Zoetis Inc. (ZTS) 10-Year Financial Performance & Capital Metrics

ZTS • • Industrial / General

HealthcareSpecialty & Generic PharmaAnimal Health ProductsCompanion Animal Health

AboutZoetis Inc. discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally. It commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep; and companion animals comprising dogs, cats, and horses. The company also offers vaccines, which are biological preparations to prevent diseases of the respiratory, gastrointestinal, and reproductive tracts or induce a specific immune response; anti-infectives that prevent, kill, or slow the growth of bacteria, fungi, or protozoa; and parasiticides that prevent or eliminate external and internal parasites, which include fleas, ticks, and worms. It also provides other pharmaceutical products that comprise pain and sedation, antiemetic, reproductive, and oncology products; dermatology products for itch associated with allergic conditions and atopic dermatitis; and medicated feed additives, which offer medicines to livestock. In addition, the company provides portable blood and urine analysis testing, 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, including nutritionals and agribusiness services, as well as products and services in areas, such as biodevices, genetics tests, and precision animal health. It markets its products to veterinarians, livestock producers, and retail outlets, as well as third-party veterinary distributors through its sales representatives, and technical and veterinary operations specialists. The company was founded in 1952 and is headquartered in Parsippany, New Jersey.Show more

Revenue $9.26B +8.3%
EBITDA $3.89B +9.2%
Net Income $2.49B +6.1%
EPS (Diluted) 5.47 +7.9%
Gross Margin 69.1% +1.2%
EBITDA Margin 42.02% +0.8%
Operating Margin 36.65% +2.0%
Net Margin 26.86% -2.1%
ROE 50.94% +2.1%
ROIC 26.45% +7.0%
Debt/Equity 1.41 +4.5%
Interest Coverage 14.02 +17.8%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 49.4%
✓Strong Piotroski F-Score: 7/9
✓FCF machine: 24.8% free cash flow margin
✓12 consecutive years of dividend growth
✓Healthy 5Y average net margin of 26.2%

✗Weaknesses

✗Expensive at 11.9x book value

Price & Volume

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Growth Metrics

Revenue CAGR

10Y6.82%

5Y8.14%

3Y5.98%

TTM2.68%

Profit (Net Income) CAGR

10Y15.61%

5Y10.63%

3Y6.87%

TTM9.09%

EPS CAGR

10Y16.78%

5Y11.96%

3Y8.61%

TTM11.65%

ROCE

10Y Avg23.28%

5Y Avg24.88%

3Y Avg26.39%

Latest29.21%

Peer Comparison

Companion Animal Health

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ELANElanco Animal Health Incorporated	12.15B	24.45	35.96	0.5%	0.78%	0.53%	3.24%	0.71
ZTSZoetis Inc.	54.92B	124.62	22.78	8.33%	28.21%	49.11%	4.18%	1.41

