ZTS Stock Analysis: Zoetis | NYSE
Drug Manufacturers - Specialty & Generic | NYSE, USA | Market Cap: 30.913m USD | 12M Return: -46.5% | US98978V1035 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 303M
EPS Trend: 99.0%
Qual. Beats: 0
Rev. Trend: 94.2%
Qual. Beats: -2
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Zoetis Inc. (NYSE: ZTS) is a global animal health company that discovers, develops, manufactures, and commercializes a broad portfolio of medicines, vaccines, diagnostics, biodevices, genetic tests, and precision animal health solutions. The company is classified within the Health Care sector under the pharmaceuticals sub-industry, making it the largest pure-play animal health company in the world. Zoetis operates across two main segments: companion animals (dogs, cats, and horses) and livestock species (cattle, swine, poultry, fish, and sheep), with key therapeutic areas including parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, and animal health diagnostics.
Zoetis markets its products to veterinarians, livestock producers, and pet owners, supported by an extensive global commercial infrastructure. In addition to pharmaceuticals, the company provides point-of-care diagnostic products, lab instruments, rapid immunoassay tests, reference laboratory kits, blood glucose monitors, nutritionals, and precision animal health services. The company was incorporated in 2012, is headquartered in Parsippany, New Jersey, and completed its IPO in February 2013. The animal health industry in which Zoetis operates is characterized by long product lifecycles, recurring demand from livestock production, and growing spending on companion animal care driven by pet ownership trends.
Zoetis has also pursued external innovation through collaborations, such as its partnership with Blacksmith Medicines, Inc. to develop novel antibiotics for animal health use. With a large-cap market capitalization of approximately $29.5 billion USD, Zoetis is a major participant in the animal health industry and competes alongside companies such as Merck Animal Health, Elanco Animal Health, and Boehringer Ingelheim Animal Health.
- Companion animal parasiticides and dermatology drive segment growth
- US cattle herd contraction pressures livestock product demand
- Diagnostics and genetic testing portfolio scales double-digit growth
| Net Income: 2.62b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 0.37 > 1.0 |
| NWC/Revenue: 45.13% < 20% (prev 27.25%; Δ 17.88% < -1%) |
| CFO/TA 0.19 > 3% & CFO 2.89b > Net Income 2.62b |
| Net Debt (7.75b) to EBITDA (3.99b): 1.94 < 3 |
| Current Ratio: 3.08 > 1.5 & < 3 |
| Outstanding Shares: last quarter (417.7m) vs 12m ago -6.24% < -2% |
| Gross Margin: 70.87% > 18% (prev 70.03%; Δ 0.85% > 0.5%) |
| Asset Turnover: 64.40% > 50% (prev 64.82%; Δ -0.42% > 0%) |
| Interest Coverage Ratio: 14.39 > 6 (EBIT TTM 3.51b / Interest Expense TTM 244.0m) |
| A: 0.28 (Total Current Assets 6.36b - Total Current Liabilities 2.06b) / Total Assets 15.1b |
| B: 0.97 (Retained Earnings 14.7b / Total Assets 15.1b) |
| C: 0.24 (EBIT TTM 3.51b / Avg Total Assets 14.8b) |
| D: 0.26 (Book Value of Equity 3.15b / Total Liabilities 11.9b) |
| Altman-Z'' = 6.91 = AAA |
| DSRI: 1.01 (Receivables 1.57b/1.54b, Revenue 9.52b/9.38b) |
| GMI: 0.99 (GM 70.03% / 70.87%) |
| AQI: 0.95 (AQ_t 0.31 / AQ_t-1 0.33) |
| SGI: 1.01 (Revenue 9.52b / 9.38b) |
| TATA: -0.02 (NI 2.62b - CFO 2.89b) / TA 15.1b) |
| Beneish M = -3.05 (Cap -4..+1) = AA |
As of October 15, 2026, the stock is trading at USD 75.29 with a total of 3,994,916 shares traded. Over the past week, the price has changed by +5.23%, over one month by +2.20%, over three months by +2.36% and over the past year by -46.51%.
Current recommended Stop Loss: 72.80 (which is 3.3% or 1.3 ATR below the current price).
