ZTS
BULLISHAt a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
AI-powered fundamental assessment
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
ZTS trades at a steep discount to the healthcare sector’s average P/E of 43.86 despite stronger margins and ROE, indicating undervaluation, especially when compared to peers like DHR (P/E 45.42) and BMRN (P/E 20.35).
- Forward P/E of 19.06 is less than half the sector average of 43.86
- Price/Sales of 5.68 compares favorably to high-margin specialty pharma peers
- Price/Book of 9.88 is elevated, suggesting premium paid for asset-light model
- Lack of EV/EBITDA and EV/Revenue limits full enterprise valuation assessment
Despite solid earnings growth and analyst optimism, ZTS faces headwinds from stagnant revenue growth, while recent price momentum remains weak (-25.4% over 6M), though stabilizing with a +0.5% weekly gain.
- Earnings growth of 8.50% YoY and 5.70% QoQ indicates underlying profitability momentum
- Analyst target of $170.63 implies 41% upside, signaling strong forward expectations
- Revenue growth of only 0.50% YoY suggests limited top-line expansion
- Lack of Q/Q revenue data and pipeline visibility constrains growth confidence
ZTS has delivered strong and stable earnings progression over 25 quarters with only occasional misses, supported by best-in-class margins and returns, though share price performance over 5Y (-23.5%) and 1Y (-29.9%) reflects market concerns over growth and macro exposure.
- Consistent earnings beats: 3 of last 4 quarters exceeded estimates
- High-quality profitability: Gross margin of 71.74%, operating margin of 39.33%, and ROE of 49.87% show operational excellence
- One recent earnings miss in Feb 2024 (-5.9%) breaks streak of outperformance
- 5Y total return of -23.5% lags sector and reflects prolonged underperformance
While ZTS maintains strong liquidity, its leverage ratio exceeds both sector and peer benchmarks, raising concerns about capital structure flexibility, especially in a higher-rate environment, though no distress signals are evident.
- Strong liquidity: Current ratio of 3.64 and quick ratio of 2.01 exceed sector norms
- No immediate solvency risk given high cash coverage and low burn profile
- Debt/Equity of 1.35 is above sector average of 1.15 and peer levels (e.g., PFE at 0.67, BMRN at 0.10)
- Missing total debt and cash figures limit ability to assess refinancing risk or cash runway
The dividend is well-covered by earnings with a conservative payout ratio, positioning ZTS as a reliable income play within the specialty pharma space, though dividend growth history is not disclosed.
- Sustainable 1.66% dividend yield with a low 32.53% payout ratio
- Consistent capital return policy supports income-oriented investors
- Lack of 5-year yield history limits visibility into dividend growth trajectory
- No mention of dividend growth streak or policy consistency
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ZTS and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ZTS
Zoetis Inc.
Primary
|
-23.5% | -16.7% | -29.9% | -25.4% | -14.7% | +0.5% |
|
IDXX
IDEXX Laboratories, Inc.
Peer
|
+51.5% | +58.8% | +62.9% | +33.2% | +7.9% | -2.6% |
|
BDX
Becton, Dickinson and Company
Peer
|
-8.2% | -14.8% | -9.9% | +5.4% | -10.8% | -1.2% |
|
EW
Edwards Lifesciences Corporation
Peer
|
+5.0% | +13.6% | +30.4% | +10.6% | +18.3% | +3.5% |
|
CAH
Cardinal Health, Inc.
Peer
|
+270.8% | +159.6% | +48.8% | +24.1% | -5.2% | -6.6% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Healthcare Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ZTS
Zoetis Inc.
|
BULLISH | $53.39B | 20.34 | 49.9% | 28.2% | $120.82 | |
|
IDXX
IDEXX Laboratories, Inc.
|
BULLISH | $56.01B | 54.63 | 64.6% | 24.7% | $689.93 | Compare |
|
BDX
Becton, Dickinson and Company
|
NEUTRAL | $56.67B | 25.56 | 7.0% | 8.0% | $156.41 | Compare |
|
EW
Edwards Lifesciences Corporation
|
NEUTRAL | $50.08B | 37.85 | 13.5% | 23.2% | $86.3 | Compare |
|
CAH
Cardinal Health, Inc.
|
NEUTRAL | $47.03B | 28.76 | -% | 0.7% | $199.85 | Compare |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-09-30 | FULLER JULIE | Officer | Stock Award | 784 | - |
| 2025-09-15 | LAGANO ROXANNE | Officer | Gift | 700 | - |
| 2025-07-25 | BROADHURST VANESSA | Director | Stock Award | 1,412 | - |
| 2025-06-03 | LAGANO ROXANNE | Officer | Sale | 652 | $110,840 |
| 2025-05-21 | SCULLY ROBERT W | Director | Stock Award | 17,535 | - |
Wall Street Analysts
Professional analyst ratings and price targets
Past News Coverage
Recent headlines mentioning ZTS from our newsroom.