ZIMMER BIOMET HOLDINGS INC (ZBH) Fundamental Analysis & Valuation

NYSE:ZBH • US98956P1021

Current stock price

90.89 USD
-0.14 (-0.15%)
At close:
90.89 USD
0 (0%)
After Hours:

This ZBH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ZBH Profitability Analysis

1.1 Basic Checks

  • In the past year ZBH was profitable.
  • ZBH had a positive operating cash flow in the past year.
  • ZBH had positive earnings in each of the past 5 years.
  • Each year in the past 5 years ZBH had a positive operating cash flow.
ZBH Yearly Net Income VS EBIT VS OCF VS FCFZBH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

1.2 Ratios

  • ZBH has a Return On Assets of 3.05%. This is in the better half of the industry: ZBH outperforms 76.06% of its industry peers.
  • The Return On Equity of ZBH (5.55%) is better than 77.13% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.79%, ZBH is in the better half of the industry, outperforming 77.66% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ZBH is below the industry average of 9.36%.
Industry RankSector Rank
ROA 3.05%
ROE 5.55%
ROIC 5.79%
ROA(3y)4.02%
ROA(5y)2.97%
ROE(3y)7%
ROE(5y)5.22%
ROIC(3y)6.56%
ROIC(5y)5.98%
ZBH Yearly ROA, ROE, ROICZBH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 8.56%, ZBH belongs to the top of the industry, outperforming 81.38% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ZBH has grown nicely.
  • ZBH has a better Operating Margin (16.75%) than 86.17% of its industry peers.
  • ZBH's Operating Margin has improved in the last couple of years.
  • ZBH has a Gross Margin of 69.71%. This is in the better half of the industry: ZBH outperforms 79.26% of its industry peers.
  • ZBH's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.75%
PM (TTM) 8.56%
GM 69.71%
OM growth 3Y-1.75%
OM growth 5Y9.46%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
ZBH Yearly Profit, Operating, Gross MarginsZBH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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4

2. ZBH Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZBH is destroying value.
  • Compared to 1 year ago, ZBH has less shares outstanding
  • The number of shares outstanding for ZBH has been reduced compared to 5 years ago.
  • The debt/assets ratio for ZBH is higher compared to a year ago.
ZBH Yearly Shares OutstandingZBH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
ZBH Yearly Total Debt VS Total AssetsZBH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • ZBH has an Altman-Z score of 2.42. This is not the best score and indicates that ZBH is in the grey zone with still only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.42, ZBH is doing good in the industry, outperforming 65.43% of the companies in the same industry.
  • The Debt to FCF ratio of ZBH is 6.72, which is on the high side as it means it would take ZBH, 6.72 years of fcf income to pay off all of its debts.
  • ZBH's Debt to FCF ratio of 6.72 is fine compared to the rest of the industry. ZBH outperforms 75.00% of its industry peers.
  • A Debt/Equity ratio of 0.55 indicates that ZBH is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.55, ZBH perfoms like the industry average, outperforming 41.49% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 6.72
Altman-Z 2.42
ROIC/WACC0.57
WACC10.1%
ZBH Yearly LT Debt VS Equity VS FCFZBH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.98 indicates that ZBH should not have too much problems paying its short term obligations.
  • The Current ratio of ZBH (1.98) is worse than 63.30% of its industry peers.
  • A Quick Ratio of 1.10 indicates that ZBH should not have too much problems paying its short term obligations.
  • The Quick ratio of ZBH (1.10) is worse than 73.40% of its industry peers.
Industry RankSector Rank
Current Ratio 1.98
Quick Ratio 1.1
ZBH Yearly Current Assets VS Current LiabilitesZBH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ZBH Growth Analysis

3.1 Past

  • ZBH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.50%.
  • Measured over the past 5 years, ZBH shows a small growth in Earnings Per Share. The EPS has been growing by 7.66% on average per year.
  • Looking at the last year, ZBH shows a small growth in Revenue. The Revenue has grown by 7.20% in the last year.
  • ZBH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.22% yearly.
EPS 1Y (TTM)2.5%
EPS 3Y5.97%
EPS 5Y7.66%
EPS Q2Q%4.76%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%

