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ZTS

S&P 500
Favorable · 63/100

Zoetis

Health Care
Pharmaceuticals

$75.89

3.6%

Updated Today 7:15 PM ET

Price — Past Year

▼ Down 49.2% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$33.26B

P/E

12.58x

Forward P/E (est.)

11.61x

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 (Educational)
Research

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 $75.89, below its 50-day average ($95.16) and 200-day average ($121.09). 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 47 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 $2.63 (~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–$164.33. 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.

Business Overview
Research

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.

Revenue Growth
Research

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.

Profitability
Research

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.

Debt Analysis
Research

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.

Cash Flow Analysis
Research

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.

Valuation Analysis
Research

P/E

12.58x

P/S

3.54x

P/B

16.52x

EV / EBITDA

ZTS trades at 12.6x trailing earnings (about 11.6x on estimated forward earnings), 3.5x sales, and 16.5x 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.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
12.6xCheap
Forward P/E
11.6xCheap
P/S ratio
3.5xExpensive
Revenue growth
2.4%Weak
EPS growth
8.4%Average
Gross margin
71.8%Strong
Net margin
27.8%Strong
ROE
62.4%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

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 (12.6x P/E vs. 25.4x 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

12.6x

median 25.4x

ROE vs sector

62.4%

median 14.9%

Growth vs sector

2.4%

median 7.9%

Sector rank

#14

of 59 by rating

CompanyP/ERev Gr.Rating
ZTSThis stock12.6x2.4%Favorable· 63
VTRS1.6%Weak· 29
BMY18.5x1.8%Favorable· 60
PFE19.1x1.4%Neutral· 48
MRK31.4x2.9%Weak· 40
JNJ26.1x7.9%Neutral· 56
LLY41.1x47.4%Favorable· 69
WAT77.1x26.4%Neutral· 44
Health Care median25.4x7.9%52/100

Valuation vs. quality map

sector medianBMYPFEMRKJNJLLYWATZTSP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

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.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$58.64$95.29

vs. $75.89 today · expected CAGR -5%5%

Metric20262027202820292030
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)$52.10$53.66$55.27$56.93$58.64
Share price (high)$84.66$87.20$89.82$92.52$95.29
CAGR (low–high)-31% / 12%-16% / 7%-10% / 6%-7% / 5%-5% / 5%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

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).
Bear Case

The case against ZTS:

  • Revenue growth is slow (2.4%), limiting the upside engine.
  • Elevated leverage (debt/equity 2.7x) adds financial risk.
Key Risks
Research

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.

Investment Thesis
Research

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 12.6x earnings, which our model scores Favorable (63/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

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.