ZIMMER BIOMET HOLDINGS INC (ZBH) Fundamental Analysis & Valuation

NYSE:ZBH • US98956P1021

Current stock price

87.87 USD
-1.97 (-2.19%)
At close:
87.87 USD
0 (0%)
After Hours:

This ZBH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ZBH Profitability Analysis

1.1 Basic Checks

  • ZBH had positive earnings in the past year.
  • In the past year ZBH had a positive cash flow from operations.
  • Each year in the past 5 years ZBH has been profitable.
  • ZBH had a positive operating cash flow in each of the past 5 years.
ZBH Yearly Net Income VS EBIT VS OCF VS FCFZBH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

1.2 Ratios

  • With a decent Return On Assets value of 3.05%, ZBH is doing good in the industry, outperforming 76.06% of the companies in the same industry.
  • ZBH has a better Return On Equity (5.55%) than 77.13% of its industry peers.
  • The Return On Invested Capital of ZBH (5.79%) is better than 78.19% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ZBH is below the industry average of 9.18%.
Industry RankSector Rank
ROA 3.05%
ROE 5.55%
ROIC 5.79%
ROA(3y)4.02%
ROA(5y)2.97%
ROE(3y)7%
ROE(5y)5.22%
ROIC(3y)6.56%
ROIC(5y)5.98%
ZBH Yearly ROA, ROE, ROICZBH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

1.3 Margins

  • ZBH's Profit Margin of 8.56% is amongst the best of the industry. ZBH outperforms 81.38% of its industry peers.
  • ZBH's Profit Margin has improved in the last couple of years.
  • ZBH's Operating Margin of 16.75% is amongst the best of the industry. ZBH outperforms 86.17% of its industry peers.
  • In the last couple of years the Operating Margin of ZBH has grown nicely.
  • Looking at the Gross Margin, with a value of 69.71%, ZBH is in the better half of the industry, outperforming 79.26% 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 RankSector Rank
OM 16.75%
PM (TTM) 8.56%
GM 69.71%
OM growth 3Y-1.75%
OM growth 5Y9.46%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
ZBH Yearly Profit, Operating, Gross MarginsZBH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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4

2. ZBH Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZBH is destroying value.
  • The number of shares outstanding for ZBH has been reduced compared to 1 year ago.
  • ZBH has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ZBH has a worse debt to assets ratio.
ZBH Yearly Shares OutstandingZBH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
ZBH Yearly Total Debt VS Total AssetsZBH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • ZBH has an Altman-Z score of 2.38. This is not the best score and indicates that ZBH is in the grey zone with still only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.38, ZBH is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
  • 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.
  • With a decent Debt to FCF ratio value of 6.72, ZBH is doing good in the industry, outperforming 75.53% of the companies in the same industry.
  • 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 in line compared to the rest of the industry. ZBH outperforms 41.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 6.72
Altman-Z 2.38
ROIC/WACC0.59
WACC9.86%
ZBH Yearly LT Debt VS Equity VS FCFZBH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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's Current ratio of 1.98 is on the low side compared to the rest of the industry. ZBH is outperformed by 64.36% of its industry peers.
  • A Quick Ratio of 1.10 indicates that ZBH should not have too much problems paying its short term obligations.
  • ZBH has a worse Quick ratio (1.10) than 73.94% of its industry peers.
Industry RankSector Rank
Current Ratio 1.98
Quick Ratio 1.1
ZBH Yearly Current Assets VS Current LiabilitesZBH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ZBH Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.50% over the past year.
  • ZBH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.66% yearly.
  • The Revenue has been growing slightly by 7.20% in the past 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

  • The Earnings Per Share is expected to grow by 6.55% on average over the next years.
  • The Revenue is expected to grow by 4.39% on average over the next years.
EPS Next Y3.4%
EPS Next 2Y5.28%
EPS Next 3Y5.55%
EPS Next 5Y6.55%
Revenue Next Year4.17%
Revenue Next 2Y3.94%
Revenue Next 3Y3.81%
Revenue Next 5Y4.39%

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.
ZBH Yearly Revenue VS EstimatesZBH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
ZBH Yearly EPS VS EstimatesZBH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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7

