Zoetis Inc.
Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry in the United States and internationally. The company commer…
What to know about ZTS
Zoetis Inc. is a large Healthcare company with a mixed financial profile. It scores well on profitability and cash flow, but risk is worth keeping an eye on.
Should you consider ZTS?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Zoetis Inc. is a large-cap Healthcare company with a mixed overall financial profile — it ranks in the top quarter of its Healthcare peers (7 of 59).
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The business is both profitable and financially healthy — it keeps a good portion of what it earns and carries its debt comfortably.
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Valuation is in the middle of the pack — neither obviously cheap nor stretched.
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Growth has been slower than most peers. That's not necessarily a dealbreaker, but it means the investment case rests more on current earnings than future expansion.
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There is a small dividend (0.03%), but income-focused investors will likely find better yields elsewhere in the market.
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The stock is more volatile than most S&P 500 names — it can swing sharply in both directions. This suits investors comfortable with bigger short-term moves.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Healthcare sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how ZTS compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 12.90 | Top 25% |
| Forward P/E | 10.60 | Top 25% |
| PEG Ratio | 1.90 | Average |
| Price to Sales | 3.46 | Average |
| Price to Book | 10.04 | Below avg |
| EV/EBITDA | 9.96 | Top 25% |
| Earnings Yield | 7.75% | Top 25% |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 71.84% | Top 25% |
| Operating Margin | 36.56% | Top 25% |
| Net Profit Margin | 28.04% | Top 25% |
| Return on Equity | 67.75% | Top 25% |
| Return on Invested Capital | 15.53% | Top 25% |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 2.90% | Below avg |
| Revenue Growth (3Y CAGR) | 5.42% | Above avg |
| EPS Growth (YoY) | 6.00% | Average |
| Free Cash Flow Growth | -0.65% | Average |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 3.15 | Top 25% |
| Debt to Equity | 2.86 | Below avg |
| Interest Coverage | 16.14 | Top 25% |
| Altman Z-Score | 4.60 | Above avg |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 2.67% | Above avg |
| Payout Ratio | 33.28% | Average |
| Dividend Growth (5Y) | 1.17% | Top 25% |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 6.78% | Above avg |
| OCF to Sales | 29.34% | Above avg |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 0.74 | Above avg |
| Volatility (30-Day) | 72.79% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 3.63% | Average |
| Avg. Analyst Rating | 2.05 | Average |
| Target Upside % | 58.29% | Top 25% |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 33B | Average |
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