ZOETIS INC (ZTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZTS - US98978V1035 - Common Stock
128.705 USD
+5.84 (+4.75%)
We assign a fundamental rating of 7 out of 10 to ZTS. ZTS was compared to 192 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making ZTS a very profitable company, without any liquidiy or solvency issues. ZTS is not valued too expensively and it also shows a decent growth rate. This makes ZTS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
ZTS had positive earnings in the past year.
ZTS had a positive operating cash flow in the past year.
In the past 5 years ZTS has always been profitable.
ZTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ZTS (17.49%) is better than 96.88% of its industry peers.
With an excellent Return On Equity value of 49.11%, ZTS belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.45%, ZTS belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ZTS is significantly above the industry average of 12.71%.
| 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
The Profit Margin of ZTS (28.21%) is better than 94.27% of its industry peers.
In the last couple of years the Profit Margin of ZTS has grown nicely.
ZTS has a better Operating Margin (38.25%) than 96.88% of its industry peers.
ZTS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 71.71%, ZTS is doing good in the industry, outperforming 78.13% of the companies in the same industry.
ZTS's Gross Margin has been stable in the last couple of years.
| 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 ZTS is creating value.
Compared to 1 year ago, ZTS has less shares outstanding
The number of shares outstanding for ZTS has been reduced compared to 5 years ago.
ZTS has a worse debt/assets ratio than last year.
2.2 Solvency
ZTS has an Altman-Z score of 6.38. This indicates that ZTS is financially healthy and has little risk of bankruptcy at the moment.
ZTS's Altman-Z score of 6.38 is amongst the best of the industry. ZTS outperforms 80.21% of its industry peers.
ZTS has a debt to FCF ratio of 3.16. This is a good value and a sign of high solvency as ZTS would need 3.16 years to pay back of all of its debts.
ZTS has a better Debt to FCF ratio (3.16) than 89.06% of its industry peers.
ZTS has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ZTS (1.31) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 6.38 |
ROIC/WACC2.46
WACC8.71%
2.3 Liquidity
A Current Ratio of 3.64 indicates that ZTS has no problem at all paying its short term obligations.
The Current ratio of ZTS (3.64) is comparable to the rest of the industry.
ZTS has a Quick Ratio of 2.28. This indicates that ZTS is financially healthy and has no problem in meeting its short term obligations.
ZTS has a Quick ratio (2.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
ZTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.07%, which is quite good.
ZTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.22% yearly.
Looking at the last year, ZTS shows a small growth in Revenue. The Revenue has grown by 2.68% in the last year.
The Revenue has been growing by 8.14% on average over the past years. This is quite good.
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, ZTS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.61% on average per year.
Based on estimates for the next years, ZTS will show a small growth in Revenue. The Revenue will grow by 5.06% on average per year.
EPS Next Y8.38%
EPS Next 2Y8.35%
EPS Next 3Y8.76%
EPS Next 5Y8.61%
Revenue Next Year2.86%
Revenue Next 2Y4.36%
Revenue Next 3Y4.79%
Revenue Next 5Y5.06%
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
With a Price/Earnings ratio of 20.30, ZTS is valued on the expensive side.
Based on the Price/Earnings ratio, ZTS is valued cheaper than 82.29% of the companies in the same industry.
ZTS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.65.
With a Price/Forward Earnings ratio of 18.52, ZTS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZTS indicates a somewhat cheap valuation: ZTS is cheaper than 79.17% of the companies listed in the same industry.
ZTS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZTS is valued cheaply inside the industry as 82.29% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 82.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.46 | ||
| EV/EBITDA | 14.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZTS does not grow enough to justify the current Price/Earnings ratio.
ZTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)1.99
EPS Next 2Y8.35%
EPS Next 3Y8.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, ZTS has a reasonable but not impressive dividend return.
In the last 3 months the price of ZTS has falen by -21.44%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ZTS's Dividend Yield is rather good when compared to the industry average which is at 7.92. ZTS pays more dividend than 91.67% of the companies in the same industry.
With a Dividend Yield of 1.31, ZTS pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of ZTS grows each year by 21.42%, which is quite nice.
ZTS has been paying a dividend for at least 10 years, so it has a reliable track record.
ZTS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)21.42%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
32.55% of the earnings are spent on dividend by ZTS. This is a low number and sustainable payout ratio.
ZTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.55%
EPS Next 2Y8.35%
EPS Next 3Y8.76%
NYSE:ZTS (11/25/2025, 2:41:37 PM)
128.705
+5.84 (+4.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners98.55%
Inst Owner Change-2.52%
Ins Owners0.06%
Ins Owner Change0.02%
Market Cap57.04B
Revenue(TTM)9.40B
Net Income(TTM)2.65B
Analysts79.17
Price Target175.04 (36%)
Short Float %2.5%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.73
Dividend Growth(5Y)21.42%
DP32.55%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)-10.44%
PT rev (3m)-10.52%
EPS NQ rev (1m)-5.65%
EPS NQ rev (3m)-5.54%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-2.61%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 18.52 | ||
| P/S | 6.07 | ||
| P/FCF | 25.46 | ||
| P/OCF | 19.56 | ||
| P/B | 10.57 | ||
| P/tB | 35.78 | ||
| EV/EBITDA | 14.56 |
EPS(TTM)6.34
EY4.93%
EPS(NY)6.95
Fwd EY5.4%
FCF(TTM)5.05
FCFY3.93%
OCF(TTM)6.58
OCFY5.11%
SpS21.2
BVpS12.18
TBVpS3.6
PEG (NY)2.42
PEG (5Y)1.99
Graham Number41.68
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 | 6.38 |
F-Score6
WACC8.71%
ROIC/WACC2.46
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 Y8.38%
EPS Next 2Y8.35%
EPS Next 3Y8.76%
EPS Next 5Y8.61%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%0.5%
Revenue Next Year2.86%
Revenue Next 2Y4.36%
Revenue Next 3Y4.79%
Revenue Next 5Y5.06%
EBIT growth 1Y7.7%
EBIT growth 3Y6.4%
EBIT growth 5Y10.78%
EBIT Next Year17.77%
EBIT Next 3Y10.41%
EBIT Next 5Y8.66%
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 / ZTS FAQ
What is the ChartMill fundamental rating of ZOETIS INC (ZTS) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ZTS.
What is the valuation status of ZOETIS INC (ZTS) stock?
ChartMill assigns a valuation rating of 6 / 10 to ZOETIS INC (ZTS). This can be considered as Fairly Valued.
How profitable is ZOETIS INC (ZTS) stock?
ZOETIS INC (ZTS) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ZTS stock?
The Price/Earnings (PE) ratio for ZOETIS INC (ZTS) is 20.3 and the Price/Book (PB) ratio is 10.57.
What is the expected EPS growth for ZOETIS INC (ZTS) stock?
The Earnings per Share (EPS) of ZOETIS INC (ZTS) is expected to grow by 8.38% in the next year.