Zoetis Inc.

ZTS

Healthcare|Drug Manufacturers - Specialty & Generic|US

$79.40

-2.71 (-3.30%)

DCF Value

$185.49

Graham Number

$33.02

Cash / Share

$3.72

Financials

Financial Snapshot

Market Cap

$32.81B

Enterprise Value

$40.71B

Revenue (TTM)

$9.51B

Net Income (TTM)

$2.49B

Cash & Investments

$1.53B

Net Cash

-$7.70B

Free Cash Flow (TTM)

$2.28B

Operating CF (TTM)

$2.77B

Debt/Equity

2.80

Cash Runway & Burn Rate

Company is cash-flow positive.

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	TTM
Cash & Investments	$727.0M	$1.56B	$1.70B	$1.93B	$3.60B	$3.48B	$3.58B	$2.04B	$1.99B	$2.31B	$1.53B
Operating Cash Flow	$713.0M	$1.35B	$1.79B	$1.79B	$2.13B	$2.21B	$1.91B	$2.35B	$2.95B	$2.90B	$2.77B
Free Cash Flow	$497.0M	$1.12B	$1.45B	$1.33B	$1.67B	$1.74B	$1.33B	$1.62B	$2.30B	$2.28B	$2.28B
Capital Expenditure	-$216.0M	-$224.0M	-$338.0M	-$460.0M	-$453.0M	-$477.0M	-$586.0M	-$732.0M	-$655.0M	-$621.0M	-$495.0M
Financing Cash Flow	-$903.0M	-$251.0M	$533.0M	-$951.0M	$123.0M	-$1.86B	-$904.0M	-$3.11B	-$2.66B	-$1.87B	-$2.87B

R&D Spending

R&D (TTM)

$726.0M

R&D Intensity

7.6%

R&D Growth vs Prior

+4.0%

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	TTM
Revenue	$4.89B	$5.31B	$5.83B	$6.26B	$6.67B	$7.78B	$8.08B	$8.54B	$9.26B	$9.47B	$9.51B
R&D Expense	$376.0M	$382.0M	$432.0M	$457.0M	$463.0M	$508.0M	$539.0M	$614.0M	$686.0M	$698.0M	$726.0M
R&D % of Revenue	7.7%	7.2%	7.4%	7.3%	6.9%	6.5%	6.7%	7.2%	7.4%	7.4%	7.6%
SG&A	$1.32B	$1.32B	$1.48B	$1.64B	$1.73B	$2.00B	$2.01B	$2.15B	$2.32B	$2.38B	$2.38B

Income Statement

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	TTM
Revenue	$4.89B	$5.31B	$5.83B	$6.26B	$6.67B	$7.78B	$8.08B	$8.54B	$9.26B	$9.47B	$9.51B
Cost of Revenue	$1.75B	$1.86B	$2.03B	$2.15B	$2.22B	$2.46B	$2.60B	$2.71B	$2.86B	$2.79B	$2.75B
Gross Profit	$3.14B	$3.44B	$3.80B	$4.11B	$4.46B	$5.31B	$5.48B	$5.83B	$6.40B	$6.67B	$6.75B
R&D	$376.0M	$382.0M	$432.0M	$457.0M	$463.0M	$508.0M	$539.0M	$614.0M	$686.0M	$698.0M	$726.0M
SG&A	$1.32B	$1.32B	$1.48B	$1.64B	$1.73B	$2.00B	$2.01B	$2.15B	$2.32B	$2.38B	$2.38B
Operating Income	$1.40B	$1.73B	$1.88B	$2.02B	$2.27B	$2.80B	$2.93B	$3.07B	$3.39B	$3.60B	$3.45B
Interest Expense	$166.0M	$175.0M	$212.0M	$242.0M	$249.0M	$236.0M	$237.0M	$258.0M	$242.0M	$243.0M	$242.0M
Pretax Income	$1.23B	$1.52B	$1.69B	$1.80B	$2.00B	$2.49B	$2.66B	$2.94B	$3.13B	$3.36B	$3.11B
Net Income	$821.0M	$864.0M	$1.43B	$1.50B	$1.64B	$2.04B	$2.11B	$2.34B	$2.49B	$2.67B	$2.49B
EPS (Diluted)	1.65	1.75	2.93	3.11	3.42	4.27	4.49	5.07	5.47	6.02	5.88
EBITDA	$1.63B	$1.94B	$2.21B	$2.46B	$2.69B	$3.17B	$3.36B	$3.69B	$3.87B	$4.07B	$3.83B
Shares Out. (M)	498.22	493.16	486.90	481.79	478.57	476.72	470.38	462.27	454.85	443.83	411.60