4. ZBH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.72, which indicates a very decent valuation of ZBH.
  • 91.49% of the companies in the same industry are more expensive than ZBH, based on the Price/Earnings ratio.
  • ZBH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.23.
  • ZBH is valuated reasonably with a Price/Forward Earnings ratio of 10.36.
  • Based on the Price/Forward Earnings ratio, ZBH is valued cheaper than 93.09% of the companies in the same industry.
  • ZBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.28.
Industry RankSector Rank
PE 10.72
Fwd PE 10.36
ZBH Price Earnings VS Forward Price EarningsZBH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • ZBH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZBH is cheaper than 92.55% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ZBH is valued cheaply inside the industry as 94.15% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.35
EV/EBITDA 9.75
ZBH Per share dataZBH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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)3.15
PEG (5Y)1.4
EPS Next 2Y5.28%
EPS Next 3Y5.55%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. ZBH Dividend Analysis

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 0.24, ZBH pays a better dividend. On top of this ZBH pays more dividend than 92.55% 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 1.89.
Industry RankSector Rank
Dividend Yield 1.04%

5.2 History

  • The dividend of ZBH has a limited annual growth rate of 0.12%.
  • 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)0.12%
Div Incr Years0
Div Non Decr Years12
ZBH Yearly Dividends per shareZBH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 27.01% 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.
DP27.01%
EPS Next 2Y5.28%
EPS Next 3Y5.55%
ZBH Yearly Income VS Free CF VS DividendZBH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B
ZBH Dividend Payout.ZBH Dividend Payout, showing the Payout Ratio.ZBH Dividend Payout.PayoutRetained Earnings

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ZBH Fundamentals: All Metrics, Ratios and Statistics

ZIMMER BIOMET HOLDINGS INC

NYSE:ZBH (3/20/2026, 8:04:00 PM)

After market: 87.87 0 (0%)

87.87

-1.97 (-2.19%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10
Earnings (Next)05-04
Inst Owners104.24%
Inst Owner Change5.05%
Ins Owners0.15%
Ins Owner Change10.37%
Market Cap17.19B
Revenue(TTM)8.23B
Net Income(TTM)704.60M
Analysts67.43
Price Target105.6 (20.18%)
Short Float %3.94%
Short Ratio3.38
Dividend
Industry RankSector Rank
Dividend Yield 1.04%
Yearly Dividend0.96
Dividend Growth(5Y)0.12%
DP27.01%
Div Incr Years0
Div Non Decr Years12
Ex-Date03-31
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)1.17%
PT rev (3m)0.36%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-3.26%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-1.4%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.99%
Valuation
Industry RankSector Rank
PE 10.72
Fwd PE 10.36
P/S 2.09
P/FCF 15.35
P/OCF 10.13
P/B 1.35
P/tB N/A
EV/EBITDA 9.75
EPS(TTM)8.2
EY9.33%
EPS(NY)8.48
Fwd EY9.65%
FCF(TTM)5.72
FCFY6.51%
OCF(TTM)8.67
OCFY9.87%
SpS42.07
BVpS64.9
TBVpS-10.05
PEG (NY)3.15
PEG (5Y)1.4
Graham Number109.43
Profitability
Industry RankSector Rank
ROA 3.05%
ROE 5.55%
ROCE 6.72%
ROIC 5.79%
ROICexc 5.96%
ROICexgc 22.61%
OM 16.75%
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)6.56%
ROIC(5y)5.98%
ROICexc(3y)6.74%
ROICexc(5y)6.13%
ROICexgc(3y)26.07%
ROICexgc(5y)24.68%
ROCE(3y)7.62%
ROCE(5y)6.94%
ROICexgc growth 3Y0.14%
ROICexgc growth 5Y10.7%
ROICexc growth 3Y1.16%
ROICexc growth 5Y14.26%
OM growth 3Y-1.75%
OM growth 5Y9.46%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
F-Score5
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 6.72
Debt/EBITDA 2.8
Cap/Depr 52.79%
Cap/Sales 7.01%
Interest Coverage 4.62
Cash Conversion 68.63%
Profit Quality 158.91%
Current Ratio 1.98
Quick Ratio 1.1
Altman-Z 2.38
F-Score5
WACC9.86%
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 Y3.4%
EPS Next 2Y5.28%
EPS Next 3Y5.55%
EPS Next 5Y6.55%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%
Revenue Next Year4.17%
Revenue Next 2Y3.94%
Revenue Next 3Y3.81%
Revenue Next 5Y4.39%
EBIT growth 1Y-11.53%
EBIT growth 3Y4%
EBIT growth 5Y12.99%
EBIT Next Year29.58%
EBIT Next 3Y11.07%
EBIT Next 5Y8.8%
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 Fundamental Analysis 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 7 / 10.


How financially healthy is ZIMMER BIOMET HOLDINGS INC?

The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 4 / 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 27.01%.