Aureus
AExcellent

Zoetis Inc.(ZTS)

A

Financial data as of Dec 31, 2025Stable · Healthcare

FCF Margin24.1%Free Cash Flow / Revenue
Cash Conversion108.6%Operating CF / Net Income
Free Cash Flow$2.3B
Revenue$9.5B
Net Cash-$6.9BNet debt position
Debt / FCF4.0xElevated debt burden
Current Ratio3.03Adequate short-term liquidity
YoY FCF Growth+6.2%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (24.1%, 4.0x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (24.1%)
  • Excellent cash conversion (109%)
  • Strong liquidity (current ratio: 3.03)

Concerns

  • Net debt position ($6.9B) — 4.0x FCF, manageable

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin24.1%
Net Margin28.2%
Operating CF Margin30.7%
CapEx Ratio6.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$6.9BNet debt position
Debt / FCF4.0xElevated debt burden
Current Ratio3.03Strong liquidity
Debt / Equity2.77High leverage

Quarterly FCF Trend

+6.2% YoYStable (+6.2%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameZoetis Inc.
SectorHealthcare
Free Cash Flow$2.3B
Revenue$9.5B
Net Income$2.7B
Operating Cash Flow$2.9B
Capital Expenditure$621.0M
FCF Margin24.1%
Cash Conversion Rate108.6%
Net Margin28.2%
Total Debt$9.2B
Total Cash$2.3B
Net Cash-$6.9B
Current Ratio3.03
Debt / Equity2.77
Debt / FCF4.0x
YoY FCF Growth+6.2%
Positive Quarters5 of 5
Trend DirectionStable
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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