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ZimVie Inc (ZIMV)
NASDAQ:ZIMV
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ZimVie Inc
(NASDAQ:ZIMV)
50Neutral
Positive Factors
Manufacturing Efficiency
Manufacturing efficiency initiatives resulted in strong sequential gross margin improvement.
Market Share
Management believes it is gaining premium implant market share.
Negative Factors
Product Performance
Implants and scanners were the two weakest product groups in the quarter.
Revenue
ZIMV missed consensus revenue while adjusted EBITDA met expectations in 4Q24.
ZimVie Inc (ZIMV) vs. S&P 500 (SPY)
Market Cap
$298.92M
Dividend YieldN/A
Average Volume (3M)150.62K
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth-41.31%
EPS Growth93.60%
CountryUS
Employees1,770
SectorHealthcare
Sector Strength62
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.93
Shares Outstanding27,677,345
10 Day Avg. Volume137,442
30 Day Avg. Volume150,618
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.72
Price to Cash Flow (P/CF)3.80
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.00Price Target Upside42.05% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
ZimVie Inc Business Overview & Revenue Model
Company DescriptionZimVie Inc (ZIMV) is a global medical technology company that operates primarily in the healthcare sector. The company specializes in the development, manufacturing, and marketing of a wide range of medical devices and solutions. ZimVie focuses on providing innovative products and services to improve patient care in areas such as dental and spine health. The company's offerings include dental implants, surgical instruments, and spinal solutions, aimed at enhancing clinical outcomes and patient experience.
How the Company Makes MoneyZimVie Inc generates revenue through the sale of its medical devices and solutions, primarily in the dental and spine health sectors. The company's key revenue streams include the sale of dental implants and related surgical instruments, as well as spinal solutions designed to address a variety of spine-related health issues. Additionally, ZimVie may establish partnerships with healthcare providers, distributors, and other stakeholders to expand its market reach and increase sales. The company focuses on innovation and the development of new products to meet the evolving needs of healthcare professionals and patients, contributing to its revenue growth.
ZimVie Inc Financial Statement Overview
Summary
ZimVie Inc faces significant challenges with declining revenues and persistent net losses, impacting profitability. However, the company has improved its balance sheet by eliminating debt, enhancing financial stability. Positive cash flow management is a strength, but operational inefficiencies need to be addressed for profitability.Income Statement
ZimVie Inc has been experiencing a consistent decline in revenue over the past years, with a significant revenue decrease of 50.76% from 2019 to 2024. The gross profit margin has remained strong at 100% in 2024, but this is due to significant cost reductions rather than revenue growth. The company consistently reports negative net income, resulting in negative net profit margins, indicating ongoing profitability challenges. Both EBIT and EBITDA margins have been negative, reflecting non-operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reflects a relatively stable equity ratio of about 50.6% in 2024, indicating moderate financial leverage. The company has managed to reduce its total debt to zero by 2024, significantly improving its debt-to-equity ratio from 1.27 in 2020 to 0 in 2024. However, the return on equity remains negative due to consistent net losses, indicating inefficient use of equity capital.55
Neutral
Cash Flow
ZimVie Inc has shown some positive trends in cash flow management. Despite operating challenges, the company has managed to maintain positive operating cash flow and free cash flow in recent years. The free cash flow declined significantly in 2024, but the company has a strong operating cash flow to net income ratio, indicating good cash generation relative to net earnings, albeit the latter being negative.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 449.75M | 457.43M | 913.86M | 1.01B | 912.40M | Gross Profit |
| 287.45M | 290.38M | 613.08M | 628.80M | 599.50M | EBIT |
| -33.83M | -30.94M | -50.85M | -73.60M | -67.10M | EBITDA |
| 29.61M | 91.07M | 79.16M | 28.70M | -86.70M | Net Income Common Stockholders |
| -13.36M | -393.28M | -63.88M | -95.30M | -179.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 74.97M | 71.51M | 89.60M | 100.40M | 27.40M | Total Assets |
| 753.67M | 1.21B | 1.64B | 1.83B | 1.95B | Total Debt |
| 232.57M | 521.93M | 564.14M | 57.90M | 89.20M | Net Debt |
| 157.60M | 450.42M | 474.54M | -42.50M | 61.80M | Total Liabilities |
| 371.97M | 795.85M | 883.45M | 375.30M | 458.70M | Stockholders Equity |
| 381.71M | 409.49M | 758.60M | 1.45B | 1.49B |
| Cash Flow | Free Cash Flow | |||
| 7.49M | 24.66M | -1.92M | 7.70M | 47.70M | Operating Cash Flow |
| 14.17M | 37.15M | 24.63M | 64.30M | 86.00M | Investing Cash Flow |
| 282.30M | -15.17M | -28.66M | -60.30M | -49.50M | Financing Cash Flow |
| -294.67M | -25.67M | -1.31M | 72.30M | -46.50M |
ZimVie Inc Technical Analysis
Negative
10.56
Price Trends
12.87
Negative
13.43
Negative
15.21
Negative
Market Momentum
-0.60
Positive
28.01
Positive
9.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZIMV, the sentiment is Negative. The current price of 10.56 is below the 20-day moving average (MA) of 11.73, below the 50-day MA of 12.87, and below the 200-day MA of 15.21, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 28.01 is Positive, neither overbought nor oversold. The STOCH value of 9.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZIMV.
