ZOETIS INC (ZTS) Stock Fundamental Analysis

NYSE:ZTS • US98978V1035

126.65 USD
+1.01 (+0.8%)
At close: Feb 13, 2026
126.65 USD
0 (0%)
After Hours: 2/13/2026, 7:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, ZTS scores 6 out of 10 in our fundamental rating. ZTS was compared to 191 industry peers in the Pharmaceuticals industry. ZTS scores excellent on profitability, but there are some minor concerns on its financial health. ZTS has a valuation in line with the averages, but it does not seem to be growing. ZTS also has an excellent dividend rating. These ratings would make ZTS suitable for dividend investing!


Dividend Valuation Growth Profitability Health

8

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.
  • ZTS had positive earnings in 4 of the past 5 years.
  • ZTS had a positive operating cash flow in 4 of the past 5 years.
ZTS Yearly Net Income VS EBIT VS OCF VS FCFZTS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

1.2 Ratios

  • The Return On Assets of ZTS (17.49%) is better than 96.34% of its industry peers.
  • Looking at the Return On Equity, with a value of 49.11%, ZTS belongs to the top of the industry, outperforming 97.91% of the companies in the same industry.
  • ZTS's Return On Invested Capital of 21.45% is amongst the best of the industry. ZTS outperforms 97.38% of its industry peers.
  • ZTS had an Average Return On Invested Capital over the past 3 years of 21.64%. This is significantly above the industry average of 12.64%.
Industry RankSector 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%
ZTS Yearly ROA, ROE, ROICZTS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

  • The Profit Margin of ZTS (28.21%) is better than 93.72% of its industry peers.
  • ZTS's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 38.25%, ZTS belongs to the best of the industry, outperforming 96.86% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ZTS has grown nicely.
  • With a decent Gross Margin value of 71.71%, ZTS is doing good in the industry, outperforming 78.53% of the companies in the same industry.
  • ZTS's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ZTS Yearly Profit, Operating, Gross MarginsZTS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • There is no outstanding debt for ZTS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
ZTS Yearly Shares OutstandingZTS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
ZTS Yearly Total Debt VS Total AssetsZTS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

  • An Altman-Z score of 6.44 indicates that ZTS is not in any danger for bankruptcy at the moment.
  • ZTS's Altman-Z score of 6.44 is fine compared to the rest of the industry. ZTS outperforms 78.53% 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 90.05% of its industry peers.
  • A Debt/Equity ratio of 1.31 is on the high side and indicates that ZTS has dependencies on debt financing.
  • ZTS has a Debt to Equity ratio of 1.31. This is in the lower half of the industry: ZTS underperforms 74.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 3.16
Altman-Z 6.44
ROIC/WACC2.35
WACC9.13%
ZTS Yearly LT Debt VS Equity VS FCFZTS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 3.64 indicates that ZTS has no problem at all paying its short term obligations.
  • ZTS has a Current ratio (3.64) which 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 in line with its industry peers.
Industry RankSector Rank
Current Ratio 3.64
Quick Ratio 2.28
ZTS Yearly Current Assets VS Current LiabilitesZTS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • ZTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, 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 10.77% yearly.
EPS 1Y (TTM)8.45%
EPS 3Y9.57%
EPS 5Y10.77%
EPS Q2Q%5.71%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.02%

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 8.41% on average per year.
  • The Revenue is expected to grow by 5.25% on average over the next years.
EPS Next Y6.97%
EPS Next 2Y7.95%
EPS Next 3Y8.12%
EPS Next 5Y8.41%
Revenue Next Year4.99%
Revenue Next 2Y5.26%
Revenue Next 3Y5.13%
Revenue Next 5Y5.25%

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.
ZTS Yearly Revenue VS EstimatesZTS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
ZTS Yearly EPS VS EstimatesZTS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 19.73, ZTS is valued on the expensive side.
  • 81.68% of the companies in the same industry are more expensive than ZTS, based on the Price/Earnings ratio.
  • ZTS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.97, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 18.44, the valuation of ZTS can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, ZTS is valued cheaply inside the industry as 80.10% of the companies are valued more expensively.
  • ZTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.73
Fwd PE 18.44
ZTS Price Earnings VS Forward Price EarningsZTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 83.25% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZTS indicates a rather cheap valuation: ZTS is cheaper than 84.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 24.92
EV/EBITDA 14.78
ZTS Per share dataZTS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • ZTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)1.83
EPS Next 2Y7.95%
EPS Next 3Y8.12%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • ZTS has a Yearly Dividend Yield of 1.64%. Purely for dividend investing, there may be better candidates out there.
  • ZTS's Dividend Yield is rather good when compared to the industry average which is at 0.93. ZTS pays more dividend than 91.10% of the companies in the same industry.
  • ZTS's Dividend Yield is comparable with the S&P500 average which is at 1.79.
Industry RankSector Rank
Dividend Yield 1.64%

5.2 History

  • The dividend of ZTS is nicely growing with an annual growth rate of 21.42%!
  • ZTS has paid a dividend for at least 10 years, which is 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
ZTS Yearly Dividends per shareZTS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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 2Y7.95%
EPS Next 3Y8.12%
ZTS Yearly Income VS Free CF VS DividendZTS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
ZTS Dividend Payout.ZTS Dividend Payout, showing the Payout Ratio.ZTS Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

ZOETIS INC

NYSE:ZTS (2/13/2026, 7:00:00 PM)

After market: 126.65 0 (0%)

126.65

+1.01 (+0.8%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners97.58%
Inst Owner Change-0.9%
Ins Owners0.06%
Ins Owner Change-0.03%
Market Cap55.81B
Revenue(TTM)N/A
Net Income(TTM)2.65B
Analysts78.33
Price Target159.46 (25.91%)
Short Float %3.53%
Short Ratio2.95
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
Yearly Dividend1.73
Dividend Growth(5Y)21.42%
DP32.55%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-20
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)-2.21%
PT rev (3m)-17.47%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-2.8%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
Industry RankSector Rank
PE 19.73
Fwd PE 18.44
P/S 5.94
P/FCF 24.92
P/OCF 19.14
P/B 10.34
P/tB 35.01
EV/EBITDA 14.78
EPS(TTM)6.42
EY5.07%
EPS(NY)6.87
Fwd EY5.42%
FCF(TTM)5.08
FCFY4.01%
OCF(TTM)6.62
OCFY5.22%
SpS21.32
BVpS12.25
TBVpS3.62
PEG (NY)2.83
PEG (5Y)1.83
Graham Number42.06
Profitability
Industry RankSector 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 RankSector 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 6.44
F-Score6
WACC9.13%
ROIC/WACC2.35
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)8.45%
EPS 3Y9.57%
EPS 5Y10.77%
EPS Q2Q%5.71%
EPS Next Y6.97%
EPS Next 2Y7.95%
EPS Next 3Y8.12%
EPS Next 5Y8.41%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.02%
Revenue Next Year4.99%
Revenue Next 2Y5.26%
Revenue Next 3Y5.13%
Revenue Next 5Y5.25%
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 / ZTS FAQ

What is the ChartMill fundamental rating of ZOETIS INC (ZTS) stock?

ChartMill assigns a fundamental rating of 6 / 10 to ZTS.


Can you provide the valuation status for ZOETIS INC?

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 8 / 10.


Can you provide the expected EPS growth for ZTS stock?

The Earnings per Share (EPS) of ZOETIS INC (ZTS) is expected to grow by 6.97% in the next year.


Is the dividend of ZOETIS INC sustainable?

The dividend rating of ZOETIS INC (ZTS) is 7 / 10 and the dividend payout ratio is 32.55%.