Balance Sheet

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	TTM
Cash & Equivalents	$727.0M	$1.56B	$1.60B	$1.93B	$3.60B	$3.48B	$3.58B	$2.04B	$1.99B	$2.31B	$1.33B
Short-Term Investments	$0.00	$0.00	$99.0M	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$200.0M
Total Current Assets	$3.39B	$4.22B	$4.40B	$4.75B	$6.61B	$6.93B	$7.51B	$6.34B	$5.99B	$6.77B	$6.29B
Total Assets	$7.65B	$8.59B	$10.78B	$11.54B	$13.61B	$13.90B	$14.93B	$14.29B	$14.24B	$15.47B	$15.09B
Total Current Liabilities	$1.12B	$1.09B	$1.22B	$1.81B	$2.17B	$1.80B	$3.17B	$1.89B	$3.41B	$2.23B	$2.68B
Long-Term Debt	$4.47B	$4.95B	$6.44B	$5.95B	$6.59B	$6.59B	$6.55B	$6.56B	$5.22B	$9.24B	$8.30B
Total Liabilities	$6.15B	$6.80B	$8.59B	$8.84B	$9.84B	$9.36B	$10.52B	$9.29B	$9.47B	$12.14B	$11.79B
Stockholders' Equity	$1.49B	$1.77B	$2.19B	$2.71B	$3.77B	$4.54B	$4.41B	$5.00B	$4.77B	$3.33B	$3.30B
Retained Earnings	$1.48B	$2.11B	$3.27B	$4.43B	$5.66B	$7.19B	$8.67B	$10.29B	$11.97B	$13.74B	$15.25B

Cash Flow Statement

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	TTM
Operating Cash Flow	$713.0M	$1.35B	$1.79B	$1.79B	$2.13B	$2.21B	$1.91B	$2.35B	$2.95B	$2.90B	$2.77B
Capital Expenditure	-$216.0M	-$224.0M	-$338.0M	-$460.0M	-$453.0M	-$477.0M	-$586.0M	-$732.0M	-$655.0M	-$621.0M	-$495.0M
Free Cash Flow	$497.0M	$1.12B	$1.45B	$1.33B	$1.67B	$1.74B	$1.33B	$1.62B	$2.30B	$2.28B	$2.28B
Investing Cash Flow	-$214.0M	-$270.0M	-$2.26B	-$504.0M	-$572.0M	-$458.0M	-$883.0M	-$777.0M	-$315.0M	-$748.0M	-$815.0M
Financing Cash Flow	-$903.0M	-$251.0M	$533.0M	-$951.0M	$123.0M	-$1.86B	-$904.0M	-$3.11B	-$2.66B	-$1.87B	-$2.87B
Issuance of Stock	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Repurchase of Stock	-$300.0M	-$500.0M	-$698.0M	-$626.0M	-$250.0M	-$743.0M	-$1.59B	-$1.09B	-$1.86B	-$3.23B	-$3.75B
Net Debt Issuance	-$405.0M	$481.0M	$1.50B	-$9.0M	$744.0M	-$604.0M	$1.35B	-$1.35B	-$3.0M	$2.27B	$1.78B
Stock Based Comp.	$37.0M	$44.0M	$53.0M	$67.0M	$59.0M	$58.0M	$62.0M	$60.0M	$74.0M	$83.0M	$100.0M
Net Change in Cash	-$427.0M	$837.0M	$38.0M	$332.0M	$1.67B	-$119.0M	$96.0M	-$1.54B	-$54.0M	$325.0M	-$889.0M

Dilution Tracker

Shares Outstanding

413M

5-Year Share Growth

-7.3%

Stock Issuance (TTM)