3.2 Future

  • ZBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.55% yearly.
  • Based on estimates for the next years, ZBH will show a small growth in Revenue. The Revenue will grow by 4.39% on average per year.
EPS Next Y3.4%
EPS Next 2Y5.28%
EPS Next 3Y5.55%
EPS Next 5Y6.55%
Revenue Next Year4.17%
Revenue Next 2Y3.94%
Revenue Next 3Y3.81%
Revenue Next 5Y4.39%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ZBH Yearly Revenue VS EstimatesZBH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
ZBH Yearly EPS VS EstimatesZBH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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7

4. ZBH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 11.08, which indicates a very decent valuation of ZBH.
  • Based on the Price/Earnings ratio, ZBH is valued cheaper than 90.96% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.60. ZBH is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 10.72, which indicates a very decent valuation of ZBH.
  • 92.55% of the companies in the same industry are more expensive than ZBH, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 22.84. ZBH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.08
Fwd PE 10.72
ZBH Price Earnings VS Forward Price EarningsZBH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 91.49% of the companies in the same industry are more expensive than ZBH, based on the Enterprise Value to EBITDA ratio.
  • 94.15% of the companies in the same industry are more expensive than ZBH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.88
EV/EBITDA 9.99
ZBH Per share dataZBH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of ZBH may justify a higher PE ratio.
PEG (NY)3.26
PEG (5Y)1.45
EPS Next 2Y5.28%
EPS Next 3Y5.55%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. ZBH Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.04%, ZBH has a reasonable but not impressive dividend return.
  • ZBH's Dividend Yield is rather good when compared to the industry average which is at 0.24. ZBH pays more dividend than 92.02% of the companies in the same industry.
  • With a Dividend Yield of 1.04, ZBH pays less dividend than the S&P500 average, which is at 1.88.
Industry RankSector Rank
Dividend Yield 1.04%

5.2 History

  • The dividend of ZBH has a limited annual growth rate of 0.12%.
  • ZBH has paid a dividend for at least 10 years, which is a reliable track record.
  • ZBH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.12%
Div Incr Years0
Div Non Decr Years12
ZBH Yearly Dividends per shareZBH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 27.01% of the earnings are spent on dividend by ZBH. This is a low number and sustainable payout ratio.
  • The dividend of ZBH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.01%
EPS Next 2Y5.28%
EPS Next 3Y5.55%
ZBH Yearly Income VS Free CF VS DividendZBH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B
ZBH Dividend Payout.ZBH Dividend Payout, showing the Payout Ratio.ZBH Dividend Payout.PayoutRetained Earnings

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ZBH Fundamentals: All Metrics, Ratios and Statistics

ZIMMER BIOMET HOLDINGS INC

NYSE:ZBH (4/2/2026, 8:04:00 PM)

After market: 90.89 0 (0%)

