ZTS Stock Overview
Zoetis Inc. discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$162.56|
|52 Week High||US$249.27|
|52 Week Low||US$156.67|
|1 Month Change||-12.00%|
|3 Month Change||-15.03%|
|1 Year Change||-7.65%|
|3 Year Change||58.75%|
|5 Year Change||159.64%|
|Change since IPO||424.22%|
Recent News & Updates
Zoetis: Animal Health Leader Now Cheapest Since April 2021
Zoetis shares are the cheapest since April 2021, having fallen by another 17% since we upgraded our rating in February. Petcare has strong long-term structural growth, and we believe Zoetis can grow its EPS at a low-teens CAGR for the foreseeable future. Q1 results were strong and Zoetis still expects 9-11% operational revenue growth in 2022, but currency has become a larger headwind. Zoetis is making strong progress with new products and expanding its U.S. salesforce. Livestock growth should normalize in 2023. With Zoetis shares at $158.63 and a 31.5x P/E, we expect a total return of 69% (15.7%annualized) by 2025 year-end. Buy.
An Intrinsic Calculation For Zoetis Inc. (NYSE:ZTS) Suggests It's 21% Undervalued
Today we will run through one way of estimating the intrinsic value of Zoetis Inc. ( NYSE:ZTS ) by taking the forecast...
|ZTS||US Pharmaceuticals||US Market|
Return vs Industry: ZTS underperformed the US Pharmaceuticals industry which returned 10.8% over the past year.
Return vs Market: ZTS exceeded the US Market which returned -12.9% over the past year.
|ZTS Average Weekly Movement||4.4%|
|Pharmaceuticals Industry Average Movement||11.8%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: ZTS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ZTS's weekly volatility (4%) has been stable over the past year.
About the Company
Zoetis Inc. discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally. It commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep; and companion animals comprising dogs, cats, and horses. The company also offers vaccines, which are biological preparations to prevent diseases of the respiratory, gastrointestinal, and reproductive tracts or induce a specific immune response; anti-infectives that prevent, kill, or slow the growth of bacteria, fungi, or protozoa; and parasiticides that prevent or eliminate external and internal parasites, which include fleas, ticks, and worms.
Zoetis Fundamentals Summary
|ZTS fundamental statistics|
Is ZTS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ZTS income statement (TTM)|
|Cost of Revenue||US$2.32b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||4.40|
|Net Profit Margin||26.27%|
How did ZTS perform over the long term?See historical performance and comparison
0.8%Current Dividend Yield
Is Zoetis undervalued compared to its fair value and its price relative to the market?
Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ZTS ($162.56) is trading below our estimate of fair value ($208.96)
Significantly Below Fair Value: ZTS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ZTS is poor value based on its PE Ratio (36.9x) compared to the US Pharmaceuticals industry average (20.1x).
PE vs Market: ZTS is poor value based on its PE Ratio (36.9x) compared to the US market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: ZTS is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: ZTS is overvalued based on its PB Ratio (16.4x) compared to the US Pharmaceuticals industry average (1.8x).
How is Zoetis forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ZTS's forecast earnings growth (11.4% per year) is above the savings rate (1.9%).
Earnings vs Market: ZTS's earnings (11.4% per year) are forecast to grow slower than the US market (12.5% per year).
High Growth Earnings: ZTS's earnings are forecast to grow, but not significantly.
Revenue vs Market: ZTS's revenue (7.6% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: ZTS's revenue (7.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ZTS's Return on Equity is forecast to be very high in 3 years time (41.4%).
How has Zoetis performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ZTS has high quality earnings.
Growing Profit Margin: ZTS's current net profit margins (26.3%) are higher than last year (25.3%).
Past Earnings Growth Analysis
Earnings Trend: ZTS's earnings have grown by 17.6% per year over the past 5 years.
Accelerating Growth: ZTS's earnings growth over the past year (16.9%) is below its 5-year average (17.6% per year).
Earnings vs Industry: ZTS earnings growth over the past year (16.9%) underperformed the Pharmaceuticals industry 16.9%.
Return on Equity
High ROE: Whilst ZTS's Return on Equity (44.44%) is outstanding, this metric is skewed due to their high level of debt.
How is Zoetis's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ZTS's short term assets ($6.8B) exceed its short term liabilities ($3.0B).
Long Term Liabilities: ZTS's short term assets ($6.8B) exceed its long term liabilities ($6.2B).
Debt to Equity History and Analysis
Debt Level: ZTS's net debt to equity ratio (73%) is considered high.
Reducing Debt: ZTS's debt to equity ratio has reduced from 273.5% to 141.5% over the past 5 years.
Debt Coverage: ZTS's debt is well covered by operating cash flow (32.2%).
Interest Coverage: ZTS's interest payments on its debt are well covered by EBIT (13.4x coverage).
What is Zoetis's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ZTS's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).
High Dividend: ZTS's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Stability and Growth of Payments
Stable Dividend: ZTS is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: ZTS is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Earnings Payout to Shareholders
Earnings Coverage: ZTS is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: ZTS is not paying a notable dividend for the US market.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kristin Peck (50 yo)
Ms. Kristin C. Peck serves as an Independent Director at BlackRock, Inc. since joining in September 29, 2021. She has been the Chief Executive Officer of Zoetis Inc. since January 01, 2020 and its Director...
CEO Compensation Analysis
Compensation vs Market: Kristin's total compensation ($USD13.10M) is about average for companies of similar size in the US market ($USD13.34M).
Compensation vs Earnings: Kristin's compensation has increased by more than 20% in the past year.
Experienced Management: ZTS's management team is considered experienced (2.3 years average tenure).
Experienced Board: ZTS's board of directors are considered experienced (8.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Zoetis Inc.'s employee growth, exchange listings and data sources
- Name: Zoetis Inc.
- Ticker: ZTS
- Exchange: NYSE
- Founded: 1952
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Implied Market Cap: US$76.505b
- Shares outstanding: 470.63m
- Website: https://www.zoetis.com
Number of Employees
- Zoetis Inc.
- 10 Sylvan Way
- New Jersey
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/21 00:00|
|End of Day Share Price||2022/05/20 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.