Zimmer Biomet Holdings (ZBH) AI Stock Analysis

• Market Cap: $18.23B
• Dividend Yield: 1.05%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.53
• Revenue Growth: 3.30%
• EPS Growth: -2.39%
• Country: US
• Employees: 17,000
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Devices
• EPS (TTM): 1.81
• Shares Outstanding: 197,847,900
• 10 Day Avg. Volume: 1,382,022
• 30 Day Avg. Volume: 2,406,410
• PEG Ratio: -4.13
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.37
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: 3.47
• 1Y Price Target: $107.05
• Price Target Upside: 16.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 21

• Rating: 70 Outperform
• Price Target: $102.00 ▲(10.68%Upside)

Zimmer Biomet's solid financial performance is a key strength, supported by strategic cash flow management and stable leverage. However, technical indicators point to bearish momentum, and valuation metrics suggest moderate investment appeal. The newly appointed executive leadership could provide future growth opportunities, balancing the current challenges from tariffs and lowered EPS guidance.

Positive Factors

Financial Performance

The company posted a decent quarter, beating both top and bottom line expectations, with strong performance in US hips and OUS knees.

Mergers and Acquisitions

Zimmer Biomet's acquisition of Paragon 28 is expected to boost top-line growth by approximately 270 basis points for the fiscal year 2025.

Product Innovation

The Oxford cementless partial knee is a key product launch as the only cementless partial on the market, which can save 10-15 minutes per procedure.

Negative Factors

Earnings Guidance

Management lowered EPS guidance due to tariff impact, which implies a selling day adjusted deceleration from 1Q to 2Q, putting more pressure on a second-half weighted growth ramp.

Tariffs Impact

Zimmer Biomet anticipates a $60-$80 million headwind to operating profit due to potential tariffs, particularly impacting the second half of the year.

US Knee Segment

Zimmer Biomet is facing weak growth in the US knee segment, which has led to the implementation of sales force optimization measures.

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 makes money through the sale of its extensive range of medical devices and related products. The company's revenue model is driven by several key streams, including the sale of joint replacement implants such as knee, hip, and shoulder systems, which are its primary revenue contributors. Additionally, Zimmer Biomet earns revenue from surgical and operating room equipment, dental products, and spine and trauma devices. The company leverages significant partnerships with hospitals, healthcare providers, and distributors to expand its market reach. Factors contributing to its earnings include innovation in product development, strategic acquisitions, and a global distribution network that ensures product availability and support to customers across various regions.

Zimmer Biomet Holdings Financial Statement Overview

Summary

Zimmer Biomet Holdings demonstrates consistent revenue and profit growth. The balance sheet shows stable leverage and robust cash flows support strategic initiatives. However, there is room for improvement in return on equity.

Income Statement

Zimmer Biomet Holdings has shown strong performance with consistent revenue growth, particularly evident in the TTM period. Gross profit margin remains robust at over 70%, reflecting efficient cost management. The net profit margin has improved significantly from previous years, indicating enhanced profitability. EBIT and EBITDA margins also demonstrate solid operating performance, underscoring cost efficiency and operational strength.

Balance Sheet

The balance sheet presents a stable financial position with a manageable debt-to-equity ratio, indicating balanced leverage. Zimmer Biomet has a healthy equity ratio, demonstrating a solid capital structure. However, the return on equity shows a moderate performance, suggesting room for improvement in generating returns from shareholders' equity.

Cash Flow

Cash flow analysis reflects positive trends, with a strong operating cash flow to net income ratio, indicating efficient cash generation from operations. Free cash flow has grown over the periods, supporting future investments and debt reduction. The company maintains a prudent approach to capital expenditures, bolstering its cash flow position.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.70B	7.68B	7.39B	6.94B	6.83B	7.02B
	Gross Profit
5.47B	5.49B	5.31B	4.92B	4.87B	4.90B
	EBIT
1.31B	1.29B	1.28B	1.06B	860.30M	723.30M
	EBITDA
2.30B	2.25B	2.21B	2.21B	2.16B	969.70M
	Net Income Common Stockholders
913.40M	903.80M	1.02B	231.40M	401.60M	-137.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.38B	525.50M	415.80M	375.70M	378.10M	802.10M
	Total Assets
22.18B	21.37B	21.50B	21.07B	23.46B	24.42B
	Total Debt
7.18B	6.20B	6.00B	5.70B	7.08B	8.13B
	Net Debt
5.79B	5.68B	5.58B	5.32B	6.70B	7.32B
	Total Liabilities
9.78B	8.89B	9.01B	9.04B	10.79B	12.22B
	Stockholders Equity
12.40B	12.47B	12.48B	12.02B	12.66B	12.20B
Cash Flow		Free Cash Flow
1.35B	1.14B	1.20B	1.10B	1.35B	1.09B
	Operating Cash Flow
1.65B	1.50B	1.58B	1.28B	1.50B	1.20B
	Investing Cash Flow
-799.10M	-888.10M	-778.90M	-529.20M	-503.60M	-613.80M
	Financing Cash Flow
141.00M	-484.50M	-763.50M	-843.80M	-1.31B	-421.80M

Zimmer Biomet Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 92.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 92.16 is below the 20-day moving average (MA) of 92.88, below the 50-day MA of 96.69, and below the 200-day MA of 104.44, indicating a bearish trend. The MACD of -1.26 indicates Negative momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 45.19 is Neutral, 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
SNN	80 Outperform	$12.85B	31.05	7.82%	3.14%	4.58%	55.99%
SYK	78 Outperform	$144.19B	50.92	14.26%	0.89%	10.76%	-15.22%
BSX	72 Outperform	$147.56B	73.08	9.65%	―	19.35%	14.31%
ZBH	70 Outperform	$18.23B	20.42	7.31%	1.05%	3.30%	-2.39%
GMED	68 Neutral	$7.97B	44.06	4.63%	―	32.26%	112.87%
SSKN	54 Neutral	$9.18M	―	-151.23%	―	3.30%	31.84%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%

Zimmer Biomet Holdings Corporate Events

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.