Zoetis Inc. (ZTS)
Health Care · Pharmaceuticals · US stock · S&P 500 component
$82.00
▲ +2.38 (2.99%)
Fair valueUndervalued
$111 +35.4% to fair value
$55fair band $94–$135$166
Day's range
$79.90 – $82.29
52-week range
$68.77 – $148.30
About Zoetis Inc.
Zoetis develops, manufactures and sells medicines, vaccines and diagnostic products for pets and farm animals. Its range covers treatments for parasites, pain, skin conditions and infections in dogs and cats, along with products for cattle, pigs and poultry. Revenue comes from selling to veterinarians, distributors and livestock producers around the world, and it depends on pet ownership trends and animal health spending.
The company reported revenue of $9.5 billion for the last twelve months at Zoetis Inc.. Revenue growth over the past three years averaged 5.4% a year. It kept an operating margin of 36.9%. The return on invested capital reached 27%, a measure of profit earned on the money invested in the business. Leverage, measured as net debt to EBITDA, is 1.8 times. The company pays a dividend, and the yield is 2.5%. On the site's X-Ray Score, it rates 69 out of 100.
Price chart
52-wk range $68.77 – $148.30Volume 4,826,784Daily, split-adjusted
Vitals
Market cap$34.3B
52-week range$68.77 – $148.30
Volume (last day)4,826,784
P/E (TTM)13.5
EBIT / EV yield8.4%
Free-cash-flow yield6.8%
Dividend yield2.5%
Revenue (TTM)$9.5B
Net income (TTM)$2.6B
Operating margin36.9%
Return on capital26.7%
Debt incl. leases$9.0B
Cash & securities$1.7B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$111middle half of models $101 – $117
Undervalued
+35.4% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $82
Undervalued < $94Fair $94 – $135Overvalued > $135
P/E multiple
$101
P/B multiple
$101
P/S multiple
$126
EV/EBITDA multiple
$118
EV/EBIT multiple
$160
EV/revenue multiple
$114
10-year DCF, EBITDA exit
$116
5-year DCF, EBITDA exit
$114
10-year DCF, revenue exit
$114
5-year DCF, revenue exit
$111
10-year DCF, growth exit
$104
5-year DCF, growth exit
$99
Dividend discount, stable
$63
Dividend discount, multi-stage
$93
Earnings power value
$131
Growth the price implies
4.1%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business at a low price
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Health Care peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
89/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield8.4%
Free-cash-flow yield6.8%
Fair value vs price1.4×
Growth
Weak
48/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)5.4%
EPS growth (3y)10.3%
Growth consistency90%
Profitability
Strong
72/100
Earns high returns on the capital it uses.
See the numbers →
Return on invested capital26.7%
Operating margin36.9%
Gross profitability45.2%
Financial health
Fair
60/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA1.8×
Interest cover14.7×
Dividends
Fair
69/100
Dividend is typical for its sector.
See the numbers →
Dividend yield2.5%
Dividends vs free cash flow38%
Dividend growth13.3%
Quarterly results: last 6 quarters
+0.4%
Mar '25
+4.8%
Jun '25
+0.5%
Sep '25
+3.0%
Dec '25
+2.9%
Mar '26
-0.2%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $2.5B, diluted EPS $1.65.
Compare with peers
LLY ELI LILLY & Co62 BMY Bristol Myers Squibb C...60 JNJ Johnson & Johnson49 MRK Merck & Co., Inc.33Other Pharmaceuticals companies by X-Ray Score.
SWOT analysis: Zoetis Inc.
Strengthsinside the company
- Return on invested capital is 26.7%, against a median of 12.7% for industry peers.
- Operating margin of 36.9% is well above the 19.2% median of industry peers, a sign of pricing power or lower costs.
- Free cash flow equals 6.8% of the market value, which funds dividends, buybacks or debt paydown.
- Operating profit covers interest 15x, so debt costs are a small drag.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Dividends use only 38% of free cash flow, which leaves room to raise them.
- Trades at 13.1x earnings, 67% below the 40.0x median of industry peers.
- The price is 35% below our fair value estimate, with the gap larger than the margin we allow for error.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare ZTS with peers and sector
Medians of 6 Pharmaceuticals peers and of 59 Health Care stocks in our universe.
Largest peers (X-Ray Score): LLY 62, JNJ 49, MRK 33, PFE 31, BMY 60, VTRS 25.
