NYSE:ZBH

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Zimmer Biomet Holdings

Market Cap

US$33.9b

Last Updated

2021/07/28 02:29 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Fair value with acceptable track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ZBH's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.6%

ZBH

2.4%

US Medical Equipment

0.9%

US Market


1 Year Return

21.4%

ZBH

30.8%

US Medical Equipment

37.8%

US Market

Return vs Industry: ZBH underperformed the US Medical Equipment industry which returned 30.8% over the past year.

Return vs Market: ZBH underperformed the US Market which returned 37.8% over the past year.


Shareholder returns

ZBHIndustryMarket
7 Day4.6%2.4%0.9%
30 Day-1.8%3.4%0.3%
90 Day-8.8%3.0%2.1%
1 Year22.2%21.4%31.7%30.8%40.0%37.8%
3 Year32.7%29.7%73.0%68.9%63.8%53.5%
5 Year29.7%24.7%150.1%138.5%124.6%99.7%

Long-Term 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

Valuation

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

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZBH ($162.84) is trading below our estimate of fair value ($271.35)

Significantly Below Fair Value: ZBH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZBH's PE Ratio (59.5x) is in line with the US Medical Equipment industry average.

PE vs Market: ZBH is poor value based on its PE Ratio (59.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ZBH is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: ZBH is good value based on its PB Ratio (2.7x) compared to the US Medical Equipment industry average (4.5x).


Future Growth

How is Zimmer Biomet Holdings forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZBH's forecast earnings growth (18.6% per year) is above the savings rate (2%).

Earnings vs Market: ZBH's earnings (18.6% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: ZBH's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZBH's revenue (4.7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: ZBH's revenue (4.7% 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%).


Past Performance

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

-15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZBH has a large one-off loss of $275.0M impacting its March 31 2021 financial results.

Growing Profit Margin: ZBH's current net profit margins (8%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: ZBH's earnings have declined by 15.3% per year over the past 5 years.

Accelerating Growth: ZBH's earnings growth over the past year (50.6%) exceeds its 5-year average (-15.3% per year).

Earnings vs Industry: ZBH earnings growth over the past year (50.6%) exceeded the Medical Equipment industry 15.5%.


Return on Equity

High ROE: ZBH's Return on Equity (4.6%) is considered low.


Financial Health

How is Zimmer Biomet Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ZBH's short term assets ($5.0B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: ZBH's short term assets ($5.0B) do not cover its long term liabilities ($9.5B).


Debt to Equity History and Analysis

Debt Level: ZBH's debt to equity ratio (60.7%) is considered high.

Reducing Debt: ZBH's debt to equity ratio has reduced from 115.1% to 60.7% over the past 5 years.

Debt Coverage: ZBH's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: ZBH's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Dividend

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

0.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZBH's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: ZBH's dividend (0.59%) is low compared to the top 25% of dividend payers in the US market (3.53%).


Stability and Growth of Payments

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

Growing Dividend: ZBH is not paying a notable dividend for the US 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 US 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 US market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Bryan Hanson (54 yo)

3.58yrs

Tenure

US$13,031,701

Compensation

Mr. Bryan C. Hanson has been President, Chief Executive Officer and a Director of Zimmer Biomet Holdings, Inc. since December 19, 2017. He has been Chairman of Zimmer Biomet Holdings, Inc. since May 13, 20...


CEO Compensation Analysis

Compensation vs Market: Bryan's total compensation ($USD13.03M) is about average for companies of similar size in the US market ($USD11.26M).

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


Leadership Team

Experienced Management: ZBH's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: ZBH's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ZBH insiders have bought more shares than they have sold 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: NYSE
  • Founded: 1927
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$33.949b
  • Shares outstanding: 208.48m
  • Website: https://www.zimmerbiomet.com

Number of Employees


Location

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

Listings


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 Analysis2021/07/28 02:29
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.