ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZBH - US98956P1021 - Common Stock
86.8 USD
-0.51 (-0.58%)
87.18 USD
+0.38 (+0.44%)
ZBH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 186 industry peers in the Health Care Equipment & Supplies industry. While ZBH has a great profitability rating, there are some minor concerns on its financial health. ZBH may be a bit undervalued, certainly considering the very reasonable score on growth Finally ZBH also has an excellent dividend rating. These ratings would make ZBH suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year ZBH was profitable.
- In the past year ZBH had a positive cash flow from operations.
- Of the past 5 years ZBH 4 years were profitable.
- ZBH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.43%, ZBH is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 6.31%, ZBH is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
- ZBH has a better Return On Invested Capital (5.73%) than 78.49% of its industry peers.
- ZBH had an Average Return On Invested Capital over the past 3 years of 5.98%. This is below the industry average of 8.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 6.31% | ||
| ROIC | 5.73% |
ROA(3y)3.36%
ROA(5y)2.25%
ROE(3y)5.79%
ROE(5y)3.88%
ROIC(3y)5.98%
ROIC(5y)4.96%
1.3 Margins
- ZBH has a better Profit Margin (10.05%) than 83.87% of its industry peers.
- In the last couple of years the Profit Margin of ZBH has declined.
- ZBH has a Operating Margin of 19.10%. This is amongst the best in the industry. ZBH outperforms 91.40% of its industry peers.
- In the last couple of years the Operating Margin of ZBH has grown nicely.
- Looking at the Gross Margin, with a value of 71.44%, ZBH belongs to the top of the industry, outperforming 80.11% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.1% | ||
| PM (TTM) | 10.05% | ||
| GM | 71.44% |
OM growth 3Y9.41%
OM growth 5Y4.28%
PM growth 3Y26.01%
PM growth 5Y-3.65%
GM growth 3Y0.08%
GM growth 5Y0.05%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZBH is destroying value.
- ZBH has less shares outstanding than it did 1 year ago.
- ZBH has less shares outstanding than it did 5 years ago.
- ZBH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.38 indicates that ZBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.38, ZBH is doing good in the industry, outperforming 65.59% of the companies in the same industry.
- ZBH has a debt to FCF ratio of 7.17. This is a slightly negative value and a sign of low solvency as ZBH would need 7.17 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 7.17, ZBH is doing good in the industry, outperforming 75.81% of the companies in the same industry.
- ZBH has a Debt/Equity ratio of 0.59. This is a neutral value indicating ZBH is somewhat dependend on debt financing.
- ZBH's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. ZBH is outperformed by 61.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.62
WACC9.26%
2.3 Liquidity
- A Current Ratio of 2.43 indicates that ZBH has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.43, ZBH is in line with its industry, outperforming 50.00% of the companies in the same industry.
- ZBH has a Quick Ratio of 1.39. This is a normal value and indicates that ZBH is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.39, ZBH perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
- ZBH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.53%.
- ZBH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.33% yearly.
- Looking at the last year, ZBH shows a small growth in Revenue. The Revenue has grown by 5.47% in the last year.
- The Revenue has been decreasing by -0.77% on average over the past years.
EPS 1Y (TTM)2.53%
EPS 3Y2.77%
EPS 5Y0.33%
EPS Q2Q%9.2%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
3.2 Future
- Based on estimates for the next years, ZBH will show a small growth in Earnings Per Share. The EPS will grow by 5.51% on average per year.
- ZBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.69% yearly.
EPS Next Y3.14%
EPS Next 2Y3.64%
EPS Next 3Y4.8%
EPS Next 5Y5.51%
Revenue Next Year7.04%
Revenue Next 2Y6.09%
Revenue Next 3Y5.46%
Revenue Next 5Y4.69%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 10.73, which indicates a very decent valuation of ZBH.
- ZBH's Price/Earnings ratio is rather cheap when compared to the industry. ZBH is cheaper than 94.09% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.94. ZBH is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 10.10 indicates a reasonable valuation of ZBH.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 94.62% of the companies listed in the same industry.
- ZBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 10.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaper than 91.94% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ZBH is valued cheaply inside the industry as 95.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.21 | ||
| EV/EBITDA | 9.23 |
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)3.41
PEG (5Y)32.69
EPS Next 2Y3.64%
EPS Next 3Y4.8%
5. Dividend
5.1 Amount
- ZBH has a Yearly Dividend Yield of 1.04%.
