ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - NYSE:ZBH - US98956P1021 - Common Stock
103.12 USD
+0.09 (+0.09%)
103.12 USD
0 (0%)
Taking everything into account, ZBH scores 5 out of 10 in our fundamental rating. ZBH was compared to 189 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.
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
With a decent Return On Assets value of 3.60%, ZBH is doing good in the industry, outperforming 78.84% of the companies in the same industry.
ZBH has a better Return On Equity (6.57%) than 79.89% of its industry peers.
With a decent Return On Invested Capital value of 5.91%, ZBH is doing good in the industry, outperforming 79.89% 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 9.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 6.57% | ||
| ROIC | 5.91% |
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
The Profit Margin of ZBH (10.51%) is better than 83.60% of its industry peers.
In the last couple of years the Profit Margin of ZBH has declined.
ZBH has a Operating Margin of 19.26%. This is amongst the best in the industry. ZBH outperforms 91.01% of its industry peers.
In the last couple of years the Operating Margin of ZBH has grown nicely.
ZBH has a Gross Margin of 71.06%. This is amongst the best in the industry. ZBH outperforms 81.48% 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 | 19.26% | ||
| PM (TTM) | 10.51% | ||
| GM | 71.06% |
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
ZBH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ZBH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ZBH has less shares outstanding
ZBH has a worse debt/assets ratio than last year.
2.2 Solvency
ZBH has an Altman-Z score of 2.56. 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.
ZBH has a better Altman-Z score (2.56) than 64.55% of its industry peers.
ZBH has a debt to FCF ratio of 6.36. This is a slightly negative value and a sign of low solvency as ZBH would need 6.36 years to pay back of all of its debts.
ZBH's Debt to FCF ratio of 6.36 is fine compared to the rest of the industry. ZBH outperforms 77.25% of its industry peers.
ZBH has a Debt/Equity ratio of 0.54. This is a neutral value indicating ZBH is somewhat dependend on debt financing.
ZBH has a Debt to Equity ratio of 0.54. This is in the lower half of the industry: ZBH underperforms 60.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.81
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.87 indicates that ZBH should not have too much problems paying its short term obligations.
ZBH's Current ratio of 1.87 is on the low side compared to the rest of the industry. ZBH is outperformed by 66.67% of its industry peers.
ZBH has a Quick Ratio of 1.87. This is a bad value and indicates that ZBH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ZBH (0.96) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.67% over the past year.
The Earnings Per Share has been growing slightly by 0.33% on average over the past years.
The Revenue has been growing slightly by 4.11% in the past year.
Measured over the past years, ZBH shows a decrease in Revenue. The Revenue has been decreasing by -0.77% on average per year.
EPS 1Y (TTM)1.67%
EPS 3Y2.77%
EPS 5Y0.33%
EPS Q2Q%2.99%
Revenue 1Y (TTM)4.11%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%6.97%
3.2 Future
The Earnings Per Share is expected to grow by 6.10% 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 4.84% on average per year.
EPS Next Y2.95%
EPS Next 2Y3.97%
EPS Next 3Y5.67%
EPS Next 5Y6.1%
Revenue Next Year7.24%
Revenue Next 2Y6.57%
Revenue Next 3Y6%
Revenue Next 5Y4.84%
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 13.00, which indicates a correct valuation of ZBH.
ZBH's Price/Earnings ratio is rather cheap when compared to the industry. ZBH is cheaper than 89.95% of the companies in the same industry.
ZBH is valuated cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.92, which indicates a very decent valuation of ZBH.
91.01% of the companies in the same industry are more expensive than ZBH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ZBH to the average of the S&P500 Index (23.09), we can say ZBH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 11.92 |
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 87.83% of the companies listed in the same industry.
ZBH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZBH is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.16 | ||
| EV/EBITDA | 10.76 |
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)4.4
PEG (5Y)39.62
EPS Next 2Y3.97%
EPS Next 3Y5.67%
5. Dividend
5.1 Amount
ZBH has a yearly dividend return of 0.97%, which is pretty low.
Compared to an average industry Dividend Yield of 1.79, ZBH pays a better dividend. On top of this ZBH pays more dividend than 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, 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 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
23.38% of the earnings are spent on dividend by ZBH. This is a low number and sustainable payout ratio.
ZBH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.38%
EPS Next 2Y3.97%
EPS Next 3Y5.67%
103.12
+0.09 (+0.09%)
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 Change-0.41%
Ins Owners0.13%
Ins Owner Change-0.37%
Market Cap20.43B
Revenue(TTM)7.83B
Net Income(TTM)823.40M
Analysts70.86
Price Target114.98 (11.5%)
Short Float %3.61%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend0.97
Dividend Growth(5Y)0.19%
DP23.38%
Div Incr Years0
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.28%
Min EPS beat(2)1.25%
Max EPS beat(2)3.32%
EPS beat(4)2
Avg EPS beat(4)0.88%
Min EPS beat(4)-0.7%
Max EPS beat(4)3.32%
EPS beat(8)6
Avg EPS beat(8)1.21%
EPS beat(12)9
Avg EPS beat(12)2.16%
EPS beat(16)12
Avg EPS beat(16)3.02%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.21%
Revenue beat(4)2
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)0.62%
Revenue beat(8)3
Avg Revenue beat(8)-0.24%
Revenue beat(12)7
Avg Revenue beat(12)0.8%
Revenue beat(16)9
Avg Revenue beat(16)-0.81%
PT rev (1m)0.76%
PT rev (3m)4.01%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)2.64%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 11.92 | ||
| P/S | 2.61 | ||
| P/FCF | 17.16 | ||
| P/OCF | 12.28 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.76 |
EPS(TTM)7.93
EY7.69%
EPS(NY)8.65
Fwd EY8.39%
FCF(TTM)6.01
FCFY5.83%
OCF(TTM)8.39
OCFY8.14%
SpS39.54
BVpS63.23
TBVpS-10.48
PEG (NY)4.4
PEG (5Y)39.62
Graham Number106.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 6.57% | ||
| ROCE | 7.48% | ||
| ROIC | 5.91% | ||
| ROICexc | 6.08% | ||
| ROICexgc | 23.79% | ||
| OM | 19.26% | ||
| PM (TTM) | 10.51% | ||
| GM | 71.06% | ||
| FCFM | 15.2% |
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 | 0.54 | ||
| Debt/FCF | 6.36 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 45.39% | ||
| Cap/Sales | 6.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.24% | ||
| Profit Quality | 144.6% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.56 |
F-Score5
WACC7.3%
ROIC/WACC0.81
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)1.67%
EPS 3Y2.77%
EPS 5Y0.33%
EPS Q2Q%2.99%
EPS Next Y2.95%
EPS Next 2Y3.97%
EPS Next 3Y5.67%
EPS Next 5Y6.1%
Revenue 1Y (TTM)4.11%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%6.97%
Revenue Next Year7.24%
Revenue Next 2Y6.57%
Revenue Next 3Y6%
Revenue Next 5Y4.84%
EBIT growth 1Y-1.58%
EBIT growth 3Y13.78%
EBIT growth 5Y3.48%
EBIT Next Year32.42%
EBIT Next 3Y12.35%
EBIT Next 5Y9.77%
FCF growth 1Y66.12%
FCF growth 3Y-5.87%
FCF growth 5Y0.84%
OCF growth 1Y23.13%
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 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 13 and the Price/Book (PB) ratio is 1.63.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 3 / 10.