Zoetis has received a consensus analysts rating of 3.71. Therefore, it is recommended to hold ZTS.
- StrongBuy: 4
- Buy: 4
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 96 | 27.5% |
P/E Trailing = 12.0273
P/E Forward = 11.9904
P/S = 3.2455
P/B = 9.3999
P/EG = 6.6639
Revenue TTM = 9.52b USD
EBIT TTM = 3.51b USD
EBITDA TTM = 3.99b USD
Long Term Debt = 9.05b USD (from longTermDebt, last quarter)
Short Term Debt = 53.0m USD (from shortTermDebt, last fiscal year)
Debt = 9.43b USD (from shortLongTermDebtTotal, last quarter) + Leases 190.0m
Net Debt = 7.75b USD (calculated: Debt 9.43b - CCE 1.68b)
Enterprise Value = 38.7b USD (30.9b + Debt 9.43b - CCE 1.68b)
Interest Coverage Ratio = 14.39 (Ebit TTM 3.51b / Interest Expense TTM 244.0m)
EV/FCF = 16.34x (Enterprise Value 38.7b / FCF TTM 2.37b)
FCF Yield = 6.12% (FCF TTM 2.37b / Enterprise Value 38.7b)
FCF Margin = 24.86% (FCF TTM 2.37b / Revenue TTM 9.52b)
Net Margin = 27.49% (Net Income TTM 2.62b / Revenue TTM 9.52b)
Gross Margin = 70.87% ((Revenue TTM 9.52b - Cost of Revenue TTM 2.77b) / Revenue TTM)
Gross Margin QoQ = 72.73% (prev 71.66%)
Tobins Q-Ratio = 2.56 (Enterprise Value 38.7b / Total Assets 15.1b)
Interest Expense / Debt = 2.59% (Interest Expense 244.0m / Debt 9.43b)
Taxrate = 20.05% (656.0m / 3.27b)
NOPAT = 2.81b (EBIT 3.51b * (1 - 20.05%))
Current Ratio = 3.08 (Total Current Assets 6.36b / Total Current Liabilities 2.06b)
Debt / Equity = 2.99 (Debt 9.43b / totalStockholderEquity, last quarter 3.15b)
Debt / EBITDA = 1.94 (Net Debt 7.75b / EBITDA 3.99b)
Debt / FCF = 3.28 (Net Debt 7.75b / FCF TTM 2.37b)
Total Stockholder Equity = 3.78b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.70% (Net Income 2.62b / Total Assets 15.1b)
RoE = 69.25% (Net Income TTM 2.62b / Total Stockholder Equity 3.78b)
RoCE = 27.37% (EBIT 3.51b / Capital Employed (Equity 3.78b + L.T.Debt 9.05b))
RoIC = 22.28% (NOPAT 2.81b / Invested Capital 12.6b)
WACC = 5.13% (E(30.9b)/V(40.3b) * Re(6.07%) + D(9.43b)/V(40.3b) * Rd(2.59%) * (1-Tc(0.20)))
Discount Rate = 6.07% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.03 | Cagr: -4.09%
[DCF] Terminal Value 76.27% ; FCFF base≈2.31b ; Y1≈2.44b ; Y5≈2.88b
[DCF] Fair Price = 88.49 (EV 44.3b - Net Debt 7.75b = Equity 36.6b / Shares 413.2m; r=8.35% [WACC [floored]]; 5y FCF grow 6.62% → 2.50% )
EPS Correlation: 99.02 | EPS CAGR: 9.41% | SUE: 0.42 | # QB: 0
Revenue Correlation: 94.17 | Revenue CAGR: 4.70% | SUE: -1.04 | # QB: -2
EPS current Quarter (2026-09-30): EPS=1.51 | Chg30d=+0.42% | Revisions=-81% | Analysts=13
EPS current Year (2026-12-31): EPS=6.21 | Chg30d=+0.05% | Revisions=-83% | GrowthEPS=-3.1% | GrowthRev=-2.4%
EPS next Year (2027-12-31): EPS=6.54 | Chg30d=+0.20% | Revisions=-83% | GrowthEPS=+5.4% | GrowthRev=+2.6%
[Analyst] Revisions Ratio: -93% (up=0, down=43)