ZoetisMEX:ZTS -2.46%71 Pretax Margin % is 33.51% as of Mar. 2026, which is 8% above its 10-year median of 30.95. GuruFocus rates MEX:ZTS with a GF Score™ of 71/100 and a GF Value™ of MXN3,410.33 (Significantly Undervalued). Among 952 Drug Manufacturers companies, Zoetis ranks better than 93.91% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Zoetis's Pre-Tax Income for the
three
months ended in Mar. 2026 was MXN13,669 Mil. Zoetis's Revenue for the
three
months ended in Mar. 2026 was MXN40,790 Mil. Therefore, Zoetis's pretax margin for the quarter that ended in Mar. 2026 was 33.51%.
The historical rank and industry rank for Zoetis's Pretax Margin % or its related term are showing as below:
MEX:ZTS'
s Pretax Margin % Range Over the Past 10 Years
Min: 25.12 Med: 30.95 Max: 35.49
Current: 34.79
MEX:ZTS's Pretax Margin % is ranked better than 93.91% of 952
companies
in the Drug Manufacturers industry
Industry Median: 7.295
vs MEX:ZTS: 34.79
Zoetis (MEX:ZTS) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Zoetis Pretax Margin % Related Terms
Zoetis Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Zoetis's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:ZTS vs UTHR, VTRS, NBIX: Pretax Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zoetis's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zoetis Pretax Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zoetis's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Zoetis's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Zoetis (MEX:ZTS) has a Pretax Margin % of 33.51% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Zoetis and its competitors. This is near median its historical median of 30.95. Over the past decade, Zoetis' Pretax Margin % has ranged from 25.12 to 35.49. According to the industry distribution chart, Zoetis ranks #58 out of 952 companies in the Drug Manufacturers industry, placing it in the top 6.1%.
Is Zoetis' Pretax Margin % too high?
Zoetis' current Pretax Margin % of 33.51% is near median its 10-year median of 30.95. Over the past 10 years, this metric has ranged from a low of 25.12 to a high of 35.49. The Drug Manufacturers industry median Pretax Margin % is 7.30. Zoetis' value of 33.51% is 359.4% above this industry median. Based on the distribution chart, Zoetis ranks #58 out of 952 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Zoetis has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zoetis' Pretax Margin % compare to UTHR and VTRS?
According to the Drug Manufacturers industry distribution chart, Zoetis ranks #58 out of 952 companies for Pretax Margin %. This places Zoetis in the top 6% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 7.30. Zoetis' value of 33.51% is 359.4% above this benchmark. Historically, Zoetis' own Pretax Margin % has ranged from 25.12 to 35.49 over the past decade. While the company's 10-year median is 30.95 vs. the industry median of 7.30, Zoetis has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Drug Manufacturers company?
The median Pretax Margin % among Drug Manufacturers companies is 7.30, based on 952 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoetis's current Pretax Margin % of 33.51% is 359.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Zoetis and its competitors. For the Drug Manufacturers industry, the median Pretax Margin % is 7.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoetis's current Pretax Margin % is 33.51%, which is near median its own 10-year median of 30.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoetis stock overvalued right now?
Based on GuruFocus' analysis, Zoetis (MEX:ZTS) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN3,410.33, compared to a current price of MXN1,338.00 — trading 60.8% below its estimated fair value. The current Pretax Margin % is 33.51%, which is near median its 10-year median of 30.95 and 359.4% above the Drug Manufacturers industry median of 7.30. Zoetis' overall GF Score™ is 71/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Zoetis (MEX:ZTS), the current Pretax Margin % is 33.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zoetis (MEX:ZTS) Overvalued in 2026?
Based on GuruFocus' analysis, Zoetis stock appears to be undervalued.
The current stock price of MXN1,338.00 is trading 60.8% below its estimated GF Value™ of MXN3,410.33.
GuruFocus considers Zoetis to be Significantly Undervalued.
Key valuation signals for MEX:ZTS:
Pretax Margin %: 33.51% (near median its 10-year median of 30.95)
GF Value™: MXN3,410.33 vs. price of MXN1,338.00 (60.8% below fair value)
Industry Position: 359.4% above the Drug Manufacturers median (#58 of 952)
No single metric tells the full story. See the MEX:ZTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The firm earns roughly 35% of total revenue from production animals (cattle, pigs, poultry, and so on) and nearly 65% from companion animal (dogs, horses, cats) products. Its US business is skewed even more heavily toward companion animals, while its international business is slightly skewed toward production animals. The firm has the largest market share in the industry and was previously Pfizer's animal health unit.
71GF Score
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