ZTS

Zoetis Inc.

Fundamental data last updated:August 4, 2026

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company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/06/2026

Business Summary

Zoetis Inc. stands as a global leader in animal health, focusing on the research, development, manufacturing, and commercialization of veterinary pharmaceuticals, vaccines, and diagnostic tools. Its comprehensive portfolio serves a broad spectrum of species, encompassing both livestock, including cattle, swine, poultry, fish, and sheep, and beloved companion animals such as dogs, cats, and horses. Among its pharmaceutical offerings are various therapeutic agents. This includes vaccines, vital for preventing respiratory, gastrointestinal, and reproductive diseases by stimulating a targeted immune response; anti-infectives that combat or inhibit the proliferation of bacterial, fungal, or protozoal pathogens; and parasiticides aimed at eradicating both internal and external pests such as fleas, ticks, and various worms. Additional pharmaceuticals address areas such as pain management and sedation, anti-emesis, reproductive health, and oncology. The portfolio also features dermatological solutions for allergic skin conditions and atopic dermatitis, alongside medicated feed additives specifically designed for livestock. Beyond therapeutics, Zoetis offers an extensive array of diagnostic solutions. These include portable analysis systems for blood and urine, point-of-care testing devices, specialized instruments and reagents, rapid immunoassay kits, comprehensive reference laboratory services, and blood glucose monitoring equipment. Further extending its reach, the company provides supplementary offerings such as nutritional products, agribusiness support services, biodevices, genetic testing, and innovations in precision animal health. Zoetis distributes its diverse product portfolio to a broad customer base, including veterinary professionals, livestock producers, and retail channels. This distribution occurs directly via its sales representatives and technical specialists, as well as through partnerships with third-party veterinary distributors. Established in 1952, the company maintains its corporate headquarters in Parsippany, New Jersey.

 


VALUATION

P/E

12.04

Market Cap ($M USD)

$31.62B

Forward P/E

8.04

PEG

0.16

PRICE TO SALES

3.33

PRICE TO BOOK

9.85

EV / EBITDA

9.66

5-Year Average P/E

Free Cash Flow Yield

6.76%

DCF Value

$200.12

Graham Number

$32.85

Price to FCF

14.80

EV to FCF

18.22

Earnings Yield

8.30%

FCF Yield

6.76%

DIVIDEND

Yield

2.73%

Annual Payout

$2.06

Payout Ratio

33.64%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$6.26

Next Year EPS Growth Estimate

$9.39

Next Year Revenue Growth Estimate

$11.64B

Return on Equity (ROE)

62.41%

FREE CASH FLOW

Operating Margin

37.57%

Debt-to-Equity

2.85

Piotroski F-Score

7

Altman Z-Score

4.64

Return on Invested Capital (ROIC)

27.27%

Current Ratio

3.15

Quick Ratio

1.91

Net Debt to EBITDA

1.81

Interest Coverage

14.83

Gross Profit margin

70.75%

FCF PER SHARE

$5.06

REVENUE PER SHARE

$22.53

Gainseekers Quantitative Analysis

Summary

Zoetis Inc. appears to be a compelling deep value opportunity. Recent pricing indicated the stock traded significantly below its DCF value, suggesting a market mispricing. The Forward P/E of 8.80 and an Earnings Yield of 7.56% highlight its attractive valuation relative to earnings potential. With an Altman Z-score of 4.82, the company is financially robust, indicating low bankruptcy risk and strong growth prospects. The market seems to have overlooked these strengths, presenting a potential opportunity for savvy investors.

AI Exposure / Tech Reliance

Operating in the healthcare sector, Zoetis is well-positioned to leverage AI advancements in drug manufacturing and specialty pharmaceuticals. As the industry increasingly integrates technology for efficiency and innovation, Zoetis can capitalize on these shifts to enhance its product offerings. Its focus on specialty drugs aligns well with tech-driven precision medicine trends.

The Bull Case

For value and GARP investors, Zoetis offers a compelling narrative. The company boasts a robust ROIC of 27.27%, indicating exceptional capital efficiency and management quality. A Piotroski F-Score of 8 suggests strong financial health, while a solid operating margin of 37.57% underscores its pricing power. Despite a modest FCF Yield of 6.11%, the company's ability to generate cash flow remains strong, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

However, Zoetis is not without its challenges. The Price/Book ratio of 10.81 and Price/Sales ratio of 3.68 suggest the stock is expensive relative to its book value and sales, potentially deterring value investors. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension. While the company is financially sound, these valuation metrics could pose risks if growth expectations are not met.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$110.57

Institutional Ownership %

1-Year Beta

0.75

Insider Buying % (6 Mo)

Distance to 52-Week High

114.49%

Distance to 52-Week Low

5.24%

EARNINGS SURPRISE %

-4.38%

50-DAY SMA

$86.24

200-DAY SMA

$117.33

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.