ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZBH - US98956P1021 - Common Stock
87.31 USD
-1.44 (-1.62%)
87.33 USD
+0.02 (+0.02%)
Taking everything into account, ZBH scores 6 out of 10 in our fundamental rating. ZBH was compared to 186 industry peers in the Health Care Equipment & Supplies industry. While ZBH has a great profitability rating, there are some minor concerns on its financial health. ZBH may be a bit undervalued, certainly considering the very reasonable score on growth Finally ZBH also has an excellent dividend rating. These ratings could make ZBH a good candidate for value and dividend investing.
1. Profitability
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 4 of the past 5 years.
- 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 79.03% of the companies in the same industry.
- The Return On Equity of ZBH (6.31%) is better than 79.03% of its industry peers.
- ZBH has a Return On Invested Capital of 5.73%. This is in the better half of the industry: ZBH outperforms 78.49% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ZBH is below the industry average of 8.84%.
| 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 better Profit Margin (10.05%) than 83.87% of its industry peers.
- In the last couple of years the Profit Margin of ZBH has declined.
- ZBH's Operating Margin of 19.10% is amongst the best of the industry. ZBH outperforms 91.40% 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 71.44%, ZBH belongs to the top of the industry, outperforming 80.11% of the companies in the same industry.
- 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
- ZBH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ZBH has less shares outstanding
- Compared to 5 years ago, ZBH has less shares outstanding
- ZBH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.39 indicates that ZBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ZBH has a better Altman-Z score (2.39) than 65.59% 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 75.81% 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.
- Looking at the Debt to Equity ratio, with a value of 0.59, ZBH is doing worse than 61.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.62
WACC9.27%
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 (2.43) which is comparable to the rest of the 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.
- ZBH's Quick ratio of 1.39 is in line compared to the rest of the industry. ZBH outperforms 40.32% 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%.
- 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.
- ZBH shows a small growth in Revenue. In the last year, the Revenue has grown by 5.47%.
- 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.
- The Revenue is expected to grow by 4.69% on average over the next years.
EPS Next Y3.14%
EPS Next 2Y3.64%
EPS Next 3Y4.8%
EPS Next 5Y5.51%
Revenue Next Year7.04%
Revenue Next 2Y6.09%
Revenue Next 3Y5.46%
Revenue Next 5Y4.69%
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.
- 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
- A Price/Earnings ratio of 10.79 indicates a reasonable valuation of ZBH.
- Based on the Price/Earnings ratio, ZBH is valued cheaply inside the industry as 93.55% 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 27.38.
- The Price/Forward Earnings ratio is 10.16, which indicates a very decent valuation of ZBH.
- Based on the Price/Forward Earnings ratio, ZBH is valued cheaply inside the industry as 94.62% of the companies are valued more expensively.
- ZBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
- ZBH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZBH is cheaper than 92.47% 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 95.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.3 | ||
| EV/EBITDA | 9.27 |
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)3.43
PEG (5Y)32.88
EPS Next 2Y3.64%
EPS Next 3Y4.8%
5. Dividend
5.1 Amount
- ZBH has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
- ZBH's Dividend Yield is rather good when compared to the industry average which is at 0.19. ZBH pays more dividend than 94.09% 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 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
- The dividend of ZBH has a limited annual growth rate of 0.19%.
- 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)0.19%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
- 23.70% 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.
DP23.7%
EPS Next 2Y3.64%
EPS Next 3Y4.8%
87.31
-1.44 (-1.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners100.37%
Inst Owner Change0.06%
Ins Owners0.13%
Ins Owner Change0.34%
Market Cap17.30B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts67.88
Price Target104.24 (19.39%)
Short Float %3.93%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.97
Dividend Growth(5Y)0.19%
DP23.7%
Div Incr Years0
Div Non Decr Years12
Ex-DateN/A
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)-0.93%
PT rev (3m)-9.34%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.16 | ||
| P/S | 2.16 | ||
| P/FCF | 15.3 | ||
| P/OCF | 10.26 | ||
| P/B | 1.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.27 |
EPS(TTM)8.09
EY9.27%
EPS(NY)8.59
Fwd EY9.84%
FCF(TTM)5.71
FCFY6.54%
OCF(TTM)8.51
OCFY9.74%
SpS40.42
BVpS64.37
TBVpS-8.5
PEG (NY)3.43
PEG (5Y)32.88
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 | 2.39 |
F-Score5
WACC9.27%
ROIC/WACC0.62
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 Y3.14%
EPS Next 2Y3.64%
EPS Next 3Y4.8%
EPS Next 5Y5.51%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y3.99%
Revenue growth 5Y-0.77%
Sales Q2Q%9.71%
Revenue Next Year7.04%
Revenue Next 2Y6.09%
Revenue Next 3Y5.46%
Revenue Next 5Y4.69%
EBIT growth 1Y-1.4%
EBIT growth 3Y13.78%
EBIT growth 5Y3.48%
EBIT Next Year34.04%
EBIT Next 3Y12.4%
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 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 5 / 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 23.7%.