Is ZTS (ZTS) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 17.3% / 30% | 4.3% / 30% | 3.0% / 30% | 0.98% / 5% | ✓ HALAL |
| DJIM | 17.3% / 33% | 4.3% / 33% | 3.0% / 33% | 0.98% / 5% | ✓ HALAL |
| MSCI | 59.7% / 33% | 14.9% / 33% | 10.3% / 33% | 0.98% / 5% | ✗ NOT HALAL |
| S&P | 17.3% / 33% | 4.3% / 33% | 3.0% / 33% | 0.98% / 5% | ✓ HALAL |
| FTSE | 59.7% / 33% | 14.9% / 33% | 10.3% / 50% | 0.98% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 71.9% | |
| Operating Margin | 34.7% | |
| Net Margin | 28.2% | |
| Return on Equity (ROE) | 66.0% | |
| Return on Assets (ROA) | 15.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $2.9B |
| Free Cash Flow | $2.3B |
| Total Debt | $9.2B |
| Debt-to-Equity | 279.6 |
| Current Ratio | 3.0 |
| Total Assets | $15.5B |
Price & Trading
| Last Close | $116.63 |
| 50-Day MA | $123.37 |
| 200-Day MA | $137.04 |
| Avg Volume | 4.5M |
| Beta | 1.0 |
|
52-Week Range
$113.29
| |
About ZTS (ZTS)
Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry in the United States and internationally. The company commercializes products primarily across companion animals comprising dogs, cats, and horses; and species, including livestock, such as cattle, swine, poultry, fish, and sheep. It also offers parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical, and animal health diagnostics. In addition, the company provides animal health diagnostics, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services, and blood glucose monitors; and other non-pharmaceutical products, which include nutritionals, as well as products and services in biodevices, genetic tests, and precision animal health. It markets its products to veterinarians, livestock producers, and pet owners. The company has collaborated with Blacksmith Medicines, Inc. to discover and develop novel antibiotics for animal health. Zoetis Inc. was incorporated in 2012 and is headquartered in Parsippany, New Jersey.
Purification Calculator
As a halal stock with 0.98% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ZTS (ZTS) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ZTS is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is ZTS's debt ratio?
ZTS's debt ratio is 17.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 59.7%.
Does ZTS require dividend purification?
Yes, ZTS has an impermissible income ratio of 0.98%, which means 0.98% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are ZTS's key financial metrics?
ZTS has a market capitalization of $50.0B, trailing P/E ratio of 18.8, and revenue of $9.5B. The company maintains a gross margin of 71.9% and a net margin of 28.2%. Return on equity stands at 66.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.