ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZBH - US98956P1021 - Common Stock
94.28 USD
+1.12 (+1.2%)
94.28 USD
0 (0%)
Taking everything into account, ZBH scores 5 out of 10 in our fundamental rating. ZBH was compared to 187 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of ZBH get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on ZBH. With these ratings, ZBH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year ZBH was profitable.
In the past year ZBH had a positive cash flow from operations.
Of the past 5 years ZBH 4 years were 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 3.43%, ZBH is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
The Return On Equity of ZBH (6.31%) is better than 79.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.73%, ZBH is in the better half of the industry, outperforming 78.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZBH is below the industry average of 8.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 6.31% | ||
| ROIC | 5.73% |
ROA(3y)3.36%
ROA(5y)2.25%
ROE(3y)5.79%
ROE(5y)3.88%
ROIC(3y)5.98%
ROIC(5y)4.96%
1.3 Margins
ZBH has a Profit Margin of 10.05%. This is amongst the best in the industry. ZBH outperforms 83.07% of its industry peers.
In the last couple of years the Profit Margin of ZBH has declined.
The Operating Margin of ZBH (19.10%) is better than 91.53% of its industry peers.
In the last couple of years the Operating Margin of ZBH has grown nicely.
ZBH has a better Gross Margin (71.44%) than 79.37% of its industry peers.
ZBH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.1% | ||
| PM (TTM) | 10.05% | ||
| GM | 71.44% |
OM growth 3Y9.41%
OM growth 5Y4.28%
PM growth 3Y26.01%
PM growth 5Y-3.65%
GM growth 3Y0.08%
GM growth 5Y0.05%
2. Health
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.
The number of shares outstanding for ZBH has been reduced compared to 5 years ago.
ZBH has a worse debt/assets ratio than last year.
2.2 Solvency
ZBH has an Altman-Z score of 2.46. 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.
ZBH has a better Altman-Z score (2.46) than 66.14% of its industry peers.
The Debt to FCF ratio of ZBH is 7.17, which is on the high side as it means it would take ZBH, 7.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ZBH (7.17) is better than 76.19% of its industry peers.
ZBH has a Debt/Equity ratio of 0.59. This is a neutral value indicating ZBH is somewhat dependend on debt financing.
ZBH has a worse Debt to Equity ratio (0.59) than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.79
WACC7.29%
2.3 Liquidity
A Current Ratio of 2.43 indicates that ZBH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.43, ZBH is in line with its industry, outperforming 48.15% of the companies in the same industry.
ZBH has a Quick Ratio of 1.39. This is a normal value and indicates that ZBH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ZBH (1.39) is worse than 60.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
ZBH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.53%.
ZBH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.33% yearly.
The Revenue has been growing slightly by 5.47% in the past year.
Measured over the past years, ZBH shows a decrease in Revenue. The Revenue has been decreasing by -0.77% on average per year.
EPS 1Y (TTM)2.53%
EPS 3Y2.77%
EPS 5Y0.33%
EPS Q2Q%9.2%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
3.2 Future
The Earnings Per Share is expected to grow by 5.51% on average over the next years.
ZBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.69% yearly.
EPS Next Y3.15%
EPS Next 2Y3.68%
EPS Next 3Y4.84%
EPS Next 5Y5.51%
Revenue Next Year7.05%
Revenue Next 2Y6.12%
Revenue Next 3Y5.49%
Revenue Next 5Y4.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 11.65, the valuation of ZBH can be described as very reasonable.
Based on the Price/Earnings ratio, ZBH is valued cheaply inside the industry as 92.06% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ZBH to the average of the S&P500 Index (26.49), we can say ZBH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.96, the valuation of ZBH can be described as reasonable.
ZBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZBH is cheaper than 93.12% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ZBH to the average of the S&P500 Index (23.69), we can say ZBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 91.01% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ZBH is valued cheaply inside the industry as 93.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.52 | ||
| EV/EBITDA | 9.8 |
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)3.7
PEG (5Y)35.51
EPS Next 2Y3.68%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
ZBH has a yearly dividend return of 0.97%, which is pretty low.
ZBH's Dividend Yield is rather good when compared to the industry average which is at 1.74. ZBH pays more dividend than 94.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ZBH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
The dividend of ZBH has a limited annual growth rate of 0.19%.