90.89

-0.14 (-0.15%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10
Earnings (Next)05-04
Inst Owners104.24%
Inst Owner Change5.05%
Ins Owners0.15%
Ins Owner Change10.37%
Market Cap17.78B
Revenue(TTM)8.23B
Net Income(TTM)704.60M
Analysts67.43
Price Target105.4 (15.96%)
Short Float %4.11%
Short Ratio3.64
Dividend
Industry RankSector Rank
Dividend Yield 1.04%
Yearly Dividend0.96
Dividend Growth(5Y)0.12%
DP27.01%
Div Incr Years0
Div Non Decr Years12
Ex-Date03-31
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.37%
Min EPS beat(2)0%
Max EPS beat(2)0.73%
EPS beat(4)4
Avg EPS beat(4)1.33%
Min EPS beat(4)0%
Max EPS beat(4)3.32%
EPS beat(8)6
Avg EPS beat(8)0.88%
EPS beat(12)9
Avg EPS beat(12)2.02%
EPS beat(16)13
Avg EPS beat(16)3.09%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)0.21%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)5
Avg Revenue beat(12)0.36%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)-0.19%
PT rev (3m)0.96%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-3.34%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.99%
Valuation
Industry RankSector Rank
PE 11.08
Fwd PE 10.72
P/S 2.16
P/FCF 15.88
P/OCF 10.48
P/B 1.4
P/tB N/A
EV/EBITDA 9.99
EPS(TTM)8.2
EY9.02%
EPS(NY)8.48
Fwd EY9.33%
FCF(TTM)5.72
FCFY6.3%
OCF(TTM)8.67
OCFY9.54%
SpS42.07
BVpS64.9
TBVpS-10.05
PEG (NY)3.26
PEG (5Y)1.45
Graham Number109.43
Profitability
Industry RankSector Rank
ROA 3.05%
ROE 5.55%
ROCE 6.72%
ROIC 5.79%
ROICexc 5.96%
ROICexgc 22.61%
OM 16.75%
PM (TTM) 8.56%
GM 69.71%
FCFM 13.6%
ROA(3y)4.02%
ROA(5y)2.97%
ROE(3y)7%
ROE(5y)5.22%
ROIC(3y)6.56%
ROIC(5y)5.98%
ROICexc(3y)6.74%
ROICexc(5y)6.13%
ROICexgc(3y)26.07%
ROICexgc(5y)24.68%
ROCE(3y)7.62%
ROCE(5y)6.94%
ROICexgc growth 3Y0.14%
ROICexgc growth 5Y10.7%
ROICexc growth 3Y1.16%
ROICexc growth 5Y14.26%
OM growth 3Y-1.75%
OM growth 5Y9.46%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
F-Score5
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 6.72
Debt/EBITDA 2.8
Cap/Depr 52.79%
Cap/Sales 7.01%
Interest Coverage 4.62
Cash Conversion 68.63%
Profit Quality 158.91%
Current Ratio 1.98
Quick Ratio 1.1
Altman-Z 2.42
F-Score5
WACC10.1%
ROIC/WACC0.57
Cap/Depr(3y)61.71%
Cap/Depr(5y)55.56%
Cap/Sales(3y)8.04%
Cap/Sales(5y)7.33%
Profit Quality(3y)115.26%
Profit Quality(5y)195.51%
High Growth Momentum
Growth
EPS 1Y (TTM)2.5%
EPS 3Y5.97%
EPS 5Y7.66%
EPS Q2Q%4.76%
EPS Next Y3.4%
EPS Next 2Y5.28%
EPS Next 3Y5.55%
EPS Next 5Y6.55%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%
Revenue Next Year4.17%
Revenue Next 2Y3.94%
Revenue Next 3Y3.81%
Revenue Next 5Y4.39%
EBIT growth 1Y-11.53%
EBIT growth 3Y4%
EBIT growth 5Y12.99%
EBIT Next Year29.58%
EBIT Next 3Y11.07%
EBIT Next 5Y8.8%
FCF growth 1Y24.09%
FCF growth 3Y10.12%
FCF growth 5Y7.09%
OCF growth 1Y13.19%
OCF growth 3Y9.72%
OCF growth 5Y7.1%

ZIMMER BIOMET HOLDINGS INC / ZBH Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ZIMMER BIOMET HOLDINGS INC?

ChartMill assigns a fundamental rating of 6 / 10 to ZBH.


Can you provide the valuation status for ZIMMER BIOMET HOLDINGS INC?

ChartMill assigns a valuation rating of 7 / 10 to ZIMMER BIOMET HOLDINGS INC (ZBH). This can be considered as Undervalued.


How profitable is ZIMMER BIOMET HOLDINGS INC (ZBH) stock?

ZIMMER BIOMET HOLDINGS INC (ZBH) has a profitability rating of 7 / 10.


What is the financial health of ZIMMER BIOMET HOLDINGS INC (ZBH) stock?

The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 4 / 10.


What is the expected EPS growth for ZIMMER BIOMET HOLDINGS INC (ZBH) stock?

The Earnings per Share (EPS) of ZIMMER BIOMET HOLDINGS INC (ZBH) is expected to grow by 3.4% in the next year.