ZOETIS INC (ZTS) Stock Fundamental Analysis
USA - NYSE:ZTS - US98978V1035 - Common Stock
147.22 USD
+0.83 (+0.57%)
We assign a fundamental rating of 7 out of 10 to ZTS. ZTS was compared to 191 industry peers in the Pharmaceuticals industry. While ZTS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ZTS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ZTS was profitable.
In the past year ZTS had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 18.04%, ZTS belongs to the top of the industry, outperforming 96.86% of the companies in the same industry.
ZTS's Return On Equity of 52.48% is amongst the best of the industry. ZTS outperforms 97.91% of its industry peers.
The Return On Invested Capital of ZTS (25.36%) is better than 97.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZTS is significantly above the industry average of 15.45%.
The last Return On Invested Capital (25.36%) for ZTS 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
With an excellent Profit Margin value of 27.83%, ZTS belongs to the best of the industry, outperforming 96.86% of the companies in the same industry.
ZTS's Profit Margin has improved in the last couple of years.
ZTS's Operating Margin of 37.69% is amongst the best of the industry. ZTS outperforms 96.86% of its industry peers.
In the last couple of years the Operating Margin of ZTS has grown nicely.
ZTS has a better Gross Margin (71.50%) than 78.53% of its industry peers.
ZTS'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), ZTS is creating value.
The number of shares outstanding for ZTS has been reduced compared to 1 year ago.
ZTS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ZTS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.01 indicates that ZTS is not in any danger for bankruptcy at the moment.
ZTS's Altman-Z score of 7.01 is amongst the best of the industry. ZTS outperforms 80.63% of its industry peers.
The Debt to FCF ratio of ZTS is 2.97, which is a good value as it means it would take ZTS, 2.97 years of fcf income to pay off all of its debts.
ZTS has a Debt to FCF ratio of 2.97. This is amongst the best in the industry. ZTS outperforms 90.05% of its industry peers.
ZTS 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, ZTS is doing worse than 73.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 7.01 |
ROIC/WACC2.97
WACC8.54%
2.3 Liquidity
ZTS has a Current Ratio of 1.76. This is a normal value and indicates that ZTS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ZTS (1.76) is worse than 65.44% of its industry peers.
ZTS has a Quick Ratio of 1.04. This is a normal value and indicates that ZTS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.04, ZTS is not doing good in the industry: 73.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.27% over the past year.
ZTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.22% yearly.
The Revenue has been growing slightly by 5.27% in the past year.
Measured over the past years, ZTS 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
ZTS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.00% yearly.
ZTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.30% yearly.
EPS Next Y8.48%
EPS Next 2Y8.3%
EPS Next 3Y8.66%
EPS Next 5Y9%
Revenue Next Year2.9%
Revenue Next 2Y4.39%
Revenue Next 3Y4.81%
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.
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
A Price/Earnings ratio of 23.67 indicates a rather expensive valuation of ZTS.
ZTS's Price/Earnings ratio is rather cheap when compared to the industry. ZTS is cheaper than 81.15% of the companies in the same industry.
ZTS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.83.
Based on the Price/Forward Earnings ratio of 21.20, the valuation of ZTS can be described as rather expensive.
75.39% of the companies in the same industry are more expensive than ZTS, based on the Price/Forward Earnings ratio.
ZTS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 21.2 |
4.2 Price Multiples
80.10% of the companies in the same industry are more expensive than ZTS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ZTS is valued cheaper than 80.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.4 | ||
| EV/EBITDA | 17.41 |
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)2.79
PEG (5Y)2.32
EPS Next 2Y8.3%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
ZTS has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.88, ZTS pays a better dividend. On top of this ZTS pays more dividend than 91.62% of the companies listed in the same industry.
With a Dividend Yield of 1.31, ZTS pays less dividend than the S&P500 average, which is at 2.34.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)21.42%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ZTS pays out 32.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of ZTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.08%
EPS Next 2Y8.3%
EPS Next 3Y8.66%
NYSE:ZTS (10/24/2025, 10:12:10 AM)
147.22
+0.83 (+0.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners98.55%
Inst Owner Change0.32%
Ins Owners0.06%
Ins Owner Change-0.24%
Market Cap65.24B
Revenue(TTM)9.38B
Net Income(TTM)2.61B
Analysts79.17
Price Target195.43 (32.75%)
Short Float %2.08%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.73
Dividend Growth(5Y)21.42%
DP32.08%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)-0.1%
PT rev (3m)-2.6%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0.15%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 21.2 | ||
| P/S | 6.95 | ||
| P/FCF | 29.4 | ||
| P/OCF | 22.28 | ||
| P/B | 13.11 | ||
| P/tB | 57.03 | ||
| EV/EBITDA | 17.41 |
EPS(TTM)6.22
EY4.22%
EPS(NY)6.94
Fwd EY4.72%
FCF(TTM)5.01
FCFY3.4%
OCF(TTM)6.61
OCFY4.49%
SpS21.18
BVpS11.23
TBVpS2.58
PEG (NY)2.79
PEG (5Y)2.32
Graham Number39.64
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 | 7.01 |
F-Score8
WACC8.54%
ROIC/WACC2.97
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 Y8.48%
EPS Next 2Y8.3%
EPS Next 3Y8.66%
EPS Next 5Y9%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y5.98%
Revenue growth 5Y8.14%
Sales Q2Q%4.19%
Revenue Next Year2.9%
Revenue Next 2Y4.39%
Revenue Next 3Y4.81%
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 / 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 5 / 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 23.67 and the Price/Book (PB) ratio is 13.11.
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 8.48% in the next year.