Zoetis Inc.ZTS
NYSE•Healthcare•Drug Manufacturers - Specialty & Generic
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.
Zoetis Inc. (ZTS) reported trailing twelve months revenue of $9.51B as of March 2026, a 2.4% increase year-over-year. Quarterly revenue reached $2.26B, reflecting continued top-line momentum.
Zoetis Inc. generated $2.64B in TTM net income, with quarterly EBITDA of $919.00M. The operating margin contracted from 38.1% to 35.4%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (35.4%) and net margin (26.6%) indicates moderate non-operating costs. Net margin has narrowed from 28.4% a year ago, reflecting increased costs or interest expense.
ZTS trades at a P/E of 18.6x (in line with broad market averages) and a P/S of 5.2x. The price-to-book ratio of 15.2x indicates a significant premium over book value.
The company generated $291.00M in free cash flow over the trailing twelve months, a 33.6% decrease year-over-year, indicating cash generation ability. The balance sheet shows $15.15B in total assets with $9.04B in long-term debt against $3.23B in stockholders equity for a debt-to-equity ratio of 2.8, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are stable at ~36.6%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 57.9% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~6.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~36.8% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio of 2.8 is elevated and rising. Monitor for further debt accumulation.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 7.3% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation