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Zoetis

NYSE:ZTS
Snowflake Description

Adequate balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZTS
NYSE
$55B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Zoetis Inc. discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally. The last earnings update was 78 days ago. More info.


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ZTS Share Price and Events
7 Day Returns
1.4%
NYSE:ZTS
-4.4%
US Pharmaceuticals
-0.3%
US Market
1 Year Returns
34.8%
NYSE:ZTS
3.4%
US Pharmaceuticals
3.4%
US Market
ZTS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zoetis (ZTS) 1.4% 0.6% 16.1% 34.8% 128.7% 250.2%
US Pharmaceuticals -4.4% -2% 1.3% 3.4% 0.8% 12.3%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • ZTS outperformed the Pharmaceuticals industry which returned 3.4% over the past year.
  • ZTS outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
ZTS
Industry
5yr Volatility vs Market

Value

 Is Zoetis undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zoetis to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zoetis.

NYSE:ZTS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ZTS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.733 (1 + (1- 21%) (12.02%))
0.868
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.868 * 5.96%)
7.9%

Discounted Cash Flow Calculation for NYSE:ZTS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Zoetis is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ZTS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.9%)
2020 1,944.50 Analyst x4 1,802.07
2021 2,513.00 Analyst x2 2,158.35
2022 1,650.00 Analyst x1 1,313.34
2023 1,828.00 Analyst x1 1,348.45
2024 1,764.71 Est @ -3.46% 1,206.42
2025 1,736.40 Est @ -1.6% 1,100.12
2026 1,731.12 Est @ -0.3% 1,016.44
2027 1,741.61 Est @ 0.61% 947.70
2028 1,763.26 Est @ 1.24% 889.20
2029 1,793.05 Est @ 1.69% 837.99
Present value of next 10 years cash flows $12,620.09
NYSE:ZTS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,793.05 × (1 + 2.73%) ÷ (7.9% – 2.73%)
$35,605.22
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $35,605.22 ÷ (1 + 7.9%)10
$16,640.34
NYSE:ZTS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $12,620.09 + $16,640.34
$29,260.43
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $29,260.43 / 478.66
$61.13
NYSE:ZTS Discount to Share Price
Calculation Result
Value per share (USD) From above. $61.13
Current discount Discount to share price of $114.94
= -1 x ($114.94 - $61.13) / $61.13
-88%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Zoetis is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zoetis's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zoetis's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ZTS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.88
NYSE:ZTS Share Price ** NYSE (2019-07-18) in USD $114.94
United States of America Pharmaceuticals Industry PE Ratio Median Figure of 29 Publicly-Listed Pharmaceuticals Companies 17.79x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zoetis.

NYSE:ZTS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ZTS Share Price ÷ EPS (both in USD)

= 114.94 ÷ 2.88

39.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zoetis is overvalued based on earnings compared to the US Pharmaceuticals industry average.
  • Zoetis is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Zoetis's expected growth come at a high price?
Raw Data
NYSE:ZTS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 39.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
11.7%per year
United States of America Pharmaceuticals Industry PEG Ratio Median Figure of 21 Publicly-Listed Pharmaceuticals Companies 1.7x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:ZTS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 39.87x ÷ 11.7%

3.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zoetis is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Zoetis's assets?
Raw Data
NYSE:ZTS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $4.84
NYSE:ZTS Share Price * NYSE (2019-07-18) in USD $114.94
United States of America Pharmaceuticals Industry PB Ratio Median Figure of 186 Publicly-Listed Pharmaceuticals Companies 3.2x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NYSE:ZTS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ZTS Share Price ÷ Book Value per Share (both in USD)

