Zimmer Biomet Holdings, Inc. (ZBH)
Health Care · Health Care Equipment · US stock · S&P 500 component
$98.81
▲ +3.95 (4.16%)
Fair valueFair
$115 +16.1% to fair value
$57fair band $98–$139$172
Day's range
$95.43 – $98.92
52-week range
$79.12 – $106.88
About Zimmer Biomet Holdings, Inc.
Knee and hip replacement implants sit at the centre of what Zimmer Biomet designs, manufactures and markets for treating bone and joint conditions. It also supplies sports medicine, trauma and shoulder products, together with surgical instruments and robotic systems that guide surgeons during operations. Its customers are hospitals, surgery centres and the orthopaedic surgeons who work in them, and it serves them through regional commercial teams around the world.
The company earns money from implants, instruments and related surgical technology that hospitals purchase for procedures. Revenue was $8.5 billion over the last twelve months, with growth of 5.9% a year across the last three years, and the operating margin is 14.2%. The business earns a profit of 5% on the capital invested in it, while net debt is 3.1 times EBITDA. It pays a dividend with a yield of 1.0%. On the site's X-Ray Score it receives 55 out of 100.
Price chart
52-wk range $79.12 – $106.88Volume 2,223,554Daily, split-adjusted
Vitals
Market cap$19.1B
52-week range$79.12 – $106.88
Volume (last day)2,223,554
P/E (TTM)24.1
EBIT / EV yield4.6%
Free-cash-flow yield8.0%
Dividend yield1.0%
Revenue (TTM)$8.5B
Net income (TTM)$807M
Operating margin14.2%
Return on capital5.3%
Debt incl. leases$7.5B
Cash & securities$410M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$115middle half of models $102 – $136
Fair
+16.1% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $99
Undervalued < $98Fair $98 – $139Overvalued > $139
P/E multiple
$101
P/B multiple
$115
P/S multiple
$129
EV/EBITDA multiple
$122
EV/EBIT multiple
$111
EV/revenue multiple
$117
10-year DCF, EBITDA exit
$153
5-year DCF, EBITDA exit
$138
10-year DCF, revenue exit
$152
5-year DCF, revenue exit
$138
10-year DCF, growth exit
$105
5-year DCF, growth exit
$82
Dividend discount, stable · not used
$33
Dividend discount, multi-stage
$64
Earnings power value
$78
Growth the price implies
14.8%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Health Care peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
73/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield4.6%
Free-cash-flow yield8.0%
Fair value vs price1.2×
Growth
Fair
66/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)5.9%
EPS growth (3y)47.8%
Growth consistency100%
Profitability
Weak
40/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital5.3%
Operating margin14.2%
Gross profitability26.1%
Financial health
Weak
49/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA3.1×
Interest coverNo interest cost
Dividends
Weak
35/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield1.0%
Dividends vs free cash flow12%
Dividend growth-1.8%
Quarterly results: last 6 quarters
+1.1%
Mar '25
+7.0%
Jun '25
+9.7%
Sep '25
+10.9%
Dec '25
+9.3%
Mar '26
+4.8%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $2.2B, diluted EPS $1.03.
Compare with peers
DXCM Dexcom Inc78 PODD Insulet Corp72 RMD Resmed Inc70 BSX Boston Scientific Corp67Other Health Care Equipment companies by X-Ray Score.
SWOT analysis: Zimmer Biomet Holdings, Inc.
Strengthsinside the company
- Earnings per share have compounded at 47.8% a year over three years.
- Free cash flow equals 8.0% of the market value, which funds dividends, buybacks or debt paydown.
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Return on invested capital is only 5.3% (median 10.7% for industry peers), so the business earns little above its cost of capital.
Opportunitiesvaluation and setting
- Trades at 23.6x earnings, 24% below the 31.2x median of industry peers.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare ZBH with peers and sector
Medians of 15 Health Care Equipment peers and of 59 Health Care stocks in our universe.
Largest peers (X-Ray Score): ABT 41, ISRG 62, MDT 57, SYK 56, BSX 67, BDX 47.
