ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZBH - US98956P1021 - Common Stock
89.8 USD
+0.67 (+0.75%)
89.8 USD
0 (0%)
ZBH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 184 industry peers in the Health Care Equipment & Supplies industry. ZBH has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on ZBH. These ratings would make ZBH suitable for value 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.
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 78.80% of the companies in the same industry.
ZBH has a Return On Equity of 6.31%. This is in the better half of the industry: ZBH outperforms 78.80% 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 78.26% 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 8.82%.
| 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 83.70% 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 91.30% of its industry peers.
ZBH's Operating Margin has improved in the last couple of years.
ZBH has a better Gross Margin (71.44%) than 79.35% 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
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
The number of shares outstanding for ZBH has been reduced compared to 5 years ago.
Compared to 1 year ago, ZBH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.41 indicates that ZBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ZBH has a Altman-Z score of 2.41. This is in the better half of the industry: ZBH outperforms 64.67% 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.
Looking at the Debt to FCF ratio, with a value of 7.17, ZBH is in the better half of the industry, outperforming 75.54% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that ZBH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, ZBH is not doing good in the industry: 61.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.79
WACC7.26%
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.
The Quick ratio of ZBH (1.39) is worse than 60.87% 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.
ZBH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.33% yearly.
Looking at the last year, ZBH shows a small growth in Revenue. The Revenue has grown by 5.47% in the last year.
The Revenue has been decreasing by -0.77% on average over the past years.
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
ZBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.51% yearly.
Based on estimates for the next years, ZBH will show a small growth in Revenue. The Revenue will grow by 4.69% on average per year.
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
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
With a Price/Earnings ratio of 11.10, the valuation of ZBH can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 92.93% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ZBH to the average of the S&P500 Index (26.61), we can say ZBH is valued rather cheaply.
A Price/Forward Earnings ratio of 10.44 indicates a reasonable valuation of ZBH.
94.57% 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 24.01. ZBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaper than 92.39% 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 93.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.74 | ||
| EV/EBITDA | 9.46 |
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)3.52
PEG (5Y)33.82
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 0.20. ZBH pays more dividend than 92.39% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, 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
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 2Y3.68%
EPS Next 3Y4.84%
89.8
+0.67 (+0.75%)
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 Change0.6%
Market Cap17.80B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts70
Price Target105.22 (17.17%)
Short Float %4.29%
Short Ratio4.16
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)0.22%
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 | 11.1 | ||
| Fwd PE | 10.44 | ||
| P/S | 2.22 | ||
| P/FCF | 15.74 | ||
| P/OCF | 10.56 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.46 |
EPS(TTM)8.09
EY9.01%
EPS(NY)8.6
Fwd EY9.58%
FCF(TTM)5.71
FCFY6.35%
OCF(TTM)8.51
OCFY9.47%
SpS40.42
BVpS64.37
TBVpS-8.5
PEG (NY)3.52
PEG (5Y)33.82
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 | 2.41 |
F-Score5
WACC7.26%
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 11.1 and the Price/Book (PB) ratio is 1.4.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 5 / 10.