A Business at a Glance
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Zoetis Inc.
ZTS
$33.5B
Mkt Cap
$75.35
+1.05%
Zoetis Inc. (ZTS) has a current P/E ratio of 12.5, compared to its historical median P/E of 34.4. The stock is currently considered Cheap based on its historical valuation range.
Zoetis Inc. (ZTS) has a 5-year average return on invested capital (ROIC) of 28.2%. This indicates strong capital allocation and a potential competitive advantage.
Zoetis Inc. (ZTS) has a market capitalization of $31.7B. It is classified as a large-cap stock.
Yes, Zoetis Inc. (ZTS) pays a dividend with a trailing twelve-month yield of 2.81%. The company also returns capital through share buybacks, with a buyback yield of 10.73%.
Based on historical P/E analysis, Zoetis Inc. (ZTS) appears cheap. The current P/E of 12.5 is 64% below its historical median of 34.4. The estimated fair value CAGR (P/E method) is 11.0%.
Zoetis Inc. (ZTS) operates in the Pharmaceutical Preparations industry, within the Healthcare sector.
Zoetis Inc. (ZTS) reported annual revenue of $9.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
Zoetis is a global leader in animal health, discovering, developing, manufacturing and commercializing medicines, vaccines, diagnostics, biodevices, genetic tests and precision animal health solutions across eight core species: dogs, cats, horses, cattle, swine, poultry, fish and sheep. The company operates through two geographic segments—the United States (54% of 2025 revenue) and International (45%)—with a diversified portfolio spanning seven major product categories including parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceuticals, and animal health diagnostics. Companion animal products (70% of revenue) generate growth through increased pet spending, longer pet lifespans and rising disposable incomes in developed markets, while livestock products (29% of revenue) address global protein demand and food security needs driven by population growth and rising living standards. The company's business model combines direct veterinary relationships, alternative distribution channels (retail, home delivery), and direct-to-consumer engagement, supported by a legacy of nearly 75 years and approximately 300 comprehensive product lines that benefit from continuous lifecycle innovation and first-in-class or best-in-class positioning in key categories. Zoetis maintains competitive advantages through its broad geographic footprint, diversified species and product portfolio, scientific leadership, trusted brands, and a robust pipeline of innovation expected to deliver major market approvals annually over the next several years.
【Navigating near-term headwinds, positioning for innovation-driven recovery】 Management expects near-term macroeconomic and competitive pressures to persist through 2026, particularly in U.S. companion animals where clinic traffic has softened and price sensitivity has intensified, though these headwinds are anticipated to moderate as the year progresses. The company is executing targeted commercial actions including direct-to-consumer investments, channel optimization, and cost discipline to offset current market challenges while maintaining confidence in its diversified portfolio and market-leading position. Livestock is expected to continue delivering mid-to-high single-digit growth driven by global protein demand and favorable producer economics, providing important diversification as companion animal dynamics stabilize. Management remains confident in the underlying strength of the business and its ability to deliver the next cycle of innovation-driven growth, with a major market approval expected annually for the next several years, including long-acting monoclonal antibody therapies for osteoarthritis pain and next-generation dermatology innovations anticipated to begin delivering significant value toward the end of 2027 and into 2028.
| Metric | Target | Period |
|---|---|---|
| Revenue | $9.68 billion–$9.96 billion | FY2026 |
| Organic operational revenue growth | 2%–5% | FY2026 |
| Adjusted net income | $2.87 billion–$2.95 billion | FY2026 |
| Adjusted net income growth | 2%–6% | FY2026 |
| Adjusted diluted EPS | $6.85–$7.00 | FY2026 |
Revenue (FY2026): “We are revising our full-year revenue guidance to a range of $9.68 billion-$9.96 billion with growth of 2%-5% based on the current operating environment.”
Organic operational revenue growth (FY2026): “We are revising our full-year revenue guidance to a range of $9.68 billion-$9.96 billion with growth of 2%-5% based on the current operating environment.”
Adjusted net income (FY2026): “We now expect adjusted net income to be in the range of $2.87 billion-$2.95 billion with growth of 2%-6%, reflective of the comprehensive cost and productivity programs Kristin mentioned earlier.”
