ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - NYSE:ZBH - US98956P1021 - Common Stock
89.43 USD
-0.02 (-0.02%)
Overall ZBH gets a fundamental rating of 5 out of 10. We evaluated ZBH against 188 industry peers in the Health Care Equipment & Supplies industry. ZBH has an average financial health and profitability rating. ZBH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ZBH suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ZBH was profitable.
ZBH had a positive operating cash flow in the past year.
Of the past 5 years ZBH 4 years were profitable.
Each year in the past 5 years ZBH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ZBH (3.43%) is better than 77.66% of its industry peers.
The Return On Equity of ZBH (6.31%) is better than 78.72% of its industry peers.
With a decent Return On Invested Capital value of 5.73%, ZBH is doing good in the industry, outperforming 78.72% 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 8.98%.
| 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 82.45% of its industry peers.
ZBH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.10%, ZBH belongs to the top of the industry, outperforming 90.96% of the companies in the same industry.
ZBH's Operating Margin has improved in the last couple of years.
The Gross Margin of ZBH (71.44%) is better than 79.79% 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 | 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
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.
ZBH has less shares outstanding than it did 5 years ago.
ZBH has a worse debt/assets ratio than last year.
2.2 Solvency
ZBH has an Altman-Z score of 2.41. 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.
The Altman-Z score of ZBH (2.41) is better than 67.02% of its industry peers.
ZBH has a debt to FCF ratio of 7.17. This is a slightly negative value and a sign of low solvency as ZBH would need 7.17 years to pay back of all of its debts.
ZBH's Debt to FCF ratio of 7.17 is fine compared to the rest of the industry. ZBH outperforms 75.53% 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.
The Debt to Equity ratio of ZBH (0.59) is worse than 63.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.79
WACC7.22%
2.3 Liquidity
A Current Ratio of 2.43 indicates that ZBH has no problem at all paying its short term obligations.
ZBH has a Current ratio of 2.43. This is comparable to the rest of the industry: ZBH outperforms 44.68% of its industry peers.
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 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.53% over the past year.
Measured over the past 5 years, ZBH shows a small growth in Earnings Per Share. The EPS has been growing by 0.33% on average per year.
Looking at the last year, ZBH shows a small growth in Revenue. The Revenue has grown by 5.47% in the last 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 6.16% on average over the next years.
The Revenue is expected to grow by 4.84% on average over the next years.
EPS Next Y2.96%
EPS Next 2Y3.98%
EPS Next 3Y5.69%
EPS Next 5Y6.16%
Revenue Next Year7.26%
Revenue Next 2Y6.59%
Revenue Next 3Y6.01%
Revenue Next 5Y4.84%
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 accelerating.
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
ZBH is valuated reasonably with a Price/Earnings ratio of 11.05.
90.96% 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 25.47.
The Price/Forward Earnings ratio is 10.34, which indicates a very decent valuation of ZBH.
Based on the Price/Forward Earnings ratio, ZBH is valued cheaper than 92.55% of the companies in the same industry.
ZBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 10.34 |
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 90.43% of the companies listed 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 90.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.67 | ||
| EV/EBITDA | 9.43 |
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.
ZBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.74
PEG (5Y)33.68
EPS Next 2Y3.98%
EPS Next 3Y5.69%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, ZBH is not a good candidate for dividend investing.
ZBH's Dividend Yield is rather good when compared to the industry average which is at 1.69. ZBH pays more dividend than 94.68% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y3.98%
EPS Next 3Y5.69%
NYSE:ZBH (11/20/2025, 3:39:38 PM)
89.43
-0.02 (-0.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.9%
Inst Owner Change1.86%
Ins Owners0.13%
Ins Owner Change0.85%
Market Cap17.72B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts70.59
Price Target113.99 (27.46%)
Short Float %3.68%
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)-0.86%
PT rev (3m)3.12%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 10.34 | ||
| P/S | 2.21 | ||
| P/FCF | 15.67 | ||
| P/OCF | 10.51 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.43 |
EPS(TTM)8.09
EY9.05%
EPS(NY)8.65
Fwd EY9.67%
FCF(TTM)5.71
FCFY6.38%
OCF(TTM)8.51
OCFY9.52%
SpS40.44
BVpS64.39
TBVpS-8.51
PEG (NY)3.74
PEG (5Y)33.68
Graham Number108.27
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 | 2.41 |
F-Score5
WACC7.22%
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 Y2.96%
EPS Next 2Y3.98%
EPS Next 3Y5.69%
EPS Next 5Y6.16%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
Revenue Next Year7.26%
Revenue Next 2Y6.59%
Revenue Next 3Y6.01%
Revenue Next 5Y4.84%
EBIT growth 1Y-1.4%
EBIT growth 3Y13.78%
EBIT growth 5Y3.48%
EBIT Next Year32.42%
EBIT Next 3Y12.35%
EBIT Next 5Y9.86%
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 6 / 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 7 / 10.
Can you provide the PE and PB ratios for ZBH stock?
The Price/Earnings (PE) ratio for ZIMMER BIOMET HOLDINGS INC (ZBH) is 11.05 and the Price/Book (PB) ratio is 1.39.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 5 / 10.