ZIMMER BIOMET HOLDINGS INC (ZBH) Fundamental Analysis & Valuation

NYSE:ZBH • US98956P1021

Current stock price

92.59 USD
+1.33 (+1.46%)
At close:
92.59 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

  • ZBH had positive earnings in the past year.
  • ZBH had a positive operating cash flow in the past year.
  • ZBH had positive earnings in each of the past 5 years.
  • ZBH had a positive operating cash flow in each of the past 5 years.
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 better Return On Assets (3.05%) than 75.94% of its industry peers.
  • With a decent Return On Equity value of 5.55%, ZBH is doing good in the industry, outperforming 77.01% of the companies in the same industry.
  • ZBH has a Return On Invested Capital of 5.79%. This is in the better half of the industry: ZBH outperforms 78.07% of its industry peers.
  • ZBH had an Average Return On Invested Capital over the past 3 years of 6.56%. This is below the industry average of 9.12%.
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

  • ZBH has a better Profit Margin (8.56%) than 81.28% of its industry peers.
  • In the last couple of years the Profit Margin of ZBH has grown nicely.
  • Looking at the Operating Margin, with a value of 16.75%, ZBH belongs to the top of the industry, outperforming 87.17% of the companies in the same industry.
  • ZBH's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 69.71%, ZBH is in the better half of the industry, outperforming 77.54% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ZBH has remained more or less at the same level.
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.
  • The number of shares outstanding for ZBH has been reduced compared to 1 year ago.
  • ZBH has less shares outstanding than it did 5 years ago.
  • ZBH has a worse debt/assets ratio than last year.
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 2.41. 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 2.41, ZBH is doing good in the industry, outperforming 63.64% of the companies in the same industry.
  • ZBH has a debt to FCF ratio of 6.72. This is a slightly negative value and a sign of low solvency as ZBH would need 6.72 years to pay back of all of its debts.
  • ZBH's Debt to FCF ratio of 6.72 is fine compared to the rest of the industry. ZBH outperforms 73.26% of its industry peers.
  • ZBH has a Debt/Equity ratio of 0.55. This is a neutral value indicating ZBH is somewhat dependend on debt financing.
  • ZBH has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: ZBH underperforms 61.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 6.72
Altman-Z 2.41
ROIC/WACC0.77
WACC7.51%
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

  • ZBH has a Current Ratio of 1.98. This is a normal value and indicates that ZBH is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.98, ZBH is doing worse than 64.17% of the companies in the same industry.
  • A Quick Ratio of 1.10 indicates that ZBH should not have too much problems paying its short term obligations.
  • ZBH has a worse Quick ratio (1.10) than 77.54% 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%.
  • ZBH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.66% yearly.
  • The Revenue has been growing slightly by 7.20% in the past year.
  • The Revenue has been growing slightly by 3.22% on average over the past years.
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 6.07% yearly.
  • The Revenue is expected to grow by 3.89% on average over the next years.
EPS Next Y3.41%
EPS Next 2Y5.36%
EPS Next 3Y5.71%
EPS Next 5Y6.07%
Revenue Next Year4.21%
Revenue Next 2Y3.99%
Revenue Next 3Y3.89%
Revenue Next 5Y3.89%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

  • A Price/Earnings ratio of 11.29 indicates a reasonable valuation of ZBH.
  • 91.98% of the companies in the same industry are more expensive than ZBH, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of ZBH to the average of the S&P500 Index (27.35), we can say ZBH is valued rather cheaply.
  • ZBH is valuated reasonably with a Price/Forward Earnings ratio of 10.92.
  • Based on the Price/Forward Earnings ratio, ZBH is valued cheaper than 94.12% of the companies in the same industry.
  • ZBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.23, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.29
Fwd PE 10.92
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

  • 91.98% of the companies in the same industry are more expensive than ZBH, based on the Enterprise Value to EBITDA ratio.
  • ZBH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZBH is cheaper than 94.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.01
EV/EBITDA 9.94
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 ZBH does not grow enough to justify the current Price/Earnings ratio.
  • ZBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.31
PEG (5Y)1.47
EPS Next 2Y5.36%
EPS Next 3Y5.71%

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7

5. ZBH Dividend Analysis

5.1 Amount

  • ZBH has a Yearly Dividend Yield of 1.04%.
  • Compared to an average industry Dividend Yield of 0.25, ZBH pays a better dividend. On top of this ZBH pays more dividend than 92.51% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, ZBH's dividend is way lower than the S&P500 average.
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 been paying a dividend for at least 10 years, so it has a reliable track record.
  • ZBH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.12%
Div Incr Years0
Div Non Decr Years13
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

  • ZBH pays out 27.01% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of ZBH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.01%
EPS Next 2Y5.36%
EPS Next 3Y5.71%
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 (4/27/2026, 7:21:29 PM)

After market: 92.59 0 (0%)

92.59

+1.33 (+1.46%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10
Earnings (Next)04-28
Inst Owners104.34%
Inst Owner Change-1.32%
Ins Owners0.17%
Ins Owner Change10.9%
Market Cap17.92B
Revenue(TTM)8.23B
Net Income(TTM)704.60M
Analysts66.47
Price Target105.44 (13.88%)
Short Float %5.18%
Short Ratio4.63
Dividend
Industry RankSector Rank
Dividend Yield 1.04%
Yearly Dividend0.96
Dividend Growth(5Y)0.12%
DP27.01%
Div Incr Years0
Div Non Decr Years13
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)-0.15%
PT rev (3m)1.15%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.91%
Valuation
Industry RankSector Rank
PE 11.29
Fwd PE 10.92
P/S 2.18
P/FCF 16.01
P/OCF 10.56
P/B 1.41
P/tB N/A
EV/EBITDA 9.94
EPS(TTM)8.2
EY8.86%
EPS(NY)8.48
Fwd EY9.16%
FCF(TTM)5.78
FCFY6.25%
OCF(TTM)8.77
OCFY9.47%
SpS42.53
BVpS65.6
TBVpS-10.16
PEG (NY)3.31
PEG (5Y)1.47
Graham Number110.012 (18.82%)
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 2.41
F-Score5
WACC7.51%
ROIC/WACC0.77
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 Y3.41%
EPS Next 2Y5.36%
EPS Next 3Y5.71%
EPS Next 5Y6.07%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%
Revenue Next Year4.21%
Revenue Next 2Y3.99%
Revenue Next 3Y3.89%
Revenue Next 5Y3.89%
EBIT growth 1Y-11.53%
EBIT growth 3Y4%
EBIT growth 5Y12.99%
EBIT Next Year27.55%
EBIT Next 3Y10.42%
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 3.41% in the next year.