= 114.94 ÷ 4.84

23.76x

* Primary Listing of Zoetis.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zoetis is overvalued based on assets compared to the US Pharmaceuticals industry average.
X
Value checks
We assess Zoetis's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Zoetis has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Zoetis expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zoetis expected to grow at an attractive rate?
  • Zoetis's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Zoetis's earnings growth is positive but not above the United States of America market average.
  • Zoetis's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ZTS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ZTS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 11.7%
NYSE:ZTS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 5.8%
United States of America Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ZTS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ZTS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,754 2,626 2,170 5
2022-12-31 7,353 2,393 2,041 5
2021-12-31 7,015 2,345 1,978 12
2020-12-31 6,602 2,071 1,652 15
2019-12-31 6,189 1,929 1,372 15
NYSE:ZTS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 5,914 1,790 1,388
2018-12-31 5,825 1,790 1,428
2018-09-30 5,721 1,814 1,164
2018-06-30 5,588 1,703 1,115
2018-03-31 5,442 1,616 978
2017-12-31 5,307 1,346 864
2017-10-01 5,124 1,024 937
2017-07-02 5,018 824 878
2017-04-02 4,957 781 855
2016-12-31 4,888 713 821
2016-10-02 4,885 705 689
2016-07-03 4,858 670 639
2016-04-03 4,825 655 378

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zoetis's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).
  • Zoetis's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ZTS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Zoetis Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ZTS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 5.07 5.09 5.04 2.00
2022-12-31 4.59 4.61 4.56 2.00
2021-12-31 4.26 4.48 4.06 4.00
2020-12-31 3.56 3.85 3.03 6.00
2019-12-31 2.81 2.90 2.63 6.00
NYSE:ZTS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.88
2018-12-31 2.96
2018-09-30 2.40
2018-06-30 2.29
2018-03-31 2.00
2017-12-31 1.76
2017-10-01 1.91
2017-07-02 1.78
2017-04-02 1.73
2016-12-31 1.66
2016-10-02 1.39
2016-07-03 1.28
2016-04-03 0.76

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Zoetis is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Zoetis's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zoetis has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Zoetis performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zoetis's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zoetis has delivered over 20% year on year earnings growth in the past 5 years.
  • Zoetis's 1-year earnings growth exceeds its 5-year average (41.9% vs 23.4%)
  • Zoetis's earnings growth has exceeded the US Pharmaceuticals industry average in the past year (41.9% vs 40.4%).
Earnings and Revenue History
Zoetis's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zoetis Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ZTS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,914.00 1,388.00 1,514.00 437.00
2018-12-31 5,825.00 1,428.00 1,482.00 432.00
2018-09-30 5,721.00 1,164.00 1,423.00 417.00
2018-06-30 5,588.00 1,115.00 1,384.00 405.00
2018-03-31 5,442.00 978.00 1,362.00 389.00
2017-12-31 5,307.00 864.00 1,332.00 382.00
2017-10-01 5,124.00 937.00 1,320.00 380.00
2017-07-02 5,018.00 878.00 1,325.00 374.00
2017-04-02 4,957.00 855.00 1,323.00 376.00
2016-12-31 4,888.00 821.00 1,316.00 376.00
2016-10-02 4,885.00 689.00 1,362.00 375.00
2016-07-03 4,858.00 639.00 1,374.00 376.00
2016-04-03 4,825.00 378.00 1,383.00 372.00
2015-12-31 4,765.00 339.00 1,402.00 362.00
2015-09-27 4,811.00 443.00 1,464.00 378.00
2015-06-28 4,807.00 420.00 1,483.00 380.00
2015-03-29 4,790.00 593.00 1,506.00 388.00
2014-12-31 4,785.00 583.00 1,512.00 396.00
2014-09-28 4,719.00 562.00 1,461.00 391.00
2014-06-29 4,612.00 527.00 1,455.00 390.00
2014-03-30 4,568.00 519.00 1,429.00 389.00
2013-12-31 4,561.00 504.00 1,428.00 392.00
2013-09-29 4,483.00 389.00 1,460.00 394.00
2013-06-30 4,399.00 420.00 1,432.00 396.00
2013-03-31 4,379.00 465.00 1,442.00 396.00
2012-12-31 4,336.00 436.00 1,451.00 399.00
2012-09-30 4,287.00 455.00 1,434.00 388.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Zoetis made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Zoetis used its assets more efficiently than the US Pharmaceuticals industry average last year based on Return on Assets.
  • Zoetis's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Zoetis's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zoetis has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Zoetis's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zoetis's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zoetis is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zoetis's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Zoetis's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zoetis Company Filings, last reported 3 months ago.

