Zoetis Inc. — Drug Manufacturers - Specialty & Generic. Scored on the same transparent 7-signal model behind the daily rankings.
★
ZTS
Zoetis Inc. · Drug Manufacturers - Specialty & Generic
FCF$2.2bB
Rev+2.3%C
D/E2.86D
P/E12.5xA
PEG1.81C+
70.5Score
$76.17$31.9B
1Y Target$115.65Analyst consensus · 17 analysts
5Y Target$146.00Compound horizon
10Y Target$187.24Long-dated conviction
FCF$2.2bTTMB
FCF $2.2b — solid, comfortably covers operations and capital return
Rev+2.3%TTM YoYC
Revenue +2.3% — flat, mature phase or headwinds present
D/E2.86D
D/E 2.86 — most levered decile in Healthcare (≈95th pctile)
P/E12.5xA
P/E 12.5 — cheapest decile in Healthcare (≈10th pctile)
PEG1.81C+
PEG 1.81 — modest premium; above fair value
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 70.5
Quality0.85
Growth0.62
Value0.66
Why this score
Buying back stock
Raising its dividend
Short track record
Entry · Margin of safety
52-week rangeNear 52-week low
53% off the 12-month high
vs DCF fair value30% belowest. fair value ~$109
Quality signals · context only
Gross profitability45% · A-gross profit ÷ total assets (Novy-Marx)
Why now
Drug Manufacturers - Specialty & Generic · market cap $31.9b. Down 53% from 52-week high of $160.48 — deep drawdown territory. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $115.65 (implying +52% upside).
Moat
Net margin 28% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 82% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk
D/E 2.86 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 53% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
Horizon
1-3 yr $115.65 (17-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $146.00 at ~14% CAGR — dividend + buyback compounding. 10 yr $187.24 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · ZTS
Trend
+1.8 over 14 daily scores
From 68.7 (Jun 22) → 70.5 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · ZTS
$
%
%
Shares to buy
26
Position size
$1,981
4.0% of portfolio
Stop price
$57.13
25% below $76.17
$ at risk if stopped
$495.14
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Zoetis Inc. (ZTS): score, valuation & FAQ
Zoetis Inc. (ZTS) is a Drug Manufacturers - Specialty & Generic company that scores 70.5 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (A), while D/E (D) rate weaker. On valuation, ZTS sits about 30% below our discounted-cash-flow fair value (a margin of safety).
Is ZTS a good stock to buy?
Bull Rankings scores ZTS 70.5 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A). A score is a quantitative screen of Zoetis Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does ZTS score 70.5 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). ZTS earns its highest marks on P/E (A), and is held back by D/E (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is ZTS overvalued or undervalued?
Based on $76.17, ZTS sits about 30% below our discounted-cash-flow fair value (a margin of safety). It trades at a 12.5x× P/E (graded A). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in ZTS?
D/E 2.86 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 53% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.