ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis
NYSE:ZBH • US98956P1021
98.44 USD
-2.55 (-2.53%)
At close: Feb 27, 2026
98.44 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
We assign a fundamental rating of 5 out of 10 to ZBH. ZBH was compared to 185 industry peers in the Health Care Equipment & Supplies industry. While ZBH has a great profitability rating, there are quite some concerns on its financial health. ZBH may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- In the past 5 years ZBH has always been 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 3.05%. This is in the better half of the industry: ZBH outperforms 76.76% of its industry peers.
- With a decent Return On Equity value of 5.55%, ZBH is doing good in the industry, outperforming 77.84% of the companies in the same industry.
- ZBH's Return On Invested Capital of 5.82% is fine compared to the rest of the industry. ZBH outperforms 78.38% of its industry peers.
- ZBH had an Average Return On Invested Capital over the past 3 years of 6.58%. This is below the industry average of 8.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.55% | ||
| ROIC | 5.82% |
ROA(3y)4.02%
ROA(5y)2.97%
ROE(3y)7%
ROE(5y)5.22%
ROIC(3y)6.58%
ROIC(5y)5.99%
1.3 Margins
- ZBH has a Profit Margin of 8.56%. This is amongst the best in the industry. ZBH outperforms 82.16% of its industry peers.
- ZBH's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 16.85%, ZBH belongs to the best of the industry, outperforming 87.57% of the companies in the same industry.
- In the last couple of years the Operating Margin of ZBH has grown nicely.
- The Gross Margin of ZBH (69.71%) is better than 78.92% 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 | 16.85% | ||
| PM (TTM) | 8.56% | ||
| GM | 69.71% |
OM growth 3Y-1.48%
OM growth 5Y9.64%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
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.
- 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
- ZBH has a debt to FCF ratio of 6.72. This is a slightly negative value and a sign of low solvency as ZBH would need 6.72 years to pay back of all of its debts.
- ZBH's Debt to FCF ratio of 6.72 is fine compared to the rest of the industry. ZBH outperforms 75.68% of its industry peers.
- A Debt/Equity ratio of 0.55 indicates that ZBH is somewhat dependend on debt financing.
- The Debt to Equity ratio of ZBH (0.55) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC9.79%
2.3 Liquidity
- ZBH has a Current Ratio of 1.98. This is a normal value and indicates that ZBH is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.98, ZBH is doing worse than 61.62% of the companies in the same industry.
- A Quick Ratio of 1.10 indicates that ZBH should not have too much problems paying its short term obligations.
- ZBH's Quick ratio of 1.10 is on the low side compared to the rest of the industry. ZBH is outperformed by 74.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- ZBH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.50%.
- Measured over the past 5 years, ZBH shows a small growth in Earnings Per Share. The EPS has been growing by 7.66% on average per year.
- ZBH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.20%.
- Measured over the past years, ZBH shows a small growth in Revenue. The Revenue has been growing by 3.22% on average per year.
EPS 1Y (TTM)2.5%
EPS 3Y5.97%
EPS 5Y7.66%
EPS Q2Q%4.76%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%
3.2 Future
- ZBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.25% yearly.
- ZBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y4.45%
EPS Next 2Y5.65%
EPS Next 3Y5.6%
EPS Next 5Y6.25%
Revenue Next Year4.16%
Revenue Next 2Y3.9%
Revenue Next 3Y3.73%
Revenue Next 5Y4.81%
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 stable.
- 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
- With a Price/Earnings ratio of 12.00, ZBH is valued correctly.
- 94.05% 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 27.10. ZBH is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 11.49, the valuation of ZBH can be described as very reasonable.
- 92.43% of the companies in the same industry are more expensive than ZBH, based on the Price/Forward Earnings ratio.
- ZBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaply inside the industry as 90.27% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ZBH is valued cheaper than 93.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.42 | ||
| EV/EBITDA | 10.86 |
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)2.7
PEG (5Y)1.57
EPS Next 2Y5.65%
EPS Next 3Y5.6%
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 0.20. ZBH pays more dividend than 94.05% 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 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
- The dividend of ZBH decreases each year by -0.02%.
