ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ZBH - US98956P1021 - Common Stock
97.55 USD
+0.48 (+0.49%)
97.5 USD
-0.05 (-0.05%)
ZBH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 188 industry peers in the Health Care Equipment & Supplies industry. ZBH has an average financial health and profitability rating. ZBH may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make ZBH a good candidate 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.
In the past 5 years ZBH always reported a positive cash flow from operatings.
1.2 Ratios
ZBH has a Return On Assets of 3.43%. This is in the better half of the industry: ZBH outperforms 78.72% of its industry peers.
The Return On Equity of ZBH (6.31%) is better than 78.72% 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 79.26% 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 8.71%.
| 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 82.45% 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 91.49% of the companies in the same industry.
In the last couple of years the Operating Margin of ZBH has grown nicely.
ZBH has a better Gross Margin (71.44%) than 79.26% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZBH is destroying value.
ZBH has less shares outstanding than it did 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 2.50. 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's Altman-Z score of 2.50 is fine compared to the rest of the industry. ZBH outperforms 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.
With a decent Debt to FCF ratio value of 7.17, ZBH is doing good in the industry, outperforming 75.53% of the companies in the same industry.
ZBH has a Debt/Equity ratio of 0.59. This is a neutral value indicating ZBH is somewhat dependend on debt financing.
ZBH's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. ZBH is outperformed by 62.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.79
WACC7.23%
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's Current ratio of 2.43 is in line compared to the rest of the industry. ZBH outperforms 46.28% of its industry peers.
A Quick Ratio of 1.39 indicates that ZBH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.39, ZBH is doing worse than 60.11% of the companies in the same industry.
| 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.
ZBH shows a small growth in Revenue. In the last year, the Revenue has grown by 5.47%.
ZBH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.77% yearly.
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.
Based on estimates for the next years, ZBH will show a small growth in Revenue. The Revenue will grow by 4.84% on average per year.
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
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
ZBH is valuated correctly with a Price/Earnings ratio of 12.06.
ZBH's Price/Earnings ratio is rather cheap when compared to the industry. ZBH is cheaper than 90.96% of the companies in the same industry.
ZBH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
A Price/Forward Earnings ratio of 11.28 indicates a reasonable valuation of ZBH.
ZBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZBH is cheaper than 91.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, ZBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 11.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaper than 91.49% 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 92.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.09 | ||
| EV/EBITDA | 10.04 |
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)4.08
PEG (5Y)36.74
EPS Next 2Y3.98%
EPS Next 3Y5.69%
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 1.72. ZBH pays more dividend than 93.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, 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 2Y3.98%
EPS Next 3Y5.69%
97.55
+0.48 (+0.49%)
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 Change1.84%
Ins Owners0.13%
Ins Owner Change0.42%
Market Cap19.32B
Revenue(TTM)8.01B
Net Income(TTM)805.20M
Analysts70.59
Price Target105.46 (8.11%)
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)-8.28%
PT rev (3m)-7.45%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 11.28 | ||
| P/S | 2.41 | ||
| P/FCF | 17.09 | ||
| P/OCF | 11.46 | ||
| P/B | 1.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.04 |
EPS(TTM)8.09
EY8.29%
EPS(NY)8.65
Fwd EY8.87%
FCF(TTM)5.71
FCFY5.85%
OCF(TTM)8.51
OCFY8.72%
SpS40.44
BVpS64.39
TBVpS-8.51
PEG (NY)4.08
PEG (5Y)36.74
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 | 2.5 |
F-Score5
WACC7.23%
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 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 12.06 and the Price/Book (PB) ratio is 1.51.
How financially healthy is ZIMMER BIOMET HOLDINGS INC?
The financial health rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 5 / 10.