ZIMMER BIOMET HOLDINGS INC (ZBH) Fundamental Analysis & Valuation
NYSE:ZBH • US98956P1021
94.11 USD
+0.66 (+0.71%)
At close: Mar 6, 2026
94.11 USD
0 (0%)
After Hours: 3/6/2026, 8:04:00 PM
This ZBH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 5 out of 10 to ZBH. ZBH was compared to 184 industry peers in the Health Care Equipment & Supplies industry. While ZBH has a great profitability rating, there are quite some concerns on its financial health. ZBH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. ZBH also has an excellent dividend rating.
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.
- In the past 5 years ZBH always reported a positive cash flow from operatings.
1.2 Ratios
- ZBH has a better Return On Assets (3.05%) than 77.17% of its industry peers.
- ZBH has a better Return On Equity (5.55%) than 77.72% of its industry peers.
- With a decent Return On Invested Capital value of 5.82%, ZBH is doing good in the industry, outperforming 78.26% 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 8.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.55% | ||
| ROIC | 5.82% |
ROA(3y)4.02%
ROA(5y)2.97%
ROE(3y)7%
ROE(5y)5.22%
ROIC(3y)6.58%
ROIC(5y)5.99%
1.3 Margins
- With an excellent Profit Margin value of 8.56%, ZBH belongs to the best of the industry, outperforming 81.52% of the companies in the same industry.
- In the last couple of years the Profit Margin of ZBH has grown nicely.
- ZBH has a better Operating Margin (16.85%) than 87.50% of its industry peers.
- In the last couple of years the Operating Margin of ZBH has grown nicely.
- With a decent Gross Margin value of 69.71%, ZBH is doing good in the industry, outperforming 79.35% 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 | 16.85% | ||
| PM (TTM) | 8.56% | ||
| GM | 69.71% |
OM growth 3Y-1.48%
OM growth 5Y9.64%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
2. ZBH Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZBH 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.
2.2 Solvency
- 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 75.00% of its industry peers.
- A Debt/Equity ratio of 0.55 indicates that ZBH is somewhat dependend on debt financing.
- ZBH's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. ZBH outperforms 40.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC9.8%
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: 61.96% of the companies in the same industry are doing better.
- 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.
- Looking at the Quick ratio, with a value of 1.10, ZBH is doing worse than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.1 |
3. ZBH Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 2.50% over the past year.
- The Earnings Per Share has been growing slightly by 7.66% on average over the past years.
- 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
- ZBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.25% yearly.
- The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y4.45%
EPS Next 2Y5.65%
EPS Next 3Y5.6%
EPS Next 5Y6.25%
Revenue Next Year4.16%
Revenue Next 2Y3.9%
Revenue Next 3Y3.73%
Revenue Next 5Y4.81%
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 stable.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. ZBH Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.48 indicates a reasonable 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 93.48% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.29, ZBH is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.99, which indicates a very decent 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 92.93% 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 (24.57), we can say ZBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaply inside the industry as 92.39% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ZBH is valued cheaply inside the industry as 93.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.66 | ||
| EV/EBITDA | 10.26 |
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.
- The decent profitability rating of ZBH may justify a higher PE ratio.
PEG (NY)2.58
PEG (5Y)1.5
EPS Next 2Y5.65%
EPS Next 3Y5.6%
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 0.20. ZBH pays more dividend than 94.02% 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 Rank | Sector 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.12%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
- 26.99% 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.
DP26.99%
EPS Next 2Y5.65%
EPS Next 3Y5.6%
ZBH Fundamentals: All Metrics, Ratios and Statistics
94.11
+0.66 (+0.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10 2026-02-10/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners104.24%
Inst Owner Change4.03%
Ins Owners0.15%
Ins Owner Change5.04%
Market Cap18.41B
Revenue(TTM)8.23B
Net Income(TTM)705.00M
Analysts67.43
Price Target105.6 (12.21%)
Short Float %4.25%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.96
Dividend Growth(5Y)0.12%
DP26.99%
Div Incr Years0
Div Non Decr Years12
Ex-Date03-31 2026-03-31 (0.24)
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)1.3%
PT rev (3m)0.14%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-3.26%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.99 | ||
| P/S | 2.27 | ||
| P/FCF | 16.66 | ||
| P/OCF | 10.99 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.26 |
EPS(TTM)8.2
EY8.71%
EPS(NY)8.57
Fwd EY9.1%
FCF(TTM)5.65
FCFY6%
OCF(TTM)8.56
OCFY9.1%
SpS41.54
BVpS64.11
TBVpS-9.88
PEG (NY)2.58
PEG (5Y)1.5
Graham Number108.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.55% | ||
| ROCE | 6.76% | ||
| ROIC | 5.82% | ||
| ROICexc | 6% | ||
| ROICexgc | 22.74% | ||
| OM | 16.85% | ||
| 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)6.58%
ROIC(5y)5.99%
ROICexc(3y)6.76%
ROICexc(5y)6.14%
ROICexgc(3y)26.14%
ROICexgc(5y)24.72%
ROCE(3y)7.64%
ROCE(5y)6.95%
ROICexgc growth 3Y0.42%
ROICexgc growth 5Y10.89%
ROICexc growth 3Y1.45%
ROICexc growth 5Y14.45%
OM growth 3Y-1.48%
OM growth 5Y9.64%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.72 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 52.79% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.41% | ||
| Profit Quality | 158.82% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | N/A |
F-Score5
WACC9.8%
ROIC/WACC0.59
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 Y4.45%
EPS Next 2Y5.65%
EPS Next 3Y5.6%
EPS Next 5Y6.25%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%
Revenue Next Year4.16%
Revenue Next 2Y3.9%
Revenue Next 3Y3.73%
Revenue Next 5Y4.81%
EBIT growth 1Y-11.02%
EBIT growth 3Y4.29%
EBIT growth 5Y13.18%
EBIT Next Year29.58%
EBIT Next 3Y11.07%
EBIT Next 5Y9.43%
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 FAQ
Can you provide the ChartMill fundamental rating for ZIMMER BIOMET HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 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 3 / 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 26.99%.