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Zimmer Biomet Holdings (ZBH)
NYSE:ZBH
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Zimmer Biomet Holdings
(NYSE:ZBH)
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Rating:73Outperform
Price Target:
$105.00
▲(14.82% 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 (ZBH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.40B
Dividend Yield1.05%
Average Volume (3M)1.81M
Price to Earnings (P/E)23.0
Beta (1Y)0.58
Revenue Growth5.47%
EPS Growth-23.03%
CountryUS
Employees17,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.90
Shares Outstanding198,181,550
10 Day Avg. Volume1,303,706
30 Day Avg. Volume1,813,481
Financial Highlights & Ratios
PEG Ratio-2.53
Price to Book (P/B)1.72
Price to Sales (P/S)2.79
P/FCF Ratio18.78
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue3.30
Enterprise Value/Gross Profit4.61
Enterprise Value/Ebitda11.11
Forecast
1Y Price Target
$100.47Price Target Upside9.86% Upside
Rating ConsensusHold
Number of Analyst Covering18
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Zimmer Biomet Holdings Business Overview & Revenue Model
Company DescriptionZimmer 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 MoneyZimmer 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 Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyZimmer Biomet Holdings Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant growth in the U.S. and technological advancements, but also highlighted challenges in emerging markets and specific segments, leading to a cautious adjustment in revenue guidance.Q3-2025 Updates
Positive Updates
U.S. Business Growth
Zimmer Biomet's U.S. business grew 5.6% on an organic constant currency basis, marking the best performance in over two years, driven by new product adoption and strong robotic placements.
Knees and Hips Segment Performance
The U.S. Knees segment grew 3.5%, driven by Persona OsseoTi and Oxford knee implants, while the U.S. Hips grew 4% due to products like Z1, HAMMR, and OrthoGrid.
Technology and Data Segment Growth
The Technology and Data, Bone Cement, and Surgical segment saw an 11.3% increase globally, fueled by strong ROSA placements.
Adjusted Earnings Per Share Growth
Zimmer Biomet reported adjusted earnings per share of $1.90, a 9.2% increase year-over-year, despite challenges such as tariffs and integration costs.
Iodine Technology Launch in Japan
Zimmer Biomet received PMDA approval for iodine-treated hip implants in Japan, a first-of-its-kind technology that addresses periprosthetic joint infections.
Negative Updates
Emerging Markets and Restorative Therapies Weakness
Unexpected late-quarter weakness in Eastern Europe, Latin America, and non-core restorative therapies impacted overall growth by approximately 120 basis points.
Updated Revenue Guidance
Zimmer Biomet lowered its full-year organic constant currency revenue growth expectations to 3.5% to 4% from the previous 3.5% to 4.5% range, citing continued weakness in certain segments and markets.
Challenges in the U.S. Revision Market
A slowdown in the U.S. revision market for both hips and knees is expected to persist throughout the remainder of 2025.
Company Guidance
During the third quarter of 2025, Zimmer Biomet reported a 5% sales growth on an organic constant currency basis, with the U.S. business accelerating to 5.6% from 2.3% in Q2. Despite unexpected challenges in Eastern Europe, Latin America, and the S.E.T. segment impacting growth by nearly 120 basis points, the company remains optimistic about its innovation cycle and new product launches. U.S. technology and data sales increased by 20.3%, with robotics capital sales achieving their strongest quarter in over a year. The company's Persona OsseoTi knee implants now constitute nearly 30% of the U.S. total knee market, and U.S. hips grew by 4%. Zimmer Biomet updated its full-year organic constant currency revenue growth expectation to 3.5% to 4%, while maintaining its adjusted EPS guidance of $8.10 to $8.30, despite adjusting for continued weakness in certain segments and markets.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
Negative
91.45
Price Trends
92.11
Negative
96.69
Negative
96.48
Negative
Market Momentum
0.03
Negative
48.18
Neutral
56.64
Neutral
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 91.45 is above the 20-day moving average (MA) of 91.17, below the 50-day MA of 92.11, and below the 200-day MA of 96.48, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 56.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZBH.
Zimmer Biomet Holdings Risk Analysis
Zimmer Biomet Holdings disclosed 28 risk factors in its most recent earnings report. Zimmer Biomet Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zimmer Biomet Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $125.03B | 26.35 | 9.81% | 2.76% | 5.34% | 13.15% | |
79 Outperform | $144.75B | 51.20 | 12.66% | ― | 21.62% | 54.80% | |
79 Outperform | $49.40B | 35.34 | 13.59% | ― | 0.19% | 65.58% | |
73 Outperform | $18.40B | 22.98 | 6.41% | 1.05% | 5.47% | -23.03% | |
70 Outperform | $140.56B | 48.26 | 14.04% | 0.95% | 10.95% | -18.32% | |
69 Neutral | $14.39B | 29.69 | 9.20% | 2.28% | 5.78% | 61.52% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ZBH
Zimmer Biomet Holdings
91.45
-12.23
-11.80%
BSX
Boston Scientific
95.72
0.07
0.07%
EW
Edwards Lifesciences
83.01
11.97
16.85%
MDT
Medtronic
96.95
14.31
17.32%
SNN
Smith & Nephew Snats
33.68
10.35
44.36%
SYK
Stryker
361.37
1.00
0.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.