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	4.76B	4.89B	5.31B	5.83B	6.26B	6.67B	7.78B	8.08B	8.54B	9.26B
Revenue Growth %	-0%	0.03%	0.09%	0.1%	0.07%	0.07%	0.16%	0.04%	0.06%	0.08%
Cost of Goods Sold+	1.8B	1.75B	1.86B	2.03B	2.15B	2.22B	2.46B	2.6B	2.71B	2.86B
COGS % of Revenue	0.38%	0.36%	0.35%	0.35%	0.34%	0.33%	0.32%	0.32%	0.32%	0.31%
Gross Profit+	2.97B	3.14B	3.44B	3.8B	4.11B	4.46B	5.31B	5.48B	5.83B	6.4B
Gross Margin %	0.62%	0.64%	0.65%	0.65%	0.66%	0.67%	0.68%	0.68%	0.68%	0.69%
Gross Profit Growth %	-0.01%	0.06%	0.1%	0.1%	0.08%	0.08%	0.19%	0.03%	0.07%	0.1%
Operating Expenses+	1.89B	1.74B	1.72B	1.92B	2.1B	2.19B	2.51B	2.55B	2.77B	3B
OpEx % of Revenue	0.4%	0.36%	0.32%	0.33%	0.33%	0.33%	0.32%	0.32%	0.32%	0.32%
Selling, General & Admin	1.4B	1.32B	1.32B	1.48B	1.64B	1.73B	2B	2.01B	2.15B	2.32B
SG&A % of Revenue	0.29%	0.27%	0.25%	0.25%	0.26%	0.26%	0.26%	0.25%	0.25%	0.25%
Research & Development	364M	376M	382M	432M	457M	463M	508M	539M	614M	686M
R&D % of Revenue	0.08%	0.08%	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0
Operating Income+	1.08B	1.4B	1.73B	1.88B	2.02B	2.27B	2.8B	2.93B	3.07B	3.39B
Operating Margin %	0.23%	0.29%	0.33%	0.32%	0.32%	0.34%	0.36%	0.36%	0.36%	0.37%
Operating Income Growth %	0.12%	0.3%	0.23%	0.09%	0.07%	0.12%	0.24%	0.04%	0.05%	0.11%
EBITDA+	1.14B	1.64B	1.97B	2.19B	2.43B	2.71B	3.25B	3.39B	3.56B	3.89B
EBITDA Margin %	0.24%	0.34%	0.37%	0.38%	0.39%	0.41%	0.42%	0.42%	0.42%	0.42%
EBITDA Growth %	0.11%	0.44%	0.2%	0.11%	0.11%	0.12%	0.2%	0.04%	0.05%	0.09%
D&A (Non-Cash Add-back)	61M	240M	242M	308M	412M	441M	448M	465M	491M	497M
EBIT	669M	1.39B	1.7B	1.9B	2.04B	2.25B	2.72B	2.89B	3.19B	3.38B
Net Interest Income+	-124M	-166M	-175M	-181M	-205M	-237M	-230M	-187M	-153M	-136M
Interest Income	0	0	0	31M	37M	12M	6M	50M	105M	106M
Interest Expense	124M	166M	175M	212M	242M	249M	236M	237M	258M	242M
Other Income/Expense	-537M	-176M	-202M	-191M	-217M	-273M	-315M	-272M	-133M	-259M
Pretax Income+	545M	1.23B	1.52B	1.69B	1.8B	2B	2.49B	2.66B	2.94B	3.13B
Pretax Margin %	0.11%	0.25%	0.29%	0.29%	0.29%	0.3%	0.32%	0.33%	0.34%	0.34%
Income Tax+	206M	409M	663M	266M	301M	360M	454M	545M	596M	637M
Effective Tax Rate %	0.62%	0.67%	0.57%	0.84%	0.83%	0.82%	0.82%	0.8%	0.8%	0.79%
Net Income+	339M	821M	864M	1.43B	1.5B	1.64B	2.04B	2.11B	2.34B	2.49B
Net Margin %	0.07%	0.17%	0.16%	0.25%	0.24%	0.25%	0.26%	0.26%	0.27%	0.27%
Net Income Growth %	-0.42%	1.42%	0.05%	0.65%	0.05%	0.09%	0.24%	0.04%	0.11%	0.06%
Net Income (Continuing)	339M	819M	862M	1.42B	1.5B	1.64B	2.03B	2.11B	2.34B	2.5B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	23M	12M	16M	0	0	4M	1M	-2M	-6M	0
EPS (Diluted)+	0.68	1.65	1.75	2.93	3.11	3.42	4.27	4.49	5.07	5.47
EPS Growth %	-0.41%	1.43%	0.06%	0.67%	0.06%	0.1%	0.25%	0.05%	0.13%	0.08%
EPS (Basic)	0.68	1.66	1.76	2.96	3.14	3.44	4.29	4.51	5.08	5.47
Diluted Shares Outstanding	502.02M	498.23M	493.16M	486.9M	481.79M	478.57M	476.72M	470.38M	462.27M	454.85M
Basic Shares Outstanding	499.71M	495.71M	489.92M	483.06M	478.13M	475.5M	474.35M	468.89M	461.17M	454.2M
