Zoetis Inc. (ZTS) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Healthcare · Drug Manufacturers - Specialty & Generic
Is Zoetis Inc. a safe investment right now?
Zoetis Inc.'s Altman Z-Score of 5.42 places it in the safe zone. Our fair value estimate is $106.57 (Fairly Valued). Moat rating: 3.7/5 stars.
Could Zoetis Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 5.42 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives ZTS's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.2931 | 1.2 | 0.35 |
| B · Retained Earnings / Total Assets | RE / TA | 0.8886 | 1.4 | 1.24 |
| C · EBIT / Total Assets | EBIT / TA | 0.2316 | 3.3 | 0.76 |
| D · Market Cap / Total Liabilities | MCap / TL | 4.0877 | 0.6 | 2.45 |
| E · Revenue / Total Assets | Rev / TA | 0.6121 | 1.0 | 0.61 |
How has ZTS's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 5.17 | Safe |
| 2023 | 5.92 | Safe |
| 2024 | 5.97 | Safe |
| 2025 | 5.42 | Safe |
Source: Calculated from ZTS's latest 10-K filing on SEC EDGAR.
What is Zoetis Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $6.42 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $6.02 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $7.03 | 17 analysts consensus |
| Trailing P/E | 19.5x | Current market pricing |
| Fair P/E (β discount) | 16.6x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $150.29 (17 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Zoetis Inc. have a durable competitive advantage?
Moat rating: 3.7/5.
What makes up ZTS's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is ZTS's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 23.4% | — |
| 2023 | 27.5% | Rising |
| 2024 | 29.6% | Rising |
| 2025 | 28.9% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is Zoetis Inc.'s dividend safe?
Can Zoetis Inc. afford its dividend?
Payout ratio is 33.2%. FCF covers the dividend 2.2x. 14 consecutive years of payments.
Zoetis Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $9.5B | $9.3B | $8.1B | Rising |
| Net Income | $2.7B | $2.5B | $2.1B | Rising |
| Free Cash Flow | $2.3B | $2.3B | $1.3B | Rising |
| Gross Margin | 71.8% | 70.6% | 69.6% | Stable |
Recent events that affect our ZTS analysis
ZTS earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.62. Revenue estimate: $2.31B. Our current Fair Value: $106.57 — a significant beat or miss could shift this estimate.
ZTS analyst consensus: 60% bullish (12 of 20 analysts)
3 Strong Buy, 9 Buy, 8 Hold, 0 Sell, 0 Strong Sell. Consensus target: $150.29 (27.9% upside). Compare with our independent Fair Value: $106.57.
ZTS paid $0.5300/share dividend
Dividend Safety Grade: A. Payout ratio: 33.2%.
ZTS beat EPS estimates by 5.5%
Reported EPS: $1.48 vs estimate $1.40. Earnings strength supports our Fair Value of $106.57 (9.3% below current price).
ZTS filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS paid $0.5300/share dividend
Dividend Safety Grade: A. Payout ratio: 33.2%.
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS beat EPS estimates by 4.8%
Reported EPS: $1.70 vs estimate $1.62. Earnings strength supports our Fair Value of $106.57 (9.3% below current price).
ZTS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS paid $0.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 33.2%.
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS beat EPS estimates by 5.8%
Reported EPS: $1.61 vs estimate $1.52. Earnings strength supports our Fair Value of $106.57 (9.3% below current price).
ZTS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS paid $0.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 33.2%.
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS beat EPS estimates by 5.8%
Reported EPS: $1.48 vs estimate $1.40. Earnings strength supports our Fair Value of $106.57 (9.3% below current price).
ZTS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS paid $0.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 33.2%.
ZTS beat EPS estimates by 2.8%
Reported EPS: $1.40 vs estimate $1.36. Earnings strength supports our Fair Value of $106.57 (9.3% below current price).
ZTS filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZTS paid $0.5000/share dividend
Dividend Safety Grade: A. Payout ratio: 33.2%.
ZTS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Zoetis Inc.
What is Zoetis Inc. stock price today?
Zoetis Inc. (ZTS) stock price is $117.52 as of the latest market close, traded on the NYSE exchange.
What does Zoetis Inc. do?
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. It commercializes products primarily across companion animals comprising dogs, cats, and horses; and species, including livestock, such as cattle, swine, poultry, fish, and sheep.
What is Zoetis Inc. market cap?
Zoetis Inc. has a market capitalization of $49.61B, classifying it as a large-cap stock in the Healthcare sector.
What sector and industry is ZTS in?
Zoetis Inc. operates in the Healthcare sector, specifically within the Drug Manufacturers - Specialty & Generic industry. It trades on the NYSE under the ticker symbol ZTS.
Is ZTS stock overvalued or undervalued?
Based on our valuation model, Zoetis Inc. trades 10.3% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $106.57
- Current Price: $117.52
- Valuation Zone: Fairly Valued
What is ZTS stock forecast and analyst target price?
Based on 17 Wall Street analysts, the consensus price target for Zoetis Inc. is $150.29, implying upside of 27.9% from the current price.
- Analyst High Target: $190.00
- Analyst Low Target: $127.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Zoetis Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Zoetis Inc.:
- Revenue growth (current year est.): 4.6%
- EPS growth (current year est.): 9.7%
- Revenue growth (next year est.): 4.9%
- EPS growth (next year est.): 7.7%
What are Zoetis Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $9.5B | Rising |
| Net Income | $2.7B | Rising |
| Free Cash Flow | $2.3B | Rising |
| Gross Margin | 71.8% | Stable |
What is ZTS's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 19.5x
- Forward P/E (next 12 months est.): 15.5x
- FairValueLabs Fair P/E: 16.6x
How volatile is ZTS stock?
Zoetis Inc. has a beta of 0.97, meaning it is roughly in line with overall market volatility. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Zoetis Inc. have?
Zoetis Inc.'s balance sheet shows:
- Total Cash: $2.31B
- Total Debt: $9.31B
- Net Cash Position: $-7.00B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Zoetis Inc.'s free cash flow?
Zoetis Inc. generated $1.79B in trailing twelve-month free cash flow (from $2.90B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Zoetis Inc. pay a dividend, and is it safe?
Yes, Zoetis Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.7%
- Payout Ratio: 33.2%
- Consecutive Years Paid: 14
- 5-Year Dividend Growth: 1.2%
- FairValueLabs Safety Grade: A
Is Zoetis Inc. at risk of going bankrupt?
Zoetis Inc.'s Altman Z-Score is 5.42, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Zoetis Inc. have a durable competitive advantage?
Zoetis Inc. scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is ZTS's return on equity (ROE)?
Zoetis Inc.'s return on equity is 66.0%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy ZTS stock?
ZTS shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol ZTS
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is ZTS a value stock or speculative?
FairValueLabs classifies Zoetis Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Zoetis Inc.?
The current CEO of Zoetis Inc. is Ms. Kristin C. Peck.
What is ZTS's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $6.02
- Forward EPS (next 12 months est.): $7.57
- Analyst consensus EPS (this year): $7.03
- Analyst consensus EPS (next year): $7.57
Other Healthcare companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
ZTS analysis methodology: How we calculate fair value, Z-Scores, and moat ratings