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)0.19%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
ZBH pays out 23.70% of its income as dividend. This is a sustainable payout ratio.
ZBH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.7%
EPS Next 2Y3.68%
EPS Next 3Y4.84%
94.28
+1.12 (+1.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change1.85%
Ins Owners0.13%
Ins Owner Change0.36%
Market Cap18.68B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts70
Price Target105.22 (11.6%)
Short Float %3.81%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend0.97
Dividend Growth(5Y)0.19%
DP23.7%
Div Incr Years0
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.03%
Min EPS beat(2)0.73%
Max EPS beat(2)3.32%
EPS beat(4)3
Avg EPS beat(4)1.24%
Min EPS beat(4)-0.34%
Max EPS beat(4)3.32%
EPS beat(8)6
Avg EPS beat(8)1.02%
EPS beat(12)9
Avg EPS beat(12)2.17%
EPS beat(16)12
Avg EPS beat(16)2.94%
Revenue beat(2)1
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)0.21%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)6
Avg Revenue beat(12)0.61%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)-7.69%
PT rev (3m)-7.8%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 10.96 | ||
| P/S | 2.33 | ||
| P/FCF | 16.52 | ||
| P/OCF | 11.08 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.8 |
EPS(TTM)8.09
EY8.58%
EPS(NY)8.6
Fwd EY9.12%
FCF(TTM)5.71
FCFY6.05%
OCF(TTM)8.51
OCFY9.02%
SpS40.42
BVpS64.37
TBVpS-8.5
PEG (NY)3.7
PEG (5Y)35.51
Graham Number108.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 6.31% | ||
| ROCE | 7.26% | ||
| ROIC | 5.73% | ||
| ROICexc | 6.11% | ||
| ROICexgc | 22.59% | ||
| OM | 19.1% | ||
| PM (TTM) | 10.05% | ||
| GM | 71.44% | ||
| FCFM | 14.12% |
ROA(3y)3.36%
ROA(5y)2.25%
ROE(3y)5.79%
ROE(5y)3.88%
ROIC(3y)5.98%
ROIC(5y)4.96%
ROICexc(3y)6.12%
ROICexc(5y)5.09%
ROICexgc(3y)23.89%
ROICexgc(5y)20.99%
ROCE(3y)7.57%
ROCE(5y)6.28%
ROICexgc growth 3Y6.94%
ROICexgc growth 5Y-1.82%
ROICexc growth 3Y16.05%
ROICexc growth 5Y5.83%
OM growth 3Y9.41%
OM growth 5Y4.28%
PM growth 3Y26.01%
PM growth 5Y-3.65%
GM growth 3Y0.08%
GM growth 5Y0.05%
F-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 51.71% | ||
| Cap/Sales | 6.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.76% | ||
| Profit Quality | 140.45% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 2.46 |
F-Score5
WACC7.29%
ROIC/WACC0.79
Cap/Depr(3y)60.17%
Cap/Depr(5y)52.93%
Cap/Sales(3y)7.84%
Cap/Sales(5y)7.09%
Profit Quality(3y)183.11%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.53%
EPS 3Y2.77%
EPS 5Y0.33%
EPS Q2Q%9.2%
EPS Next Y3.15%
EPS Next 2Y3.68%
EPS Next 3Y4.84%
EPS Next 5Y5.51%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
Revenue Next Year7.05%
Revenue Next 2Y6.12%
Revenue Next 3Y5.49%
Revenue Next 5Y4.69%
EBIT growth 1Y-1.4%
EBIT growth 3Y13.78%
EBIT growth 5Y3.48%
EBIT Next Year33.49%
EBIT Next 3Y12.35%
EBIT Next 5Y9.28%
FCF growth 1Y101.8%
FCF growth 3Y-5.87%
FCF growth 5Y0.84%
OCF growth 1Y36.25%
OCF growth 3Y0%
OCF growth 5Y-1.11%
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.
What is the valuation status of ZIMMER BIOMET HOLDINGS INC (ZBH) stock?
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 6 / 10.
Can you provide the PE and PB ratios for ZBH stock?
The Price/Earnings (PE) ratio for ZIMMER BIOMET HOLDINGS INC (ZBH) is 11.65 and the Price/Book (PB) ratio is 1.46.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 5 / 10.