Zimmer Biomet Holdings, Inc.

Health Care
Industrial Specialties
www.zimmerbiomet.com

Earnings Score
Moat Score
Safety Score

Market Cap $21.85B
PE 20
Debt $6.45B
Cash $569.00M
EV $27.74B
FCF $1.37B

Earnings

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Sales & Net Margins

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Earnings	$1.08B
EBIT	$1.25B
ROE	9%
ROA	6%
FCF	$1.37B
Equity	$12.38B
Growth Stability	-50%
PE	20.17
PEG	0.87
PB	1.76
P/FCF	15.99
P/S	2.88
Price/Cash	0.03
Debt/Equity	0.52
Debt/FCF	4.72
Net Margins	12%
Gross Margins	72%
Op. Margins	16%
Earnings CAGR	4%
Sales Growth YoY	4%
Sales Growth QoQ	-6%
Sales CAGR	-0%
FCF CAGR	-0%
Equity CAGR	4%
Earnings Stability	0.02
Earnings Growth YoY	53%
Earnings Growth QoQ	3%
Earnings CAGR 5Y	23%

Sales CAGR 5Y	-0%
FCF CAGR 5Y	-1%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	-0%
Sales CAGR 3Y	-0%
FCF CAGR 3Y	-2%
Equity CAGR 3Y	1%
Market Cap	$21.85B
Revenue	$7.60B
Dividend Yield	1%
Payout Ratio	18%
Assets	$21.72B
Total Debt	$6.45B
Cash	$569.00M
Shares Outstanding	202.3M
EV	27.74B
Earnings Score	6%
Moat Score	83%
Safety Score	56%
Final Score	48%
Working Capital	1.29B
Current Ratio	1.36
Gross Profit	$5.45B
Shares Growth 3y	6%
Equity Growth QoQ	-3%
Equity Growth YoY	-1%

Assets & ROA

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Stockholders Equity & ROE

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Zimmer Biomet designs, manufactures, and markets orthopedic reconstructive implants, as well as supplies and surgical equipment for orthopedic surgery. With the acquisitions of Centerpulse in 2003 and Biomet in 2015, Zimmer holds the leading share of the reconstructive market in the United States, Europe, and Japan. Roughly 70% of total revenue is derived from sales of large joints, another quarter comes from extremities, trauma, and related surgical products.

SEC Filings

Direct access to Zimmer Biomet Holdings, Inc. (ZBH) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Zimmer Biomet Holdings, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Zimmer Biomet Holdings, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 4%

Stability 2%

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Zimmer Biomet Holdings, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Zimmer Biomet Holdings, Inc..

Years

Calculation mode

= $14B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$14B
DCF		$1.2B	$1.1B	$1B	$931M	$846M	$768M	$698M	$634M	$576M	$523M	$5.2B
Value	$14B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	15%	2%	4%	23%	-5%	14%	-2%	5%	3%	14%	12%
ROA	-	2%	3%	3%	0%	5%	-0%	3%	3%	6%	6%
ROE	-	1%	3%	15%	-3%	9%	-1%	3%	2%	8%	9%

Good Net Margins (11.75%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	17.81	7.77	7.11	5.64	5.96	7.48	5.35	4.88	4.49	4.72
Debt over Equity	0.22	1.17	1.16	0.86	0.79	0.66	0.67	0.56	0.47	0.46	0.52
Growth Stability	-	-	-	100%	-50%	100%	-16%	100%	50%	100%	-50%

Bad Debt/FCF ratio (4.72)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.52)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-50%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	28%	28%	2%	1%	1%	-12%	12%	-11%	7%	-0%
Earnings YoY growth	-	-80%	108%	495%	-121%	-398%	-112%	-389%	-42%	343%	23%
Equity YoY growth	-	52%	-2%	21%	-4%	10%	-2%	4%	-5%	4%	1%
FCF YoY growth	-	-29%	123%	-1%	11%	-13%	-21%	22%	-12%	10%	-1%