ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZBH - US98956P1021 - Common Stock
89.24 USD
+0.9 (+1.02%)
89.24 USD
0 (0%)
Taking everything into account, ZBH scores 6 out of 10 in our fundamental rating. ZBH was compared to 185 industry peers in the Health Care Equipment & Supplies industry. ZBH has an average financial health and profitability rating. ZBH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. ZBH also has an excellent dividend rating. These ratings could make ZBH a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year ZBH was profitable.
- 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
- Looking at the Return On Assets, with a value of 3.43%, ZBH is in the better half of the industry, outperforming 78.92% of the companies in the same industry.
- ZBH's Return On Equity of 6.31% is fine compared to the rest of the industry. ZBH outperforms 78.92% of its industry peers.
- ZBH's Return On Invested Capital of 5.73% is fine compared to the rest of the industry. ZBH outperforms 78.38% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- 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.
- ZBH has a better Operating Margin (19.10%) 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.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZBH is destroying value.
- ZBH has less shares outstanding than it did 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
- An Altman-Z score of 2.40 indicates that ZBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ZBH has a better Altman-Z score (2.40) than 65.41% of its industry peers.
- 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's Debt to FCF ratio of 7.17 is fine compared to the rest of the industry. ZBH outperforms 76.22% 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.
- With a Debt to Equity ratio value of 0.59, ZBH is not doing good in the industry: 61.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.62
WACC9.25%
2.3 Liquidity
- A Current Ratio of 2.43 indicates that ZBH has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.43, ZBH is in line with its industry, outperforming 49.73% 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.
- ZBH's Quick ratio of 1.39 is on the low side compared to the rest of the industry. ZBH is outperformed by 60.00% of its industry peers.
| 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.
- The Revenue has been growing slightly by 5.47% 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)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.
- 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
- 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
- ZBH is valuated reasonably with a Price/Earnings ratio of 11.03.
- Based on the Price/Earnings ratio, ZBH is valued cheaper than 93.51% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. ZBH is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 10.38, the valuation of ZBH can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, ZBH is valued cheaply inside the industry as 94.59% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ZBH to the average of the S&P500 Index (24.04), we can say ZBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaper than 91.89% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 94.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.64 | ||
| EV/EBITDA | 9.34 |
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.
- ZBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.51
PEG (5Y)33.61
EPS Next 2Y3.64%
EPS Next 3Y4.8%
5. Dividend
5.1 Amount
- ZBH has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.19, ZBH pays a better dividend. On top of this ZBH pays more dividend than 94.05% of the companies listed in the same industry.
- With a Dividend Yield of 1.04, ZBH pays less dividend than the S&P500 average, which is at 1.92.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
89.24
+0.9 (+1.02%)
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)02-05 2026-02-05/amc
Inst Owners100.37%
Inst Owner Change0.14%
Ins Owners0.13%
Ins Owner Change0.34%
Market Cap17.69B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts67.88
Price Target104.4 (16.99%)
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)-0.78%
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 | 11.03 | ||
| Fwd PE | 10.38 | ||
| P/S | 2.21 | ||
| P/FCF | 15.64 | ||
| P/OCF | 10.49 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.34 |
EPS(TTM)8.09
EY9.07%
EPS(NY)8.59
Fwd EY9.63%
FCF(TTM)5.71
FCFY6.39%
OCF(TTM)8.51
OCFY9.53%
SpS40.42
BVpS64.37
TBVpS-8.5
PEG (NY)3.51
PEG (5Y)33.61
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 | 2.4 |
F-Score5
WACC9.25%
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 2Y6.12%
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%.