ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - NYSE:ZBH - US98956P1021 - Common Stock
88.64 USD
-1.27 (-1.41%)
88.64 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ZBH. ZBH was compared to 188 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 These ratings would make ZBH suitable for value investing!
1. Profitability
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 4 of the past 5 years.
ZBH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZBH's Return On Assets of 3.43% is fine compared to the rest of the industry. ZBH outperforms 77.66% of its industry peers.
The Return On Equity of ZBH (6.31%) is better than 78.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.73%, ZBH is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
ZBH had an Average Return On Invested Capital over the past 3 years of 5.98%. This is below the industry average of 8.98%.
| 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
With an excellent Profit Margin value of 10.05%, ZBH belongs to the best of the industry, outperforming 81.91% of the companies in the same industry.
ZBH's Profit Margin has declined in the last couple of years.
ZBH has a Operating Margin of 19.10%. This is amongst the best in the industry. ZBH outperforms 90.96% of its industry peers.
In the last couple of years the Operating Margin of ZBH has grown nicely.
ZBH's Gross Margin of 71.44% is amongst the best of the industry. ZBH outperforms 80.85% of its industry peers.
ZBH's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for ZBH has been reduced compared to 1 year ago.
The number of shares outstanding for ZBH has been reduced compared to 5 years ago.
ZBH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.41 indicates that ZBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ZBH has a Altman-Z score of 2.41. This is in the better half of the industry: ZBH outperforms 66.49% of its industry peers.
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.
ZBH has a Debt to FCF ratio of 7.17. This is in the better half of the industry: ZBH outperforms 75.53% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that ZBH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, ZBH is not doing good in the industry: 62.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.79
WACC7.22%
2.3 Liquidity
A Current Ratio of 2.43 indicates that ZBH has no problem at all paying its short term obligations.
With a Current ratio value of 2.43, ZBH perfoms like the industry average, outperforming 45.74% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that ZBH should not have too much problems paying its short term obligations.
ZBH has a Quick ratio of 1.39. This is in the lower half of the industry: ZBH underperforms 61.17% of its industry peers.
| 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%.
Measured over the past 5 years, ZBH shows a small growth in Earnings Per Share. The EPS has been growing by 0.33% on average per year.
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
The Earnings Per Share is expected to grow by 6.16% on average over the next years.
ZBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.84% yearly.
EPS Next Y2.96%
EPS Next 2Y3.98%
EPS Next 3Y5.69%
EPS Next 5Y6.16%
Revenue Next Year7.26%
Revenue Next 2Y6.59%
Revenue Next 3Y6.01%
Revenue Next 5Y4.84%
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 10.96, which indicates a very decent valuation of ZBH.
90.96% 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 (25.56), we can say ZBH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.25, the valuation of ZBH can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 93.09% 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 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaper than 91.49% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ZBH is valued cheaper than 91.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.53 | ||
| EV/EBITDA | 9.46 |
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)3.7
PEG (5Y)33.38
EPS Next 2Y3.98%
EPS Next 3Y5.69%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, ZBH is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.69, ZBH pays a better dividend. On top of this ZBH pays more dividend than 94.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ZBH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
The dividend of ZBH has a limited annual growth rate of 0.19%.
ZBH has paid a dividend for at least 10 years, which is a reliable track record.
ZBH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.19%
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 2Y3.98%
EPS Next 3Y5.69%
88.64
-1.27 (-1.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.9%
Inst Owner Change1.86%
Ins Owners0.13%
Ins Owner Change0.85%
Market Cap17.56B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts70.59
Price Target113.99 (28.6%)
Short Float %3.61%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend0.97
Dividend Growth(5Y)0.19%
DP23.7%
Div Incr Years0
Div Non Decr Years12
Ex-Date
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)-0.86%
PT rev (3m)3.12%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 10.25 | ||
| P/S | 2.19 | ||
| P/FCF | 15.53 | ||
| P/OCF | 10.41 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.46 |
EPS(TTM)8.09
EY9.13%
EPS(NY)8.65
Fwd EY9.76%
FCF(TTM)5.71
FCFY6.44%
OCF(TTM)8.51
OCFY9.6%
SpS40.44
BVpS64.39
TBVpS-8.51
PEG (NY)3.7
PEG (5Y)33.38
Graham Number108.27
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 | 2.41 |
F-Score5
WACC7.22%
ROIC/WACC0.79
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 Y2.96%
EPS Next 2Y3.98%
EPS Next 3Y5.69%
EPS Next 5Y6.16%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
Revenue Next Year7.26%
Revenue Next 2Y6.59%
Revenue Next 3Y6.01%
Revenue Next 5Y4.84%
EBIT growth 1Y-1.4%
EBIT growth 3Y13.78%
EBIT growth 5Y3.48%
EBIT Next Year32.42%
EBIT Next 3Y12.35%
EBIT Next 5Y9.86%
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.
What is the valuation status of ZIMMER BIOMET HOLDINGS INC (ZBH) stock?
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.
Can you provide the PE and PB ratios for ZBH stock?
The Price/Earnings (PE) ratio for ZIMMER BIOMET HOLDINGS INC (ZBH) is 10.96 and the Price/Book (PB) ratio is 1.38.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 5 / 10.