A Business at a Glance
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ZIMMER BIOMET HOLDINGS, INC.
ZBH
$18.1B
Mkt Cap
$91.35
+1.90%
ZIMMER BIOMET HOLDINGS, INC. (ZBH) has a current P/E ratio of 25.7, compared to its historical median P/E of 25.5. The stock is currently considered Fair based on its historical valuation range.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) has a 5-year average return on invested capital (ROIC) of 4.9%. This is below average and may indicate limited pricing power.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) has a market capitalization of $29.2B. It is classified as a large-cap stock.
Yes, ZIMMER BIOMET HOLDINGS, INC. (ZBH) pays a dividend with a trailing twelve-month yield of 0.65%. The company also returns capital through share buybacks, with a buyback yield of 1.74%.
Based on historical P/E analysis, ZIMMER BIOMET HOLDINGS, INC. (ZBH) appears fair. The current P/E of 25.7 is 1% above its historical median of 25.5. The estimated fair value CAGR (P/E method) is 24.5%.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) operates in the Orthopedic, Prosthetic & Surgical Appliances & Supplies industry, within the Healthcare sector.
Zimmer Biomet is a global medical technology leader that designs, manufactures, and markets orthopedic reconstructive products, sports medicine, biologics, extremities and trauma products, craniomaxillofacial and thoracic products, bone cement, surgical products, and integrated digital and robotic technologies. The company operates through three regional segments—Americas (largest, with the U.S. representing approximately 95% of regional sales), EMEA (second largest, with France, Germany, Italy, Spain, and the UK collectively accounting for approximately 50% of regional sales), and Asia Pacific (with Japan representing approximately 50% of regional sales)—and distributes products through direct channels to hospitals and ambulatory surgery centers as well as through stocking distributors and healthcare dealers, with consignment sales representing approximately 85% of net sales. The company's business model relies on a trained sales force of employees and independent agents who provide technical support and medical education to orthopedic surgeons, neurosurgeons, and other specialists, with inventory managed through centralized warehouses and smaller market-specific facilities to support elective surgical procedures. Key product franchises include the Persona and NexGen knee systems, Taperloc and Avenir hip systems, and the ROSA robotic platform, alongside a portfolio of sports medicine, trauma, and craniomaxillofacial products marketed under the ZBEdge Platform, which integrates robotic and digital technologies to collect surgical data and deliver clinical insights. The company maintains a competitive moat through its comprehensive product portfolio, extensive research and development capabilities (approximately 2,000 R&D employees worldwide), established relationships with healthcare professionals globally, and proprietary digital and robotic technologies that leverage data analytics and artificial intelligence.
【U.S. sales force transformation underway】 Management is executing a multi-year initiative to convert a substantial portion of the U.S. sales force from independent sales agents to company employees, with approximately one-third of the organizational changes already completed and the entire transformation expected to be finished by the end of 2027. The company expects modest disruption from this transition in 2026, with turnover rates in the single-digit range against a target of no more than 12%, and anticipates rapid productivity increases in territories that have already transitioned. Management is also increasing the number of robotic clinical sales representatives, targeting to hire over 200 by the end of 2027 in anticipation of the semiautonomous version of the mBô robot launching in early 2027, followed by the fully autonomous version in late 2027 or early 2028. International go-to-market model evolution, particularly in emerging markets, is ongoing and performing in accordance with plan, though it is impacting near-term growth. The company expects to exit 2026 with double-digit growth rates in its foot and ankle business and remains committed to meaningful return of capital to shareholders while prioritizing innovation and diversification through strategic investments such as becoming the exclusive orthopedic investor in the Mobility Revolution Fund.
