ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
NYSE:ZBH • US98956P1021
98.78 USD
+0.53 (+0.54%)
Last: Feb 19, 2026, 02:12 PM
We assign a fundamental rating of 5 out of 10 to ZBH. ZBH was compared to 185 industry peers in the Health Care Equipment & Supplies industry. ZBH has an excellent profitability rating, but there are concerns on its financial health. ZBH is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year ZBH was profitable.
- ZBH had a positive operating cash flow in the past year.
- In the past 5 years ZBH has always been profitable.
- Each year in the past 5 years ZBH had a positive operating cash flow.
1.2 Ratios
- ZBH's Return On Assets of 3.05% is fine compared to the rest of the industry. ZBH outperforms 76.76% of its industry peers.
- Looking at the Return On Equity, with a value of 5.55%, ZBH is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
- With a decent Return On Invested Capital value of 5.82%, 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 6.58%. This is below the industry average of 8.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.55% | ||
| ROIC | 5.82% |
ROA(3y)4.02%
ROA(5y)2.97%
ROE(3y)7%
ROE(5y)5.22%
ROIC(3y)6.58%
ROIC(5y)5.99%
1.3 Margins
- Looking at the Profit Margin, with a value of 8.56%, ZBH belongs to the top of the industry, outperforming 82.16% of the companies in the same industry.
- ZBH's Profit Margin has improved in the last couple of years.
- ZBH's Operating Margin of 16.85% is amongst the best of the industry. ZBH outperforms 87.57% of its industry peers.
- In the last couple of years the Operating Margin of ZBH has grown nicely.
- ZBH has a Gross Margin of 69.71%. This is in the better half of the industry: ZBH outperforms 78.92% of its industry peers.
- ZBH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.85% | ||
| PM (TTM) | 8.56% | ||
| GM | 69.71% |
OM growth 3Y-1.48%
OM growth 5Y9.64%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
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.
- ZBH has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ZBH has less shares outstanding
- ZBH has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of ZBH is 6.72, which is on the high side as it means it would take ZBH, 6.72 years of fcf income to pay off all of its debts.
- ZBH has a better Debt to FCF ratio (6.72) than 75.68% of its industry peers.
- ZBH has a Debt/Equity ratio of 0.55. This is a neutral value indicating ZBH is somewhat dependend on debt financing.
- ZBH's Debt to Equity ratio of 0.55 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 | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC9.84%
2.3 Liquidity
- ZBH has a Current Ratio of 1.98. This is a normal value and indicates that ZBH is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.98, ZBH is doing worse than 61.62% of the companies in the same industry.
- A Quick Ratio of 1.10 indicates that ZBH should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.10, ZBH is doing worse than 73.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.50% 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 7.66% on average per year.
- Looking at the last year, ZBH shows a small growth in Revenue. The Revenue has grown by 7.20% in the last year.
- ZBH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.22% yearly.
EPS 1Y (TTM)2.5%
EPS 3Y5.97%
EPS 5Y7.66%
EPS Q2Q%4.76%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%
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 6.25% on average per year.
- The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y4.45%
EPS Next 2Y5.65%
EPS Next 3Y5.6%
EPS Next 5Y6.25%
Revenue Next Year4.16%
Revenue Next 2Y3.9%
Revenue Next 3Y3.73%
Revenue Next 5Y4.81%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- The Price/Earnings ratio is 12.05, which indicates a correct valuation of ZBH.
- ZBH's Price/Earnings ratio is rather cheap when compared to the industry. ZBH is cheaper than 94.05% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.27. ZBH is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.53 indicates a reasonable valuation of ZBH.
- Based on the Price/Forward Earnings ratio, ZBH is valued cheaply inside the industry as 93.51% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 28.16. ZBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
- ZBH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZBH is cheaper than 90.27% of the companies in the same industry.
- ZBH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZBH is cheaper than 94.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.48 | ||
| EV/EBITDA | 10.64 |
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)2.71
PEG (5Y)1.57
EPS Next 2Y5.65%
EPS Next 3Y5.6%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.04%, ZBH has a reasonable but not impressive dividend return.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.85, ZBH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
- The dividend of ZBH decreases each year by -0.02%.
