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Zoetis Inc. (ZTS) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Zoetis Inc.

ZTSMarket cap $29BPrice $71.3

Country🇺🇸United States

SectorHealthcare

IndustryPharmaceuticals

Develops medicines, vaccines, and diagnostic tools exclusively for pets and livestock. Spun off from Pfizer in 2013, it's now the world's largest animal health company, treating everything from household cats to cattle feeding entire nations.

In Bastion Portfolios?

52W Return-50%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+5%5

Revenue Forecast

Rev CAGR (1y)-2%2

Rev CAGR (3y)+1%2

Rev CAGR (5y)+2%2

Earnings Forecast

EPS Growth Y+1+15%7

EPS Growth Y+2+1%4

EPS Growth Y+3+5%5

Quality

Margins

EBIT Margin38%9

Net Income Margin28%9

Free Cash Flow Margin24%9

Debt

Net Debt/EBITDA1.84

Efficiency

ROE65%10

ROA18%10

Earnings Stability1010

GEAR+STRONG69

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)128

P/E Ratio (Forward 3y)117

P/BV9.42

EV Multiples

EV/EBITDA Fwd106

EV/EBIT Fwd118

Yield

Free Cash Flow Yield7.9%8

Dividend Yield3.0%7

Momentum

Short term

1 month return-6%4

3 month return-6%5

YTD return-42%1

Mid term

Price vs 52wHigh49%1

1 year return-49%1

Long term

3 year return-58%1

5 year return-62%1

Risk Shield

Price Risk

Beta0.48

Volatility40%4

Free Cash Flow

Free Cash Flow Margin24%9

Free Cash Flow Yield7.9%8

Quality

ROCE30%10

Earnings Stability1010

Net Debt/EBITDA1.84

02Growth

Is it actually growing, and how fast?

ZTSZoetis

Revenue FY25$9.3B

GROWTH RATING↗

VERY WEAK13 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y-2%2

Revenue, next 3Y, CAGR+1%2

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+15%7

EPS growth, FY27E+1%4

EPS growth, FY28E+5%5

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 5%/yr over the last 3 years; forecasts see it cooling to 0.9%/yr.

Earnings are set to grow in step with sales (EPS about 5%/yr vs revenue 0.9%/yr).

WEAKNESSES

Growth is the weak spot here, trailing 87% of companies worldwide.

Revenue is set to grow 0.9%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that is slowing. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK7 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-6%5

YTD return-42%1

MID & LONG-TERM▾SCORE

% of 52-week high49%1

1-year return-49%1

3-year return-58%1

5-year return-62%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-6%) and over three months (-6%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-58% over three years and -62% over five), behind 90% of the market.

It's down 49% over the past year, now 51% below its 52-week high. That is lagging the market.

The stock is underperforming so far this year (-42%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Zoetis. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

ZTSZoetis

Revenue FY25$9.3B

GROWTH RATING↗

VERY WEAK13 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y-2%2

Revenue, next 3Y, CAGR+1%2

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+15%7

EPS growth, FY27E+1%4

EPS growth, FY28E+5%5

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 5%/yr over the last 3 years; forecasts see it cooling to 0.9%/yr.

Earnings are set to grow in step with sales (EPS about 5%/yr vs revenue 0.9%/yr).

WEAKNESSES

Growth is the weak spot here, trailing 87% of companies worldwide.

Revenue is set to grow 0.9%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that is slowing. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK7 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-6%5

YTD return-42%1

MID & LONG-TERM▾SCORE

% of 52-week high49%1

1-year return-49%1

3-year return-58%1

5-year return-62%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-6%) and over three months (-6%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-58% over three years and -62% over five), behind 90% of the market.

It's down 49% over the past year, now 51% below its 52-week high. That is lagging the market.

The stock is underperforming so far this year (-42%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Zoetis. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community