Zoetis Inc - Class A
Exchange: NYSESector: HealthcareIndustry: Drug Manufacturers - Specialty & Generic
As the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock producers. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $9.3 billion in 2024 with approximately 13,800 employees.
Did you know?
Trading 82% below its estimated fair value of $207.59.
Current Price
$114.16
-0.70%GoodMoat Value
$207.59
81.8% undervaluedProfile
Valuation (TTM)
Market Cap$50.31B
P/E18.82
EV$57.71B
P/B15.10
Shares Out440.69M
P/Sales5.31
Revenue$9.47B
EV/EBITDA14.07
Zoetis Inc - Class A (ZTS) Stock Analysis
GoodMoat Analysis
Zoetis possesses a strong competitive moat in the animal health market, scoring highly on brand, switching costs, and niche dominance. However, its current valuation appears to be at a premium, with a price significantly above the GoodMoat target, suggesting a limited margin of safety for a value investor.
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Zoetis is a global leader in the discovery, development, and manufacturing of medicines, vaccines, and diagnostics for pets and livestock. Applying the GoodMoat framework, the company exhibits several durable competitive advantages. It likely scores highly on Brand & Culture, given its leading market position and trusted veterinary relationships, and on Switching Costs, as its integrated products become embedded in veterinary practice workflows. It also demonstrates Niche Dominance as the largest pure-play animal health company. The company's financial quality is strong, with a high ROE of 80.2% and robust operating and profit margins of 37.8% and 28.2%, respectively. However, growth has moderated to 3.0% YoY. The primary concern is valuation. The current price of $116.71 is well below the GoodMoat target of $207.59, which would imply a deeply undervalued situation. Yet, a P/E of 19.2x for a company with single-digit revenue growth, combined with a high debt-to-equity ratio of 2.77, suggests the market is already pricing in its quality and stability. This creates a disconnect where the quantitative target signals opportunity, but standard valuation metrics relative to growth indicate a full or premium price. For a value investor, this warrants a 'with caution' assessment under the Decision Framework; the business passes the Moat & Quality gate, but the valuation requires a very high-conviction view on re-acceleration to provide a sufficient margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$50.31B
Current Price$114.16
P/E Ratio18.82
Forward P/E—
PEG Ratio2.70
EPS$6.02
Book Value$7.56
P/B Ratio15.10
ZTS Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 9.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 6.9B
Revenue
6.3B
FY19
6.7B
FY20
7.8B
FY21
8.1B
FY22
8.5B
FY23
9.3B
FY24
9.5B
FY25
Net Income
1.5B
FY19
1.6B
FY20
2.0B
FY21
2.1B
FY22
2.3B
FY23
2.5B
FY24
2.7B
FY25
ZTS 52-Week Range
$112.86
$167.69
50-Day MA: $119.44200-Day MA: $131.09
Did you know?
Earnings per share grew at a 10.1% CAGR.
Zoetis Inc - Class A (ZTS) Financial Summary
Zoetis Inc - Class A (ZTS) is a Healthcare company in the Drug Manufacturers - Specialty & Generic industry, listed on NYSE. The stock currently trades at $114.16 with a market capitalization of $50.31B.
Key valuation metrics include a P/E ratio of 18.82, price-to-book ratio of 15.10, and EPS of $6.02. The company reports a profit margin of 28.2% and return on equity of 80.2%.
ZTS Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $50.31B |
| P/E Ratio | 18.82 |
| EPS | $6.02 |
| P/B Ratio | 15.10 |
| P/S Ratio | 5.31 |
| EV/EBITDA | 14.07 |
| Dividend Yield | 1.77% |
| Profit Margin | 28.2% |
| Return on Equity | 80.2% |
| Debt/Equity | 2.77 |
ZTS Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $6.26B | $1.50B |
| FY20 | $6.67B | $1.64B |
| FY21 | $7.78B | $2.04B |
| FY22 | $8.08B | $2.11B |
| FY23 | $8.54B | $2.34B |
| FY24 | $9.26B | $2.49B |
| FY25 | $9.47B | $2.67B |
Zoetis Inc - Class A (ZTS) Valuation
Based on GoodMoat's DCF model, Zoetis Inc - Class A has a fair value estimate of $207.59. At the current price of $114.16, the stock appears 45.0% undervalued relative to our intrinsic value estimate.
ZTS Quality Indicators
Zoetis Inc - Class A maintains a profit margin of 28.2% and an operating margin of 37.8%. Return on equity stands at 80.2%. The current ratio is 3.03. Debt-to-equity ratio is 2.77.
About Zoetis Inc - Class A
As the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock producers. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $9.3 billion in 2024 with approximately 13,800 employees.
ZTS Free Cash Flow
Zoetis Inc - Class A generated $2.28B in trailing twelve-month free cash flow, representing an FCF yield of 4.54%. This moderate FCF yield indicates reasonable cash generation.
ZTS Shares Outstanding
Zoetis Inc - Class A has 0.44 billion shares outstanding at a share price of $114.16, giving it a market capitalization of $50.31B.
ZTS Recent Insider Trades
Recent insider transactions at Zoetis Inc - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| PECK KRISTIN C (Chief Executive Officer) | SELL | 9,200 | $1.16M |