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%)
We assign a fundamental rating of 6 out of 10 to ZBH. ZBH was compared to 186 industry peers in the Health Care Equipment & Supplies industry. ZBH has an excellent profitability rating, but there are some minor concerns on its financial health. ZBH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. ZBH also has an excellent dividend rating. With these ratings, ZBH could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
- ZBH had positive earnings in the past year.
- In the past year ZBH had a positive cash flow from operations.
- Of the past 5 years ZBH 4 years were profitable.
- In the past 5 years ZBH always reported a positive cash flow from operatings.
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.
- With a decent Return On Equity value of 6.31%, ZBH is doing good in the industry, outperforming 79.03% of the companies in the same industry.
- With a decent Return On Invested Capital value of 5.73%, ZBH is doing good in the industry, outperforming 78.49% of the companies in the same industry.
- ZBH had an Average Return On Invested Capital over the past 3 years of 5.98%. This 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's Profit Margin of 10.05% is amongst the best of the industry. ZBH outperforms 83.87% of its industry peers.
- ZBH's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 19.10%, ZBH belongs to the best of the industry, outperforming 91.40% of the companies in the same industry.
- In the last couple of years the Operating Margin of ZBH has grown nicely.
- ZBH has a Gross Margin of 71.44%. This is amongst the best in the industry. ZBH outperforms 80.11% 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
- 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.
- The number of shares outstanding for ZBH has been reduced compared to 5 years ago.
- The debt/assets ratio for ZBH is higher compared to a year ago.
2.2 Solvency
- ZBH has an Altman-Z score of 2.39. 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 (2.39) is better 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.
- With a decent Debt to FCF ratio value of 7.17, ZBH is doing good in the industry, outperforming 75.81% of the companies in the same industry.
- A Debt/Equity ratio of 0.59 indicates that ZBH is somewhat dependend on debt financing.
- The Debt to Equity ratio of ZBH (0.59) is worse than 61.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.62
WACC9.28%
2.3 Liquidity
- ZBH has a Current Ratio of 2.43. This indicates that ZBH is financially healthy and has no problem in meeting its short term obligations.
- ZBH has a Current ratio (2.43) which is comparable to the rest of the industry.
- A Quick Ratio of 1.39 indicates that ZBH should not have too much problems paying its short term obligations.
- The Quick ratio of ZBH (1.39) is comparable to the rest of the industry.
| 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%.
- The Earnings Per Share has been growing slightly by 0.33% on average over the past years.
- 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
- 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
- A Price/Earnings ratio of 10.79 indicates a reasonable valuation of ZBH.
- 93.55% of the companies in the same industry are more expensive than ZBH, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.38. ZBH is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 10.16, which indicates a very decent valuation of ZBH.
- 94.62% of the companies in the same industry are more expensive than ZBH, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. ZBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.16 |
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 92.47% of the companies listed in the same industry.
- 95.16% of the companies in the same industry are more expensive than ZBH, based on the Price/Free Cash Flow ratio.
| 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.
- The decent profitability rating of ZBH 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
- With a Yearly Dividend Yield of 1.04%, ZBH has a reasonable but not impressive dividend return.
- 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 1.85.
| 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 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 2Y3.64%
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
WACC9.28%
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 6 / 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%.