Dividend Payout Ratio	0.5%	0.23%	0.24%	0.17%	0.21%	0.23%	0.23%	0.29%	0.3%	0.32%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	3.83B	3.39B	4.22B	4.4B	4.75B	6.61B	6.93B	7.51B	6.34B	5.99B
Cash & Short-Term Investments	1.15B	727M	1.56B	1.7B	1.93B	3.6B	3.48B	3.58B	2.04B	1.99B
Cash Only	1.15B	727M	1.56B	1.6B	1.93B	3.6B	3.48B	3.58B	2.04B	1.99B
Short-Term Investments	0	0	0	99M	0	0	0	0	0	0
Accounts Receivable	937M	913M	998M	1.04B	1.09B	1.01B	1.13B	1.22B	1.3B	1.32B
Days Sales Outstanding	71.77	68.18	68.64	64.92	63.32	55.39	53.18	54.89	55.71	51.9
Inventory	1.47B	1.5B	1.43B	1.39B	1.41B	1.63B	1.92B	2.35B	2.56B	2.31B
Days Inventory Outstanding	297.81	314.17	279.43	250.35	239.71	268.03	284.86	328.7	345.34	294.3
Other Current Assets	272M	248M	228M	276M	320M	368M	392M	369M	436M	379M
Total Non-Current Assets+	4.08B	4.26B	4.37B	6.38B	6.8B	7B	6.97B	7.42B	7.94B	8.25B
Property, Plant & Equipment	1.31B	1.38B	1.44B	1.66B	2.13B	2.39B	2.6B	2.97B	3.43B	3.61B
Fixed Asset Turnover	3.65x	3.54x	3.70x	3.51x	2.94x	2.79x	2.99x	2.72x	2.49x	2.56x
Goodwill	1.46B	1.48B	1.51B	2.52B	2.59B	2.69B	2.68B	2.75B	2.76B	2.72B
Intangible Assets	1.19B	1.23B	1.27B	2.05B	1.89B	1.71B	1.47B	1.38B	1.34B	1.13B
Long-Term Investments	0	0	0	0	0	0	0	0	0	30M
Other Non-Current Assets	49M	73M	75M	94M	98M	106M	111M	147M	206M	220M
Total Assets+	7.91B	7.65B	8.59B	10.78B	11.54B	13.61B	13.9B	14.93B	14.29B	14.24B
Asset Turnover	0.60x	0.64x	0.62x	0.54x	0.54x	0.49x	0.56x	0.54x	0.60x	0.65x
Asset Growth %	0.2%	-0.03%	0.12%	0.26%	0.07%	0.18%	0.02%	0.07%	-0.04%	-0%
Total Current Liabilities+	1.78B	1.12B	1.09B	1.22B	1.81B	2.17B	1.8B	3.17B	1.89B	3.41B
Accounts Payable	293M	265M	261M	313M	301M	457M	436M	405M	411M	433M
Days Payables Outstanding	59.48	55.43	51.11	56.33	51.17	75.24	64.59	56.77	55.36	55.26
Short-Term Debt	405M	0	0	9M	500M	604M	0	1.35B	3M	1.35B
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	297M	265M	280M	300M	331M	388M	459M	397M	484M	566M
Current Ratio	2.15x	3.03x	3.85x	3.60x	2.63x	3.05x	3.86x	2.37x	3.36x	1.75x
Quick Ratio	1.33x	1.69x	2.55x	2.46x	1.85x	2.30x	2.79x	1.63x	2.00x	1.08x
Cash Conversion Cycle	310.1	326.92	296.96	258.94	251.86	248.18	273.46	326.81	345.69	290.93
Total Non-Current Liabilities+	5.04B	5.03B	5.71B	7.37B	7.03B	7.67B	7.56B	7.36B	7.41B	6.05B
Long-Term Debt	4.46B	4.47B	4.95B	6.44B	5.95B	6.59B	6.59B	6.55B	6.56B	5.22B
Capital Lease Obligations	0	0	0	0	164M	163M	151M	186M	188M	174M
Deferred Tax Liabilities	264M	244M	380M	474M	434M	378M	320M	142M	146M	167M
Other Non-Current Liabilities	314M	321M	373M	452M	486M	530M	496M	475M	508M	494M
Total Liabilities	6.82B	6.15B	6.8B	8.59B	8.84B	9.84B	9.36B	10.52B	9.29B	9.47B
Total Debt+	4.87B	4.47B	4.95B	6.45B	6.61B	7.36B	6.74B	8.09B	6.75B	6.74B
Net Debt	3.71B	3.74B	3.39B	4.86B	4.68B	3.76B	3.26B	4.51B	4.72B	4.76B
Debt / Equity	4.46x	2.98x	2.77x	2.95x	2.44x	1.95x	1.48x	1.84x	1.35x	1.41x
Debt / EBITDA	4.26x	2.72x	2.52x	2.95x	2.72x	2.72x	2.07x	2.38x	1.90x	1.73x
