ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZBH - US98956P1021 - Common Stock
87.31 USD
-1.44 (-1.62%)
87.33 USD
+0.02 (+0.02%)
Taking everything into account, ZBH scores 6 out of 10 in our fundamental rating. ZBH was compared to 186 industry peers in the Health Care Equipment & Supplies industry. ZBH scores excellent on profitability, but there are some minor concerns on its financial health. 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.
- In the past year ZBH had a positive cash flow from operations.
- 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
- ZBH's Return On Assets of 3.43% is fine compared to the rest of the industry. ZBH outperforms 79.03% of its industry peers.
- ZBH's Return On Equity of 6.31% is fine compared to the rest of the industry. ZBH outperforms 79.03% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.73%, ZBH is in the better half of the industry, outperforming 78.49% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ZBH 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
- The Profit Margin of ZBH (10.05%) is better than 83.87% of its industry peers.
- ZBH's Profit Margin has declined in the last couple of years.
- ZBH has a better Operating Margin (19.10%) than 91.40% of its industry peers.
- ZBH's Operating Margin has improved in the last couple of years.
- ZBH's Gross Margin of 71.44% is amongst the best of the industry. ZBH outperforms 80.11% 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
- ZBH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ZBH has less shares outstanding
- 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
- An Altman-Z score of 2.39 indicates that ZBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.39, ZBH is in the better half of the industry, outperforming 65.59% of the companies in the same industry.
- 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.
- With a decent Debt to FCF ratio value of 7.17, ZBH is doing good in the industry, outperforming 75.81% of the companies in the same industry.
- ZBH has a Debt/Equity ratio of 0.59. This is a neutral value indicating ZBH is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.59, ZBH is not doing good in the industry: 61.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.62
WACC9.28%
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.
- The Current ratio of ZBH (2.43) is comparable to the rest of the industry.
- 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.
- With a Quick ratio value of 1.39, ZBH perfoms like the industry average, outperforming 40.32% of the companies in the same 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%.
- 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.
- ZBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.69% yearly.
EPS Next Y3.14%
EPS Next 2Y3.64%
EPS Next 3Y4.8%
EPS Next 5Y5.51%
Revenue Next Year7.04%
Revenue Next 2Y6.09%
Revenue Next 3Y5.46%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.79, the valuation of ZBH can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 93.55% of the companies listed in the same industry.
- ZBH is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 10.16, the valuation of ZBH can be described as reasonable.
- ZBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZBH is cheaper than 94.62% of the companies in the same industry.
- ZBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.16 |
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 92.47% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ZBH is valued cheaper than 95.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.3 | ||
| EV/EBITDA | 9.27 |
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)3.43
PEG (5Y)32.88
EPS Next 2Y3.64%
EPS Next 3Y4.8%
5. Dividend
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 0.19. ZBH pays more dividend than 94.09% 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 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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 2Y3.64%
EPS Next 3Y4.8%
87.31
-1.44 (-1.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners100.37%
Inst Owner Change0.06%
Ins Owners0.13%
Ins Owner Change0.34%
Market Cap17.30B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts67.88
Price Target104.24 (19.39%)
Short Float %3.93%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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)-0.93%
PT rev (3m)-9.34%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.16 | ||
| P/S | 2.16 | ||
| P/FCF | 15.3 | ||
| P/OCF | 10.26 | ||
| P/B | 1.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.27 |
EPS(TTM)8.09
EY9.27%
EPS(NY)8.59
Fwd EY9.84%
FCF(TTM)5.71
FCFY6.54%
OCF(TTM)8.51
OCFY9.74%
SpS40.42
BVpS64.37
TBVpS-8.5
PEG (NY)3.43
PEG (5Y)32.88
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 | 2.39 |
F-Score5
WACC9.28%
ROIC/WACC0.62
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 2Y6.09%
Revenue Next 3Y5.46%
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%.