- 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)-0.02%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
- ZBH pays out 26.99% of its income as dividend. This is a sustainable payout ratio.
DP26.99%
EPS Next 2Y5.65%
EPS Next 3Y5.6%
NYSE:ZBH (2/19/2026, 2:12:09 PM)
98.78
+0.53 (+0.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10 2026-02-10/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners100.37%
Inst Owner Change2.43%
Ins Owners0.13%
Ins Owner Change0.34%
Market Cap19.58B
Revenue(TTM)8.23B
Net Income(TTM)705.00M
Analysts67.65
Price Target104.39 (5.68%)
Short Float %4.95%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.96
Dividend Growth(5Y)-0.02%
DP26.99%
Div Incr Years0
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.37%
Min EPS beat(2)0%
Max EPS beat(2)0.73%
EPS beat(4)4
Avg EPS beat(4)1.33%
Min EPS beat(4)0%
Max EPS beat(4)3.32%
EPS beat(8)6
Avg EPS beat(8)0.88%
EPS beat(12)9
Avg EPS beat(12)2.02%
EPS beat(16)13
Avg EPS beat(16)3.09%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)0.21%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)5
Avg Revenue beat(12)0.36%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)-0.01%
PT rev (3m)-8.43%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 11.53 | ||
| P/S | 2.38 | ||
| P/FCF | 17.48 | ||
| P/OCF | 11.54 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.64 |
EPS(TTM)8.2
EY8.3%
EPS(NY)8.57
Fwd EY8.67%
FCF(TTM)5.65
FCFY5.72%
OCF(TTM)8.56
OCFY8.67%
SpS41.54
BVpS64.11
TBVpS-9.88
PEG (NY)2.71
PEG (5Y)1.57
Graham Number108.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.55% | ||
| ROCE | 6.76% | ||
| ROIC | 5.82% | ||
| ROICexc | 6% | ||
| ROICexgc | 22.74% | ||
| OM | 16.85% | ||
| PM (TTM) | 8.56% | ||
| GM | 69.71% | ||
| FCFM | 13.6% |
ROA(3y)4.02%
ROA(5y)2.97%
ROE(3y)7%
ROE(5y)5.22%
ROIC(3y)6.58%
ROIC(5y)5.99%
ROICexc(3y)6.76%
ROICexc(5y)6.14%
ROICexgc(3y)26.14%
ROICexgc(5y)24.72%
ROCE(3y)7.64%
ROCE(5y)6.95%
ROICexgc growth 3Y0.42%
ROICexgc growth 5Y10.89%
ROICexc growth 3Y1.45%
ROICexc growth 5Y14.45%
OM growth 3Y-1.48%
OM growth 5Y9.64%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.72 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 52.79% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.41% | ||
| Profit Quality | 158.82% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | N/A |
F-Score5
WACC9.84%
ROIC/WACC0.59
Cap/Depr(3y)61.71%
Cap/Depr(5y)55.56%
Cap/Sales(3y)8.04%
Cap/Sales(5y)7.33%
Profit Quality(3y)115.26%
Profit Quality(5y)195.51%
High Growth Momentum
Growth
EPS 1Y (TTM)2.5%
EPS 3Y5.97%
EPS 5Y7.66%
EPS Q2Q%4.76%
EPS Next Y4.45%
EPS Next 2Y5.65%
EPS Next 3Y5.6%
EPS Next 5Y6.25%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%
Revenue Next Year4.16%
Revenue Next 2Y3.9%
Revenue Next 3Y3.73%
Revenue Next 5Y4.81%
EBIT growth 1Y-11.02%
EBIT growth 3Y4.29%
EBIT growth 5Y13.18%
EBIT Next Year33.13%
EBIT Next 3Y12.92%
EBIT Next 5Y9.43%
FCF growth 1Y24.09%
FCF growth 3Y10.12%
FCF growth 5Y7.09%
OCF growth 1Y13.19%
OCF growth 3Y9.72%
OCF growth 5Y7.1%
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 7 / 10.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 3 / 10.
Can you provide the dividend sustainability for ZBH stock?
The dividend rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 5 / 10 and the dividend payout ratio is 26.99%.