- Compared to an average industry Dividend Yield of 0.19, ZBH pays a better dividend. On top of this ZBH pays more dividend than 94.09% of the companies listed in the same industry.
- With a Dividend Yield of 1.04, ZBH pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
- The dividend of ZBH has a limited annual growth rate of 0.19%.
- ZBH has been paying a dividend for at least 10 years, so it has 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)0.19%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
- 23.70% 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.
DP23.7%
EPS Next 2Y3.64%
EPS Next 3Y4.8%
86.8
-0.51 (-0.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners100.37%
Inst Owner Change0.06%
Ins Owners0.13%
Ins Owner Change0.34%
Market Cap17.20B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts67.88
Price Target104.24 (20.09%)
Short Float %5.22%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.97
Dividend Growth(5Y)0.19%
DP23.7%
Div Incr Years0
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.03%
Min EPS beat(2)0.73%
Max EPS beat(2)3.32%
EPS beat(4)3
Avg EPS beat(4)1.24%
Min EPS beat(4)-0.34%
Max EPS beat(4)3.32%
EPS beat(8)6
Avg EPS beat(8)1.02%
EPS beat(12)9
Avg EPS beat(12)2.17%
EPS beat(16)12
Avg EPS beat(16)2.94%
Revenue beat(2)1
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)0.21%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)6
Avg Revenue beat(12)0.61%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)-0.93%
PT rev (3m)-9.34%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 10.1 | ||
| P/S | 2.15 | ||
| P/FCF | 15.21 | ||
| P/OCF | 10.2 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.23 |
EPS(TTM)8.09
EY9.32%
EPS(NY)8.59
Fwd EY9.9%
FCF(TTM)5.71
FCFY6.57%
OCF(TTM)8.51
OCFY9.8%
SpS40.42
BVpS64.37
TBVpS-8.5
PEG (NY)3.41
PEG (5Y)32.69
Graham Number108.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 6.31% | ||
| ROCE | 7.26% | ||
| ROIC | 5.73% | ||
| ROICexc | 6.11% | ||
| ROICexgc | 22.59% | ||
| OM | 19.1% | ||
| PM (TTM) | 10.05% | ||
| GM | 71.44% | ||
| FCFM | 14.12% |
ROA(3y)3.36%
ROA(5y)2.25%
ROE(3y)5.79%
ROE(5y)3.88%
ROIC(3y)5.98%
ROIC(5y)4.96%
ROICexc(3y)6.12%
ROICexc(5y)5.09%
ROICexgc(3y)23.89%
ROICexgc(5y)20.99%
ROCE(3y)7.57%
ROCE(5y)6.28%
ROICexgc growth 3Y6.94%
ROICexgc growth 5Y-1.82%
ROICexc growth 3Y16.05%
ROICexc growth 5Y5.83%
OM growth 3Y9.41%
OM growth 5Y4.28%
PM growth 3Y26.01%
PM growth 5Y-3.65%
GM growth 3Y0.08%
GM growth 5Y0.05%
F-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 51.71% | ||
| Cap/Sales | 6.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.76% | ||
| Profit Quality | 140.45% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 2.38 |
F-Score5
WACC9.26%
ROIC/WACC0.62
Cap/Depr(3y)60.17%
Cap/Depr(5y)52.93%
Cap/Sales(3y)7.84%
Cap/Sales(5y)7.09%
Profit Quality(3y)183.11%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.53%
EPS 3Y2.77%
EPS 5Y0.33%
EPS Q2Q%9.2%
EPS Next Y3.14%
EPS Next 2Y3.64%
EPS Next 3Y4.8%
EPS Next 5Y5.51%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
Revenue Next Year7.04%
Revenue Next 2Y6.09%
Revenue Next 3Y5.46%
Revenue Next 5Y4.69%
EBIT growth 1Y-1.4%
EBIT growth 3Y13.78%
EBIT growth 5Y3.48%
EBIT Next Year34.04%
EBIT Next 3Y12.4%
EBIT Next 5Y9.28%
FCF growth 1Y101.8%
FCF growth 3Y-5.87%
FCF growth 5Y0.84%
OCF growth 1Y36.25%
OCF growth 3Y0%
OCF growth 5Y-1.11%
ZIMMER BIOMET HOLDINGS INC / ZBH 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.
What is the profitability of ZBH stock?
ZIMMER BIOMET HOLDINGS INC (ZBH) has a profitability rating of 7 / 10.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 5 / 10.
Can you provide the dividend sustainability for ZBH stock?
The dividend rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 7 / 10 and the dividend payout ratio is 23.7%.