Net Debt / EBITDA	3.25x	2.28x	1.72x	2.22x	1.93x	1.39x	1.00x	1.33x	1.32x	1.22x
Interest Coverage	8.73x	8.46x	9.87x	8.87x	8.34x	9.11x	11.88x	12.35x	11.90x	14.02x
Total Equity+	1.09B	1.5B	1.79B	2.19B	2.71B	3.77B	4.54B	4.4B	4.99B	4.77B
Equity Growth %	-0.18%	0.37%	0.19%	0.22%	0.24%	0.39%	0.2%	-0.03%	0.13%	-0.04%
Book Value per Share	2.17	3.01	3.62	4.49	5.62	7.88	9.53	9.36	10.80	10.49
Total Shareholders' Equity	1.07B	1.49B	1.77B	2.19B	2.71B	3.77B	4.54B	4.41B	5B	4.77B
Common Stock	5M	5M	5M	5M	5M	5M	5M	5M	5M	5M
Retained Earnings	876M	1.48B	2.11B	3.27B	4.43B	5.66B	7.19B	8.67B	10.29B	11.97B
Treasury Stock	-203M	-421M	-852M	-1.49B	-2.04B	-2.23B	-2.95B	-4.54B	-5.6B	-7.45B
Accumulated OCI	-622M	-598M	-505M	-629M	-726M	-730M	-764M	-817M	-839M	-940M
Minority Interest	23M	12M	16M	0	0	4M	1M	-2M	-6M	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	664M	713M	1.35B	1.79B	1.79B	2.13B	2.21B	1.91B	2.35B	2.95B
Operating CF Margin %	0.14%	0.15%	0.25%	0.31%	0.29%	0.32%	0.28%	0.24%	0.28%	0.32%
Operating CF Growth %	0.06%	0.07%	0.89%	0.33%	0%	0.18%	0.04%	-0.14%	0.23%	0.25%
Net Income	339M	819M	862M	1.42B	1.5B	1.64B	2.03B	2.11B	2.34B	2.5B
Depreciation & Amortization	199M	240M	242M	308M	412M	441M	448M	465M	491M	497M
Stock-Based Compensation	43M	37M	44M	53M	67M	59M	58M	62M	60M	74M
Deferred Taxes	-85M	-55M	127M	-112M	-79M	-62M	-80M	-286M	-61M	-338M
Other Non-Cash Items	376M	111M	100M	5M	46M	137M	96M	259M	31M	145M
Working Capital Changes	-208M	-439M	-29M	112M	-151M	-85M	-343M	-699M	-512M	79M
Change in Receivables	-58M	15M	-50M	-67M	-69M	74M	-155M	-137M	-102M	-61M
Change in Inventory	-262M	-101M	19M	61M	-104M	-346M	-366M	-486M	-361M	-40M
Change in Payables	17M	-28M	-10M	37M	-10M	147M	-17M	-29M	13M	31M
Cash from Investing+	-1.11B	-214M	-270M	-2.26B	-504M	-572M	-458M	-883M	-777M	-315M
Capital Expenditures	-224M	-216M	-224M	-338M	-460M	-453M	-477M	-586M	-732M	-655M
CapEx % of Revenue	0.05%	0.04%	0.04%	0.06%	0.07%	0.07%	0.06%	0.07%	0.09%	0.07%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-8M	90M	36M	-289M	-447M	-432M	1M	1M	6M	60M
Cash from Financing+	755M	-903M	-251M	533M	-951M	123M	-1.86B	-904M	-3.11B	-2.66B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-168M	-188M	-206M	-243M	-314M	-380M	-474M	-611M	-692M	-786M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	11M	-10M	-26M	-30M	-2M	9M	-45M	-49M	24M	-13M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	440M	497M	1.12B	1.45B	1.33B	1.67B	1.74B	1.33B	1.62B	2.3B
FCF Margin %	0.09%	0.1%	0.21%	0.25%	0.21%	0.25%	0.22%	0.16%	0.19%	0.25%
FCF Growth %	0.02%	0.13%	1.26%	0.29%	-0.08%	0.25%	0.04%	-0.24%	0.22%	0.42%
FCF per Share	0.88	1.00	2.28	2.98	2.77	3.50	3.64	2.82	3.51	5.05
FCF Conversion (FCF/Net Income)	1.96x	0.87x	1.56x	1.25x	1.20x	1.30x	1.09x	0.90x	1.00x	1.19x
Interest Paid	117M	165M	167M	190M	247M	257M	253M	242M	295M	274M
Taxes Paid	224M	408M	455M	336M	418M	418M	548M	638M	754M	892M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	27.92%	63.4%	52.6%	71.92%	61.31%	50.55%	48.98%	47.26%	49.9%	50.94%
