ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZBH - US98956P1021 - Common Stock
92.85 USD
-1.23 (-1.31%)
92.85 USD
0 (0%)
ZBH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 185 industry peers in the Health Care Equipment & Supplies industry. ZBH has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on ZBH. Finally ZBH also has an excellent dividend rating. These ratings would make ZBH suitable for value and dividend 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.
In the past 5 years ZBH always reported a positive cash flow from operatings.
1.2 Ratios
ZBH's Return On Assets of 3.43% is fine compared to the rest of the industry. ZBH outperforms 78.92% of its industry peers.
The Return On Equity of ZBH (6.31%) is better than 78.92% of its industry peers.
With a decent Return On Invested Capital value of 5.73%, ZBH is doing good in the industry, outperforming 78.38% of the companies in the same industry.
ZBH had an Average Return On Invested Capital over the past 3 years of 5.98%. This is below the industry average of 8.84%.
| 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 83.78% of its industry peers.
ZBH's Profit Margin has declined in the last couple of years.
The Operating Margin of ZBH (19.10%) is better than 91.35% 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 71.44%, ZBH is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
ZBH's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 5 years ago, ZBH has less shares outstanding
Compared to 1 year ago, ZBH has a worse debt to assets ratio.
2.2 Solvency
ZBH has an Altman-Z score of 2.46. 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 Altman-Z score of 2.46. This is in the better half of the industry: ZBH outperforms 65.41% 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.
ZBH's Debt to FCF ratio of 7.17 is fine compared to the rest of the industry. ZBH outperforms 75.68% 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.
The Debt to Equity ratio of ZBH (0.59) is worse than 61.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.63
WACC9.13%
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.
ZBH has a Current ratio (2.43) which is in line with its industry peers.
ZBH has a Quick Ratio of 1.39. This is a normal value and indicates that ZBH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ZBH (1.39) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
ZBH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.53%.
Measured over the past 5 years, ZBH shows a small growth in Earnings Per Share. The EPS has been growing by 0.33% on average per year.
Looking at the last year, ZBH shows a small growth in Revenue. The Revenue has grown by 5.47% in the last year.
ZBH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.77% yearly.
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
The Earnings Per Share is expected to grow by 5.51% 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 4.69% on average per year.
EPS Next Y3.14%
EPS Next 2Y3.64%
EPS Next 3Y4.8%
EPS Next 5Y5.51%
Revenue Next Year7.04%
Revenue Next 2Y6.12%
Revenue Next 3Y5.49%
Revenue Next 5Y4.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.48, which indicates a very decent valuation of ZBH.
Based on the Price/Earnings ratio, ZBH is valued cheaply inside the industry as 92.97% of the companies are valued more expensively.
ZBH is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.80, the valuation of ZBH can be described as very reasonable.
94.59% of the companies in the same industry are more expensive than ZBH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, ZBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
92.43% of the companies in the same industry are more expensive than ZBH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 94.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.27 | ||
| EV/EBITDA | 9.78 |
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)3.65
PEG (5Y)34.97
EPS Next 2Y3.64%
EPS Next 3Y4.8%
5. Dividend
5.1 Amount
ZBH has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
ZBH's Dividend Yield is rather good when compared to the industry average which is at 0.20. ZBH pays more dividend than 94.05% of the companies in the same industry.
With a Dividend Yield of 1.07, ZBH pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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.
ZBH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.7%
EPS Next 2Y3.64%
EPS Next 3Y4.8%
92.85
-1.23 (-1.31%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.37%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner Change0.34%
Market Cap18.40B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts70
Price Target104.4 (12.44%)
Short Float %3.93%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend0.97
Dividend Growth(5Y)0.19%
DP23.7%
Div Incr Years0
Div Non Decr Years12
Ex-DateN/A
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)-1%
PT rev (3m)-9.2%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.8 | ||
| P/S | 2.3 | ||
| P/FCF | 16.27 | ||
| P/OCF | 10.91 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.78 |
EPS(TTM)8.09
EY8.71%
EPS(NY)8.59
Fwd EY9.26%
FCF(TTM)5.71
FCFY6.15%
OCF(TTM)8.51
OCFY9.16%
SpS40.42
BVpS64.37
TBVpS-8.5
PEG (NY)3.65
PEG (5Y)34.97
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 | 2.46 |
F-Score5
WACC9.13%
ROIC/WACC0.63
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 Y3.14%
EPS Next 2Y3.64%
EPS Next 3Y4.8%
EPS Next 5Y5.51%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
Revenue Next Year7.04%
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 Year34.04%
EBIT Next 3Y12.4%
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 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.
What is the profitability of ZBH stock?
ZIMMER BIOMET HOLDINGS INC (ZBH) has a profitability rating of 6 / 10.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 5 / 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 23.7%.