Adjusted net income growth (FY2026): “We now expect adjusted net income to be in the range of $2.87 billion-$2.95 billion with growth of 2%-6%, reflective of the comprehensive cost and productivity programs Kristin mentioned earlier.”
Adjusted diluted EPS (FY2026): “We are updating our reported diluted and adjusted diluted EPS guidance ranges to $6.35-$6.50, and $6.85-$7.00 respectively.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 9.5B | 9.5B | 9.3B | 8.5B | 8.1B | 7.8B |
| Net Income | 2.6B | 2.7B | 2.5B | 2.3B | 2.1B | 2.0B |
| EPS | $6.10 | $6.02 | $5.47 | $5.07 | $4.49 | $4.27 |
| Free Cash Flow | 2.1B | 2.3B | 2.3B | 1.6B | 1.3B | 1.7B |
| ROIC | 0.0% | 29.0% | 27.9% | 27.4% | 27.6% | 29.2% |
| Gross Margin | - | 71.8% | 70.6% | 70.0% | 69.6% | 70.4% |
| Debt/Equity | 2.80 | 2.79 | 1.42 | 1.36 | 1.85 | 1.49 |
| Dividends/Share | $2.11 | $2.03 | $1.80 | $1.56 | $1.35 | $1.08 |
| Operating Income | 0 | 3.6B | 3.3B | 3.2B | 2.9B | 2.7B |
| Operating Margin | 0.0% | 37.8% | 36.2% | 37.2% | 35.6% | 34.9% |
| ROE | 81.8% | 66.0% | 50.9% | 49.9% | 47.3% | 49.0% |
| Shares Outstanding | 420M | 444M | 454M | 462M | 471M | 477M |
Zoetis Inc. passes 8 of 9 quality checks, indicating strong fundamentals.
Zoetis Inc. trades at 12.5x trailing earnings, compared to its 15-year median P/E of 34.4x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 13.9x vs a median of 44.9x. The company's 5-year average ROIC is 28.2% with a gross margin of 70.5%. Total shareholder yield (dividends + buybacks) is 13.5%. At current prices, the estimated annualized return to fair value is +7.0%.
Zoetis Inc. (ZTS) has a net profit margin of 28.2%. This is a strong margin indicating high profitability.
Zoetis Inc. (ZTS) generated $2.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Zoetis Inc. (ZTS) has a debt-to-equity ratio of 2.79. This indicates higher leverage, which may increase financial risk.
Zoetis Inc. (ZTS) reported earnings per share (EPS) of $6.02 in its most recent fiscal year.
Zoetis Inc. (ZTS) has a return on equity (ROE) of 66.0%. This indicates the company generates strong returns for shareholders.
Zoetis Inc. (ZTS) has a 5-year average gross margin of 70.5%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 15 years of financial data for Zoetis Inc. (ZTS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Zoetis Inc. (ZTS) has a book value per share of $7.50, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects near-term macroeconomic and competitive pressures to persist through 2026, particularly in U.S. companion animals where clinic traffic has softened and price sensitivity has intensified, though these headwinds are anticipated to moderate as the year progresses. The company is executing targeted commercial actions including direct-to-consumer investments, channel optimization, and cost discipline to offset current market challenges while maintaining confidence in its diversified portfolio and market-leading position. Livestock is expected to continue delivering mid-to-high single-digit growth driven by global protein demand and favorable producer economics, providing important diversification as companion animal dynamics stabilize. Management remains confident in the underlying strength of the business and its ability to deliver the next cycle of innovation-driven growth, with a major market approval expected annually for the next several years, including long-acting monoclonal antibody therapies for osteoarthritis pain and next-generation dermatology innovations anticipated to begin delivering significant value toward the end of 2027 and into 2028.
Based on recent SEC filings and earnings calls, Zoetis Inc. (ZTS) has provided the following forward guidance: Revenue: $9.68 billion–$9.96 billion (FY2026); Organic operational revenue growth: 2%–5% (FY2026); Adjusted net income: $2.87 billion–$2.95 billion (FY2026); Adjusted net income growth: 2%–6% (FY2026); Adjusted diluted EPS: $6.85–$7.00 (FY2026).