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ZBH

Zimmer Biomet Holdings NYSE:ZBH Stock Report

Last Price

US$120.65

Market Cap

US$25.3b

7D

3.2%

1Y

-28.0%

Updated

26 May, 2022

Data

Company Financials +
ZBH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health4/6
Dividends0/6

ZBH Stock Overview

Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates in the musculoskeletal healthcare business in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Zimmer Biomet Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zimmer Biomet Holdings
Historical stock prices
Current Share PriceUS$120.65
52 Week HighUS$169.98
52 Week LowUS$108.47
Beta1.16
1 Month Change-2.82%
3 Month Change-4.78%
1 Year Change-28.03%
3 Year Change6.87%
5 Year Change-1.65%
Change since IPO305.41%

Recent News & Updates

May 25

Zimmer Biomet Is Hobbling Behind The Market

Zimmer Biomet has greatly underperformed the S&P 500 as well as the iShares IHI, been stagnant over the past 5 years. The street consensus gives some hope for the projected growth with an estimated 28.67% FCF and 7.19% EBIT CAGR over the next 5 years. Zimmer Biomet carries noteworthy risks and faces significant challenges while its peers perform much better with an advantageous risk-reward profile. Based on my valuation model, the stock is fairly priced with a slightly higher price target at $139.

Shareholder Returns

ZBHUS Medical EquipmentUS Market
7D3.2%1.4%1.0%
1Y-28.0%-15.8%-15.1%

Return vs Industry: ZBH underperformed the US Medical Equipment industry which returned -15.8% over the past year.

Return vs Market: ZBH underperformed the US Market which returned -15.1% over the past year.

Price Volatility

Is ZBH's price volatile compared to industry and market?
ZBH volatility
ZBH Average Weekly Movement4.4%
Medical Equipment Industry Average Movement10.5%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: ZBH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ZBH's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192719,500Bryan Hansonhttps://www.zimmerbiomet.com

Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates in the musculoskeletal healthcare business in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company designs, manufactures, and markets orthopaedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, extremities, and trauma products; spine products comprising medical devices and surgical instruments; and face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest toss facilitate healing or reconstruction after open heart surgery, trauma, or for deformities of the chest. It also offers dental products that include dental reconstructive implants, and dental prosthetic and regenerative products, as well as robotic, surgical and bone cement products.

Zimmer Biomet Holdings Fundamentals Summary

How do Zimmer Biomet Holdings's earnings and revenue compare to its market cap?
ZBH fundamental statistics
Market CapUS$25.29b
Earnings (TTM)US$281.20m
Revenue (TTM)US$7.90b

89.9x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZBH income statement (TTM)
RevenueUS$7.90b
Cost of RevenueUS$2.36b
Gross ProfitUS$5.54b
Other ExpensesUS$5.25b
EarningsUS$281.20m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.34
Gross Margin70.08%
Net Profit Margin3.56%
Debt/Equity Ratio53.1%

How did ZBH perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

71%

Payout Ratio

Does ZBH pay a reliable dividends?

See ZBH dividend history and benchmarks
When do you need to buy ZBH by to receive an upcoming dividend?
Zimmer Biomet Holdings dividend dates
Ex Dividend DateJun 24 2022
Dividend Pay DateJul 29 2022
Days until Ex dividend28 days
Days until Dividend pay date63 days

Does ZBH pay a reliable dividends?

See ZBH dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


33.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ZBH ($120.65) is trading below our estimate of fair value ($180.03)

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


Price To Earnings Ratio

PE vs Industry: ZBH is poor value based on its Price-To-Earnings Ratio (89.9x) compared to the US Medical Equipment industry average (35.2x).

PE vs Market: ZBH is poor value based on its Price-To-Earnings Ratio (89.9x) compared to the US market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: ZBH is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: ZBH is good value based on its Price-To-Book Ratio (2.1x) compared to the US Medical Equipment industry average (2.5x).


Future Growth

How is Zimmer Biomet Holdings forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZBH's forecast earnings growth (17.4% per year) is above the savings rate (1.9%).

Earnings vs Market: ZBH's earnings (17.4% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: ZBH's revenue (3.6% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: ZBH's revenue (3.6% 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 (10.9%).


Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-21.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZBH has a large one-off loss of $729.8M impacting its March 31 2022 financial results.

Growing Profit Margin: ZBH's current net profit margins (3.6%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: ZBH's earnings have declined by 21.7% per year over the past 5 years.

Accelerating Growth: ZBH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZBH had negative earnings growth (-50.1%) over the past year, making it difficult to compare to the Medical Equipment industry average (16.1%).


Return on Equity

High ROE: ZBH's Return on Equity (2.3%) is considered low.


Financial Health

How is Zimmer Biomet Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ZBH's short term assets ($4.5B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: ZBH's short term assets ($4.5B) do not cover its long term liabilities ($6.9B).


Debt to Equity History and Analysis

Debt Level: ZBH's net debt to equity ratio (49.3%) is considered high.

Reducing Debt: ZBH's debt to equity ratio has reduced from 115.8% to 53.1% over the past 5 years.

Debt Coverage: ZBH's debt is well covered by operating cash flow (23.3%).

Interest Coverage: ZBH's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.80%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 27 2022Ex Dividend DateJun 24 2022Dividend Pay DateJul 29 202235 days from Ex DividendBuy in the next 28 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ZBH's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: ZBH's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (4.01%).


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.


Earnings Payout to Shareholders

Earnings Coverage: ZBH is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: ZBH is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure


CEO

Bryan Hanson (54 yo)

4.42yrs

Tenure

US$14,981,058

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 ($USD14.98M) is about average for companies of similar size in the US market ($USD13.20M).

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 (7.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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
  • Implied Market Cap: US$25.286b
  • Shares outstanding: 209.58m
  • Website: https://www.zimmerbiomet.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/26 00:00
End of Day Share Price2022/05/26 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.