| Metric | ZTS | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 69 | 41 | 49 |
| Valuation | 89 | 45 | 52 |
| Growth | 48 | 33 | 47 |
| Profitability | 72 | 51 | 49 |
| Financial health | 60 | 36 | 48 |
| Dividends | 69 | 53 | 50 |
Sector leaders: highest X-Ray Score in Health Care
ZTS ranks #5 of 60 in Health Care and #1 of 7 in Pharmaceuticals by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for ZTS
Each factor is rated by where ZTS stands among the 60 Health Care stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 11 Good · 7 Average · 5 Bad of 23
Growth: 0 · 2 · 1
Profitability: 5 · 0 · 0
Financial strength: 1 · 3 · 0
Valuation: 3 · 1 · 1
Cash flow: 2 · 0 · 2
Efficiency: 0 · 1 · 1
| Factor | ZTS | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +5.4% | Average beats 48% | +5.5% | – | – |
| Revenue growth, last year | +2.3% | Bad beats 21% | +7.1% | +5.7% | ▼ Worse |
| EPS growth, 3 years a year | +10.3% | Average beats 62% | +5.0% | – | – |
| Profitability | |||||
| Gross margin | 71.5% | Good beats 77% | 65.0% | 70.4% | ≈ In line |
| Operating margin | 36.9% | Good beats 96% | 16.4% | 36.3% | ≈ In line |
| Net margin | 27.5% | Good beats 91% | 11.1% | 26.9% | ≈ In line |
| Return on invested capital | 26.7% | Good beats 84% | 12.2% | – | – |
| Return on equity | 83.1% | Good beats 95% | 13.7% | 48.0% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 1.8x | Average beats 54% | 2.0x | 1.2x | ▼ Worse |
| Interest cover | 14.7x | Average beats 57% | 9.4x | 13.3x | ▲ Better |
| Current ratio | 3.08 | Good beats 86% | 1.52 | 3.12 | ≈ In line |
| Piotroski F-score | 6 / 9 | Average beats 43% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 13.1x | Good beats 93% | 28.2x | 32.6x | ▲ Better |
| Price / book | 10.9x | Bad beats 17% | 3.7x | 16.4x | ▲ Better |
| Price / sales | 3.6x | Average beats 51% | 3.7x | 8.5x | ▲ Better |
| EV / EBITDA | 10.4x | Good beats 89% | 17.6x | 21.9x | ▲ Better |
| Free cash flow yield | 6.8% | Good beats 82% | 4.4% | 1.9% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 24.3% | Good beats 78% | 16.3% | 22.3% | ≈ In line |
| Cash from operations / net income | 1.09 | Bad beats 13% | 1.61 | 1.09 | ≈ In line |
| Free cash flow growth, 3 years a year | +19.9% | Good beats 70% | +4.3% | – | – |
| Accruals (lower is better) | −1.5% | Bad beats 13% | −3.9% | – | – |
| Efficiency | |||||
| Inventory turnover | 1.1x | Bad beats 6% | 2.9x | 1.1x | ≈ In line |
| Days sales outstanding | 60 days | Average beats 58% | 62 days | 54 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 9 Good · ● 6 Average · ● 1 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldGood
Risk models
Altman Z''Good
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Good
Revenue growth (3y)Average
Growth consistencyAverage
Balance sheet
Current ratioGood
Net debt / EBITDAAverage
Interest coverAverage
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 69/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $7.8B | $8.1B | $8.5B | $9.3B | $9.5B |
| Operating income | $2.7B | $2.9B | $3.2B | $3.4B | $3.6B |
| Net income | $2.0B | $2.1B | $2.3B | $2.5B | $2.7B |
| Operating cash flow | $2.2B | $1.9B | $2.4B | $3.0B | $2.9B |
| Operating margin | 34.9% | 35.6% | 37.2% | 36.3% | 37.8% |
| Free cash flow | $1.7B | $1.3B | $1.6B | $2.3B | $2.3B |
| Diluted EPS | $4.27 | $4.49 | $5.07 | $5.47 | $6.02 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
10 bullish · 0 neutral · 6 bearish
Weekly
Neutral
5 bullish · 1 neutral · 6 bearish
Monthly
Strongly bearish
0 bullish · 1 neutral · 7 bearish
Moving averages (daily)
| SMA 10 | 77.91 | Bullish |
| EMA 10 | 78.13 | Bullish |
| SMA 20 | 74.39 | Bullish |
| EMA 20 | 76.12 | Bullish |
| SMA 50 | 74.48 | Bullish |
| EMA 50 | 75.35 | Bullish |
| SMA 100 | 75.33 | Bullish |
| EMA 100 | 79.51 | Bullish |
| SMA 200 | 94.23 | Bearish |
| EMA 200 | 92.00 | Bearish |
Oscillators (daily)
| RSI (14) | 73.66 | Bearish |
| MACD (12, 26) | 2.00 | Bullish |
| Momentum (12) | 14.96 | Bullish |
| Stochastic %K (14) | 97.82 | Bearish |
| Williams %R (14) | -2.18 | Bearish |
| CCI (20) | 138.3 | Bearish |
Pivot points (classic, last session)
S3 78.11 | S2 79.01 | S1 80.50 | Pivot 81.40 | R1 82.89 | R2 83.79 | R3 85.28 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
2.09 USD
Yield on today's price
2.55%
Frequency
Quarterly
Next ex-dividend date
30 Oct 2026
| Ex-dividend date | Amount per share |
|---|---|
| (upcoming) | 0.5300 |
| 0.5300 | |
| 0.5300 | |
| 0.5300 | |
| 0.5000 | |
| 0.5000 | |
| 0.5000 | |
| 0.5000 | |
| 0.4320 | |
| 0.4320 | |
| 0.4320 | |
| 0.4320 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold ZTS
| ETF | Share of the fund |
|---|---|
| IHE iShares U.S. Pharmaceuticals | 3.73% |
| PPH VanEck Pharmaceutical | 2.10% |
| MOAT VanEck Morningstar Wide Moat | 1.82% |
| VFLO VictoryShares Free Cash Flow | 1.26% |
| FTCS First Trust Capital Strength | 1.18% |
| IWP iShares Russell Mid-Cap Growth | 0.65% |
| COWZ Pacer US Cash Cows 100 | 0.62% |
| VOT Vanguard Mid-Cap Growth | 0.60% |
The eight funds with the largest weight in ZTS among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
ZTS SEC filings
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Director or officer change; Shareholder vote results
8-KSEC EDGAR
Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.