ZOETIS INC (ZOE.DE) Stock Fundamental Analysis
Europe - FRA:ZOE - US98978V1035 - Common Stock
125.04 EUR
+2.48 (+2.02%)
ZOE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 industry peers in the Pharmaceuticals industry. ZOE has an excellent profitability rating, 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.
ZOE had a positive operating cash flow in the past year.
Each year in the past 5 years ZOE has been profitable.
In the past 5 years ZOE always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 18.04%, ZOE belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
ZOE's Return On Equity of 52.48% is amongst the best of the industry. ZOE outperforms 91.84% of its industry peers.
With an excellent Return On Invested Capital value of 25.36%, ZOE belongs to the best of the industry, outperforming 91.84% 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 15.25%.
The 3 year average ROIC (21.64%) for ZOE is below the current ROIC(25.36%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 27.83%. This is amongst the best in the industry. ZOE outperforms 93.88% of its industry peers.
ZOE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 37.69%, ZOE belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
In the last couple of years the Operating Margin of ZOE has grown nicely.
Looking at the Gross Margin, with a value of 71.50%, ZOE is in line with its industry, outperforming 51.02% of the companies in the same industry.
ZOE's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, ZOE has less shares outstanding
ZOE has less shares outstanding than it did 5 years ago.
ZOE has a worse debt/assets ratio than last year.
2.2 Solvency
ZOE has an Altman-Z score of 7.05. This indicates that ZOE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.05, ZOE belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
The Debt to FCF ratio of ZOE is 2.97, which is a good value as it means it would take ZOE, 2.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ZOE (2.97) is better than 65.31% of its industry peers.
ZOE has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.05, ZOE is not doing good in the industry: 69.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 7.05 |
ROIC/WACC2.64
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.76 indicates that ZOE should not have too much problems paying its short term obligations.
ZOE's Current ratio of 1.76 is fine compared to the rest of the industry. ZOE outperforms 69.39% of its industry peers.
A Quick Ratio of 1.04 indicates that ZOE should not have too much problems paying its short term obligations.
ZOE has a Quick ratio of 1.04. This is in the better half of the industry: ZOE outperforms 65.31% of its industry peers.
| 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.
Measured over the past years, ZOE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.22% on average per year.
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
Based on estimates for the next years, ZOE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.88% on average per year.
ZOE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.34% yearly.
EPS Next Y8.32%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
EPS Next 5Y8.88%
Revenue Next Year2.92%
Revenue Next 2Y4.41%
Revenue Next 3Y4.84%
Revenue Next 5Y5.34%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 23.77, which indicates a rather expensive current valuation of ZOE.
Compared to the rest of the industry, the Price/Earnings ratio of ZOE is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.41, ZOE is valued at the same level.
A Price/Forward Earnings ratio of 21.27 indicates a rather expensive 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, ZOE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 21.27 |
4.2 Price Multiples
ZOE's Enterprise Value to EBITDA ratio is in line with the industry average.
ZOE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.51 | ||
| EV/EBITDA | 17.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ZOE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.86
PEG (5Y)2.33
EPS Next 2Y8.32%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
ZOE has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
ZOE's Dividend Yield is comparable with the industry average which is at 3.04.
Compared to an average S&P500 Dividend Yield of 2.38, ZOE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
32.08% of the earnings are spent on dividend by ZOE. This is a low number and sustainable payout ratio.
ZOE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.08%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
FRA:ZOE (9/18/2025, 7:00:00 PM)
125.04
+2.48 (+2.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap55.42B
Analysts79.17
Price Target163.29 (30.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.48
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)-3.39%
PT rev (3m)-7.87%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)1.99%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 21.27 | ||
| P/S | 6.98 | ||
| P/FCF | 29.51 | ||
| P/OCF | 22.36 | ||
| P/B | 13.16 | ||
| P/tB | 57.25 | ||
| EV/EBITDA | 17.56 |
EPS(TTM)5.26
EY4.21%
EPS(NY)5.88
Fwd EY4.7%
FCF(TTM)4.24
FCFY3.39%
OCF(TTM)5.59
OCFY4.47%
SpS17.92
BVpS9.5
TBVpS2.18
PEG (NY)2.86
PEG (5Y)2.33
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%
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 | 1.05 | ||
| 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 | 7.05 |
F-Score8
WACC9.6%
ROIC/WACC2.64
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 Y8.32%
EPS Next 2Y8.32%
EPS Next 3Y8.67%
EPS Next 5Y8.88%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
Revenue Next Year2.92%
Revenue Next 2Y4.41%
Revenue Next 3Y4.84%
Revenue Next 5Y5.34%
EBIT growth 1Y10.05%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.06%
EBIT Next 3Y10.76%
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%