Zoetis (ZTS) AI Stock Analysis

• Market Cap: $52.99B
• Dividend Yield: 1.66%
• Average Volume (3M): 3.63M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.58
• Revenue Growth: 2.68%
• EPS Growth: 11.51%
• Country: US
• Employees: 13,800
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.70
• Shares Outstanding: 440,693,200
• 10 Day Avg. Volume: 5,159,343
• 30 Day Avg. Volume: 3,627,980
• PEG Ratio: 3.88
• Price to Book (P/B): 15.51
• Price to Sales (P/S): 8.00
• P/FCF Ratio: 32.20
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 7.45
• Enterprise Value/Gross Profit: 10.55
• Enterprise Value/Ebitda: 17.29
• 1Y Price Target: $181.13
• Price Target Upside: 50.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 6.34
• Revenue Forecast (FY): $9.47B

• Rating: 70 Outperform
• Price Target: $137.00 ▲(13.94% Upside)

Zoetis' strong financial performance and reasonable valuation are key strengths, supporting a solid overall score. The earnings call provided a balanced view with growth in key segments, though technical analysis indicates current bearish momentum. Investors should consider the company's robust financial health and strategic focus on innovation amid market challenges.

Positive Factors

International Market Performance

Strong international growth indicates Zoetis's ability to expand and capitalize on global markets, enhancing long-term revenue potential.

New Product Approvals

Approval of new products like Portela strengthens Zoetis's portfolio, supporting future growth and market competitiveness.

Livestock Segment Growth

Robust growth in the Livestock segment reflects strong demand and positions Zoetis well in a key revenue-generating market.

Negative Factors

Challenges in OA Pain Franchise

Decline in OA pain franchise sales due to competition and misperceptions could impact Zoetis's revenue from this segment.

U.S. Market Pressures

Stagnation in the U.S. market, especially in Companion Animal, may limit growth potential in a significant geographic segment.

Competitive Dynamics in Dermatology

Increased competition in dermatology could pressure margins and market share, affecting long-term profitability in this segment.

Zoetis Business Overview & Revenue Model

Company Description

Zoetis Inc. (ZTS) is a global leader in animal health, dedicated to supporting the health and well-being of livestock and companion animals. Founded in 1952, the company develops and manufactures a wide range of veterinary medicines, vaccines, and diagnostic products. Zoetis operates in various sectors including livestock, such as cattle, swine, and poultry, as well as companion animals like dogs and cats. Its core products include parasiticides, anti-infectives, vaccines, and nutritional products, all aimed at enhancing animal health and productivity.

How the Company Makes Money

Zoetis generates revenue primarily through the sale of its animal health products, which are categorized into two main segments: livestock and companion animals. The company earns money by selling pharmaceuticals, vaccines, and diagnostic tests, with livestock products typically accounting for a significant portion of its revenue due to the larger market size in agriculture. Additionally, Zoetis benefits from recurring revenues through product refills and ongoing veterinary services. Key revenue streams include sales to veterinarians, animal producers, and pet owners. The company has established significant partnerships with veterinary clinics, animal health distributors, and research institutions, which enhance its market reach and product development capabilities. Factors contributing to its earnings include increasing global demand for animal protein, a growing pet population, and advancements in veterinary care and technology.

Zoetis Financial Statement Overview

Summary

Zoetis presents a strong financial profile with impressive revenue growth and profitability. The company effectively manages its operations, resulting in high margins and strong cash flow generation. While the balance sheet shows a moderate level of leverage, the high return on equity and substantial cash flow mitigate potential risks. Overall, Zoetis is well-positioned for continued financial success.

Income Statement

Zoetis demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 12.8%. The company maintains robust profitability with a gross profit margin of 70% and a net profit margin of 27.8%. EBIT and EBITDA margins are also healthy at 37.8% and 43%, respectively. These metrics indicate a well-managed cost structure and efficient operations, contributing to high profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.36, indicating a balanced approach to leveraging. Return on equity is impressive at 53.2%, reflecting strong shareholder returns. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Zoetis exhibits significant free cash flow growth of 94.6% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.87, and the free cash flow to net income ratio is 0.76, indicating efficient conversion of income into cash. These metrics suggest robust liquidity and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.40B	9.26B	8.54B	8.08B	7.78B	6.67B
Gross Profit	6.64B	6.40B	5.83B	5.48B	5.31B	4.46B
EBITDA	4.05B	3.87B	3.69B	3.36B	3.17B	2.69B
Net Income	2.65B	2.49B	2.34B	2.11B	2.04B	1.64B
Balance Sheet
Total Assets	15.16B	14.24B	14.29B	14.93B	13.90B	13.61B
Cash, Cash Equivalents and Short-Term Investments	2.08B	1.99B	2.04B	3.58B	3.48B	3.60B
Total Debt	7.27B	6.74B	6.75B	8.09B	6.74B	7.36B
Total Liabilities	9.76B	9.47B	9.29B	10.52B	9.36B	9.84B
Stockholders Equity	5.40B	4.77B	5.00B	4.41B	4.54B	3.77B
Cash Flow
Free Cash Flow	2.24B	2.30B	1.62B	1.33B	1.74B	1.67B
Operating Cash Flow	2.92B	2.95B	2.35B	1.91B	2.21B	2.13B
Investing Cash Flow	-456.00M	-315.00M	-777.00M	-883.00M	-458.00M	-572.00M
Financing Cash Flow	-2.12B	-2.66B	-3.11B	-904.00M	-1.86B	123.00M

