ZIMMER BIOMET HOLDINGS INC (ZBH) Stock Fundamental Analysis

NYSE:ZBH • US98956P1021

95.74 USD
+0.13 (+0.14%)
Last: Feb 12, 2026, 11:59 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, ZBH scores 5 out of 10 in our fundamental rating. ZBH was compared to 186 industry peers in the Health Care Equipment & Supplies industry. ZBH has an average financial health and profitability rating. ZBH is valued quite cheap, but it does not seem to be growing. Finally ZBH also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

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.
  • ZBH had positive earnings in 4 of the past 5 years.
  • Of the past 5 years ZBH 4 years had a positive operating cash flow.
ZBH Yearly Net Income VS EBIT VS OCF VS FCFZBH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

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 79.57% of the companies in the same industry.
  • ZBH has a better Return On Equity (6.31%) than 79.03% 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 77.96% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ZBH is below the industry average of 8.83%.
Industry RankSector 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%
ZBH Yearly ROA, ROE, ROICZBH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

1.3 Margins

  • The Profit Margin of ZBH (10.05%) is better than 84.41% of its industry peers.
  • In the last couple of years the Profit Margin of ZBH has declined.
  • The Operating Margin of ZBH (19.10%) is better than 91.40% of its industry peers.
  • ZBH's Operating Margin has improved in the last couple of years.
  • ZBH has a Gross Margin of 71.44%. This is amongst the best in the industry. ZBH outperforms 80.65% 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 RankSector 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%
ZBH Yearly Profit, Operating, Gross MarginsZBH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZBH is destroying value.
  • ZBH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ZBH Yearly Shares OutstandingZBH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
ZBH Yearly Total Debt VS Total AssetsZBH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 2.48 indicates that ZBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.48, ZBH is in the better half of the industry, outperforming 68.28% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 7.17, ZBH is in the better half of the industry, outperforming 75.81% 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 has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: ZBH underperforms 61.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 7.17
Altman-Z 2.48
ROIC/WACC0.63
WACC9.17%
ZBH Yearly LT Debt VS Equity VS FCFZBH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 2.43 indicates that ZBH has no problem at all paying its short term obligations.
  • With a Current ratio value of 2.43, ZBH perfoms like the industry average, outperforming 49.46% of the companies in the same 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.
  • Looking at the Quick ratio, with a value of 1.39, ZBH is in line with its industry, outperforming 40.86% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.43
Quick Ratio 1.39
ZBH Yearly Current Assets VS Current LiabilitesZBH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

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.
EPS 1Y (TTM)2.5%
EPS 3Y5.97%
EPS 5Y7.66%
EPS Q2Q%4.76%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 Year4.91%
Revenue Next 2Y4.52%
Revenue Next 3Y4.21%
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.
ZBH Yearly Revenue VS EstimatesZBH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
ZBH Yearly EPS VS EstimatesZBH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.68 indicates a reasonable valuation of ZBH.
  • Based on the Price/Earnings ratio, ZBH is valued cheaply inside the industry as 94.09% of the companies are valued more expensively.
  • ZBH is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 11.18, the valuation of ZBH can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 94.09% of the companies listed in the same industry.
  • ZBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.01, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.68
Fwd PE 11.18
ZBH Price Earnings VS Forward Price EarningsZBH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 91.40% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ZBH is valued cheaply inside the industry as 94.09% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.78
EV/EBITDA 9.9
ZBH Per share dataZBH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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)2.62
PEG (5Y)1.52
EPS Next 2Y5.65%
EPS Next 3Y5.6%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

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.
  • Compared to an average industry Dividend Yield of 0.20, ZBH pays a better dividend. On top of this ZBH pays more dividend than 94.09% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, ZBH's dividend is way lower than the S&P500 average.
Industry RankSector 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
ZBH Yearly Dividends per shareZBH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

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 2Y5.65%
EPS Next 3Y5.6%
ZBH Yearly Income VS Free CF VS DividendZBH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B
ZBH Dividend Payout.ZBH Dividend Payout, showing the Payout Ratio.ZBH Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

ZIMMER BIOMET HOLDINGS INC

NYSE:ZBH (2/12/2026, 11:59:34 AM)

95.74

+0.13 (+0.14%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-10
Earnings (Next)05-04
Inst Owners100.37%
Inst Owner Change0.38%
Ins Owners0.13%
Ins Owner Change0.34%
Market Cap18.97B
Revenue(TTM)N/A
Net Income(TTM)805.20M
Analysts67.65
Price Target104.39 (9.03%)
Short Float %4.78%
Short Ratio4.51
Dividend
Industry RankSector 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)-0.01%
PT rev (3m)-8.43%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
Industry RankSector Rank
PE 11.68
Fwd PE 11.18
P/S 2.37
P/FCF 16.78
P/OCF 11.25
P/B 1.49
P/tB N/A
EV/EBITDA 9.9
EPS(TTM)8.2
EY8.56%
EPS(NY)8.57
Fwd EY8.95%
FCF(TTM)5.71
FCFY5.96%
OCF(TTM)8.51
OCFY8.89%
SpS40.42
BVpS64.37
TBVpS-8.5
PEG (NY)2.62
PEG (5Y)1.52
Graham Number108.98
Profitability
Industry RankSector 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 RankSector 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 2.48
F-Score5
WACC9.17%
ROIC/WACC0.63
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)2.5%
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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.9%
Revenue Next Year4.91%
Revenue Next 2Y4.52%
Revenue Next 3Y4.21%
Revenue Next 5Y4.81%
EBIT growth 1Y-1.4%
EBIT growth 3Y13.78%
EBIT growth 5Y3.48%
EBIT Next Year34.04%
EBIT Next 3Y12.36%
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.


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 4 / 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%.