ZimVie Inc Risk Analysis
ZimVie Inc disclosed 38 risk factors in its most recent earnings report. ZimVie Inc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ZimVie Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $142.08B | 47.96 | 15.26% | 0.88% | 10.23% | -5.74% | |
77 Outperform | $113.49B | 26.90 | 8.42% | 3.16% | 2.72% | 4.48% | |
73 Outperform | $22.53B | 25.53 | 7.24% | 0.85% | 3.84% | -9.29% | |
69 Neutral | $11.71B | 98.59 | 2.52% | ― | 60.62% | -35.88% | |
52 Neutral | $1.67B | ― | -0.44% | ― | 4.47% | -110.70% | |
50 Neutral | $298.92M | ― | -8.53% | ― | -41.31% | 93.60% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% |
* Healthcare Sector Average
Performance Comparison
ZIMV
ZimVie Inc
10.56
-6.84
-39.31%
IART
Integra Lifesciences
21.78
-12.12
-35.75%
MDT
Medtronic
88.86
6.64
8.08%
SYK
Stryker
377.46
29.68
8.53%
ZBH
Zimmer Biomet Holdings
112.50
-16.37
-12.70%
GMED
Globus Medical
75.50
23.16
44.25%
ZimVie Inc Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -19.39% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
ZimVie had a transformative year with significant strategic shifts and financial improvements, particularly in cash flow and EBITDA margins. However, revenue decline and challenges in the implant market, especially in the specialist segment, present ongoing challenges.Highlights
Transformation into a Pure-Play Dental Company
ZimVie successfully transformed into a pure-play dental company by selling its spine business, allowing it to fully focus on dental implants, biomaterials, and digital dentistry solutions.
Strong Cash Flow and Debt Reduction
Generated over $21 million in operating cash flow in Q4 and used proceeds from the spine business sale to significantly pay down debt.
Improved EBITDA Margins
Adjusted EBITDA margins improved by over two percentage points for the year, with a fourth quarter adjusted EBITDA of $18.4 million, translating to a 16.5% margin.
Growth in Digital Dentistry Portfolio
ZimVie's digital solutions, excluding scanner sales, grew over 10% for the year and over 20% in Q4. The Implant Concierge service grew 14% for the year.
Positive Adjusted Earnings Growth
Adjusted earnings per share for the year increased by 182% from $0.22 to $0.62.
Lowlights
Decline in Overall Revenue
Total net sales for the year decreased by 1.6% in reported rates and 1.2% in constant currency.
Weakness in US Implants and Oral Scanners
Fourth quarter saw declines in US implants and oral scanner sales, contributing to a 1.4% decrease in total third-party net sales.
Challenges in Specialist Implant Volume
The specialist implant market, which drives higher volume and growth, has not fully recovered, impacting overall implant sales.
Company Guidance
During ZimVie's Fourth Quarter 2024 Earnings Conference Call, the company provided several key metrics and insights into their future guidance. For the full year 2024, ZimVie reported total revenues of $449.7 million, a 1.6% decline from the previous year, though the company achieved a 2% growth in their biomaterials portfolio. The fourth quarter saw revenues of $111.5 million, a slight decrease of 1.4%. Despite these declines, ZimVie improved adjusted EBITDA margins by over two percentage points for the year, achieving a total of $60 million, reflecting an 18% increase over the prior year. The company also managed to pay down debt significantly, reducing net debt to approximately $145 million. Looking forward, ZimVie expects 2025 revenues to range from $445 million to $460 million, with an adjusted EBITDA of $65 million to $70 million, and adjusted earnings per share between $0.80 and $0.95, suggesting substantial growth. The company plans to focus on strengthening their commercial team and expanding their product portfolio to drive this projected growth.ZimVie Inc Corporate Events
Executive/Board ChangesShareholder Meetings
ZimVie Inc Announces Board Leadership Changes
Neutral
Mar 13, 2025
On March 7, 2025, David King, the Non-Executive Chair of ZimVie Inc.’s Board of Directors, announced he will not seek reelection at the company’s annual meeting on May 7, 2025. His decision is not due to any disagreement with the company. The Board will reduce its size to five members following his departure and has appointed Vafa Jamali as the new Chairman and Vinit Asar as the Lead Independent Director, effective May 7, 2025.
Business Operations and StrategyFinancial Disclosures
ZimVie Inc Reports 2024 Financial Results and Transformation
Positive
Feb 26, 2025
On February 26, 2025, ZimVie Inc. reported its financial results for the fourth quarter and full year of 2024, highlighting a transformational year where the company became a pure play dental company. Despite a slight decrease in net sales, the company improved its financial profile by reducing net debt by over $290 million and increasing adjusted EBITDA margins. The net loss for the year improved significantly compared to 2023, and the company expressed optimism about the growth potential in the dental implant market for 2025 and beyond.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.