ZIMMER BIOMET HOLDINGS INC (ZBH) Fundamental Analysis & Valuation
NYSE:ZBH • US98956P1021
91.7 USD
-1.58 (-1.69%)
At close: Mar 10, 2026
92.05 USD
+0.35 (+0.38%)
After Hours: 3/10/2026, 8:04:00 PM
This ZBH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall ZBH gets a fundamental rating of 6 out of 10. We evaluated ZBH against 184 industry peers in the Health Care Equipment & Supplies industry. While ZBH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ZBH may be a bit undervalued, certainly considering the very reasonable score on growth ZBH also has an excellent dividend rating.
1. ZBH Profitability Analysis
1.1 Basic Checks
- ZBH had positive earnings in the past year.
- ZBH had a positive operating cash flow in the past year.
- Each year in the past 5 years ZBH has been 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 3.05%, ZBH is in the better half of the industry, outperforming 76.63% of the companies in the same industry.
- ZBH has a Return On Equity of 5.55%. This is in the better half of the industry: ZBH outperforms 77.17% of its industry peers.
- ZBH has a better Return On Invested Capital (5.79%) than 77.72% of its industry peers.
- ZBH had an Average Return On Invested Capital over the past 3 years of 6.56%. This is below the industry average of 9.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.55% | ||
| ROIC | 5.79% |
ROA(3y)4.02%
ROA(5y)2.97%
ROE(3y)7%
ROE(5y)5.22%
ROIC(3y)6.56%
ROIC(5y)5.98%
1.3 Margins
- Looking at the Profit Margin, with a value of 8.56%, ZBH belongs to the top of the industry, outperforming 80.98% of the companies in the same industry.
- In the last couple of years the Profit Margin of ZBH has grown nicely.
- Looking at the Operating Margin, with a value of 16.75%, ZBH belongs to the top of the industry, outperforming 86.41% 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 78.80% 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 | 16.75% | ||
| PM (TTM) | 8.56% | ||
| GM | 69.71% |
OM growth 3Y-1.75%
OM growth 5Y9.46%
PM growth 3Y36.96%
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y0%
2. ZBH Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZBH is destroying value.
- Compared to 1 year ago, ZBH has less shares outstanding
- ZBH has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ZBH has a worse debt to assets ratio.
2.2 Solvency
- ZBH has an Altman-Z score of 2.44. 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 has a Altman-Z score of 2.44. This is in the better half of the industry: ZBH outperforms 66.85% of its industry peers.
- The Debt to FCF ratio of ZBH is 6.72, which is on the high side as it means it would take ZBH, 6.72 years of fcf income to pay off all of its debts.
- ZBH has a Debt to FCF ratio of 6.72. This is in the better half of the industry: ZBH outperforms 75.00% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.61
WACC9.54%
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.
- ZBH's Current ratio of 1.98 is on the low side compared to the rest of the industry. ZBH is outperformed by 64.13% of its industry peers.
- ZBH has a Quick Ratio of 1.10. 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 (1.10) is worse than 74.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.1 |
3. ZBH Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 2.50% over the past year.
- 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%.
- The Revenue has been growing slightly by 3.22% on average over the past years.
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 6.55% yearly.
- ZBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.39% yearly.
EPS Next Y3.4%
EPS Next 2Y5.28%
EPS Next 3Y5.55%
EPS Next 5Y6.55%
Revenue Next Year4.17%
Revenue Next 2Y3.94%
Revenue Next 3Y3.81%
Revenue Next 5Y4.39%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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. ZBH Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.18 indicates a reasonable valuation of ZBH.
- Based on the Price/Earnings ratio, ZBH is valued cheaper than 92.39% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.25, ZBH is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.82 indicates a reasonable valuation of ZBH.
- Based on the Price/Forward Earnings ratio, ZBH is valued cheaply inside the industry as 92.93% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.39. ZBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZBH is valued cheaply inside the industry as 92.93% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 94.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.02 | ||
| EV/EBITDA | 10.18 |
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)3.29
PEG (5Y)1.46
EPS Next 2Y5.28%
EPS Next 3Y5.55%
5. ZBH Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.04%, ZBH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.21, ZBH pays a better dividend. On top of this ZBH pays more dividend than 93.48% of the companies listed in the same industry.
- With a Dividend Yield of 1.04, ZBH pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
- The dividend of ZBH has a limited annual growth rate of 0.12%.
- 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)0.12%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
- ZBH pays out 27.01% of its income as dividend. This is a sustainable payout ratio.
- The dividend of ZBH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.01%
EPS Next 2Y5.28%
EPS Next 3Y5.55%
ZBH Fundamentals: All Metrics, Ratios and Statistics
91.7
-1.58 (-1.69%)
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 Owners104.24%
Inst Owner Change4.03%
Ins Owners0.15%
Ins Owner Change5.23%
Market Cap17.94B
Revenue(TTM)8.23B
Net Income(TTM)704.60M
Analysts67.43
Price Target105.6 (15.16%)
Short Float %4.25%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.96
Dividend Growth(5Y)0.12%
DP27.01%
Div Incr Years0
Div Non Decr Years12
Ex-Date03-31 2026-03-31 (0.24)
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)1.17%
PT rev (3m)0.36%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-3.26%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-1.4%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.82 | ||
| P/S | 2.18 | ||
| P/FCF | 16.02 | ||
| P/OCF | 10.57 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.18 |
EPS(TTM)8.2
EY8.94%
EPS(NY)8.48
Fwd EY9.25%
FCF(TTM)5.72
FCFY6.24%
OCF(TTM)8.67
OCFY9.46%
SpS42.07
BVpS64.9
TBVpS-10.05
PEG (NY)3.29
PEG (5Y)1.46
Graham Number109.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.55% | ||
| ROCE | 6.72% | ||
| ROIC | 5.79% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 22.61% | ||
| OM | 16.75% | ||
| 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)6.56%
ROIC(5y)5.98%
ROICexc(3y)6.74%
ROICexc(5y)6.13%
ROICexgc(3y)26.07%
ROICexgc(5y)24.68%
ROCE(3y)7.62%
ROCE(5y)6.94%
ROICexgc growth 3Y0.14%
ROICexgc growth 5Y10.7%
ROICexc growth 3Y1.16%
ROICexc growth 5Y14.26%
OM growth 3Y-1.75%
OM growth 5Y9.46%
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 | 2.8 | ||
| Cap/Depr | 52.79% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 4.62 | ||
| Cash Conversion | 68.63% | ||
| Profit Quality | 158.91% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.44 |
F-Score5
WACC9.54%
ROIC/WACC0.61
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 Y3.4%
EPS Next 2Y5.28%
EPS Next 3Y5.55%
EPS Next 5Y6.55%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.85%
Revenue growth 5Y3.22%
Sales Q2Q%10.9%
Revenue Next Year4.17%
Revenue Next 2Y3.94%
Revenue Next 3Y3.81%
Revenue Next 5Y4.39%
EBIT growth 1Y-11.53%
EBIT growth 3Y4%
EBIT growth 5Y12.99%
EBIT Next Year29.58%
EBIT Next 3Y11.07%
EBIT Next 5Y8.8%
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 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 7 / 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 27.01%.