CluenexZoetis ZTS
Zoetis scores good on business quality (6.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Zoetis does
Zoetis makes medicines, vaccines, and diagnostic products for livestock and companion animals, selling directly to veterinarians and animal owners globally. The company uses its massive scale and veterinary relationships to defend its turf while expanding into specialized pet care treatments.
- What it does best
Zoetis dominates animal health through unmatched scale and a direct sales force reaching veterinarians worldwide. Its gross margin of 71.6% matches peers like Merck at 77.3% but converts into an elite 38.2% operating margin, outperforming human pharma rivals due to high-margin pet products.
- The main risk
Concerns that its massive animal health moat might be cracking weigh on market sentiment. If competitive pressures erode pricing power in companion animal products, margins could compress from their current highs.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin hits 38.2% and FCF margin reaches 24.9%, ranking in the top quartile of the sector at 79th percentile. Profitability expands as scale increases.
A wide moat locks in veterinarians and pet owners through deeply integrated product ecosystems. Operating margins sit in the top decile of its sector at 94th percentile rank.
Revenue grew 2.3% to $9.5B, showing a slower rate than its historical expansion as growth cools from prior years.
Debt-to-equity sits at 2.7 with interest coverage at 15x, meaning debt costs are manageable. Free cash flow reached $2.4B, showing strong cash generation despite a softer balance sheet.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on ZTS
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Zoetis scores good on the Cluenex quality check (6.5 of 10), measured against its own industry. Profitability is strong, moat strong, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 5, 2026, before the open.
See ZTS today
- Today's verdict on ZTS, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Zoetis (ZTS)”, https://cluenex.com/stocks/zts/, data as of Oct 10, 2026.