# ZOETIS INC. (ZTS) — Stock CV

Zoetis Inc. 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.

> 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.

## Identity

- **Ticker**: ZTS
- **Sector**: Healthcare
- **Industry**: Medical Devices
- **Headquarters**: PARSIPPANY, NJ
- **Employees**: 14 500
- **Website**: https://www.zoetis.com
- **Market cap**: $30.5B
- **Last price**: $73.90
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $9.52B
- **Net income**: $2.62B
- **Free cash flow**: $2.37B
- **Net debt**: $6.73B
- **P/E**: 11.8
- **Revenue growth (YoY)**: 1.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 85 |
| Growth | 49 |
| Profitability | 100 |
| Health | 55 |
| Quality | 94 |
| Moat | 100 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +1.4% YoY
- [x] Profitable — $2.62B TTM
- [x] Profit growing — +10.3% YoY
- [x] Generates cash — $2.37B TTM
- [x] Debt under control — ~2.8y of cash flow to repay
- [x] Established company — $30.5B market cap
- [x] Not printing shares — -7.3% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 50/100
- [x] Pays a dividend — yield 2.89%
- [x] Valuation not extreme — P/E 11.8

## Experience (career milestones)

- **FY2025** — Best year on record: $2.67B net income
- **2023** — Zoetis acquired Petmedix, a privately held Cambridge, UK-based company, to bring the benefits of…
- **2022** — Zoetis acquired Basepaws, a privately held genetics company
- **2018** — The company acquired Abaxis for $1.9 billion in cash
- **2017** — Zoetis acquired Ireland-based Nexvet, a company with a biologics focused technology and product…
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $4.89B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2013** — Zoetis became a public company via an initial public offering, raising $2.2 billion
- **2012** — Pfizer Animal Health was renamed Zoetis
- **2008** — Pfizer Animal Health acquired Catapult Genetics, a developer of livestock DNA tests and gene markers
- **2003** — Pfizer acquired Pharmacia Corporation for $60 billion in stock
- **1995** — Pfizer acquired Norden Laboratories from GlaxoSmithKline for $1.45 billion, expanding its animal health…
- **1988** — The division was renamed Pfizer Animal Health

## 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

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $7.78B | $2.04B | $1.74B |
| FY2022 | $8.08B | $2.11B | $1.33B |
| FY2023 | $8.54B | $2.34B | $1.62B |
| FY2024 | $9.26B | $2.49B | $2.30B |
| FY2025 | $9.47B | $2.67B | $2.28B |

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Source: https://stockcv.com/ZTS — derived from company filings; may be delayed or incomplete. Information, not investment advice.