ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
NYSE:ZBH • US98956P1021
99.87 USD
+0.41 (+0.41%)
At close: Feb 24, 2026
99 USD
-0.87 (-0.87%)
After Hours: 2/24/2026, 8:04:00 PM
Overall ZBH gets a fundamental rating of 5 out of 10. We evaluated ZBH against 185 industry peers in the Health Care Equipment & Supplies industry. While ZBH has a great profitability rating, there are quite some 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.
- ZBH had a positive operating cash flow in the past year.
- Each year in the past 5 years ZBH has been profitable.
- Each year in the past 5 years ZBH had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.05%, ZBH is in the better half of the industry, outperforming 76.76% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 5.55%, ZBH is in the better half of the industry, outperforming 77.84% of the companies in the same industry.
- The Return On Invested Capital of ZBH (5.82%) is better than 78.38% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ZBH 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
- ZBH has a better Profit Margin (8.56%) than 82.16% of its industry peers.
- In the last couple of years the Profit Margin of ZBH has grown nicely.
- ZBH's Operating Margin of 16.85% is amongst the best of the industry. ZBH outperforms 87.57% of its industry peers.
- ZBH's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 69.71%, ZBH is doing good in the industry, outperforming 78.92% 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 | 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.
- Compared to 1 year ago, ZBH has less shares outstanding
- ZBH has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ZBH is higher compared to a year ago.
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.
- Looking at the Debt to Equity ratio, with a value of 0.55, ZBH is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC9.72%
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.
- ZBH has a worse Current ratio (1.98) than 61.62% of its industry peers.
- ZBH has a Quick Ratio of 1.10. 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 Quick ratio, with a value of 1.10, ZBH is doing worse than 74.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- ZBH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.50%.
- ZBH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.66% yearly.
- 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
- ZBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.25% yearly.
- Based on estimates for the next years, ZBH will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- With a Price/Earnings ratio of 12.18, ZBH is valued correctly.
- Based on the Price/Earnings ratio, ZBH is valued cheaply inside the industry as 94.05% 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 26.98.
- ZBH is valuated reasonably with a Price/Forward Earnings ratio of 11.66.
- Based on the Price/Forward Earnings ratio, ZBH is valued cheaper than 92.97% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, ZBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 11.66 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 92.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.68 | ||
| EV/EBITDA | 10.74 |
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)2.74
PEG (5Y)1.59
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 1.81, 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 paid a dividend for at least 10 years, which is 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)-0.02%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
- 26.99% of the earnings are spent on dividend by ZBH. This is a low number and sustainable payout ratio.
DP26.99%
EPS Next 2Y5.65%
EPS Next 3Y5.6%
99.87
+0.41 (+0.41%)
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 Change4.02%
Ins Owners0.13%
Ins Owner Change0.41%
Market Cap19.79B
Revenue(TTM)8.23B
Net Income(TTM)705.00M
Analysts67.65
Price Target104.39 (4.53%)
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)0.14%
PT rev (3m)-1.02%
EPS NQ rev (1m)-2.86%
EPS NQ rev (3m)-3.24%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 11.66 | ||
| P/S | 2.4 | ||
| P/FCF | 17.68 | ||
| P/OCF | 11.66 | ||
| P/B | 1.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.74 |
EPS(TTM)8.2
EY8.21%
EPS(NY)8.57
Fwd EY8.58%
FCF(TTM)5.65
FCFY5.66%
OCF(TTM)8.56
OCFY8.57%
SpS41.54
BVpS64.11
TBVpS-9.88
PEG (NY)2.74
PEG (5Y)1.59
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
WACC9.72%
ROIC/WACC0.6
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%.