NYSE:ZTS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,317.00 6,444.00 1,800.00
2018-12-31 2,185.00 6,452.00 1,704.00
2018-09-30 2,118.00 6,441.00 1,394.00
2018-06-30 1,982.00 4,955.00 1,558.00
2018-03-31 1,975.00 4,954.00 1,654.00
2017-12-31 1,786.00 4,953.00 1,564.00
2017-10-01 2,019.00 5,702.00 1,981.00
2017-07-02 1,746.00 4,569.00 719.00
2017-04-02 1,635.00 4,468.00 646.00
2016-12-31 1,499.00 4,468.00 744.00
2016-10-02 1,598.00 4,471.00 651.00
2016-07-03 1,371.00 4,474.00 658.00
2016-04-03 1,187.00 4,468.00 675.00
2015-12-31 1,091.00 4,868.00 1,154.00
2015-09-27 1,254.00 3,640.00 592.00
2015-06-28 1,202.00 3,647.00 544.00
2015-03-29 1,305.00 3,645.00 559.00
2014-12-31 1,337.00 3,631.00 882.00
2014-09-28 1,389.00 3,652.00 598.00
2014-06-29 1,283.00 3,654.00 578.00
2014-03-30 1,099.00 3,658.00 506.00
2013-12-31 962.00 3,657.00 610.00
2013-09-29 866.00 3,652.00 389.00
2013-06-30 823.00 3,652.00 369.00
2013-03-31 724.00 3,646.00 468.00
2012-12-31 4,041.00 582.00 317.00
2012-09-30 4,109.00 580.00 133.00
  • Zoetis's level of debt (278.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (331.6% vs 278.1% today).
  • Debt is well covered by operating cash flow (27.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.3x coverage).
X
Financial health checks
We assess Zoetis's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zoetis has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Zoetis's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.57%
Current annual income from Zoetis dividends. Estimated to be 0.61% next year.
If you bought $2,000 of Zoetis shares you are expected to receive $11 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Zoetis's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Zoetis's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ZTS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ZTS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.96 1.00
2022-12-31 0.87 1.00
2021-12-31 0.74 7.00
2020-12-31 0.69 10.00
2019-12-31 0.64 9.00
NYSE:ZTS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-15 0.656 0.600
2019-02-12 0.656 0.667
2018-12-12 0.656 0.771
2018-10-10 0.504 0.552
2018-05-15 0.504 0.574
2018-02-13 0.504 0.611
2017-12-11 0.504 0.678
2017-10-05 0.420 0.619
2017-05-11 0.420 0.673
2017-02-14 0.420 0.773
2016-12-06 0.420 0.783
2016-10-06 0.380 0.759
2016-05-12 0.380 0.769
2016-02-19 0.380 0.856
2015-12-16 0.380 0.864
2015-10-01 0.332 0.744
2015-07-21 0.332 0.725
2015-02-27 0.332 0.700
2015-02-11 0.288 0.629
2014-10-02 0.288 0.697
2014-07-31 0.288 0.823
2014-03-26 0.288 0.928
2013-12-19 0.288 0.935
2013-09-12 0.260 0.818
2013-06-20 0.260 0.855
2013-03-28 0.260 0.799

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zoetis is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Zoetis is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Zoetis's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Zoetis's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Zoetis's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Zoetis's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zoetis afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zoetis has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Zoetis's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Juan Alaix
COMPENSATION $11,669,400
AGE 68
TENURE AS CEO 7 years
CEO Bio

Mr. Juan Ramón Alaix has been the Chief Executive Officer of Zoetis Inc. since July 2012. Mr. Alaix served as the President at Pfizer Animal Health Inc. at Microtek Int. Inc. since 2006, where he was responsible for the overall strategic direction and financial performance. He has over 35 years of experience of growing responsibility in finance, sales and management, including 15 years in the pharmaceutical industry. Mr. Alaix served as Regional President of Central/Southern Europe of Pfizer Global Pharmaceuticals since 2003. He joined Pfizer from Pharmacia in 2003. He served as the Market President of Spain at Pharmacia Corporation from 1998 until its acquisition by Pfizer in 2003. In the 1990s, he served in general management with Rhýne-Poulenc Rorer in Spain and Belgium. He has been a Director of Zoetis Inc. since July 2012. Mr. Alaix serves as the President and Director of the International Federation for Animal Health (IFAH) and the Spain U.S. Chamber of Commerce. Mr. Alaix received a graduate degree in Economics from the Universidad de Madrid.

