ZTS

Zoetis Inc.

Fundamental data last updated:November 14, 2026

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company profile

SECTOR

Healthcare

industry

Drug Manufacturers - Specialty & Generic

Exchange

NYSE

County of HQ

United States

Next Earnings Date

02/11/2027

Business Summary

Zoetis Inc. operates with a robust business model centered around the development and manufacturing of animal health products. Its competitive moat is fortified by a diverse portfolio and strong brand recognition, ensuring customer loyalty. The company generates cash through the sale of vaccines, medicines, and diagnostic products, locking in customers with high-quality offerings. This strategic positioning allows Zoetis to maintain pricing power and sustain long-term growth.

 


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VALUATION

P/E

13.62

Market Cap ($M USD)

$33.14B

Forward P/E

12.91

PEG

-6.82

PRICE TO SALES

3.49

PRICE TO BOOK

9.99

EV / EBITDA

10.70

5-Year Average P/E

Free Cash Flow Yield

6.87%

DCF Value

$185.49

Graham Number

$33.02

Price to FCF

14.55

EV to FCF

18.02

Earnings Yield

7.53%

FCF Yield

6.87%

DIVIDEND

Yield

2.64%

Annual Payout

$2.12

Payout Ratio

35.64%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$6.04

Next Year EPS Growth Estimate

$6.21

Next Year Revenue Growth Estimate

$9.27B

Return on Equity (ROE)

76.40%

FREE CASH FLOW

Operating Margin

36.26%

Debt-to-Equity

2.80

Piotroski F-Score

6

Altman Z-Score

4.74

Return on Invested Capital (ROIC)

20.92%

Current Ratio

2.35

Quick Ratio

1.40

Net Debt to EBITDA

2.06

Interest Coverage

14.25

Gross Profit margin

71.02%

FCF PER SHARE

$5.53

REVENUE PER SHARE

$23.10

Analyze ZTS on TradingView

Gainseekers Quantitative Analysis

Summary

Zoetis Inc. appears to be significantly undervalued based on its DCF value, suggesting a potential mispricing by the market. The Forward P/E ratio of 12.91 indicates a reasonable valuation relative to expected earnings growth, while the Altman Z-score of 4.74 reflects strong financial stability. However, the Earnings Yield of 7.53% suggests that the stock might not be as attractive compared to other opportunities. Despite these positives, the Graham Number is considerably lower than the current price, hinting at potential overvaluation from a conservative perspective.

AI Exposure / Tech Reliance

Operating within the healthcare sector, Zoetis is well-positioned to leverage AI and modern technology to enhance drug development and manufacturing processes. As a leader in the specialty and generic drug industry, integrating AI could streamline operations and improve efficiency. This adaptability is crucial for maintaining a competitive edge in a rapidly evolving market.

The Bull Case

For the value-driven investor, Zoetis offers compelling reasons to buy. With an impressive ROIC of 20.92%, the company demonstrates exceptional capital efficiency, translating into robust returns. The Piotroski F-Score of 6 indicates solid financial health, while a strong operating margin of 36.26% underscores its pricing power. Additionally, the Free Cash Flow Yield, though modest, suggests the company is generating sufficient cash to support growth and dividends.

The Bear Case

Despite its strengths, Zoetis faces notable challenges. The Price/Book ratio of 9.99 and Price/Sales ratio of 3.49 suggest the stock is trading at high multiples, potentially limiting upside. The debt/equity ratio of 2.80 raises concerns about financial leverage, which could pose risks in a volatile market. Furthermore, the stock's proximity to its 52-week high indicates it may be technically overextended, warranting caution for new investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$84.75

Institutional Ownership %

1-Year Beta

0.68

Insider Buying % (6 Mo)

Distance to 52-Week High

65.21%

Distance to 52-Week Low

14.25%

EARNINGS SURPRISE %

15.89%

50-DAY SMA

$75.69

200-DAY SMA

$92.50

⚠️ 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.