Zimmer Biomet Holdings (ZBH) AI Stock Analysis

• Market Cap: $18.99B
• Dividend Yield: 1%
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.51
• Revenue Growth: 3.30%
• EPS Growth: -2.39%
• Country: US
• Employees: 17,000
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Devices
• EPS (TTM): 1.81
• Shares Outstanding: 197,847,900
• 10 Day Avg. Volume: 1,691,059
• 30 Day Avg. Volume: 1,892,774
• PEG Ratio: 11.82
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.31
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 6.51
• Enterprise Value/Ebitda: 3.93
• 1Y Price Target: $108.26
• Price Target Upside: 10.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 74 Outperform
• Price Target: $104.00 ▲(6.61%Upside)

Zimmer Biomet Holdings demonstrates solid financial performance and strong cash flow generation, with a positive impact from recent corporate events. While the company's valuation is moderate, technical indicators support a positive trend. Challenges such as tariff impacts and lower growth in certain segments are notable but offset by strategic initiatives and corporate developments.

Positive Factors

Partnerships

ZBH announced a strategic partnership with MedTech company Getinge, creating a turnkey solution for its ASC customers.

Robotic Offerings

The Monogram mBôs TKA System adds advanced features like autonomous cutting and markerless tracking to ZBH's robotic offerings.

Strategic Acquisitions

ZBH's acquisition of Paragon 28 is expected to contribute inorganic growth to the company's performance.

Negative Factors

Financial Performance

ZBH will need a strong 2Q outperformance to satisfy investors.

Investment Risks

ZBH is paying a high price for a robotic system that is still under development and has not yet sold a unit.

Sales Impact

The system is not expected to contribute to sales until several years later, raising questions about the immediate impact on ZBH's offerings.

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 strong financial performance with consistent revenue and profit growth. The balance sheet shows manageable leverage, and cash flows are robust, supporting operational and strategic initiatives. However, improvement in return on equity could further enhance investor value.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.68B	7.39B	6.94B	6.83B	7.02B
Gross Profit	5.49B	5.31B	4.92B	4.87B	4.90B
EBITDA	2.25B	2.21B	2.21B	2.16B	969.70M
Net Income	903.80M	1.02B	231.40M	401.60M	-137.40M
Balance Sheet
Total Assets	21.37B	21.50B	21.07B	23.46B	24.42B
Cash, Cash Equivalents and Short-Term Investments	525.50M	415.80M	375.70M	378.10M	802.10M
Total Debt	6.20B	6.00B	5.70B	7.08B	8.13B
Total Liabilities	8.89B	9.01B	9.04B	10.79B	12.22B
Stockholders Equity	12.47B	12.48B	12.02B	12.66B	12.20B
Cash Flow
Free Cash Flow	1.14B	978.80M	1.10B	1.35B	1.09B
Operating Cash Flow	1.50B	1.58B	1.28B	1.50B	1.20B
Investing Cash Flow	-888.10M	-778.90M	-529.20M	-503.60M	-613.80M
Financing Cash Flow	-484.50M	-763.50M	-843.80M	-1.31B	-421.80M

Zimmer Biomet Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 97.55
• 50DMA: Positive
• 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 Neutral. The current price of 97.55 is above the 20-day moving average (MA) of 94.48, above the 50-day MA of 93.32, and below the 200-day MA of 102.33, indicating a neutral trend. The MACD of 0.90 indicates Negative momentum. The RSI at 55.58 is Neutral, neither overbought nor oversold. The STOCH value of 79.06 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
SYK	81 Outperform	$154.21B	54.46	14.26%	0.83%	10.76%	-15.22%
SNN	80 Outperform	$13.80B	33.54	7.86%	2.37%	5.16%	56.79%
BSX	80 Outperform	$157.03B	63.31	9.65%	―	21.45%	36.19%
ZBH	74 Outperform	$18.99B	21.27	7.31%	1.00%	3.30%	-2.39%
GMED	69 Neutral	$7.38B	40.75	4.63%	―	32.26%	112.87%
Sector *	65 Neutral	€6.45B	18.49	-1.30%	2.20%	-0.15%	-41.32%
SSKN	48 Neutral	$8.18M	―	-151.23%	―	3.30%	31.84%

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.