Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The firm earns roughly 35% of total revenue from production animals (cattle, pigs, poultry, and so on) and nearly 65% from companion animal (dogs, horses, cats) products.
It is a $30.5B healthcare company. Revenue grew 1.4% over the last year, it keeps 27¢ of every dollar of sales as profit, and its net debt equals ~2.8 years of free cash flow. It trades at 11.8× earnings — near the lowest of its own history.
- Website
- zoetis.com
- Location
- Parsippany, NJ
- Employees
- 14 500
- Sector
- Healthcare
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong valuation, profitability, quality and moat; Growth lags behind.
Valuation85
- P/E vs own history3th pct · 25/25
- FCF yield7.7% · 20/25
- P/S3.2x · 20/25
- EV/EBITDA11.3x · 20/25
Growth49
- Revenue CAGR5.0% · 12/25
- Net income CAGR7.0% · 12/25
- EPS CAGR ~5Y12.0% · 20/25
- Fwd implied growth3.1% · 5/25
Profitability100
- ROIC28.3% · 25/25
- ROE69.3% · 25/25
- Net margin27.5% · 25/25
- Operating margin34.4% · 25/25
Health55
- Altman Zn/a · 0/25
- Current ratio3.08 · 25/25
- Interest coverage15.4x · 25/25
- Net cash / debtD/A 43% · 5/25
Quality94
- Piotroski F7/9 · 22/25
- Beneish M-2.65 · 25/25
- FCF conversion90% · 22/25
- Margin stabilityσ 4.6% · 25/25
Moat100
- ROIC >12% years10/10 yrs · 25/25
- Median gross margin69.4% · 25/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 16.3% · 25/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2025FinancialBest year on record$2.67B net income
- 2023AcquisitionZoetis acquired Petmedix, a privately held Cambridge, UK-based company, to bring the benefits of…
- 2022AcquisitionZoetis acquired Basepaws, a privately held genetics company
- 2018AcquisitionThe company acquired Abaxis for $1.9 billion in cash
- 2017AcquisitionZoetis acquired Ireland-based Nexvet, a company with a biologics focused technology and product…
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$4.89B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2013IPOZoetis became a public company via an initial public offering, raising $2.2 billion
- 2012MilestonePfizer Animal Health was renamed Zoetis
- 2008AcquisitionPfizer Animal Health acquired Catapult Genetics, a developer of livestock DNA tests and gene markers
- 2003AcquisitionPfizer acquired Pharmacia Corporation for $60 billion in stock
- 1995AcquisitionPfizer acquired Norden Laboratories from GlaxoSmithKline for $1.45 billion, expanding its animal health…
- 1988MilestoneThe division was renamed Pfizer Animal Health
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (71.6%)
- Strongly profitable — 27.5% net margin
- Strong cash conversion — FCF is 24.9% of revenue
- Interest covered 15.4× by operating earnings
- High returns on invested capital (ROIC 28.3%)
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+1.4% YoY
- Profitable — makes more than it spends$2.62B TTM
- Profit growing — earnings are higher than last year+10.3% YoY
- Generates cash — cash left after running and investing$2.37B TTM
- Debt under control — could handle its obligations~2.8y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$30.5B market cap
- Not printing shares — share count not ballooning — you keep your slice-7.3% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 50/100
- Pays a dividend — returns cash to shareholdersyield 2.89%
- Valuation not extreme — price not wildly above earningsP/E 11.8
Peer comparisonZoetis Inc. vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| ZTS this company | $30.5B | 11.8 | +1.4% | 27.5% | Mixed |
| LLY Eli Lilly & Co. | $1.0T | 41.6 | +49.6% | 33.5% | Solid |
| JNJ Johnson & Johnson | $630.9B | 29.9 | +8.1% | 21.5% | Mixed |
| ABBV Abbvie Inc. | $488.5B | 77.4 | +10.4% | 9.8% | Mixed |
| MRK Merck & Co., Inc. | $361.0B | 113.2 | +4.6% | 4.8% | Mixed |
| UNH UNITEDHEALTH GROUP INCORPORATED (Delaware) | $340.7B | 24.1 | +6.5% | 3.1% | Mixed |
| NVS Novartis AG | $273.2B | 20.3 | +9.6% | 24.7% | Solid |
Head-to-head: ZTS vs LLY · ZTS vs JNJ · ZTS vs ABBV
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/ZTS
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of ZTS on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $73.90 · market cap $30.5B.