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Zoetis Inc (ZTS)

Undervalued
HealthcareDrug Manufacturers - Specialty & GenericUnited States

Fundamental

72

Price

$69.83

Market Cap

$29.52B

Part 1 · What the company is worth

Overview

Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry in the United States and internationally. The company commercializes products primarily across companion animals comprising dogs, cats, and horses; and species, including livestock, such as cattle, swine, poultry, fish, and sheep. It also offers parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical, and animal health diagnostics. In addition, the company provides animal health diagnostics, 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, which include nutritionals, as well as products and services in biodevices, genetic tests, and precision animal health. It markets its products to veterinarians, livestock producers, and pet owners. The company has collaborated with Blacksmith Medicines, Inc. to discover and develop novel antibiotics for animal health. Zoetis Inc. was incorporated in 2012 and is headquartered in Parsippany, New Jersey.

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Direct competitors

Who this company fights with for the same customers

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Balance Sheet & Liquidity

Revenue

$9.53B

Trailing 12 months (through 6/30/2026)

Net Income

$2.64B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$2.28B

Total Equity

$3.42B

Total Liabilities

$12.07B

Current Ratio

3.08

Interest Coverage

-

Debt/EBITDA

2.27

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseUndervalued

Fair Value

$112.17

Current Price

$69.83

Margin of Safety

+37.7%

Fair Value Range

$72.91 - $151.42

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$96.00
Discounted cash flow (DCF):$167.64
Earnings multiple (P/E):$69.92
Graham growth formula:$174.99
Earnings power value (EPV):$74.32
Justified P/B:$118.21
Dividend discount (Gordon):$48.93
P/FFO, funds from operations:$122.36
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:$89.77
Analyst Consensus:Buy (12B / 12H / 0S)
Last Earnings Surprise:-0.22%

Valuation Metrics

P/E Ratio

11.41

ROE

78.3%

P/B Ratio

9.17

P/FCF

12.46

Gross Margin

71.7%

ROIC

-

Profitability Radar

Value Creation (Economic Moat)

ROIC

-

WACC

6.8%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • EPS CAGR 19.62%
  • Gross Margin 71.7%
  • P/FCF 12.46
  • Debt/Equity ratio
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 69.3%
  • Revenue Growth 5Y 7.2%
  • Analyst Consensus 50% Buy
  • PEG Ratio 0.93
  • Earnings Quality (OCF/NI) 1.08
  • Share Dilution -2.3%
  • Net Margin Trend 27.7% vs 27.6%
  • Piotroski F-Score 6/9

Failed (6)

  • Price CAGR 3.15%
  • P/B Ratio 9.17
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg 0.5%

Unavailable (4)

  • ROIC NaN%
  • Dividend Payout NaN%
  • Operating Margin NaN%
  • Interest Coverage

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.08

High quality: earnings backed by cash

Share Dilution

-2.3%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Ms. Kristin C. PeckCEO & Director54
Ms. Roxanne LaganoExecutive VP, General Counsel & Corporate Secretary60
Mr. Wetteny N. Joseph CPASpecial Advisor to the CEO53
Dr. Robert J. Polzer Ph.D.Scientific Advisor56
Mr. Jamie BrannanExecutive VP & Chief Commercial Officer52
Mr. James K. SaccaroExecutive VP, CFO & COO52
Mr. Keith SarbaughExecutive VP & Chief Digital and Technology Officer46
Mr. Steven FrankVice President of Investor Relations-
Ms. Julie A. FullerExecutive VP, Chief Human Resources Officer & Global Operations52
Mr. Abhay U. NayakExecutive VP & President of U.S. Commercial Operations37

Audit Risk

5

Board Risk

2

Compensation Risk

6

Shareholder Rights Risk

7

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-12

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-06

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-06

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for ZTS, sourced from Markets Gazette.

  • 5/10/2026NEGATIVE
    Zoetis, Insmed, And HubSpot Are Among Top 10 Large-Cap Losers Last Week (May 4-May 8): Are The Others In Your Portfolio?

    Zoetis Inc. was among the top large-cap decliners last week, experiencing a significant sell-off. This downturn was primarily attributed to weak earnings reports, cautious forward guidance from the company, and subsequent reductions in analyst price targets. The broader market sentiment also played a role, with declines seen across healthcare, software, networking, and industrial sectors. Investors are advised to monitor Zoetis's upcoming earnings calls and management commentary for signs of a potential turnaround or further headwinds.

via Markets Gazette