ZTS
Zoetis
$76.84
▲ 1.3%Updated Today 5:06 AM ET
▼ Down 49.2% over the last 12 months
Market Cap
$33.26B
P/E
12.28x
Forward P/E (est.)
11.33x
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
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 $76.84, below its 50-day average ($92.63) and 200-day average ($119.95). 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 51 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 $2.69 (~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 $74.87 (support) and sellers near $82.98 (resistance); its 52-week range is $72.38–$161.77. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. 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.
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.
4Y CAGR
5.0%
Revenue moved from $7.78B in 2021 to $9.47B in 2025, a 5.0% 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
12.28x
P/S
3.54x
P/B
16.12x
EV / EBITDA
—
ZTS trades at 12.3x trailing earnings (about 11.3x on estimated forward earnings), 3.5x sales, and 16.1x 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.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. 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 (59 S&P 500 companies), ZTS ranks #14 of 59 by our overall rating. It trades at a discount versus the sector on earnings (12.3x P/E vs. 25.5x median) with a higher return on equity (62.4% vs. 14.9%) and slower revenue growth (2.4% vs. 7.9%).
P/E vs sector
12.3x
median 25.5x
ROE vs sector
62.4%
median 14.9%
Growth vs sector
2.4%
median 7.9%
Sector rank
#14
of 59 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 59 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)
$51.31 – $87.96
vs. $76.84 today · expected CAGR -8% – 3%
| 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 | $6.51 | $6.71 | $6.91 | $7.12 | $7.33 |
| Share price (low) | $45.59 | $46.96 | $48.36 | $49.82 | $51.31 |
| Share price (high) | $78.15 | $80.50 | $82.91 | $85.40 | $87.96 |
| CAGR (low–high) | -41% / 2% | -22% / 2% | -14% / 3% | -10% / 3% | -8% / 3% |
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 12.3x earnings, which our model scores Favorable (63/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
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.