Zoetis

ZOE.DE

Drug Manufacturers - Specialty & Generic · Healthcare

Price

€66.54

+1.16 (+1.77%)

Market Cap

€27.90B

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Exceptional

Growth

Good

Cash Flow

Exceptional

Stability

Good

Valuation

Good

Dividends

Good

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Share count falling — buybacks

−6.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 476.7M (2021) → 443.8M (2025)

Winston Score History

The full picture

Zoetis makes medicines and vaccines for animals. Its products treat pets like dogs and cats, as well as farm animals like cattle, pigs, and chickens. The company was originally part of Pfizer and is now the largest standalone animal health company in the world.

Zoetis earns money by selling prescription drugs, vaccines, and diagnostic tools directly to veterinarians, livestock producers, and farm operators. It operates in more than 100 countries, with the United States and Europe as its biggest markets. Its moat comes from strong brand loyalty among vets, a large sales force, and the high cost of developing new animal drugs — advantages that are difficult for smaller rivals to copy. The key growth driver is the rising "humanization" of pets, which pushes owners to spend more on animal healthcare, though the company also faces risk from generic competition as some of its top products lose patent protection.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+0.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+2.5% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$698M/ year

→ Flat (+2% vs prior year)

7.4% of revenue

Below sector average (18%)

Steady R&D investment year-over-year

Insider Activity

0.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.7B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Zoetis is growing revenue at 0% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

72.7%

Premium pricing power — 72.7% gross margin

Profit after running costs

Operating Margin

40.5%

Excellent — 40.5% operating margin

Return on the money invested

ROCE

29.4%

Exceptional — 29.4% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+1.3%

Nearly flat sales (+1.3% YoY)

Profit growth

EPS YoY

+4.5%

Modest earnings growth (+4.5% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

110%

Turns 110% of profit into real cash

Spare cash per sale

FCF Margin

24.9%

Converts sales into free cash efficiently (24.9%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

2.87

Heavy debt load (2.87)

Covers its interest

Interest Cover

14.75x

Comfortably covers interest (14.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

10.9x

Attractive valuation — P/E 10.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

-0.6

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

2.73%

Moderate income — 2.73% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+3.1%

Dividend growing modestly (3.1% YoY)

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