SWX:ZBH

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Zimmer Biomet Holdings

Executive Summary

Zimmer Biomet Holdings, Inc., together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Zimmer Biomet Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZBH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ZBH

2.3%

CH Medical Equipment

0.2%

CH Market


1 Year Return

-3.8%

ZBH

0.9%

CH Medical Equipment

3.0%

CH Market

Return vs Industry: ZBH underperformed the Swiss Medical Equipment industry which returned -1.1% over the past year.

Return vs Market: ZBH underperformed the Swiss Market which returned 2.6% over the past year.


Shareholder returns

ZBHIndustryMarket
7 Day0%2.3%0.2%
30 Day5.0%7.6%-0.6%
90 Day12.6%10.2%4.6%
1 Year-3.1%-3.8%1.6%0.9%6.5%3.0%
3 Year17.1%14.3%42.6%35.2%19.9%5.1%
5 Year26.5%21.4%108.2%92.3%27.1%7.1%

Price Volatility Vs. Market

How volatile is Zimmer Biomet Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Zimmer Biomet Holdings undervalued compared to its fair value and its price relative to the market?

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZBH (CHF125) is trading below our estimate of fair value (CHF153.31)

Significantly Below Fair Value: ZBH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ZBH is poor value based on its PE Ratio (777.1x) compared to the CH Medical Equipment industry average (40.9x).

PE vs Market: ZBH is poor value based on its PE Ratio (777.1x) compared to the Swiss market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: ZBH is poor value based on its PEG Ratio (7.2x)


Price to Book Ratio

PB vs Industry: ZBH is good value based on its PB Ratio (2.5x) compared to the CH Medical Equipment industry average (5x).


Next Steps

Future Growth

How is Zimmer Biomet Holdings forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

108.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZBH's forecast earnings growth (108.5% per year) is above the savings rate (-0.2%).

Earnings vs Market: ZBH's earnings (108.5% per year) are forecast to grow faster than the Swiss market (9.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZBH's revenue (8% per year) is forecast to grow faster than the Swiss market (3.7% per year).

High Growth Revenue: ZBH's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZBH's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has Zimmer Biomet Holdings performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZBH has a large one-off loss of $888.9M impacting its June 30 2020 financial results.

Growing Profit Margin: ZBH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ZBH's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: ZBH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ZBH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (-41.5%).


Return on Equity

High ROE: ZBH's Return on Equity (0.3%) is considered low.


Next Steps

Financial Health

How is Zimmer Biomet Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ZBH's short term assets ($4.7B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: ZBH's short term assets ($4.7B) do not cover its long term liabilities ($9.8B).


Debt to Equity History and Analysis

Debt Level: ZBH's debt to equity ratio (68.1%) is considered high.

Reducing Debt: ZBH's debt to equity ratio has reduced from 119% to 68.1% over the past 5 years.

Debt Coverage: ZBH's debt is not well covered by operating cash flow (17.6%).

Interest Coverage: ZBH's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

What is Zimmer Biomet Holdings's current dividend yield, its reliability and sustainability?

0.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZBH's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.81%).

High Dividend: ZBH's dividend (0.69%) is low compared to the top 25% of dividend payers in the Swiss market (3.81%).


Stability and Growth of Payments

Stable Dividend: ZBH is not paying a notable dividend for the Swiss market, therefore no need to check if payments are stable.

Growing Dividend: ZBH is not paying a notable dividend for the Swiss market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ZBH is not paying a notable dividend for the Swiss market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZBH's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Bryan Hanson (53 yo)

2.67yrs

Tenure

US$11,176,720

Compensation

Mr. Bryan C. Hanson has been President, Chief Executive Officer and a member of the Board of Directors of Zimmer Biomet Holdings Inc. since December 19, 2017. Prior to joining Zimmer Biomet, Mr. Hanson was ...


CEO Compensation Analysis

Compensation vs Market: Bryan's total compensation ($USD11.18M) is above average for companies of similar size in the Swiss market ($USD6.65M).

Compensation vs Earnings: Bryan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bryan Hanson
President2.67yrsUS$11.18m0.026%
$ 6.9m
Suketu Upadhyay
Executive VP & CFO1.08yrsUS$6.08m0.0012%
$ 325.5k
Sang Yi
President of Asia Pacific5.17yrsUS$2.71m0.0044%
$ 1.2m
Didier Deltort
President of Europe2yrsUS$3.08m0.0013%
$ 349.1k
Ivan Tornos
Group President of Global Businesses & Americas1.75yrsUS$4.20m0.0045%
$ 1.2m
Kenneth Tripp
Senior Vice President of Global Operations & Logistics2.33yrsno datano data
Carrie Nichol
VP, Controller & Chief Accounting Officer0.83yrno datano data
Zeeshan Tariq
VP & Chief Information Officer4.08yrsno datano data
Keri Mattox
Senior VP of Investor Relations & Chief Communications Officer0.58yrno datano data
Chad Phipps
Senior VP13.25yrsUS$2.76m0.020%
$ 5.1m
Angela Main
Senior VP5.17yrsno datano data
Pamela Puryear
Senior VP & Chief Human Resources Officer1.58yrsno datano data

2.2yrs

Average Tenure

51yo

Average Age

Experienced Management: ZBH's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bryan Hanson
President2.67yrsUS$11.18m0.026%
$ 6.9m
Larry Glasscock
Independent Non-Executive Chairman7.25yrsUS$459.60k0.0053%
$ 1.4m
Christopher Begley
Independent Director8.08yrsUS$313.37k0.0012%
$ 322.9k
Betsy Bernard
Independent Director11.58yrsUS$314.57k0.0021%
$ 538.1k
Robert Hagemann
Independent Director12.42yrsUS$328.03k0.00097%
$ 254.6k
Michael Michelson
Independent Director5.58yrsUS$293.95k0.0010%
$ 265.1k
Arthur Higgins
Independent Director13.5yrsUS$327.47k0.0012%
$ 304.5k
Gail Boudreaux
Independent Director7.67yrsUS$297.85k0.0010%
$ 265.1k
Maria Hilado
Independent Director2yrsUS$289.80k0.00080%
$ 210.0k
Michael Farrell
Independent Director5.67yrsUS$294.85k0.00097%
$ 254.6k
Syed Jafry
Independent Director2yrsUS$289.54k0.00093%
$ 244.1k

7.3yrs

Average Tenure

63yo

Average Age

Experienced Board: ZBH's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ZBH insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Zimmer Biomet Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zimmer Biomet Holdings, Inc.
  • Ticker: ZBH
  • Exchange: SWX
  • Founded: 1927
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$28.652b
  • Listing Market Cap: US$26.249b
  • Shares outstanding: 207.05m
  • Website: https://www.zimmerbiomet.com

Number of Employees


Location

  • Zimmer Biomet Holdings, Inc.
  • 345 East Main Street
  • Warsaw
  • Indiana
  • 46580
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZBHNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2001
ZBHSWX (SIX Swiss Exchange)YesCommon StockCHCHFJul 2001
ZIMDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2001
0QQDLSE (London Stock Exchange)YesCommon StockGBCHFJul 2001
ZBH *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2001
ZIMETLX (Eurotlx)YesCommon StockITEURJul 2001
Z1BH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Zimmer Biomet Holdings, Inc., together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 20:55
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.