ZTS
Zoetis
$75.29
▼ 2.6%Updated Aug 7, 11:30 AM ET
ZTS at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 63/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 49.2% over the last 12 months
Market Cap
$33.26B
P/E
12.04x
Forward P/E (est.)
11.1x
ROE
62.4%
Revenue Growth
2.4%
EPS Growth
8.4%
Profit Margin
27.8%
FCF Yield
7.5%
Debt / Equity
2.72x
ROIC
—
Interest Coverage
—
Current Ratio
3.15x
Dividend Yield
1.6%
Implied Growth (rev. DCF)
2.0%
Rating Score
63/100
Zoetis (ZTS) is a large-cap company in the Pharmaceuticals industry, part of the Health Care sector of the S&P 500, with a market value around $33.26B.
In its latest reported year it generated about $9.47B in revenue and $2.67B in net profit.
Our model rates ZTS Favorable (63/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ZTS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ZTS trades near $75.29, below its 50-day average ($86.24) and 200-day average ($117.33). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 34 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. ZTS's is $2.67 (~3.5% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ZTS found buyers near $71.47 (support) and sellers near $82.98 (resistance); its 52-week range is $71.47–$161.77. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
5.0%
Revenue moved from $4.89B in 2016 to $9.47B in 2025, a 7.6% compound annual growth rate. The most recent year was roughly flat (2.4%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
71.8%
Operating Margin
34.8%
Net Margin
28.2%
ROE
62.4%
Zoetis keeps about 27.8% of each sales dollar as net profit, with a 71.8% gross margin and 34.8% operating margin. Return on equity is 62.4%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$9.04B
Net Debt
$7.10B
Net Debt / EBITDA
—
Debt / Equity
2.72x
Leverage: debt-to-equity is 2.7x, with a current ratio of 3.1x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $9.04B of total debt against $1.94B of cash.
Operating CF
$2.90B
Free Cash Flow
$2.28B
FCF Margin
24.1%
In the latest year Zoetis produced about $2.90B of operating cash flow and $2.28B of free cash flow after capital spending. That is a free-cash-flow yield of about 7.5% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
12.04x
P/S
3.54x
P/B
15.8x
EV / EBITDA
—
ZTS trades at 12.0x trailing earnings (about 11.1x on estimated forward earnings), 3.5x sales, and 15.8x book value. Reverse-engineering today's price implies the market expects roughly 2.0% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$85.39
Current price
$75.29
Starting FCF (latest 10-K)
$2.28B
Growth, years 1–5
2.4%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where ZTS sits versus its Health Care sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 83 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How ZTS stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.
In the Health Care sector (324 S&P 500 companies), ZTS ranks #22 of 324 by our overall rating. It trades at a discount versus the sector on earnings (12x P/E vs. 27.3x median) with a higher return on equity (62.4% vs. 14.1%) and slower revenue growth (2.4% vs. 7.6%).
P/E vs sector
12x
median 27.3x
ROE vs sector
62.4%
median 14.1%
Growth vs sector
2.4%
median 7.6%
Sector rank
#22
of 324 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 324 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $75.29 today · expected CAGR -8% – 2%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $9.75B | $10.04B | $10.34B | $10.66B | $10.97B |
| Net income | $2.73B | $2.81B | $2.90B | $2.98B | $3.07B |
| EPS | $6.18 | $6.37 | $6.56 | $6.75 | $6.96 |
| Share price (low) | $43.27 | $44.56 | $45.90 | $47.28 | $48.70 |
| Share price (high) | $74.17 | $76.40 | $78.69 | $81.05 | $83.48 |
| CAGR (low–high) | -43% / -1% | -23% / 1% | -15% / 1% | -11% / 2% | -8% / 2% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ZTS:
- High net margins (27.8%) point to pricing power or efficiency.
- Strong return on equity (62.4%) shows capital is put to work well.
- Healthy free-cash-flow yield (~7.5%) funds buybacks and dividends.
- Our model's overall read is Favorable (63/100).
The case against ZTS:
- Revenue growth is slow (2.4%), limiting the upside engine.
- Elevated leverage (debt/equity 2.7x) adds financial risk.
Balance-sheet risk — debt/equity of 2.7x magnifies the impact of higher rates or weaker earnings.
Growth risk — sluggish revenue (2.4%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Zoetis is a large-cap health care business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 12.0x earnings, which our model scores Favorable (63/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 24 Wall Street analysts covering ZTS recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-10 pts of buy ratings).
Latest SEC Filings
ZTS's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
ZTS — frequently asked questions
Is ZTS a good stock to buy?
We don't give buy or sell advice. Our model rates Zoetis Favorable (63/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ZTS's rating on The Stocks School?
Zoetis currently scores 63/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ZTS's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Zoetis's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ZTS calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this ZTS analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ZTS. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.