Zimmer Biomet Holdings (ZBH) AI Stock Analysis

• Market Cap: $17.80B
• Dividend Yield: 1.05%
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.57
• Revenue Growth: 5.47%
• EPS Growth: -23.03%
• Country: US
• Employees: 17,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.90
• Shares Outstanding: 198,181,550
• 10 Day Avg. Volume: 2,651,130
• 30 Day Avg. Volume: 2,194,351
• PEG Ratio: -2.53
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 18.78
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: 11.11
• 1Y Price Target: $99.71
• Price Target Upside: 11.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17
• EPS Forecast (FY): 8.17
• Revenue Forecast (FY): $8.21B

• Rating: 73 Outperform
• Price Target: $105.00 ▲(17.41% Upside)

Zimmer Biomet Holdings shows strong financial health and strategic growth initiatives, particularly in the U.S. market and through acquisitions like Monogram Technologies. However, technical indicators suggest a bearish trend, and valuation metrics indicate potential overvaluation. The company's ability to navigate challenges in emerging markets and maintain growth will be crucial.

Positive Factors

Technological Advancements

The FDA clearance of ROSA Knee with OptimiZe enhances Zimmer Biomet's product offerings, supporting long-term growth by improving surgical outcomes and maintaining competitive advantage in robotic-assisted surgery.

Strategic Acquisitions

The acquisition of Monogram Technologies strengthens Zimmer Biomet's robotics capabilities, enhancing its market position and supporting long-term growth through expanded product offerings in orthopedic procedures.

Revenue Growth

Consistent revenue growth, particularly in the U.S., demonstrates Zimmer Biomet's expanding market reach and successful product adoption, supporting its long-term financial health.

Negative Factors

Emerging Markets Challenges

Challenges in emerging markets could hinder Zimmer Biomet's growth potential, impacting its ability to capitalize on new opportunities and diversify revenue streams.

Net Profit Margin Pressure

Decreasing net profit margins suggest potential cost pressures or pricing challenges, which could affect Zimmer Biomet's profitability and financial flexibility over time.

U.S. Revision Market Slowdown

A slowdown in the U.S. revision market may limit Zimmer Biomet's growth in a key segment, potentially affecting revenue and market share in the orthopedic sector.

Zimmer Biomet Holdings Business Overview & Revenue Model

Company Description

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. The company's products and solutions are used to treat patients suffering from disorders of, or injuries to, bones, joints, or supporting soft tissues. It serves orthopedic surgeons, neurosurgeons, oral surgeons, dentists, hospitals, stocking distributors, healthcare dealers, and other specialists, as well as agents, healthcare purchasing organizations, or buying groups. The company was formerly known as Zimmer Holdings, Inc. and changed its name to Zimmer Biomet Holdings, Inc. in June 2015. Zimmer Biomet Holdings, Inc. was founded in 1927 and is headquartered in Warsaw, Indiana.

How the Company Makes Money

Zimmer Biomet generates revenue through the sale of its medical devices and products primarily in the orthopedic and spine markets. The company’s key revenue streams include sales from joint reconstruction products, which encompass knee and hip replacement systems, and spinal products, which include devices for spinal fusion and deformity correction. Additional revenue is derived from dental products and surgical solutions. Zimmer Biomet also engages in partnerships and collaborations with healthcare providers and institutions to enhance its product offerings and market reach. The company benefits from a diverse customer base, including hospitals, surgical centers, and clinics, which contribute to a steady stream of revenue. Additionally, ongoing advancements in technology and product innovation play a significant role in driving sales and maintaining competitive advantage in the healthcare sector.

Zimmer Biomet Holdings Financial Statement Overview

Summary

Zimmer Biomet Holdings exhibits solid financial health with consistent revenue growth and strong cash flow generation. While profitability margins have faced some pressure, the company maintains a stable balance sheet with manageable leverage. The positive cash flow trends and efficient cost management position the company well for future growth, though attention to improving net profit margins could enhance overall financial performance.

Income Statement

Zimmer Biomet Holdings has shown consistent revenue growth with a TTM increase of 1.76%. The gross profit margin remains strong at 68.83% TTM, indicating efficient cost management. However, the net profit margin has decreased to 10.51% TTM from 11.77% in the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins are stable, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio is at a manageable level of 0.53 TTM, showing a slight increase from the previous year, which indicates a moderate leverage position. Return on equity has decreased to 6.40% TTM, reflecting a decline in profitability relative to shareholder equity. The equity ratio remains healthy, indicating a strong capital structure.

Cash Flow

Zimmer Biomet Holdings has demonstrated a positive free cash flow growth rate of 5.57% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is robust at 0.88 TTM, showing strong cash conversion. The free cash flow to net income ratio is also strong at 0.86 TTM, highlighting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.01B	7.68B	7.39B	6.94B	6.83B	6.13B
Gross Profit	5.72B	5.49B	5.31B	4.92B	4.87B	4.30B
EBITDA	2.38B	2.25B	2.22B	1.49B	1.65B	1.01B
Net Income	805.20M	903.80M	1.02B	231.40M	401.60M	-138.90M
Balance Sheet
Total Assets	23.49B	21.37B	21.50B	21.07B	23.46B	24.42B
Cash, Cash Equivalents and Short-Term Investments	1.29B	525.50M	415.80M	375.70M	378.10M	802.10M
Total Debt	8.11B	6.20B	5.77B	5.70B	7.07B	8.13B
Total Liabilities	10.72B	8.89B	9.01B	9.04B	10.79B	12.22B
Stockholders Equity	12.76B	12.47B	12.48B	12.02B	12.66B	12.19B
Cash Flow
Free Cash Flow	1.60B	1.14B	1.19B	1.07B	1.35B	1.09B
Operating Cash Flow	1.69B	1.50B	1.58B	1.28B	1.50B	1.20B
Investing Cash Flow	-1.94B	-888.10M	-778.90M	-529.20M	-503.60M	-613.80M
Financing Cash Flow	982.40M	-484.50M	-763.50M	-843.80M	-1.31B	-421.80M

Zimmer Biomet Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 89.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBH, the sentiment is Negative. The current price of 89.43 is below the 20-day moving average (MA) of 92.87, below the 50-day MA of 94.68, and below the 200-day MA of 97.78, indicating a bearish trend. The MACD of -1.21 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 17.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZBH.

Zimmer Biomet Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDT	80 Outperform	$125.27B	26.33	9.81%	2.76%	5.34%	13.15%
BSX	79 Outperform	$142.95B	51.39	12.66%	―	21.62%	54.80%
EW	79 Outperform	$50.21B	36.71	13.59%	―	0.19%	65.58%
ZBH	73 Outperform	$17.80B	22.13	6.41%	1.05%	5.47%	-23.03%
SYK	70 Outperform	$136.34B	46.59	14.04%	0.95%	10.95%	-18.32%
SNN	69 Neutral	$14.12B	29.00	9.20%	2.26%	5.78%	61.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Zimmer Biomet Holdings Corporate Events

Zimmer Biomet Acquires Monogram Technologies to Enhance Robotics

On October 7, 2025, Zimmer Biomet Holdings completed the acquisition of Monogram Technologies, an AI-driven orthopedic robotics company. This strategic move aims to expand Zimmer Biomet’s portfolio by integrating Monogram’s semi- and fully autonomous robotic technologies, enhancing their offerings in orthopedic procedures. The acquisition is expected to strengthen Zimmer Biomet’s position in the industry by providing surgeons with a broader choice of robotic and navigation solutions, thereby accelerating innovation and supporting long-term growth.