Stock fact sheet · data as of
Zoetis Inc. (ZTS): fair value, margin of safety and Wheel Score
Ticker symbol ZTS · Healthcare · Drug Manufacturers - Specialty & Generic · United States · Class A common stock · Blend Quality
ZTS is Zoetis Inc.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is ZTS undervalued?
ZTS closed at 89.17 on 5 Nov 2026 against a GLS average fair value of 95.57 - 6.7% below fair value, which our scans read as "fairly priced". 4 of 9 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
There is a wide gap between DDM (31.19) and DCF (177.30). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for ZTS, so the nightly engine files it under Blend (value score 33, growth score 35, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for ZTS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 177.30 | +99% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 32.60 | -63% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 161.65 | +81% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 56.04 | -37% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 50.77 | -43% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 152.22 | +71% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 128.77 | +44% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 31.19 | -65% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 69.60 | -22% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -12.99 | -115% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 84.75 | -5% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Zoetis Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 9.4/10 puts ZTS among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
Returns on capital are high - ROIC 20.8%, ROE 80.2%, ROA 17.3% - with debt at 2.85 times equity and a free-cash-flow yield of 6.4%. Debt of 2.85 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 2.38% at a payout ratio of 34%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Dogs and Cats 68%, Cattle 16%, Swine 5% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 7/10 on the GLS smart-money scales; the last recorded Congressional buy was on 18 Sep 2026.
| Piotroski F-score | 7 / 9 | ROIC | 20.8% |
|---|---|---|---|
| GLS Moat | 9.4 / 10 | ROE | 80.2% |
| Debt / equity | 2.85 | ROA | 17.3% |
| Free-cash-flow yield | 6.4% | Payout ratio | 34% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 7 / 10 |
Wheel Score 50: Fair
A Wheel Score of 50 keeps Zoetis Inc. under 70, the mark only a stock that passes all 9 Wheel Trade Filters can reach: it fails filter 5, can repay its debt - 3.2 years to repay its debt (over 3). The parts: value weak, premium strong, moat strong, health good, red flags fair, option trading strong, stability strong.
Implied volatility is 48% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 62,025 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 9.2M shares a day on a market cap of $36.8B, with a beta of 0.68 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 3.2 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 7% below fair value | |
| Premium | Strong | implied volatility 48% | |
| Moat | Strong | moat 9.4/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Fair | Red Flags score 75/100 | |
| Option trading | Strong | 12,853 contracts a day, 62,025 open interest | |
| Stability | Strong | beta 0.68, $36.8B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Zoetis Inc. reports earnings on 5 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Analysts downgraded ZTS 1 time in the last 30 days with no upgrades; the latest action was a reiterated rating by UBS on 27 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Drug Manufacturers - Specialty & Generic
The 12 companies below are the closest to Zoetis Inc. by market cap within the Drug Manufacturers - Specialty & Generic industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| HLN Haleon plc | 9.23 | 7.95 | -16% | 42Weak | $40.6B |
| TEVA Teva Pharmaceutical Industries Limited | 41.85 | 14.70 | -185% | 40Weak | $48.8B |
| VTRS Viatris Inc. | 19.22 | 19.02 | -1% | 39Weak | $22.1B |
| TAK Takeda Pharmaceutical Company Limited | 21.06 | 19.34 | -9% | 37Weak | $67.3B |
| ELAN Elanco Animal Health Incorporated | 25.31 | 11.44 | -121% | 36Weak | $12.6B |
| RDY Dr. Reddy's Laboratories Limited | 14.77 | 8.03 | -84% | 34Weak | $12.3B |
| ALKS Alkermes plc | 45.89 | 35.37 | -30% | 33Weak | $7.7B |
| AMRX Amneal Pharmaceuticals, Inc. | 19.95 | 10.56 | -89% | 35Weak | $6.9B |
| LNTH Lantheus Holdings, Inc. | 101.14 | 191.29 | +47% | 39Weak | $6.6B |
| BHC Bausch Health Companies Inc. | 8.34 | 145.40 | +94% | 53Fair | $3.1B |
| RGC Regencell Bioscience Holdings Limited | 5.42 | 0.0281 | -19191% | 8Weak | $2.7B |
| HCM HUTCHMED (China) Limited | 13.92 | 2.86 | -386% | 31Weak | $2.4B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about ZTS
What kind of share is ZTS?
ZTS is Zoetis Inc.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is ZTS undervalued right now?
Not meaningfully: at 89.17 the stock trades within a few percent of the GLS average fair value of 95.57 (6.7% below fair value, data as of 5 Nov 2026).
What is the Wheel Score of ZTS and what does it mean?
ZTS scores 50 out of 100 (Fair) - it fails Wheel Trade Filter 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for ZTS?
95.57 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Zoetis Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 0 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does ZTS have listed options, and how liquid are they?
Yes. The nightly snapshot found 82 listed contracts with 62,025 open interest across all expiries and implied volatility of 48% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.