Rankings Pharma & medtech Zoetis
Zoetis
66
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Moat−6
- Quality of growth−4
- Multiples vs own history and peers−4
Strengths
- Diversified base+2
- Insider buying+1
- Dividend+1
How the score is built
From 100 to 66, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 83.18 USD
- Median analyst target
- 85.00 USD
- Upside to median
- +2.2%
- Analysts
- 16
- Target range
- 74.00 – 115.00 USD
- 52-week change
- −42%
- P/E (trailing)
- 13.6
- Forward P/E
- 13.5
- PEG
- 1.29
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−13 of −30
- −6MoatUS companion animal fell 11% in Q2. Dermatology (Apoquel/Cytopoint) and Simparica Trio face 'increased competitive pressure' from Elanco's Zenrelia and Credelio Quattro among others, and Cerenia and Convenia have generic competition. Stifel cut its target to $80 on 18/9, citing weakness in exactly dermatology and Simparica.
- −4Quality of growthRevenue was flat in Q2 (−1% organic), and 2026 is guided at −3% to −1% organic growth and a 5–9% organic decline in adjusted net profit. Only livestock (US +23%) and international companion animal (+5% organic) are growing.
- −3Capital allocationBuybacks of $3.66bn and dividends of $0.89bn TTM, $4.5bn in total vs FCF of $2.32bn; the difference is borrowed (net $2.3bn of new debt in 2025). The 2025 buybacks were done at prices of about $124–158 vs $71 today.
Price
Today's multiples against the company's own history and its peers. · 1 finding−4 of −35
- −4Multiples vs own history and peersForward P/E 11.6 vs 19.1–49.3 at year-ends 2021–25; EV/EBITDA 9.1 vs 14.9–37.1; P/FCF 12.7 vs 24.3–66.5; FCF yield 7.9%. Far below its own history with a ROIC of 27% and an operating margin of 38%, but earnings fall in 2026, so the low multiple is not free.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 5 findings−16 of −35
- −4Librela safetyThe FDA's 'Dear Veterinarian' letter (December 2024) on serious neurological side effects (seizures, paralysis and deaths) and the updated label (February 2025) have made vets cautious; Librela sales fell again in the US in Q2.
- −4Customers are shiftingFewer vet visits and more price-sensitive pet owners are squeezing the US companion animal market; management itself talks about a 'more pressured Companion Animal market'.
- −4Guidance2026 guidance was cut sharply in August: revenue $9.12–9.32bn (from 9.68–9.96) and adjusted EPS $6.15–6.25 (from 6.85–7.00), after the stock had already fallen 21.5% on the disappointment on 6/5.
- −3LawsuitsSecurities lawsuit (City of Ann Arbor v. Zoetis, S.D.N.Y., class period 14/1/2025 to 6/5/2026) over misleading statements about Librela's safety, competition and market share. A consumer lawsuit over Librela, on the other hand, was dismissed by a judge.
- −1DebtGross debt $9.3bn ($6.8bn in 2024), net debt/EBITDA 1.86 vs 1.03 in 2021 and debt/equity 2.9 after debt-funded buybacks; interest cover is still 15x.
Plus
Only documented strengths. · 3 findings+4 of +15
- +1Insider buyingThree board members bought on the open market after the price fall in May: Frank D'Amelio ($501,000), Michael McCallister ($233,000) and Paul Bisaro ($152,000) at $75–78; about $0.89m in total. No purchases by management.
- +2Diversified baseSales in over 100 countries for both pets and livestock; livestock (about 31% of revenue) grew 23% in the US and 6% organically internationally in Q2 and partly offsets the weakness in US companion animal.
- +1Dividend12 years of dividend growth ($2.12, +8%) with a 35% payout ratio; the dividend alone ($0.89bn) is well covered by FCF, but the buybacks are not (see Capital allocation).
Caveats
What the score does not capture, or where the data is weak.
The share is −50% over 52 weeks and trades at the lowest multiple in the company's history, but earnings are falling (adjusted EPS expected −3% in 2026), and competition in dermatology and parasiticides is only starting to bite. Price targets were last updated 24/8, and 9 of 18 analysts say Hold. The securities lawsuit is at an early stage. Q3 results 5/11.
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