Zimmer Biomet Holdings (ZBH) AI Stock Analysis

• Market Cap: $18.53B
• Dividend Yield: 1.02%
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.51
• Revenue Growth: 3.30%
• EPS Growth: -2.39%
• Country: US
• Employees: 17,000
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Devices
• EPS (TTM): 1.81
• Shares Outstanding: 197,847,900
• 10 Day Avg. Volume: 2,388,696
• 30 Day Avg. Volume: 1,905,458
• 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: 1.73
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: 3.47
• 1Y Price Target: $107.20
• Price Target Upside: 14.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 21

• Rating: 68 Neutral
• Price Target: $100.00 ▲(6.76%Upside)

Zimmer Biomet Holdings has a solid financial foundation and positive corporate events, but technical indicators suggest a cautious outlook. Valuation is fair, and recent earnings call revisions pose challenges, leading to a moderate overall score.

Positive Factors

Product Launch

ZBH is introducing new products to fill gaps in its portfolio, which could help regain market share and boost growth.

Technological Advancements

Rosa 1.5 software upgrade offers a better user interface and allows for a faster and simpler procedure.

Negative Factors

Tariff Impact

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

Valuation Concerns

ZBH shares are trading at their lowest valuation levels in over 10 years, indicating a lack of investor interest and confidence.

Zimmer Biomet Holdings Business Overview & Revenue Model

Company Description

Zimmer Biomet Holdings, Inc. is a leading global medical device company headquartered in Warsaw, Indiana. The company designs, manufactures, and markets a comprehensive portfolio of orthopedic and dental products, including joint replacement implants, surgical equipment, and biologics. Zimmer Biomet operates in several sectors, primarily focusing on musculoskeletal healthcare, dental, and spine and craniomaxillofacial products, serving healthcare professionals and hospitals worldwide.

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
EBITDA	2.30B	2.25B	2.21B	2.21B	2.16B	969.70M
Net Income	913.40M	903.80M	1.02B	231.40M	401.60M	-137.40M
Balance Sheet
Total Assets	22.18B	21.37B	21.50B	21.07B	23.46B	24.42B
Cash, Cash Equivalents and Short-Term Investments	1.38B	525.50M	415.80M	375.70M	378.10M	802.10M
Total Debt	7.18B	6.20B	6.00B	5.70B	7.08B	8.13B
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: 93.67
• 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 93.67 is above the 20-day moving average (MA) of 92.24, below the 50-day MA of 94.21, and below the 200-day MA of 103.12, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 66.22 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
BSX	74 Outperform	$154.34B	76.44	9.65%	―	19.35%	14.31%
BSX	74 Outperform	$154.34B	76.44	9.65%	―	19.35%	14.31%
SYK	73 Outperform	$151.06B	53.34	14.26%	0.85%	10.76%	-15.22%
SYK	73 Outperform	$151.06B	53.34	14.26%	0.85%	10.76%	-15.22%
SNN	71 Outperform	$13.22B	31.71	7.86%	3.05%	4.58%	55.99%
SNN	71 Outperform	$13.22B	31.71	7.86%	3.05%	4.58%	55.99%
ZBH	68 Neutral	$18.53B	20.76	7.31%	1.02%	3.30%	-2.39%
GMED	58 Neutral	$8.01B	44.26	4.63%	―	32.26%	112.87%
Sector *	52 Neutral	$7.53B	0.32	-61.76%	2.28%	16.60%	1.56%
SSKN	49 Neutral	$9.72M	―	-151.23%	―	3.30%	31.84%
SSKN	49 Neutral	$9.72M	―	-151.23%	―	3.30%	31.84%

Zimmer Biomet Holdings Corporate Events

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.