ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - NYSE:ZBH - US98956P1021 - Common Stock
88.73 USD
+0.23 (+0.26%)
88.73 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. ZBH has an excellent profitability rating, but there are concerns on its financial health. ZBH may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years ZBH had a positive operating cash flow.
1.2 Ratios
ZBH has a Return On Assets of 3.60%. This is in the better half of the industry: ZBH outperforms 78.84% of its industry peers.
With a decent Return On Equity value of 6.57%, ZBH is doing good in the industry, outperforming 79.37% of the companies in the same industry.
The Return On Invested Capital of ZBH (5.91%) is better than 79.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZBH is below the industry average of 9.06%.
| 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
With an excellent Profit Margin value of 10.51%, ZBH belongs to the best of the industry, outperforming 83.60% of the companies in the same industry.
ZBH's Profit Margin has declined in the last couple of years.
ZBH's Operating Margin of 19.26% is amongst the best of the industry. ZBH outperforms 91.53% 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 71.06%, ZBH belongs to the top of the industry, outperforming 81.48% 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 | 19.26% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZBH is destroying value.
Compared to 1 year ago, ZBH has less shares outstanding
Compared to 5 years ago, ZBH has less shares outstanding
ZBH has a worse debt/assets ratio than last year.
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's Altman-Z score of 2.40 is fine compared to the rest of the industry. ZBH outperforms 65.61% of its industry peers.
The Debt to FCF ratio of ZBH is 6.36, which is on the high side as it means it would take ZBH, 6.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ZBH (6.36) is better than 75.66% 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 61.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.82
WACC7.2%
2.3 Liquidity
ZBH has a Current Ratio of 1.87. 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 Current ratio value of 1.87, ZBH is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.96 indicates that ZBH may have some problems paying its short term obligations.
ZBH has a worse Quick ratio (0.96) than 78.84% 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 2.53% over the past year.
The Earnings Per Share has been growing slightly by 0.33% on average over the past years.
ZBH shows a small growth in Revenue. In the last year, the Revenue has grown by 3.85%.
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)3.85%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
3.2 Future
ZBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.16% yearly.
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 Y2.96%
EPS Next 2Y3.98%
EPS Next 3Y5.69%
EPS Next 5Y6.16%
Revenue Next Year7.26%
Revenue Next 2Y6.59%
Revenue Next 3Y6.01%
Revenue Next 5Y4.84%
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
Based on the Price/Earnings ratio of 10.97, the valuation of ZBH can be described as reasonable.
ZBH's Price/Earnings ratio is rather cheap when compared to the industry. ZBH is cheaper than 90.48% of the companies in the same industry.
ZBH is valuated cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.26 indicates a reasonable valuation of ZBH.
ZBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZBH is cheaper than 93.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, ZBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaper than 91.01% 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 91.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.76 | ||
| EV/EBITDA | 9.63 |
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)3.71
PEG (5Y)33.42
EPS Next 2Y3.98%
EPS Next 3Y5.69%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, ZBH is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.91, ZBH pays a better dividend. On top of this ZBH pays more dividend than 94.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, 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 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
23.38% 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 2Y3.98%
EPS Next 3Y5.69%
88.73
+0.23 (+0.26%)
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 Change0.43%
Ins Owners0.13%
Ins Owner Change-0.37%
Market Cap17.58B
Revenue(TTM)7.68B
Net Income(TTM)823.40M
Analysts70.59
Price Target113.99 (28.47%)
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)-0.86%
PT rev (3m)3.12%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)2.43%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.26 | ||
| P/S | 2.24 | ||
| P/FCF | 14.76 | ||
| P/OCF | 10.57 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.63 |
EPS(TTM)8.09
EY9.12%
EPS(NY)8.65
Fwd EY9.75%
FCF(TTM)6.01
FCFY6.77%
OCF(TTM)8.39
OCFY9.46%
SpS39.54
BVpS63.23
TBVpS-10.48
PEG (NY)3.71
PEG (5Y)33.42
Graham Number107.28
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 | 2.4 |
F-Score5
WACC7.2%
ROIC/WACC0.82
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 Y2.96%
EPS Next 2Y3.98%
EPS Next 3Y5.69%
EPS Next 5Y6.16%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
Revenue Next Year7.26%
Revenue Next 2Y6.59%
Revenue Next 3Y6.01%
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 5Y9.86%
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 10.97 and the Price/Book (PB) ratio is 1.4.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 3 / 10.