$0.00

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	TTM
Shares Out. (M)	498.22	493.16	486.90	481.79	478.57	476.72	470.38	462.27	454.85	443.83	411.60
Change vs Prior %	—	-1.0%	-1.3%	-1.0%	-0.7%	-0.4%	-1.3%	-1.7%	-1.6%	-2.4%	-7.3%
Stock Issuance	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Stock Repurchase	-$300.0M	-$500.0M	-$698.0M	-$626.0M	-$250.0M	-$743.0M	-$1.59B	-$1.09B	-$1.86B	-$3.23B	-$3.75B
Stock Based Comp.	$37.0M	$44.0M	$53.0M	$67.0M	$59.0M	$58.0M	$62.0M	$60.0M	$74.0M	$83.0M	$100.0M

Margins & Profitability

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	TTM
Gross Margin %	64.3%	64.9%	65.2%	65.7%	66.8%	68.3%	67.8%	68.3%	69.1%	70.5%	71.0%
Operating Margin %	28.7%	32.5%	32.3%	32.2%	34.0%	36.0%	36.2%	35.9%	36.6%	38.0%	36.3%
Net Margin %	16.8%	16.3%	24.5%	24.0%	24.5%	26.2%	26.2%	27.4%	26.9%	28.2%	26.1%
EBITDA Margin %	33.4%	36.6%	37.9%	39.2%	40.2%	40.8%	41.6%	43.1%	41.8%	43.0%	40.3%
FCF Margin %	10.2%	21.1%	24.9%	21.3%	25.1%	22.3%	16.4%	19.0%	24.8%	24.1%	24.0%
ROE %	55.2%	48.8%	65.4%	55.4%	43.5%	44.8%	48.0%	46.9%	52.1%	80.2%	76.4%
ROA %	10.7%	10.1%	13.3%	13.0%	12.0%	14.7%	14.2%	16.4%	17.5%	17.3%	16.5%
ROIC %	14.3%	13.0%	16.6%	16.4%	15.4%	18.9%	17.8%	19.7%	22.2%	21.5%	20.9%
R&D / Revenue %	7.7%	7.2%	7.4%	7.3%	6.9%	6.5%	6.7%	7.2%	7.4%	7.4%	7.6%

Growth (Year over Year)

Fiscal years. Rising share count growth means dilution.

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Revenue	2.6%	8.6%	9.8%	7.5%	6.6%	16.5%	3.9%	5.7%	8.3%	2.3%
Gross Profit	5.9%	9.5%	10.3%	8.3%	8.4%	19.2%	3.1%	6.5%	9.6%	4.3%
Operating Income	29.8%	23.0%	8.9%	7.3%	12.4%	23.5%	4.5%	4.8%	10.5%	6.0%
Net Income	142.2%	5.2%	65.3%	5.0%	9.2%	24.4%	3.8%	10.9%	6.1%	7.5%
EPS (Diluted)	142.6%	6.1%	67.4%	6.1%	10.0%	24.9%	5.2%	12.9%	7.9%	10.1%
Operating Cash Flow	7.4%	88.8%	33.0%	0.3%	18.4%	4.1%	-13.6%	23.1%	25.5%	-1.7%
Free Cash Flow	13.0%	125.8%	29.4%	-8.1%	25.3%	3.8%	-23.6%	22.2%	41.8%	-0.7%
R&D Expense	3.3%	1.6%	13.1%	5.8%	1.3%	9.7%	6.1%	13.9%	11.7%	1.7%
SG&A Expense	-6.1%	0.7%	11.8%	10.5%	5.4%	15.9%	0.4%	7.1%	7.8%	2.6%
Total Assets	-3.3%	12.2%	25.5%	7.1%	17.9%	2.1%	7.4%	-4.3%	-0.3%	8.6%
Book Value / Share	38.5%	20.6%	24.1%	25.2%	40.1%	20.7%	-2.0%	15.3%	-3.0%	-28.5%
Debt	-8.2%	10.9%	30.3%	2.5%	11.4%	-8.4%	20.0%	-16.5%	-0.2%	40.8%
Diluted Shares	-0.8%	-1.0%	-1.3%	-1.0%	-0.7%	-0.4%	-1.3%	-1.7%	-1.6%	-2.4%

