Zimmer Biomet Holdings (ZBH) AI Stock Analysis

• Market Cap: $20.94B
• Dividend Yield: 0.92%
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.52
• Revenue Growth: 4.11%
• EPS Growth: -14.43%
• Country: US
• Employees: 17,000
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): 2.07
• Shares Outstanding: 198,095,980
• 10 Day Avg. Volume: 1,197,246
• 30 Day Avg. Volume: 1,575,843
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 11.04
• 1Y Price Target: $110.94
• Price Target Upside: 6.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 79 Outperform
• Price Target: $120.00 ▲(15.55% Upside)

Zimmer Biomet Holdings demonstrates strong financial performance and positive technical indicators, supported by a favorable earnings call and strategic corporate events. While the valuation suggests potential overvaluation, the company's growth prospects and strategic initiatives provide a solid foundation for future performance.

Positive Factors

Market Expansion

A significant shift in the orthopedics industry towards Ambulatory Surgery Centers is being aggressively pursued by Zimmer, with substantial market penetration growth.

Operating Performance

Zimmer Biomet Holdings is entering one of its healthiest operating periods, with expected growth and easing supply chain issues.

Product Performance

Momentum from the Magnificent 7 product group is strong, with notable performance in specific systems like Oxford partial cementless and Persona revision.

Negative Factors

Growth Skepticism

Skepticism remains regarding the organic growth ramp required in the second half.

Revenue Growth Challenges

Q4 year-over-year revenue growth will decline from Q3 due to tougher comparisons.

Segment Performance

The U.S. Knee segment continues to show weakness, weighing down overall performance.

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 primarily through the sale of orthopedic products, which includes joint reconstruction devices, trauma products, and spinal implants. The company's revenue model is based on direct sales to hospitals and healthcare providers, as well as through distribution partnerships. Key revenue streams include the sale of reconstructive products, which is the largest segment, followed by dental and spine products. Additionally, Zimmer Biomet benefits from ongoing product innovation and the introduction of advanced technologies, such as robotic-assisted surgical systems. Strategic partnerships with healthcare institutions and participation in global healthcare initiatives further bolster their market presence and earnings potential.

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	7.83B	7.68B	7.39B	6.94B	6.83B	6.13B
Gross Profit	5.57B	5.49B	5.31B	4.92B	4.87B	4.30B
EBITDA	2.28B	2.25B	2.22B	1.49B	1.65B	1.01B
Net Income	823.40M	903.80M	1.02B	231.40M	401.60M	-138.90M
Balance Sheet
Total Assets	22.87B	21.37B	21.50B	21.07B	23.46B	24.42B
Cash, Cash Equivalents and Short-Term Investments	556.90M	525.50M	415.80M	375.70M	378.10M	802.10M
Total Debt	7.57B	6.20B	5.77B	5.70B	7.07B	8.13B
Total Liabilities	10.33B	8.89B	9.01B	9.04B	10.79B	12.22B
Stockholders Equity	12.53B	12.47B	12.48B	12.02B	12.66B	12.19B
Cash Flow
Free Cash Flow	1.42B	1.14B	1.19B	1.07B	1.35B	1.09B
Operating Cash Flow	1.66B	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	396.70M	-484.50M	-763.50M	-843.80M	-1.31B	-421.80M

Zimmer Biomet Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 103.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBH, the sentiment is Neutral. The current price of 103.85 is below the 20-day moving average (MA) of 104.83, above the 50-day MA of 98.60, and above the 200-day MA of 101.66, indicating a neutral trend. The MACD of 1.90 indicates Positive momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 28.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$119.16B	25.65	9.72%	2.99%	4.98%	22.08%
BSX	79 Outperform	$158.87B	64.36	11.71%	―	21.45%	36.19%
ZBH	79 Outperform	$20.94B	25.75	6.52%	0.92%	4.11%	-14.43%
SNN	78 Outperform	$16.59B	33.97	9.20%	1.95%	5.78%	61.52%
EW	78 Outperform	$47.52B	54.76	15.71%	―	-5.23%	-39.83%
SYK	77 Outperform	$149.98B	51.91	14.25%	0.85%	11.36%	-15.66%
Sector *	51 Neutral	$7.93B	-0.32	-43.43%	2.21%	22.30%	-1.88%

Zimmer Biomet Holdings Corporate Events

Zimmer Biomet Issues CHF 600 Million Debt Securities

On September 4, 2025, Zimmer Biomet Holdings issued two series of senior unsecured debt securities in Swiss francs, totaling CHF 600 million. These bonds, maturing in 2030 and 2035, feature interest rates of 0.930% and 1.560% respectively, and include provisions for redemption and repurchase under certain conditions, impacting the company’s financial strategy and stakeholder interests.

Zimmer Biomet Merges with Monogram Technologies

On July 11, 2025, Zimmer Biomet Holdings entered into a merger agreement with Monogram Technologies Inc., a Delaware corporation specializing in AI-driven orthopedic robotic systems. The merger will result in Monogram becoming a wholly-owned subsidiary of Zimmer Biomet, with Monogram’s shares being converted into cash and contingent value rights. This strategic acquisition is valued at approximately $168 million and is expected to enhance Zimmer Biomet’s position in the orthopedic industry by integrating Monogram’s innovative technologies. However, the transaction is subject to various risks, including regulatory approvals and potential competing offers, which could impact the anticipated benefits and timing of the merger.

Zimmer Biomet Holdings Enters New Credit Agreements

On June 27, 2025, Zimmer Biomet Holdings, Inc. entered into a new five-year revolving credit agreement and a 364-day revolving credit agreement, replacing their previous credit agreements. The five-year agreement provides a $1.5 billion unsecured revolving facility, with the possibility of increasing by up to $500 million, and will be used for general corporate purposes. This move is expected to enhance the company’s financial flexibility and support its strategic initiatives, potentially impacting its market positioning and stakeholder interests.