Zimmer Biomet Holdings (ZBH) AI Stock Analysis

• Market Cap: $20.35B
• Dividend Yield: 0.94%
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.54
• 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: 2,015,790
• 30 Day Avg. Volume: 1,857,243
• 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: 1.23
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 11.05
• 1Y Price Target: $109.89
• Price Target Upside: 7.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 74 Outperform
• Price Target: $116.00 ▲(13.10% Upside)

Zimmer Biomet Holdings demonstrates strong financial performance and positive earnings call outcomes, which are the most significant factors driving the score. Technical analysis shows bullish momentum, though caution is advised due to potential overbought conditions. The valuation suggests a high P/E ratio, indicating potential overvaluation. Recent corporate events are favorable, enhancing strategic positioning.

Positive Factors

Financial Performance

ZBH posted a solid quarter, beating on the top and bottom line with bright spots including DD performance in SET, MSD strength in OUS knees, and ongoing traction in US hips, led by a strong Z1 Hip Stem ongoing launch.

Management Confidence

Management's confidence in the 2H'25 ramp, including 'scratching' 6% 3Q organic growth is likely reassuring investors in the achievability of the full-year.

Product Launches

ZBH continues to call for a stronger 2H, with new product launches reaching scale, softer ERP comps, commercial investments taking hold, a benefit from the Q3 timing of an emerging markets tender, and contribution from the Paragon 28 acquisition.

Negative Factors

Knee Segment Performance

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

Market Share Loss

ZBH lost ~20 bps of knee share.

Organic Growth Challenges

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

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	7.02B
Gross Profit	5.39B	5.49B	5.31B	4.92B	4.87B	4.90B
EBITDA	2.27B	2.25B	2.21B	2.21B	2.16B	969.70M
Net Income	823.40M	903.80M	1.02B	231.40M	401.60M	-137.40M
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: Positive
• Last Price: 102.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBH, the sentiment is Positive. The current price of 102.56 is above the 20-day moving average (MA) of 97.03, above the 50-day MA of 94.51, and above the 200-day MA of 101.86, indicating a bullish trend. The MACD of 2.29 indicates Negative momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 91.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZBH.

Zimmer Biomet Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNN	78 Outperform	$15.84B	32.02	9.20%	2.07%	6.28%	61.96%
ZBH	74 Outperform	$20.35B	25.02	6.52%	0.94%	4.11%	-14.43%
BSX	73 Outperform	$152.87B	61.33	11.71%	―	21.45%	36.19%
SYK	72 Outperform	$146.01B	50.54	14.25%	0.87%	11.36%	-15.66%
GMED	70 Outperform	$8.18B	23.25	8.62%	―	17.43%	775.48%
Sector *	57 Neutral	£5.33B	4.79	-44.55%	2.32%	28.89%	-10.08%
SSKN	45 Neutral	$7.59M	―	-235.41%	―	0.36%	-17.20%

Zimmer Biomet Holdings Corporate Events

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.

The most recent analyst rating on (ZBH) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Zimmer Biomet Holdings stock, see the ZBH Stock Forecast page.

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.

The most recent analyst rating on (ZBH) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Zimmer Biomet Holdings stock, see the ZBH Stock Forecast page.

Zimmer Biomet Approves Amendments at Annual Meeting

Zimmer Biomet Holdings, Inc. held its annual meeting on May 29, 2025, where shareholders approved significant amendments to the 2009 Stock Incentive Plan (SIP) and the company’s Restated Certificate of Incorporation. The amendments to the SIP include an increase in available shares, extension of the plan’s term, and new provisions for independent contractors, among others. The amendment to the Certificate of Incorporation limits the personal liability of certain officers for monetary damages under specific circumstances. These changes are expected to enhance corporate governance and align with best practices, potentially impacting the company’s operational and strategic positioning.

The most recent analyst rating on (ZBH) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Zimmer Biomet Holdings stock, see the ZBH Stock Forecast page.

Zimmer Biomet Appoints Kevin Thornal as Group President

On May 27, 2025, Zimmer Biomet Holdings announced the appointment of Kevin Thornal as Group President, Global Businesses and the Americas, effective July 1, 2025. Thornal, who previously served as CEO of Nevro Corp., brings extensive experience in the medical technology, orthopedics, and diagnostics industries. His leadership is expected to enhance Zimmer Biomet’s commercial execution and stakeholder value, as the company aims to address unmet needs in musculoskeletal health and expand its product pipeline.

The most recent analyst rating on (ZBH) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Zimmer Biomet Holdings stock, see the ZBH Stock Forecast page.