Return on Invested Capital (ROIC)	18.25%	20.97%	24.87%	23.1%	20.98%	22.81%	27.41%	26.27%	24.72%	26.45%
Gross Margin	62.27%	64.3%	64.88%	65.18%	65.7%	66.79%	68.31%	67.77%	68.28%	69.1%
Net Margin	7.11%	16.8%	16.28%	24.52%	23.96%	24.54%	26.2%	26.16%	27.43%	26.86%
Debt / Equity	4.46x	2.98x	2.77x	2.95x	2.44x	1.95x	1.48x	1.84x	1.35x	1.41x
Interest Coverage	8.73x	8.46x	9.87x	8.87x	8.34x	9.11x	11.88x	12.35x	11.90x	14.02x
FCF Conversion	1.96x	0.87x	1.56x	1.25x	1.20x	1.30x	1.09x	0.90x	1.00x	1.19x
Revenue Growth	-0.42%	2.58%	8.57%	9.76%	7.47%	6.63%	16.49%	3.91%	5.74%	8.33%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Horses	162M	150M	151M	2.44B	2.95B	3.44B	4.43B	4.94B	5.29B	5.99B
Horses Growth	-	-7.41%	0.67%	1519.21%	20.65%	16.51%	28.78%	11.59%	7.13%	13.27%
Cattle	1.68B	1.65B	1.74B	1.75B	1.65B	1.56B	1.56B	1.44B	1.5B	1.53B
Cattle Growth	-	-1.61%	4.96%	1.10%	-5.70%	-5.80%	-0.06%	-7.51%	4.38%	1.86%
Poultry	525M	457M	479M	522M	559M	537M	507M	476M	524M	527M
Poultry Growth	-	-12.95%	4.81%	8.98%	7.09%	-3.94%	-5.59%	-6.11%	10.08%	0.57%
Swine	668M	602M	621M	663M	611M	621M	659M	565M	543M	516M
Swine Growth	-	-9.88%	3.16%	6.76%	-7.84%	1.64%	6.12%	-14.26%	-3.89%	-4.97%
Dogs and Cats	1.59B	1.81B	2.08B	168M	195M	215M	263M	264M	285M	285M
Dogs and Cats Growth	-	13.30%	14.89%	-91.90%	16.07%	10.26%	22.33%	0.38%	7.95%	0.00%
Fish	85M	90M	118M	132M	134M	148M	187M	212M	220M	242M
Fish Growth	-	5.88%	31.11%	11.86%	1.52%	10.45%	26.35%	13.37%	3.77%	10.00%
Sheep and Other	-	79M	84M	-	-	-	-	-	-	-
Sheep and Other Growth	-	-	6.33%	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
United States	-	2.45B	-	3.08B	3.2B	3.56B	4.04B	4.31B	4.55B	5.07B
United States Growth	-	-	-	-	3.99%	11.05%	13.64%	6.70%	5.61%	11.39%
International	-	2.39B	-	-	2.97B	3.04B	3.65B	3.68B	3.91B	4.1B
International Growth	-	-	-	-	-	2.12%	20.33%	0.79%	6.25%	4.88%
Non-US	-	-	100M	-	-	-	-	-	-	-
Non-US Growth	-	-	-	-	-	-	-	-	-	-
International	2.39B	-	-	-	-	-	-	-	-	-
International Growth	-	-	-	-	-	-	-	-	-	-
UNITED STATES	2.33B	-	-	-	-	-	-	-	-	-
UNITED STATES Growth	-	-	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Zoetis Inc. (ZTS) has a price-to-earnings (P/E) ratio of 22.8x. This is roughly in line with market averages.

Growth & Financials

Zoetis Inc. (ZTS) reported $9.40B in revenue for fiscal year 2024. This represents a 122% increase from $4.23B in 2011.

Zoetis Inc. (ZTS) grew revenue by 8.3% over the past year. This is steady growth.

Yes, Zoetis Inc. (ZTS) is profitable, generating $2.65B in net income for fiscal year 2024 (26.9% net margin).

Dividend & Returns

Yes, Zoetis Inc. (ZTS) pays a dividend with a yield of 1.39%. This makes it attractive for income-focused investors.

Zoetis Inc. (ZTS) has a return on equity (ROE) of 50.9%. This is excellent, indicating efficient use of shareholder capital.

Zoetis Inc. (ZTS) generated $2.24B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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