CEO Compensation
  • Juan 's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Juan 's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Zoetis management team in years:

6.8
Average Tenure
53
Average Age
  • The average tenure for the Zoetis management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Juan Alaix

TITLE
CEO & Director
COMPENSATION
$12M
AGE
68
TENURE
7 yrs

Glenn David

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
47
TENURE
2.9 yrs

Catherine Knupp

TITLE
Executive VP and President of Research & Development
COMPENSATION
$3M
AGE
58
TENURE
6.8 yrs

Clinton Lewis

TITLE
EVP and Grp President of Intl. Ops.
COMPENSATION
$5M
AGE
52
TENURE
6.8 yrs

Kristin Peck

TITLE
Executive VP and Group President of U.S. Operations
COMPENSATION
$3M
AGE
48
TENURE
6.8 yrs

Andrew Fenton

TITLE
Executive VP and Chief Digital & Technology Officer
AGE
55

Steven Frank

TITLE
Vice President of Investor Relations

Heidi Chen

TITLE
Executive VP
AGE
52
TENURE
6.8 yrs

Bill Price

TITLE
VP & Chief Communications Officer

Roxanne Lagano

TITLE
Executive VP and Chief Human Resources Officer & Communications
AGE
54
TENURE
6.7 yrs
Board of Directors Tenure

Average tenure and age of the Zoetis board of directors in years:

6.1
Average Tenure
67.5
Average Age
  • The tenure for the Zoetis board of directors is about average.
Board of Directors

Mike McCallister

TITLE
Non-Executive Chairman
COMPENSATION
$475K
AGE
67
TENURE
6.1 yrs

Juan Alaix

TITLE
CEO & Director
COMPENSATION
$12M
AGE
68
TENURE
7 yrs

Greg Norden

TITLE
Independent Director
COMPENSATION
$325K
AGE
61
TENURE
6.5 yrs

Bob Scully

TITLE
Independent Director
COMPENSATION
$325K
AGE
69
TENURE
6.1 yrs

Frank D'Amelio

TITLE
Independent Director
COMPENSATION
$300K
AGE
61
TENURE
7 yrs

William Steere

TITLE
Independent Director
COMPENSATION
$300K
AGE
82
TENURE
6.5 yrs

Sanjay Khosla

TITLE
Independent Director
COMPENSATION
$300K
AGE
68
TENURE
6.1 yrs

Louise Parent

TITLE
Independent Director
COMPENSATION
$300K
AGE
69
TENURE
5.9 yrs

Willie Reed

TITLE
Independent Director
COMPENSATION
$300K
AGE
64
TENURE
5.3 yrs

Paul Bisaro

TITLE
Independent Director
COMPENSATION
$325K
AGE
58
TENURE
4.2 yrs
Who owns this company?
Recent Insider Trading
  • Zoetis individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Jun 19 Sell Willie Reed Individual 13. Jun 19 13. Jun 19 -1,900 $110.58 $-210,102
07. Jun 19 Sell Roman Trawicki Individual 06. Jun 19 06. Jun 19 -4,700 $109.00 $-512,300
04. Jun 19 Sell Heidi Chen Individual 03. Jun 19 03. Jun 19 -2,500 $104.23 $-260,575
13. Mar 19 Sell Heidi Chen Individual 12. Mar 19 12. Mar 19 -15,710 $95.49 $-1,500,148
16. Jan 19 Sell Clinton Lewis Individual 14. Jan 19 14. Jan 19 -2,558 $85.21 $-217,967
06. Dec 18 Sell Heidi Chen Individual 03. Dec 18 03. Dec 18 -2,500 $93.51 $-233,775
03. Dec 18 Sell Willie Reed Individual 30. Nov 18 30. Nov 18 -3,205 $93.74 $-300,437
13. Nov 18 Sell Kristin Peck Individual 12. Nov 18 12. Nov 18 -4,000 $94.78 $-379,120
09. Aug 18 Sell Roman Trawicki Individual 07. Aug 18 07. Aug 18 -3,578 $92.53 $-331,072
X
Management checks
We assess Zoetis's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zoetis has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Zoetis Inc.'s (NYSE:ZTS) CEO Pay Reflect Performance?

