Zoetis (ZTS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Zoetis

NYSE•Healthcare•Drug Manufacturers - Specialty & Generic

$73.02+0.02(<0.01%)After hours

Market Cap

$30.16B

P/E

11.5x

P/S

3.2x

P/B

9.6x

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.

How this company scores

GoodMetricSide Score: 63/100

Strongest: Cash & Earnings Quality (21/25); weakest: Balance Sheet & Red Flags (7/25).

Profitability20/25

Growth15/25

Balance Sheet & Red Flags7/25

Cash & Earnings Quality21/25

Strengths

Strong marginsHigh ROEConsistent free cash flowConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 11.5x5y range 11.5x – 56.9x

Currently below its 20-quarter median.

P/S · 3.2x5y range 3.2x – 14.9x

Currently below its 20-quarter median.

P/B · 9.6x5y range 9.6x – 25.5x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Watch

D/E ratio of 2.9 is elevated and rising. Watch for further debt accumulation.

Price & Volume

Market Cap $30.16B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $9.52B
Q. Revenue: $2.47B
TTM EBITDA: $3.95B
TTM Op. Income: $3.46B
Q. Op. Income: $922.00M
TTM Net Income: $2.62B
Q. Net Income: $691.00M
EPS: $1.65
Shares Out.: $417.60M

$9.52B in TTM revenue grew 1.4% YoY, reaching $2.47B last quarter. TTM EBITDA of $3.95B and TTM operating income of $3.46B show growth is flowing through to the bottom line. TTM net income of $2.62B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 72.7%
EBITDA Margin: 42.2%
Op. Margin: 37.4%
Net Margin: 28.0%

Op. margin of 37.4% is down 1.6% YoY — costs are rising relative to revenue. Net margin at 28.0% and gross margin of 72.7% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 11.5x
P/S Ratio: 3.2x
P/B Ratio: 9.6x

At 11.5x P/E, the stock trades below typical market levels. P/S of 3.2x and P/B of 9.6x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 7 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $15.08B
Cash: $1.48B
Long-Term Debt: $9.05B
Book Value: $3.15B
D/E Ratio: 2.9
Debt/EBITDA: 8.7

With $15.08B in assets and $9.05B in long-term debt, D/E is 2.9and book value is $3.15B — elevated leverage, meaning significant financial risk in a downturn. Across the last 8 quarters, debt/equity has risen for 4 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $655.00M
TTM Free Cash Flow: $2.37B
FCF Margin: 24.9%
FCF / Net Income: 0.9

TTM FCF of $2.37B on $655.00M in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 7% — an improving trend.