Zoetis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 120.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZTS, the sentiment is Negative. The current price of 120.24 is below the 20-day moving average (MA) of 139.64, below the 50-day MA of 143.76, and below the 200-day MA of 154.59, indicating a bearish trend. The MACD of -5.49 indicates Positive momentum. The RSI at 18.55 is Positive, neither overbought nor oversold. The STOCH value of 5.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZTS.

Zoetis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAHC	71 Outperform	$1.78B	26.31	23.79%	1.17%	33.71%	289.48%
ZTS	70 Outperform	$52.99B	20.26	49.87%	1.66%	2.68%	11.51%
ELAN	69 Neutral	$10.68B	294.79	0.54%	―	3.08%	-82.39%
RDY	67 Neutral	$11.34B	16.47	17.72%	0.68%	10.63%	6.35%
VTRS	55 Neutral	$11.66B	―	-21.09%	4.58%	-6.40%	-320.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Zoetis Corporate Events

Zoetis Reports Steady Growth in Q3 2025

Zoetis Inc., a leading animal health company, specializes in providing medicines, vaccines, diagnostics, and technologies for veterinarians, pet owners, and livestock producers globally. In its third quarter of 2025, Zoetis reported a revenue increase of 1% to $2.4 billion and a net income rise of 6% to $721 million, showcasing a steady financial performance. The company achieved 4% organic operational growth in revenue and 9% in adjusted net income, reflecting disciplined execution and strategic advancements.

Zoetis Earnings Call: Growth Amid Challenges

Zoetis’ recent earnings call painted a mixed picture of its current market position and future prospects. The company showcased robust performance in international markets and significant growth in the Livestock segment, buoyed by new product approvals. However, challenges were evident in the OA pain franchise and U.S. market pressures, alongside competitive dynamics in dermatology, which posed notable headwinds.

Zoetis Appoints Stephanie Tilenius to Board of Directors

Zoetis Inc. announced the appointment of Stephanie Tilenius to its Board of Directors, effective December 1, 2025, increasing the board size from 12 to 13 members. Tilenius, a seasoned entrepreneur with extensive experience in digital health and AI, is expected to contribute significantly to Zoetis’ digital transformation and innovation strategy in the animal health industry, aligning with the company’s vision to leverage technology for improved animal care.

The most recent analyst rating on (ZTS) stock is a Buy with a $166.00 price target. To see the full list of analyst forecasts on Zoetis stock, see the ZTS Stock Forecast page.

Zoetis Declares Q4 2025 Dividend of $0.50

On October 9, 2025, Zoetis announced a dividend of $0.50 per share for the fourth quarter of 2025, to be paid on December 2, 2025, to shareholders of record as of October 31, 2025. This decision reflects Zoetis’s ongoing commitment to returning value to its shareholders and may influence market perceptions of the company’s financial health and stability.

The most recent analyst rating on (ZTS) stock is a Buy with a $173.00 price target. To see the full list of analyst forecasts on Zoetis stock, see the ZTS Stock Forecast page.

Zoetis Secures New $1.25 Billion Credit Facility

On August 27, 2025, Zoetis Inc. entered into a new five-year $1.25 billion senior unsecured revolving credit facility with a syndicate of banks, replacing its previous credit agreement. This new credit facility allows Zoetis to potentially increase its borrowing capacity to $1.75 billion, providing the company with greater financial flexibility to support its operations and strategic initiatives.

The most recent analyst rating on (ZTS) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Zoetis stock, see the ZTS Stock Forecast page.

Zoetis Enters Underwriting Agreement for Senior Notes

On August 11, 2025, Zoetis Inc. entered into an Underwriting Agreement for the sale of $850 million in 4.150% Senior Notes due 2028 and $1 billion in 5.000% Senior Notes due 2035. This financial move, executed under an indenture agreement with Deutsche Bank Trust Company Americas, aims to strengthen Zoetis’s financial position and potentially enhance its market competitiveness.

The most recent analyst rating on (ZTS) stock is a Buy with a $230.00 price target. To see the full list of analyst forecasts on Zoetis stock, see the ZTS Stock Forecast page.

Zoetis Reports Strong Q2 2025 Results, Raises Outlook

Zoetis Inc., a leading animal health company, specializes in the development and manufacturing of vaccines, medicines, and diagnostic products for both companion animals and livestock, operating globally across two main segments: United States and International markets.

Zoetis Reports Strong Q2 2025 Earnings with Raised Guidance

Zoetis’ recent earnings call revealed a generally positive sentiment, showcasing the company’s strong financial performance and robust organic revenue growth across multiple segments. Despite these achievements, challenges in the OA Pain market and macroeconomic concerns were acknowledged, indicating a balanced outlook for the future.