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, 7:14:46 PM
This ZBH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
ZBH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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.
- ZBH had positive earnings in each of the past 5 years.
- Each year in the past 5 years ZBH had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ZBH (3.05%) is better than 76.63% of its industry peers.
- The Return On Equity of ZBH (5.55%) is better than 77.17% of its industry peers.
- ZBH's Return On Invested Capital of 5.79% is fine compared to the rest of the industry. ZBH outperforms 77.72% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ZBH 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
- The Profit Margin of ZBH (8.56%) is better than 80.98% of its industry peers.
- ZBH's Profit Margin has improved in the last couple of years.
- The Operating Margin of ZBH (16.75%) is better than 86.41% of its industry peers.
- ZBH's Operating Margin has improved in the last couple of years.
- ZBH's Gross Margin of 69.71% is fine compared to the rest of the industry. ZBH outperforms 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
- 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.
- ZBH has a worse debt/assets ratio than last year.
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.
- With a decent Altman-Z score value of 2.44, ZBH is doing good in the industry, outperforming 66.85% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of ZBH (6.72) is better than 75.00% of its industry peers.
- ZBH has a Debt/Equity ratio of 0.55. This is a neutral value indicating ZBH is somewhat dependend on debt financing.
- ZBH's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. ZBH outperforms 40.76% of its industry peers.
| 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 has a worse Current ratio (1.98) than 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.
- Looking at the Quick ratio, with a value of 1.10, ZBH is doing worse than 74.46% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing slightly by 7.66% on average over the past years.
- Looking at the last year, ZBH shows a small growth in Revenue. The Revenue has grown by 7.20% in the last year.
- ZBH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.22% yearly.
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
- Based on estimates for the next years, ZBH will show a small growth in Earnings Per Share. The EPS will grow by 6.55% on average per year.
- The Revenue is expected to grow by 4.39% on average over the next years.
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
- The Price/Earnings ratio is 11.18, which indicates a very decent valuation of ZBH.
- Compared to the rest of the industry, the Price/Earnings ratio of ZBH indicates a rather cheap valuation: ZBH is cheaper than 92.39% of the companies listed in the same industry.
- ZBH is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 10.82, the valuation of ZBH can be described as reasonable.
- Based on the Price/Forward Earnings ratio, ZBH is valued cheaply inside the industry as 92.93% of the companies are valued more expensively.
- ZBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
- ZBH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZBH is cheaper than 92.93% of the companies in the same industry.
- 94.02% of the companies in the same industry are more expensive than ZBH, based on the Price/Free Cash Flow ratio.
| 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 ZBH does not grow enough to justify the current Price/Earnings ratio.
- 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
- ZBH has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
- ZBH's Dividend Yield is rather good when compared to the industry average which is at 0.21. ZBH pays more dividend than 93.48% 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 1.82.
| 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%.