ZIMMER BIOMET HOLDINGS INC (ZBH) Fundamental Analysis & Valuation

NYSE:ZBH • US98956P1021

Current stock price

82.8 USD
-9.79 (-10.57%)
At close:
83.32 USD
+0.52 (+0.63%)
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.
  • Each year in the past 5 years ZBH has been profitable.
  • 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

  • The Return On Assets of ZBH (3.05%) is better than 75.94% of its industry peers.
  • ZBH's Return On Equity of 5.55% is fine compared to the rest of the industry. ZBH outperforms 77.01% of its industry peers.
  • With a decent Return On Invested Capital value of 5.79%, ZBH is doing good in the industry, outperforming 78.07% 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 9.12%.
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.
  • ZBH's Operating Margin of 16.75% is amongst the best of the industry. ZBH outperforms 87.17% of its industry peers.
  • 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZBH is destroying value.
  • Compared to 1 year ago, ZBH has less shares outstanding
  • ZBH has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ZBH has a worse debt to assets ratio.
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.
  • The Altman-Z score of ZBH (2.42) is better than 64.17% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 6.72, ZBH is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
  • A Debt/Equity ratio of 0.55 indicates that ZBH is somewhat dependend on debt financing.
  • The Debt to Equity ratio of ZBH (0.55) is worse than 61.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 6.72
Altman-Z 2.42
ROIC/WACC0.78
WACC7.42%
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.
  • ZBH's Current ratio of 1.98 is on the low side compared to the rest of the industry. ZBH is outperformed by 64.17% of its industry peers.
  • ZBH has a Quick Ratio of 1.10. This is a normal value and indicates that ZBH is financially healthy and should not expect problems in meeting its short term obligations.
  • ZBH has a Quick ratio of 1.10. This is in the lower half of the industry: ZBH underperforms 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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4

3. ZBH Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.50% over the past year.
  • 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.
  • Measured over the past years, ZBH shows a small growth in Revenue. The Revenue has been growing by 3.22% on average per year.
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

  • Based on estimates for the next years, ZBH will show a small growth in Earnings Per Share. The EPS will grow by 6.07% on average per year.
  • 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

  • The EPS growth rate is decreasing: in the next years the growth will be less 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.
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

  • With a Price/Earnings ratio of 10.10, the valuation of ZBH can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 91.44% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.91. ZBH is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 9.76 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 94.12% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of ZBH to the average of the S&P500 Index (21.99), we can say ZBH is valued rather cheaply.
Industry RankSector Rank
PE 10.1
Fwd PE 9.76
ZBH Price Earnings VS Forward Price EarningsZBH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 91.98% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ZBH is valued cheaper than 94.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.31
EV/EBITDA 10.05
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)2.96
PEG (5Y)1.32
EPS Next 2Y5.36%
EPS Next 3Y5.71%

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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.
  • 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.
  • ZBH's earnings are growing more than its dividend. This makes the dividend growth 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 (4/28/2026, 8:06:49 PM)

After market: 83.32 +0.52 (+0.63%)

82.8

-9.79 (-10.57%)

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 Cap16.03B
Revenue(TTM)8.23B
Net Income(TTM)704.60M
Analysts66.47
Price Target105.44 (27.34%)
Short Float %5.22%
Short Ratio5.02
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 10.1
Fwd PE 9.76
P/S 1.95
P/FCF 14.31
P/OCF 9.44
P/B 1.26
P/tB N/A
EV/EBITDA 10.05
EPS(TTM)8.2
EY9.9%
EPS(NY)8.48
Fwd EY10.24%
FCF(TTM)5.78
FCFY6.99%
OCF(TTM)8.77
OCFY10.59%
SpS42.53
BVpS65.6
TBVpS-10.16
PEG (NY)2.96
PEG (5Y)1.32
Graham Number110.012 (32.86%)
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
WACC7.42%
ROIC/WACC0.78
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.