Price Target141 (28.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend1.48
Dividend Growth(5Y)21.42%
DP32.55%
Div Incr Years4
Div Non Decr Years4
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)-6.88%
PT rev (3m)-15.26%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-6.21%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 18.74 | ||
| P/S | 6 | ||
| P/FCF | 25.19 | ||
| P/OCF | 19.35 | ||
| P/B | 10.45 | ||
| P/tB | 35.4 | ||
| EV/EBITDA | 15.04 |
EPS(TTM)5.43
EY4.96%
EPS(NY)5.85
Fwd EY5.34%
FCF(TTM)4.35
FCFY3.97%
OCF(TTM)5.66
OCFY5.17%
SpS18.25
BVpS10.48
TBVpS3.1
PEG (NY)2.48
PEG (5Y)1.98
Graham Number35.79
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 | 6.5 |
F-Score6
WACC9.21%
ROIC/WACC2.33
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 Y8.15%
EPS Next 2Y7.44%
EPS Next 3Y7.99%
EPS Next 5Y8.09%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
Revenue Next Year2.07%
Revenue Next 2Y3.51%
Revenue Next 3Y4.23%
Revenue Next 5Y4.6%
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 / 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 for ZOE 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 8 / 10.
What is the financial health of ZOETIS INC (ZOE.DE) stock?
The financial health rating of ZOETIS INC (ZOE.DE) is 7 / 10.
How sustainable is the dividend of ZOETIS INC (ZOE.DE) stock?
The dividend rating of ZOETIS INC (ZOE.DE) is 4 / 10 and the dividend payout ratio is 32.55%.