ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZBH - US98956P1021 - Common Stock
91.59 USD
-0.86 (-0.93%)
91.59 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ZBH. ZBH was compared to 187 industry peers in the Health Care Equipment & Supplies industry. ZBH has an average financial health and profitability rating. ZBH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ZBH very considerable for value investing!
1. Profitability
1.1 Basic Checks
ZBH had positive earnings in the past year.
ZBH had a positive operating cash flow in the past year.
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 79.14% of the companies in the same industry.
ZBH has a better Return On Equity (6.31%) than 79.14% of its industry peers.
The Return On Invested Capital of ZBH (5.73%) is better than 78.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZBH is below the industry average of 8.80%.
| 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 Profit Margin of 10.05%. This is amongst the best in the industry. ZBH outperforms 83.42% of its industry peers.
In the last couple of years the Profit Margin of ZBH has declined.
Looking at the Operating Margin, with a value of 19.10%, ZBH belongs to the top of the industry, outperforming 91.44% of the companies in the same industry.
In the last couple of years the Operating Margin of ZBH has grown nicely.
ZBH has a Gross Margin of 71.44%. This is in the better half of the industry: ZBH outperforms 79.68% of its industry peers.
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.
Compared to 1 year ago, ZBH has less shares outstanding
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 2.44 indicates that ZBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ZBH has a better Altman-Z score (2.44) than 66.31% of its industry peers.
The Debt to FCF ratio of ZBH is 7.17, which is on the high side as it means it would take ZBH, 7.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ZBH (7.17) is better than 75.94% of its industry peers.
ZBH has a Debt/Equity ratio of 0.59. This is a neutral value indicating ZBH is somewhat dependend on debt financing.
ZBH has a worse Debt to Equity ratio (0.59) than 60.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.79
WACC7.26%
2.3 Liquidity
ZBH has a Current Ratio of 2.43. This indicates that ZBH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.43, ZBH is in line with its industry, outperforming 48.13% 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 worse Quick ratio (1.39) than 60.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.53% over the past year.
ZBH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.33% yearly.
ZBH shows a small growth in Revenue. In the last year, the Revenue has grown by 5.47%.
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.
Based on estimates for the next years, ZBH will show a small growth in Revenue. The Revenue will grow by 4.69% on average per year.
EPS Next Y3.15%
EPS Next 2Y3.68%
EPS Next 3Y4.84%
EPS Next 5Y5.51%
Revenue Next Year7.05%
Revenue Next 2Y6.12%
Revenue Next 3Y5.49%
Revenue Next 5Y4.69%
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 accelerating.
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 11.32, which indicates a very decent valuation of ZBH.
Compared to the rest of the industry, the Price/Earnings ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 92.51% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, ZBH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.65, the valuation of ZBH can be described as reasonable.
Based on the Price/Forward Earnings ratio, ZBH is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, ZBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaply inside the industry as 92.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ZBH is valued cheaply inside the industry as 93.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.05 | ||
| EV/EBITDA | 9.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ZBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.59
PEG (5Y)34.49
EPS Next 2Y3.68%
EPS Next 3Y4.84%
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 1.34, ZBH pays a better dividend. On top of this ZBH pays more dividend than 94.65% of the companies listed in the same industry.
With a Dividend Yield of 0.97, ZBH pays less dividend than the S&P500 average, which is at 2.27.
| 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 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)0.19%
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 2Y3.68%
EPS Next 3Y4.84%
91.59
-0.86 (-0.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change1.85%
Ins Owners0.13%
Ins Owner Change0.36%
Market Cap18.15B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts70
Price Target105.22 (14.88%)
Short Float %3.81%
Short Ratio4.18
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)-7.69%
PT rev (3m)-7.8%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 10.65 | ||
| P/S | 2.27 | ||
| P/FCF | 16.05 | ||
| P/OCF | 10.77 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.66 |
EPS(TTM)8.09
EY8.83%
EPS(NY)8.6
Fwd EY9.39%
FCF(TTM)5.71
FCFY6.23%
OCF(TTM)8.51
OCFY9.29%
SpS40.42
BVpS64.37
TBVpS-8.5
PEG (NY)3.59
PEG (5Y)34.49
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 | 2.44 |
F-Score5
WACC7.26%
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 Y3.15%
EPS Next 2Y3.68%
EPS Next 3Y4.84%
EPS Next 5Y5.51%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
Revenue Next Year7.05%
Revenue Next 2Y6.12%
Revenue Next 3Y5.49%
Revenue Next 5Y4.69%
EBIT growth 1Y-1.4%
EBIT growth 3Y13.78%
EBIT growth 5Y3.48%
EBIT Next Year33.49%
EBIT Next 3Y12.35%
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 5 / 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 6 / 10.
Can you provide the PE and PB ratios for ZBH stock?
The Price/Earnings (PE) ratio for ZIMMER BIOMET HOLDINGS INC (ZBH) is 11.32 and the Price/Book (PB) ratio is 1.42.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 5 / 10.