Valuation

P/E (TTM)13.48

10Y Low / Med / High20.87 / 38.85 / 56.88

P/S3.45

10Y Low / Med / High5.43 / 8.50 / 14.89

P/B9.89

10Y Low / Med / High15.51 / 18.91 / 25.48

EV/EBITDA10.62

10Y Low / Med / High15.48 / 21.81 / 37.52

EV/Revenue4.28

10Y Low / Med / High6.19 / 9.06 / 15.31

P/FCF14.40

10Y Low / Med / High24.44 / 47.40 / 66.68

Intrinsic Value Models (per share)

DCF Value

$185.49

Graham Number

$33.02

Cash / Share

$3.72

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	TTM
P/E Ratio	32.25	40.93	28.90	42.15	48.11	56.88	32.49	38.85	29.79	20.87	13.48
P/S Ratio	5.43	6.65	7.09	10.11	11.79	14.89	8.50	10.65	8.00	5.89	3.45
P/B Ratio	17.85	19.94	18.91	23.37	20.88	25.48	15.60	18.22	15.51	16.75	9.89
EV/EBITDA	18.53	19.92	20.89	27.68	30.70	37.52	21.81	25.98	20.34	15.48	10.62
EV/Revenue	6.19	7.29	7.93	10.86	12.35	15.31	9.06	11.21	8.51	6.65	4.28

Analyst Estimates & Quality

Altman Z-Score

4.74

Safe

Piotroski F-Score

Moderate

Forward Estimates (consensus)

Metric	FY2026	FY2027	FY2028
Revenue	$9.27B	$9.34B	$9.67B
Net Income	$2.62B	$2.84B	$2.71B
EPS	$6.21	$6.34	$6.76
# Analysts (EPS)	9	10	7

Dividends

Dividend/Share (TTM)

$2.12

Dividend Yield

2.67%

Frequency

Quarterly

Next Payment

Dec 1, 2026

Recent Payments

Ex-Date	Pay Date	Amount	Frequency
Oct 30, 2026	Dec 1, 2026	$0.53	Quarterly
Jul 20, 2026	Sep 1, 2026	$0.53	Quarterly
Apr 20, 2026	Jun 2, 2026	$0.53	Quarterly
Jan 20, 2026	Mar 3, 2026	$0.53	Quarterly
Oct 31, 2025	Dec 2, 2025	$0.50	Quarterly
Jul 18, 2025	Sep 3, 2025	$0.50	Quarterly
Apr 21, 2025	Jun 3, 2025	$0.50	Quarterly
Jan 21, 2025	Mar 4, 2025	$0.50	Quarterly
Oct 31, 2024	Dec 3, 2024	$0.43	Quarterly
Jul 18, 2024	Sep 4, 2024	$0.43	Quarterly
Apr 18, 2024	Jun 4, 2024	$0.43	Quarterly
Jan 18, 2024	Mar 1, 2024	$0.43	Quarterly
Oct 31, 2023	Dec 1, 2023	$0.38	Quarterly
Jul 20, 2023	Sep 1, 2023	$0.38	Quarterly
Apr 20, 2023	Jun 1, 2023	$0.38	Quarterly
Jan 19, 2023	Mar 1, 2023	$0.38	Quarterly
Oct 31, 2022	Dec 1, 2022	$0.33	Quarterly
Jul 20, 2022	Sep 1, 2022	$0.33	Quarterly
Apr 20, 2022	Jun 1, 2022	$0.33	Quarterly
Jan 19, 2022	Mar 1, 2022	$0.33	Quarterly

Revenue Segments

By Product

Segment	2020	2021	2022	2023	2024	2025
Cattle	$1.56B	$1.56B	$1.44B	$1.50B	$1.53B	$1.49B
Dogs and Cats	$215.0M	$263.0M	$264.0M	$285.0M	$285.0M	$304.0M
Fish	$148.0M	$187.0M	$212.0M	$220.0M	$242.0M	$286.0M
Horses	$3.44B	$4.43B	$4.94B	$5.29B	$5.99B	$6.28B
Poultry	$537.0M	$507.0M	$476.0M	$524.0M	$527.0M	$432.0M
Swine	$621.0M	$659.0M	$565.0M	$543.0M	$516.0M	$466.0M

By Geography

Segment	2020	2021	2022	2023	2024	2025
United States Segment	$3.56B	$4.04B	$4.31B	$4.55B	$5.07B	$5.10B
International Segment	$3.04B	$3.65B	$3.68B	$3.91B	$4.10B	$4.25B