Zoetis (ZTS) AI Stock Analysis

• Market Cap: $67.12B
• Dividend Yield: 1.28%
• Average Volume (3M): 2.95M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.62
• Revenue Growth: 6.32%
• EPS Growth: 7.23%
• Country: US
• Employees: 13,800
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.48
• Shares Outstanding: 445,208,040
• 10 Day Avg. Volume: 3,477,439
• 30 Day Avg. Volume: 2,945,244
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $189.75
• Price Target Upside: 25.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $180.00 ▲(19.40%Upside)

Zoetis' strong financial performance and positive earnings call guidance are the key drivers of the score, reflecting robust growth and strategic resilience. Technical indicators suggest caution, but the company's commitment to shareholder returns and moderate valuation provide a balanced outlook.

Positive Factors

Financial Performance

Zoetis reported solid first quarter results with organic operational growth at 9%, exceeding expectations.

Market Position

Zoetis stands to benefit from any pet owners pairing Quantum with an injectable heartworm preventative, as Zoetis offers ProHeart injectible.

Product Innovation

Zoetis is increasingly shifting to the combination parasiticide Simparica Trio, which also provides internal parasite protection, making it a more comprehensive solution for pet owners.

Negative Factors

Product Competition

Bravecto Quantum is seen as a potential threat to Zoetis’s Simparica parasiticide franchise.

Product Performance

Librela US sales were slightly worse than expected, continuing a trend of disappointing results over multiple quarters.

Zoetis Business Overview & Revenue Model

Company Description

Zoetis Inc. discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally. It commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep; and companion animals comprising dogs, cats, and horses. The company also offers vaccines, which are biological preparations to prevent diseases of the respiratory, gastrointestinal, and reproductive tracts or induce a specific immune response; anti-infectives that prevent, kill, or slow the growth of bacteria, fungi, or protozoa; and parasiticides that prevent or eliminate external and internal parasites, which include fleas, ticks, and worms. It also provides other pharmaceutical products that comprise pain and sedation, antiemetic, reproductive, and oncology products; dermatology products for itch associated with allergic conditions and atopic dermatitis; and medicated feed additives, which offer medicines to livestock. In addition, the company provides portable blood and urine analysis testing, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services, and blood glucose monitors; and other non-pharmaceutical products, including nutritionals and agribusiness services, as well as products and services in areas, such as biodevices, genetics tests, and precision animal health. It markets its products to veterinarians, livestock producers, and retail outlets, as well as third-party veterinary distributors through its sales representatives, and technical and veterinary operations specialists. The company was founded in 1952 and is headquartered in Parsippany, New Jersey.

How the Company Makes Money

Zoetis generates revenue through the sale of its extensive range of animal health products. The company's revenue model primarily revolves around two main segments: companion animal and livestock. The companion animal segment focuses on products for pets, including vaccines, parasiticides, and dermatology products, which are sold directly to veterinarians, clinics, and pet owners. The livestock segment caters to livestock producers, providing vaccines, anti-infectives, and performance-enhancing products aimed at improving animal health and farm productivity. Zoetis also benefits from its strategic partnerships and collaborations with veterinary practices, research institutions, and agricultural businesses, enhancing its market reach and innovation capabilities. Additionally, the company invests significantly in research and development to sustain its pipeline of new products, ensuring a steady stream of innovative solutions to meet evolving market demands.

Zoetis Financial Statement Overview

Summary

Zoetis demonstrates strong revenue growth and profitability with a stable balance sheet, although there is room for improvement in cash flow utilization and equity strength.

Income Statement

Zoetis has demonstrated strong revenue growth with a consistent upward trajectory over the years. The gross profit margin is robust, indicating efficient cost management. The net profit margin and EBIT margin are healthy, showcasing profitability and operational efficiency. However, the EBITDA margin shows room for improvement compared to peers.

Balance Sheet

The company's balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, indicating manageable leverage. The return on equity is strong, suggesting effective use of shareholder funds. However, the equity ratio is relatively low, which could pose risks if liabilities increase.

Cash Flow

Zoetis exhibits strong cash flow generation with consistent free cash flow growth, supporting operational and strategic initiatives. The operating cash flow to net income ratio is robust, indicating efficient cash conversion. However, the free cash flow to net income ratio suggests potential for further improvement in cash utilization.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Zoetis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 150.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 150.75 is below the 20-day moving average (MA) of 153.99, below the 50-day MA of 159.38, and below the 200-day MA of 165.02, indicating a bearish trend. The MACD of -2.24 indicates Negative momentum. The RSI at 40.41 is Neutral, neither overbought nor oversold. The STOCH value of 54.15 is Neutral, 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
ZTS	76 Outperform	$67.12B	27.07	51.85%	1.28%	6.32%	7.23%
ELAN	71 Outperform	$7.24B	19.46	6.01%	―	1.42%	―
RDY	71 Outperform	$12.37B	18.38	18.36%	0.03%	13.03%	-0.49%
PAHC	67 Neutral	$1.17B	37.01	11.86%	1.66%	19.12%	141.45%
HCM	65 Neutral	$3.16B	83.20	5.06%	―	-25.48%	-63.36%
VTRS	54 Neutral	$10.87B	―	-21.25%	5.18%	-6.88%	-6809.78%
Sector *	52 Neutral	$7.59B	0.18	-63.14%	2.16%	16.34%	0.64%

Zoetis Corporate Events

Zoetis Elects New Board Member at Annual Meeting

On May 21, 2025, Zoetis Inc. held its Annual Meeting of Shareholders, where Dr. Mark Stetter was elected to the Board of Directors, succeeding Mr. Robert Scully who retired in accordance with the company’s director retirement policy. Dr. Stetter, with extensive experience in veterinary medicine and animal health, is expected to contribute significantly to Zoetis’ mission of advancing animal care. The meeting also saw the election of twelve directors, approval of the executive compensation program, and ratification of KPMG LLP as the independent registered public accounting firm, though a shareholder proposal for special meeting improvements was not approved.

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 Announces Q3 2025 Dividend of $0.50

On May 21, 2025, Zoetis announced a dividend of $0.50 per share for the third quarter of 2025, payable on September 3, 2025, to shareholders recorded by July 18, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial positioning and stakeholder relations.

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.