ZIMMER BIOMET HOLDINGS INC (ZBH) Fundamental Analysis & Valuation

NYSE:ZBH • US98956P1021

Current stock price

94.32 USD
+1.63 (+1.76%)
Last:

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.
  • ZBH had a positive operating cash flow in the past year.
  • ZBH had positive earnings in each of the past 5 years.
  • Each year in the past 5 years ZBH had a positive operating cash flow.
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

  • ZBH has a Return On Assets of 3.05%. This is in the better half of the industry: ZBH outperforms 75.94% of its industry peers.
  • ZBH's Return On Equity of 5.55% is fine compared to the rest of the industry. ZBH outperforms 77.01% of its industry peers.
  • With a decent Return On Invested Capital value of 5.79%, ZBH is doing good in the industry, outperforming 78.07% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ZBH is below the industry average of 9.12%.
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

  • 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.
  • In the last couple of years the Profit Margin of ZBH has grown nicely.
  • With an excellent Operating Margin value of 16.75%, ZBH belongs to the best of the industry, outperforming 87.17% of the companies in the same industry.
  • ZBH's Operating Margin has improved in the last couple of years.
  • ZBH's Gross Margin of 69.71% is fine compared to the rest of the industry. ZBH outperforms 78.61% 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 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZBH is destroying value.
  • The number of shares outstanding for ZBH has been reduced compared to 1 year ago.
  • Compared to 5 years ago, ZBH has less shares outstanding
  • ZBH has a worse debt/assets ratio than last year.
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 2.43. 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.
  • With a decent Altman-Z score value of 2.43, ZBH is doing good in the industry, outperforming 64.71% of the companies in the same industry.
  • 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.
  • With a decent Debt to FCF ratio value of 6.72, ZBH is doing good in the industry, outperforming 73.26% 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 has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: ZBH underperforms 61.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 6.72
Altman-Z 2.43
ROIC/WACC0.78
WACC7.47%
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

  • A Current Ratio of 1.98 indicates that ZBH should not have too much problems paying its short term obligations.
  • ZBH has a Current ratio of 1.98. This is in the lower half of the industry: ZBH underperforms 64.71% of its industry peers.
  • A Quick Ratio of 1.10 indicates that ZBH should not have too much problems paying its short term obligations.
  • The Quick ratio of ZBH (1.10) is worse than 77.54% 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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4

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%.
  • The Earnings Per Share has been growing slightly by 7.66% on average over the past years.
  • 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

  • Based on estimates for the next years, ZBH will show a small growth in Earnings Per Share. The EPS will grow by 6.55% on average per year.
  • Based on estimates for the next years, ZBH will show a small growth in Revenue. The Revenue will grow by 4.39% on average per year.
EPS Next Y3.41%
EPS Next 2Y5.36%
EPS Next 3Y5.71%
EPS Next 5Y6.55%
Revenue Next Year4.21%
Revenue Next 2Y3.99%
Revenue Next 3Y3.89%
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.
  • 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.
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

  • With a Price/Earnings ratio of 11.50, the valuation of ZBH can be described as very reasonable.
  • Based on the Price/Earnings ratio, ZBH is valued cheaply inside the industry as 91.98% 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 27.66.
  • Based on the Price/Forward Earnings ratio of 11.12, the valuation of ZBH can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 94.12% of the companies listed 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 38.00.
Industry RankSector Rank
PE 11.5
Fwd PE 11.12
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

  • Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaper than 91.98% 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 94.12% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.31
EV/EBITDA 10.06
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 an expensive valuation of the company.
  • ZBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.37
PEG (5Y)1.5
EPS Next 2Y5.36%
EPS Next 3Y5.71%

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7

5. ZBH Dividend Analysis

5.1 Amount

  • ZBH has a Yearly Dividend Yield of 1.04%.
  • Compared to an average industry Dividend Yield of 0.25, ZBH pays a better dividend. On top of this ZBH pays more dividend than 91.98% of the companies listed 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 RankSector Rank
Dividend Yield 1.04%

5.2 History

  • The dividend of ZBH has a limited annual growth rate of 0.12%.
  • 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)0.12%
Div Incr Years0
Div Non Decr Years13
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.
  • 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 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 (4/22/2026, 10:34:34 AM)

94.32

+1.63 (+1.76%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10
Earnings (Next)04-28
Inst Owners104.34%
Inst Owner Change-0.97%
Ins Owners0.17%
Ins Owner Change10.9%
Market Cap18.26B
Revenue(TTM)8.23B
Net Income(TTM)704.60M
Analysts66.47
Price Target105.44 (11.79%)
Short Float %5.18%
Short Ratio4.63
Dividend
Industry RankSector 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
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)0.36%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.33%
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 RankSector Rank
PE 11.5
Fwd PE 11.12
P/S 2.22
P/FCF 16.31
P/OCF 10.76
P/B 1.44
P/tB N/A
EV/EBITDA 10.06
EPS(TTM)8.2
EY8.69%
EPS(NY)8.48
Fwd EY8.99%
FCF(TTM)5.78
FCFY6.13%
OCF(TTM)8.77
OCFY9.3%
SpS42.53
BVpS65.6
TBVpS-10.16
PEG (NY)3.37
PEG (5Y)1.5
Graham Number110.012 (16.64%)
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 2.43
F-Score5
WACC7.47%
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 5Y6.55%
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 5Y4.39%
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.