| Metric | ZBH | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 55 | 57 | 49 |
| Valuation | 73 | 57 | 52 |
| Growth | 66 | 74 | 47 |
| Profitability | 40 | 55 | 51 |
| Financial health | 49 | 64 | 48 |
| Dividends | 35 | 57 | 52 |
Sector leaders: highest X-Ray Score in Health Care
ZBH ranks #25 of 60 in Health Care and #11 of 16 in Health Care Equipment by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for ZBH
Each factor is rated by where ZBH stands among the 60 Health Care stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 9 Good · 8 Average · 5 Bad of 22
Growth: 1 · 2 · 0
Profitability: 1 · 2 · 2
Financial strength: 1 · 2 · 1
Valuation: 5 · 0 · 0
Cash flow: 1 · 2 · 0
Efficiency: 0 · 0 · 2
| Factor | ZBH | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +5.9% | Average beats 56% | +5.5% | – | – |
| Revenue growth, last year | +7.2% | Average beats 51% | +7.1% | +6.5% | ≈ In line |
| EPS growth, 3 years a year | +47.8% | Good beats 88% | +5.0% | – | – |
| Profitability | |||||
| Gross margin | 69.9% | Good beats 67% | 65.0% | 71.3% | ≈ In line |
| Operating margin | 14.2% | Average beats 46% | 16.4% | 13.3% | ≈ In line |
| Net margin | 9.5% | Average beats 46% | 11.1% | 8.6% | ≈ In line |
| Return on invested capital | 5.3% | Bad beats 18% | 12.2% | – | – |
| Return on equity | 6.4% | Bad beats 22% | 13.7% | 5.6% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 3.1x | Average beats 34% | 2.0x | 3.2x | ≈ In line |
| Interest cover | 50.0x | Good beats 82% | 9.4x | – | – |
| Current ratio | 1.69 | Average beats 59% | 1.52 | 1.88 | ≈ In line |
| Piotroski F-score | 5 / 9 | Bad beats 25% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 23.6x | Good beats 73% | 28.2x | 25.3x | ≈ In line |
| Price / book | 1.5x | Good beats 94% | 3.7x | 2.0x | ▲ Better |
| Price / sales | 2.2x | Good beats 69% | 3.7x | 3.5x | ▲ Better |
| EV / EBITDA | 11.3x | Good beats 87% | 17.6x | 13.8x | ▲ Better |
| Free cash flow yield | 8.0% | Good beats 88% | 4.4% | 5.6% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 17.9% | Average beats 57% | 16.3% | 17.7% | ≈ In line |
| Cash from operations / net income | 2.16 | Good beats 85% | 1.61 | 2.03 | ≈ In line |
| Accruals (lower is better) | −4.1% | Average beats 56% | −3.9% | – | – |
| Efficiency | |||||
| Inventory turnover | 1.1x | Bad beats 8% | 2.9x | 0.9x | ≈ In line |
| Days sales outstanding | 76 days | Bad beats 19% | 62 days | 71 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 5 Good · ● 8 Average · ● 2 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldGood
Risk models
Altman Z''Average
Piotroski F-ScoreBad
Growth
EPS growth (3y)Good
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioAverage
Net debt / EBITDAAverage
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldAverage
Profitability
Return on invested capitalBad
Operating marginAverage
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 58/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $6.8B | $6.9B | $7.4B | $7.7B | $8.2B |
| Operating income | $860M | $696M | $1.3B | $1.3B | $1.1B |
| Net income | $402M | $231M | $1.0B | $904M | $705M |
| Operating cash flow | $1.5B | – | $1.6B | $1.5B | $1.7B |
| Operating margin | 12.6% | 10.0% | 17.3% | 16.7% | 13.3% |
| Free cash flow | $1.4B | – | $1.3B | $1.3B | $1.5B |
| Diluted EPS | $1.91 | $1.10 | $4.88 | $4.43 | $3.55 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bullish
12 bullish · 1 neutral · 3 bearish
Weekly
Strongly bullish
10 bullish · 1 neutral · 1 bearish
Monthly
Neutral
4 bullish · 1 neutral · 3 bearish
Moving averages (daily)
| SMA 10 | 93.92 | Bullish |
| EMA 10 | 94.49 | Bullish |
| SMA 20 | 91.81 | Bullish |
| EMA 20 | 93.46 | Bullish |
| SMA 50 | 95.01 | Bullish |
| EMA 50 | 93.47 | Bullish |
| SMA 100 | 92.77 | Bullish |
| EMA 100 | 92.88 | Bullish |
| SMA 200 | 91.04 | Bullish |
| EMA 200 | 92.64 | Bullish |
Oscillators (daily)
| RSI (14) | 65.07 | Neutral |
| MACD (12, 26) | 0.71 | Bullish |
| Momentum (12) | 10.18 | Bullish |
| Stochastic %K (14) | 99.05 | Bearish |
| Williams %R (14) | -0.95 | Bearish |
| CCI (20) | 171.4 | Bearish |
Pivot points (classic, last session)
S3 93.02 | S2 94.22 | S1 96.52 | Pivot 97.72 | R1 100.0 | R2 101.2 | R3 103.5 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.96 USD
Yield on today's price
0.97%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.2400 | |
| 0.2400 | |
| 0.2400 | |
| 0.2400 | |
| 0.2400 | |
| 0.2400 | |
| 0.2400 | |
| 0.2400 | |
| 0.2400 | |
| 0.2400 | |
| 0.2400 | |
| 0.2400 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold ZBH
| ETF | Share of the fund |
|---|---|
| IHI iShares U.S. Medical Devices | 2.58% |
| MOAT VanEck Morningstar Wide Moat | 2.30% |
| RPV Invesco S&P 500 Pure Value | 0.35% |
| IYH iShares U.S. Healthcare | 0.30% |
| XLV Health Care Select Sector SPDR | 0.29% |
| FHLC Fidelity MSCI Health Care Index | 0.26% |
| VHT Vanguard Health Care | 0.26% |
| IXJ iShares Global Healthcare | 0.22% |
The eight funds with the largest weight in ZBH among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
ZBH SEC filings
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Other events
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Shareholder vote results
8-KSEC EDGAR
Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.