Zimmer Biomet Holdings, Inc.

Health Care
Industrial Specialties
www.zimmerbiomet.com

Earnings Score
Moat Score
Safety Score

Market Cap $18.74B
PE 21
Debt $7.18B
Cash $1.38B
EV $24.53B
FCF $1.46B

Earnings

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Sales & Net Margins

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Earnings	$913.40M
EBIT	$1.31B
ROE	7%
ROA	6%
FCF	$1.46B
Equity	$12.40B
Growth Stability	-50%
PE	20.51
PEG	0.43
PB	1.51
P/FCF	12.83
P/S	2.43
Price/Cash	0.07
Debt/Equity	0.58
Debt/FCF	4.91
Net Margins	10%
Gross Margins	71%
Op. Margins	17%
Earnings CAGR	1%
Sales Growth YoY	1%
Sales Growth QoQ	-6%
Sales CAGR	-1%
FCF CAGR	-2%
Equity CAGR	3%
Earnings Stability	0
Earnings Growth YoY	6%
Earnings Growth QoQ	-24%
Earnings CAGR 5Y	47%

Sales CAGR 5Y	1%
FCF CAGR 5Y	2%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	3%
Sales CAGR 3Y	3%
FCF CAGR 3Y	5%
Equity CAGR 3Y	1%
Market Cap	$18.74B
Revenue	$7.70B
Dividend Yield	1%
Payout Ratio	21%
Assets	$22.18B
Total Debt	$7.18B
Cash	$1.38B
Shares Outstanding	198.9M
EV	24.53B
Earnings Score	6%
Moat Score	81%
Safety Score	55%
Final Score	47%
Working Capital	3.3B
Current Ratio	2.44
Gross Profit	$5.47B
Shares Growth 3y	7%
Equity Growth QoQ	-1%
Equity Growth YoY	-2%

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.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 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

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 1%

Stability 0%

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Zimmer Biomet Holdings, Inc. Discounted Cash Flow

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

Years

Calculation mode

= $13B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.5B	$1.4B	$1.4B	$1.4B	$1.4B	$1.3B	$1.3B	$1.3B	$1.3B	$1.2B	$1.2B	$12B
DCF		$1.3B	$1.2B	$1B	$925M	$825M	$736M	$656M	$585M	$522M	$466M	$4.7B
Value	$13B

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	2%	4%	23%	-5%	14%	-2%	5%	3%	14%	12%	10%
ROA	-	3%	3%	0%	5%	-0%	3%	3%	6%	6%	6%
ROE	-	3%	15%	-3%	9%	-1%	3%	2%	8%	7%	7%

Net Margins (9.53%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	7.77	7.11	5.64	5.96	7.48	5.35	4.88	4.49	4.79	4.91
Debt over Equity	1.17	1.16	0.86	0.79	0.66	0.67	0.56	0.47	0.46	0.5	0.58
Growth Stability	-	-	-	-50%	100%	-16%	100%	50%	100%	100%	-50%

Bad Debt/FCF ratio (4.91)

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 (0.58)

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	28%	2%	1%	1%	-12%	12%	-11%	7%	4%	1%
Earnings YoY growth	-	108%	495%	-121%	-398%	-112%	-389%	-42%	343%	-12%	47%
Equity YoY growth	-	-2%	21%	-4%	10%	-2%	4%	-5%	4%	-0%	1%
FCF YoY growth	-	123%	-1%	11%	-13%	-21%	22%	-12%	10%	0%	2%