ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZBH - US98956P1021 - Common Stock
90.625 USD
+0.7 (+0.78%)
Taking everything into account, ZBH scores 5 out of 10 in our fundamental rating. ZBH was compared to 186 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of ZBH get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on ZBH. With these ratings, ZBH could be worth investigating further for value 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 has a Return On Assets of 3.43%. This is in the better half of the industry: ZBH outperforms 79.03% of its industry peers.
Looking at the Return On Equity, with a value of 6.31%, ZBH is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
ZBH's Return On Invested Capital of 5.73% is fine compared to the rest of the industry. ZBH outperforms 78.49% of its industry peers.
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
With an excellent Profit Margin value of 10.05%, ZBH belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
ZBH's Profit Margin has declined in the last couple of years.
ZBH has a Operating Margin of 19.10%. This is amongst the best in the industry. ZBH outperforms 91.40% of its industry peers.
ZBH's Operating Margin has improved in the last couple of years.
ZBH has a better Gross Margin (71.44%) than 79.57% of its industry peers.
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.
The number of shares outstanding for ZBH has been reduced compared to 5 years ago.
The debt/assets ratio for ZBH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.41 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 2.41, ZBH is in the better half of the industry, outperforming 67.20% of the companies in the same industry.
ZBH has a debt to FCF ratio of 7.17. This is a slightly negative value and a sign of low solvency as ZBH would need 7.17 years to pay back of all of its debts.
ZBH has a Debt to FCF ratio of 7.17. This is in the better half of the industry: ZBH outperforms 75.81% 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.
ZBH has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: ZBH underperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.61
WACC9.33%
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.
Looking at the Current ratio, with a value of 2.43, ZBH is in line with its industry, outperforming 50.54% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that ZBH should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.39, ZBH perfoms like the industry average, outperforming 41.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.53% over the past year.
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.
ZBH shows a small growth in Revenue. In the last year, the Revenue has grown by 5.47%.
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
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 2Y6.12%
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 11.20, which indicates a very decent valuation of ZBH.
Based on the Price/Earnings ratio, ZBH is valued cheaply inside the industry as 93.01% of the companies are valued more expensively.
ZBH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 10.55 indicates a reasonable valuation of ZBH.
Based on the Price/Forward Earnings ratio, ZBH is valued cheaper than 94.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, ZBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaper than 92.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ZBH is valued cheaply inside the industry as 94.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 9.47 |
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)3.56
PEG (5Y)34.13
EPS Next 2Y3.64%
EPS Next 3Y4.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, ZBH is not a good candidate for dividend investing.
ZBH's Dividend Yield is rather good when compared to the industry average which is at 0.20. ZBH pays more dividend than 92.47% of the companies in the same industry.
With a Dividend Yield of 0.97, ZBH pays less dividend than the S&P500 average, which is at 2.00.
| 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
ZBH pays out 23.70% of its income as dividend. This is a 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%
NYSE:ZBH (1/2/2026, 10:05:00 AM)
90.625
+0.7 (+0.78%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change1.85%
Ins Owners0.13%
Ins Owner Change0.6%
Market Cap17.96B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts70
Price Target104.4 (15.2%)
Short Float %3.93%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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)-8.52%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 10.55 | ||
| P/S | 2.24 | ||
| P/FCF | 15.88 | ||
| P/OCF | 10.65 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.47 |
EPS(TTM)8.09
EY8.93%
EPS(NY)8.59
Fwd EY9.48%
FCF(TTM)5.71
FCFY6.3%
OCF(TTM)8.51
OCFY9.39%
SpS40.42
BVpS64.37
TBVpS-8.5
PEG (NY)3.56
PEG (5Y)34.13
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 | 2.41 |
F-Score5
WACC9.33%
ROIC/WACC0.61
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 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 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 6 / 10 and the dividend payout ratio is 23.7%.