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

  • In the past year ZBH was profitable.
  • In the past year ZBH had a positive cash flow from operations.
  • 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

  • Looking at the Return On Assets, with a value of 3.05%, ZBH is in the better half of the industry, outperforming 75.94% of the companies in the same industry.
  • ZBH has a Return On Equity of 5.55%. This is in the better half of the industry: ZBH outperforms 77.01% of its industry peers.
  • 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

  • With an excellent Profit Margin value of 8.56%, ZBH belongs to the best of the industry, outperforming 81.28% of the companies in the same industry.
  • ZBH's Profit Margin has improved in the last couple of years.
  • 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.
  • In the last couple of years the Operating Margin of ZBH has grown nicely.
  • The Gross Margin of ZBH (69.71%) is better than 77.54% 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 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

  • ZBH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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

  • An Altman-Z score of 2.31 indicates that ZBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of ZBH (2.31) is better than 62.57% of its industry peers.
  • 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 has a Debt to FCF ratio of 6.72. This is in the better half 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.
  • 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 2.31
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

  • 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.
  • With a Current ratio value of 1.98, ZBH is not doing good in the industry: 64.17% of the companies in the same industry are doing better.
  • 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.
  • ZBH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.20%.
  • ZBH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.22% yearly.
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

  • The Earnings Per Share is expected to grow by 6.07% on average over the next years.
  • Based on estimates for the next years, ZBH will show a small growth in Revenue. The Revenue will grow by 3.89% on average per year.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • The Price/Earnings ratio is 10.10, 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 92.51% of the companies in the same industry.
  • ZBH is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 9.76 indicates a reasonable valuation of ZBH.
  • Based on the Price/Forward Earnings ratio, ZBH is valued cheaper than 94.65% of the companies 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

  • Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaper than 92.51% of the companies in the same industry.
  • ZBH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZBH is cheaper than 95.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.31
EV/EBITDA 9.28
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 an expensive valuation of the company.
  • The decent profitability rating of ZBH 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

  • ZBH has a Yearly Dividend Yield of 1.04%.
  • ZBH's Dividend Yield is rather good when compared to the industry average which is at 0.25. ZBH pays more dividend than 92.51% of the companies in the same industry.
  • With a Dividend Yield of 1.04, ZBH pays less dividend than the S&P500 average, which is at 1.82.
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

  • 27.01% 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.
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
Industry Strength10.56
Industry Growth62.11
Earnings (Last)04-28
Earnings (Next)08-05
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 Target105.35 (27.23%)
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 9.28
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 2.31
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.