- 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)-0.02%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
- 26.99% of the earnings are spent on dividend by ZBH. This is a low number and sustainable payout ratio.
DP26.99%
EPS Next 2Y5.65%
EPS Next 3Y5.6%
98.44
-2.55 (-2.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10 2026-02-10/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners100.37%
Inst Owner Change4.02%
Ins Owners0.13%
Ins Owner Change0.41%
Market Cap19.51B
Revenue(TTM)8.23B
Net Income(TTM)705.00M
Analysts67.65
Price Target104.39 (6.04%)
Short Float %4.95%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.96
Dividend Growth(5Y)-0.02%
DP26.99%
Div Incr Years0
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.37%
Min EPS beat(2)0%
Max EPS beat(2)0.73%
EPS beat(4)4
Avg EPS beat(4)1.33%
Min EPS beat(4)0%
Max EPS beat(4)3.32%
EPS beat(8)6
Avg EPS beat(8)0.88%
EPS beat(12)9
Avg EPS beat(12)2.02%
EPS beat(16)13
Avg EPS beat(16)3.09%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)0.21%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)5
Avg Revenue beat(12)0.36%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)0.14%
PT rev (3m)-1.02%
EPS NQ rev (1m)-2.86%
EPS NQ rev (3m)-3.24%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 11.49 | ||
| P/S | 2.37 | ||
| P/FCF | 17.42 | ||
| P/OCF | 11.5 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.86 |
EPS(TTM)8.2
EY8.33%
EPS(NY)8.57
Fwd EY8.7%
FCF(TTM)5.65
FCFY5.74%
OCF(TTM)8.56
OCFY8.7%
SpS41.54
BVpS64.11
TBVpS-9.88
PEG (NY)2.7
PEG (5Y)1.57
Graham Number108.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.55% | ||
| ROCE | 6.76% | ||
| ROIC | 5.82% | ||
| ROICexc | 6% | ||
| ROICexgc | 22.74% | ||
| OM | 16.85% | ||
| PM (TTM) | 8.56% | ||
| GM | 69.71% | ||
| FCFM | 13.6% |
ROA(3y)4.02%
ROA(5y)2.97%
ROE(3y)7%
ROE(5y)5.22%
ROIC(3y)6.58%
ROIC(5y)5.99%
ROICexc(3y)6.76%
ROICexc(5y)6.14%
ROICexgc(3y)26.14%
ROICexgc(5y)24.72%
ROCE(3y)7.64%
ROCE(5y)6.95%
ROICexgc growth 3Y0.42%
ROICexgc growth 5Y10.89%
ROICexc growth 3Y1.45%
ROICexc growth 5Y14.45%
OM growth 3Y-1.48%
OM growth 5Y9.64%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.72 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 52.79% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.41% | ||
| Profit Quality | 158.82% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | N/A |
F-Score5
WACC9.79%
ROIC/WACC0.59
Cap/Depr(3y)61.71%
Cap/Depr(5y)55.56%
Cap/Sales(3y)8.04%
Cap/Sales(5y)7.33%
Profit Quality(3y)115.26%
Profit Quality(5y)195.51%
High Growth Momentum
Growth
EPS 1Y (TTM)2.5%
EPS 3Y5.97%
EPS 5Y7.66%
EPS Q2Q%4.76%
EPS Next Y4.45%
EPS Next 2Y5.65%
EPS Next 3Y5.6%
EPS Next 5Y6.25%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%
Revenue Next Year4.16%
Revenue Next 2Y3.9%
Revenue Next 3Y3.73%
Revenue Next 5Y4.81%
EBIT growth 1Y-11.02%
EBIT growth 3Y4.29%
EBIT growth 5Y13.18%
EBIT Next Year33.13%
EBIT Next 3Y12.92%
EBIT Next 5Y9.43%
FCF growth 1Y24.09%
FCF growth 3Y10.12%
FCF growth 5Y7.09%
OCF growth 1Y13.19%
OCF growth 3Y9.72%
OCF growth 5Y7.1%
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.
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 3 / 10.
Can you provide the dividend sustainability for ZBH stock?
The dividend rating of ZIMMER BIOMET HOLDINGS INC (ZBH) is 5 / 10 and the dividend payout ratio is 26.99%.