ZIMMER BIOMET HOLDINGS INC (ZBH) Fundamental Analysis & Valuation
NYSE:ZBH • US98956P1021
Current stock price
82.8 USD
-9.79 (-10.57%)
At close:
83.32 USD
+0.52 (+0.63%)
After Hours:
This ZBH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ZBH Profitability Analysis
1.1 Basic Checks
- In the past year ZBH was profitable.
- 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.
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 75.94% of the companies in the same industry.
- ZBH has a Return On Equity of 5.55%. This is in the better half of the industry: ZBH outperforms 77.01% of its industry peers.
- ZBH has a Return On Invested Capital of 5.79%. This is in the better half of the industry: ZBH outperforms 78.07% of its industry peers.
- ZBH had an Average Return On Invested Capital over the past 3 years of 6.56%. This is below the industry average of 9.12%.
| Industry Rank | Sector 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%
1.3 Margins
- With an excellent Profit Margin value of 8.56%, ZBH belongs to the best of the industry, outperforming 81.28% of the companies in the same industry.
- ZBH's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 16.75%, ZBH belongs to the top of the industry, outperforming 87.17% of the companies in the same industry.
- In the last couple of years the Operating Margin of ZBH has grown nicely.
- The Gross Margin of ZBH (69.71%) is better than 77.54% of its industry peers.
- 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 | 16.75% | ||
| 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%
2. ZBH Health Analysis
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.
- 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.
- ZBH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.31 indicates that ZBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of ZBH (2.31) is better than 62.57% of its industry peers.
- ZBH has a debt to FCF ratio of 6.72. This is a slightly negative value and a sign of low solvency as ZBH would need 6.72 years to pay back of all of its debts.
- ZBH has a Debt to FCF ratio of 6.72. This is in the better half of the industry: ZBH outperforms 73.26% 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.
- The Debt to Equity ratio of ZBH (0.55) is worse than 61.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.78
WACC7.42%
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.
- With a Current ratio value of 1.98, ZBH is not doing good in the industry: 64.17% of the companies in the same industry are doing better.
- 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 77.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.1 |
3. ZBH Growth Analysis
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.
- ZBH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.20%.
- 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 6.07% on average over the next years.
- Based on estimates for the next years, ZBH will show a small growth in Revenue. The Revenue will grow by 3.89% on average per year.
EPS Next Y3.41%
EPS Next 2Y5.36%
EPS Next 3Y5.71%
EPS Next 5Y6.07%
Revenue Next Year4.21%
Revenue Next 2Y3.99%
Revenue Next 3Y3.89%
Revenue Next 5Y3.89%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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. ZBH Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 10.10, which indicates a very decent valuation of ZBH.
- ZBH's Price/Earnings ratio is rather cheap when compared to the industry. ZBH is cheaper than 92.51% of the companies in the same industry.
- ZBH is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 9.76 indicates a reasonable valuation of ZBH.
- Based on the Price/Forward Earnings ratio, ZBH is valued cheaper than 94.65% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ZBH to the average of the S&P500 Index (21.99), we can say ZBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 9.76 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaper than 92.51% 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 95.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.31 | ||
| EV/EBITDA | 9.28 |
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)2.96
PEG (5Y)1.32
EPS Next 2Y5.36%
EPS Next 3Y5.71%
5. ZBH Dividend Analysis
5.1 Amount
- ZBH has a Yearly Dividend Yield of 1.04%.
- ZBH's Dividend Yield is rather good when compared to the industry average which is at 0.25. ZBH pays more dividend than 92.51% of the companies in the same industry.
- With a Dividend Yield of 1.04, ZBH pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.12%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
- 27.01% 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.
DP27.01%
EPS Next 2Y5.36%
EPS Next 3Y5.71%
ZBH Fundamentals: All Metrics, Ratios and Statistics
82.8
-9.79 (-10.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Industry Strength10.56
Industry Growth62.11
Earnings (Last)04-28 2026-04-28/bmo
Earnings (Next)08-05 2026-08-05/bmo
Inst Owners104.34%
Inst Owner Change-1.32%
Ins Owners0.17%
Ins Owner Change10.9%
Market Cap16.03B
Revenue(TTM)8.23B
Net Income(TTM)704.60M
Analysts66.47
Price Target105.35 (27.23%)
Short Float %5.22%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.96
Dividend Growth(5Y)0.12%
DP27.01%
Div Incr Years0
Div Non Decr Years13
Ex-Date03-31 2026-03-31 (0.24)
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)-0.15%
PT rev (3m)1.15%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 9.76 | ||
| P/S | 1.95 | ||
| P/FCF | 14.31 | ||
| P/OCF | 9.44 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.28 |
EPS(TTM)8.2
EY9.9%
EPS(NY)8.48
Fwd EY10.24%
FCF(TTM)5.78
FCFY6.99%
OCF(TTM)8.77
OCFY10.59%
SpS42.53
BVpS65.6
TBVpS-10.16
PEG (NY)2.96
PEG (5Y)1.32
Graham Number110.012 (32.86%)
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.31 |
F-Score5
WACC7.42%
ROIC/WACC0.78
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 Y3.41%
EPS Next 2Y5.36%
EPS Next 3Y5.71%
EPS Next 5Y6.07%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%
Revenue Next Year4.21%
Revenue Next 2Y3.99%
Revenue Next 3Y3.89%
Revenue Next 5Y3.89%
EBIT growth 1Y-11.53%
EBIT growth 3Y4%
EBIT growth 5Y12.99%
EBIT Next Year27.55%
EBIT Next 3Y10.42%
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.
How profitable is ZIMMER BIOMET HOLDINGS INC (ZBH) stock?
ZIMMER BIOMET HOLDINGS INC (ZBH) has a profitability rating of 7 / 10.
What is the financial health of ZIMMER BIOMET HOLDINGS INC (ZBH) stock?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 4 / 10.
What is the expected EPS growth for ZIMMER BIOMET HOLDINGS INC (ZBH) stock?
The Earnings per Share (EPS) of ZIMMER BIOMET HOLDINGS INC (ZBH) is expected to grow by 3.41% in the next year.