NYSE:ZBH

Stock Analysis Report

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.

Rewards

Trading at 2.8% below its fair value

Earnings are forecast to grow 20.46% per year

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Moderate growth potential and slightly overvalued.


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

1.6%

ZBH

-0.4%

US Medical Equipment

0.7%

US Market


1 Year Return

32.1%

ZBH

21.5%

US Medical Equipment

18.2%

US Market

Return vs Industry: ZBH exceeded the US Medical Equipment industry which returned 21.5% over the past year.

Return vs Market: ZBH exceeded the US Market which returned 18.2% over the past year.


Shareholder returns

ZBHIndustryMarket
7 Day1.6%-0.4%0.7%
30 Day1.9%3.4%1.5%
90 Day5.9%4.5%5.0%
1 Year33.1%32.1%22.6%21.5%20.8%18.2%
3 Year42.1%38.7%89.0%83.4%45.2%35.8%
5 Year38.7%33.1%124.0%99.6%71.6%52.7%

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?

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZBH ($146.72) is trading below our estimate of fair value ($150.88)

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 unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: ZBH is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZBH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZBH is good value based on its PB Ratio (2.5x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

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

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZBH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ZBH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ZBH's is expected to become profitable in the next 3 years.

Revenue vs Market: ZBH's revenue (2.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: ZBH's revenue (2.8% 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 (12.1%).


Next Steps

Past Performance

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

-1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZBH is currently unprofitable.

Growing Profit Margin: ZBH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZBH is unprofitable, and losses have increased over the past 5 years at a rate of -1.6% per year.

Accelerating Growth: Unable to compare ZBH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ZBH is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.3%).


Return on Equity

High ROE: ZBH has a negative Return on Equity (-0.76%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zimmer Biomet Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ZBH's short term assets ($4.4B) exceed its short term liabilities ($3.8B).

Long Term Liabilities: ZBH's short term assets ($4.4B) do not cover its long term liabilities ($8.5B).


Debt to Equity History and Analysis

Debt Level: ZBH's debt to equity ratio (69.1%) is considered high.

Reducing Debt: ZBH's debt to equity ratio has increased from 25.6% to 69.1% over the past 5 years.

Debt Coverage: ZBH's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: ZBH is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: ZBH has a low level of unsold assets or inventory.

Debt Coverage by Assets: ZBH's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

0.65%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: ZBH's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ZBH's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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

What is the CEO of Zimmer Biomet Holdings's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Bryan Hanson (52yo)

2yrs

Tenure

US$9,710,434

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 ($USD9.71M) is about average for companies of similar size in the US market ($USD10.90M).

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


Management Age and Tenure

1.9yrs

Average Tenure

48.5yo

Average Age

Experienced Management: ZBH's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

6.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ZBH's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$61,92510 Sep 19
Didier Deltort
EntityIndividual
Shares444
Max PriceUS$140.42
SellUS$967,93203 Sep 19
Chad Phipps
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares7,000
Max PriceUS$138.28
SellUS$20,38809 Aug 19
Sang Yi
EntityIndividual
Role
Senior Key Executive
President of Asia Pacific
Shares147
Max PriceUS$138.70
SellUS$48,93829 May 19
Sang Yi
EntityIndividual
Role
Senior Key Executive
President of Asia Pacific
Shares426
Max PriceUS$114.88
BuyUS$241,62404 Mar 19
Syed Jafry
EntityIndividual
Shares1,925
Max PriceUS$125.52
BuyUS$61,63819 Feb 19
Arthur Higgins
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$123.28
BuyUS$247,25014 Feb 19
Michael Farrell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$123.62
BuyUS$240,18211 Feb 19
Larry Glasscock
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares2,000
Max PriceUS$120.09
BuyUS$249,55311 Feb 19
Michael Michelson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,085
Max PriceUS$119.69
BuyUS$194,99008 Feb 19
Maria Hilado
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,650
Max PriceUS$118.18
BuyUS$249,93608 Feb 19
Bryan Hanson
EntityIndividual
Role
Chief Executive Officer
President
Shares2,100
Max PriceUS$119.18
BuyUS$249,98806 Feb 19
Gail Boudreaux
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,095
Max PriceUS$119.33
BuyUS$297,65906 Feb 19
Christopher Begley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,540
Max PriceUS$117.19
BuyUS$498,99406 Feb 19
Betsy Bernard
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,250
Max PriceUS$117.42
BuyUS$239,65106 Feb 19
Robert Hagemann
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$119.83

Ownership Breakdown

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


Management Team

  • Chad Phipps (47yo)

    Senior VP

    • Tenure: 12.6yrs
    • Compensation: US$2.76m
  • Bryan Hanson (52yo)

    President

    • Tenure: 2yrs
    • Compensation: US$9.71m
  • Suky Upadhyay (50yo)

    Executive VP & CFO

    • Tenure: 0.4yrs
  • Sang Yi (57yo)

    President of Asia Pacific

    • Tenure: 4.5yrs
    • Compensation: US$3.66m
  • Carrie Nichol (40yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 0.2yrs
  • Zeeshan Tariq

    VP & Chief Information Officer

    • Tenure: 3.4yrs
  • Cole Lannum

    Senior Vice President of Investor Relations

    • Tenure: 1.8yrs
  • Kenneth Tripp

    Senior Vice President of Global Operations & Logistics

    • Tenure: 1.7yrs
  • Angela Main

    Senior VP

    • Tenure: 4.5yrs
  • Ivan Tornos (43yo)

    Group President of Orthopedics

    • Tenure: 1.1yrs
    • Compensation: US$4.50m

Board Members

  • Larry Glasscock (71yo)

    Non-Executive Chairman

    • Tenure: 6.6yrs
    • Compensation: US$451.78k
  • Chris Begley (67yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$300.97k
  • Betsy Bernard (64yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$305.88k
  • Bob Hagemann (62yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$317.99k
  • Mike Michelson (68yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$285.43k
  • Art Higgins (63yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$317.43k
  • Gail Boudreaux (58yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$289.30k
  • Tessa Hilado (54yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$47.50k
  • Mick Farrell (47yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$286.32k
  • Bryan Hanson (52yo)

    President

    • Tenure: 2yrs
    • Compensation: US$9.71m

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$30.178b
  • Shares outstanding: 205.68m
  • 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
ZIMETLX (Eurotlx)YesCommon StockITEURJul 2001

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 Analysis2019/12/09 23:53
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.