This analysis aims first to contrast CEO compensation with other large companies. … See our latest analysis for Zoetis How Does Juan Alaix's Compensation Compare With Similar Sized Companies? … When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m.

Simply Wall St -

Should We Be Delighted With Zoetis Inc.'s (NYSE:ZTS) ROE Of 60%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Zoetis: 60% = US$1.4b ÷ US$2.3b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Zoetis's Debt And Its 60% Return On Equity Zoetis does use a significant amount of debt to increase returns. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Is Zoetis Inc. (NYSE:ZTS) A High Quality Stock To Own?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Zoetis: 60% = US$1.4b ÷ US$2.3b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … How Does Debt Impact Return On Equity? … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Is Zoetis Inc.'s (NYSE:ZTS) High P/E Ratio A Problem For Investors?

Check out our latest analysis for Zoetis How Do You Calculate Zoetis's P/E Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Zoetis: P/E of 38.23 = $110.22 ÷ $2.88 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings.

Simply Wall St -

Have Investors Priced In Zoetis Inc.'s (NYSE:ZTS) Growth?

This illustrates that Zoetis is overvalued compared to the US market average ratio of 17.3x , and overvalued based on current earnings compared to the Pharmaceuticals industry average of 19.45x. … NYSE:ZTS Price Estimation Relative to Market, May 29th 2019 We understand ZTS seems to be overvalued based on its current earnings, compared to its industry peers. … So, when we include the growth factor in our analysis, Zoetis appears overvalued , based on the fundamentals.

Simply Wall St -

Zoetis (NYSE:ZTS) Shareholders Have Enjoyed An Impressive 236% Share Price Gain

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Zoetis managed to grow its earnings per share at 23% a year. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.

Simply Wall St -

Have Insiders Been Selling Zoetis Inc. (NYSE:ZTS) Shares This Year?

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … That means that an insider was selling shares at slightly below the current price (US$101).

Simply Wall St -

How Do Analysts See Zoetis Inc. (NYSE:ZTS) Performing Over The Next Year?

(NYSE:ZTS) released its earnings update. … with earnings expected to grow by 2.2% in the upcoming year … the higher past 5-year average growth rate of 22%

Simply Wall St -

Zoetis Inc. (NYSE:ZTS): Will The Growth Last?

Zoetis Inc.'s (NYSE:ZTS) most recent earnings announcement in December 2018a … confirmed … business

Simply Wall St -

Should You Worry About Zoetis Inc.'s (NYSE:ZTS) CEO Pay Cheque?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … is worth US$46b, and total annual CEO compensation is US$11m. … When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m

Simply Wall St -

Company Info

Description

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 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 that include fleas, ticks, and worms. It also provides medicated feed additives that offer medicines to livestock; and other pharmaceutical products, which comprise allergy and dermatology, pain and sedation, antiemetic, reproductive, and oncology products. In addition, the company offers portable blood and urine analysis systems, and point-of-care diagnostic products, including instruments and reagents, rapid immunoassay tests, reference laboratory kits, and blood glucose monitors; and other non-pharmaceutical products, including nutritionals and agribusiness services, as well as products and services in complementary areas, such as biodevices and genetics. It markets its products to veterinarians, livestock producers, and retail outlets, as well as third-party veterinary distributors through its sales representatives, and technical and veterinary operations specialists. The company was founded in 1952 and is headquartered in Parsippany, New Jersey.

Details
Name: Zoetis Inc.
ZTS
Exchange: NYSE
Founded: 1952
$55,016,742,363
478,656,189
Website: http://www.zoetis.com
Address: Zoetis Inc.
10 Sylvan Way,
Parsippany,
New Jersey, 07054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ZTS Common Stock New York Stock Exchange US USD 01. Feb 2013
DB ZOE Common Stock Deutsche Boerse AG DE EUR 01. Feb 2013
LSE 0M3Q Common Stock London Stock Exchange GB USD 01. Feb 2013
BMV ZTS * Common Stock Bolsa Mexicana de Valores MX MXN 01. Feb 2013
Number of employees
Current staff
Staff numbers
10,000
Zoetis employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 01:47
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/18
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.