| Metric | Target | Period |
|---|---|---|
| Organic constant currency revenue growth | 1%-3% | FY2026 |
| Adjusted EPS | $8.40-$8.55 | FY2026 |
| Free cash flow growth | 9%-11% | FY2026 |
| Reported revenue growth | 2.5%-4.5% | FY2026 |
| Operating margin | down slightly less than 50 basis points from 2025 | FY2026 |
| Gross margin | approximately 71% | FY2026 |
| Paragon 28 contribution to reported sales growth | around 100 basis points | FY2026 |
| Foot and ankle business growth | double-digit growth rates | FY2026 exit |
| International growth | mid-single digit | FY2026 second half |
Organic constant currency revenue growth (FY2026): “we are maintaining our full year 2026 organic constant currency revenue growth guidance of 1%-3%”
“We now expect adjusted EPS to be $8.40-$8.55 from the previous guide of $8.30-$8.45.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 8.4B | 8.2B | 7.7B | 7.4B | 6.9B | 6.8B |
| Net Income | 761M | 705M | 904M | 1.0B | 231M | 402M |
| EPS | $2.39 | $3.55 | $4.43 | $4.88 | $1.10 | $1.91 |
| Free Cash Flow | 1.5B | 1.5B | 1.3B | 1.3B | 1.2B | 1.4B |
| ROIC | 5.0% | 4.9% | 6.2% | 6.9% | 2.7% | 3.9% |
| Gross Margin | - | 69.7% | 71.5% | 71.8% | 70.9% | 71.3% |
| Debt/Equity | 0.59 | 0.61 | 0.52 | 0.48 | 0.49 | 0.58 |
| Dividends/Share | $0.59 | $0.96 | $0.96 | $0.96 | $0.96 | $0.96 |
| Operating Income | 1.2B | 1.1B | 1.3B | 1.3B | 696M | 860M |
| Operating Margin | 14.0% | 13.3% | 16.7% | 17.3% | 10.0% | 12.6% |
| ROE | 6.0% | 5.6% | 7.2% | 8.4% | 1.9% | 3.2% |
| Shares Outstanding | 319M | 199M | 204M | 210M | 210M | 210M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 4.7B | 6.0B | 7.7B | 7.8B | 7.9B | 8.0B | 6.1B | 6.8B | 6.9B | 7.4B | 7.7B | 8.2B | 8.4B |
| Gross Margin | 73.3% | 70.0% | 68.9% | 72.7% | 71.4% | 71.8% | 70.2% | 71.3% | 70.9% | 71.8% | 71.5% | 69.7% | N/A |
| R&D | 187M | 269M | 366M | 370M | 392M | 449M | 323M | 436M | 406M | 459M | 437M | 459M | 451M |
| SG&A | 1.8B | 2.3B | 2.9B | 3.1B | 3.4B | 3.3B | 2.7B | 2.8B | 2.8B | 2.8B | 2.9B | 3.3B | 3.3B |
| EBIT | 1.0B | 467M | 821M | 799M | 34M | 1.1B | 83M | 860M | 696M | 1.3B | 1.3B | 1.1B | 1.2B |
| Op. Margin | 22.2% | 7.8% | 10.7% | 10.2% | 0.4% | 14.3% | 1.4% | 12.6% | 10.0% | 17.3% | 16.7% | 13.3% | 14.0% |
| Net Income | 720M | 147M | 306M | 1.8B | -379M | 1.1B | -139M | 402M | 231M | 1.0B | 904M | 705M | 761M |
| Net Margin | 15.4% | 2.5% | 4.0% | 23.2% | -4.8% | 14.2% | -2.3% | 5.9% | 3.3% | 13.8% | 11.8% | 8.6% | 9.1% |
| Non-Recurring | 0 | 314M | 104M | 322M | 976M | 221M | 612M | 32M | 290M | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 12.6% | 2.3% | 3.1% | 3.8% | 0.2% | 5.7% | 0.4% | 3.9% | 2.7% | 6.9% | 6.2% | 4.9% | 5.0% |
| ROE | 11.0% | 1.5% | 3.1% | 16.9% | -3.3% | 9.6% | -1.1% | 3.2% | 1.9% | 8.4% | 7.2% | 5.6% | 6.0% |
| ROA | 7.5% | 0.5% | 1.1% | 6.9% | -1.5% | 4.6% | -0.6% | 1.7% | 1.0% | 4.8% | 4.2% | 3.2% | 3.4% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.1B | 850M | 1.6B | 1.6B | 1.7B | 1.6B | 1.2B | 1.5B | 1.4B | 1.6B | 1.5B | 1.7B | 1.7B |
| Free Cash Flow | 908M | 682M | 1.4B | 1.4B | 1.6B | 1.4B | 1.1B | 1.4B | 1.2B | 1.3B | 1.3B | 1.5B | 1.5B |
| Owner Earnings | 628M | 91M | 536M | 466M | 641M | 495M | 232M | 486M | 325M | 530M | 402M | 513M | 470M |
| CapEx | 145M | 168M | 185M | 156M | 163M | 207M | 112M | 144M | 188M | 291M | 204M | 225M | 216M |
| Maint. CapEx | 376M | 712M | 1.0B | 1.1B | 1.0B | 1.0B | 898M | 938M | 926M | 952M | 996M | 1.1B | 1.1B |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 376M | 712M | 1.0B | 1.1B | 1.0B | 1.0B | 898M | 938M | 926M | 952M | 996M | 1.1B | 1.1B |
| CapEx/OCF | 13.8% | 19.7% | 11.3% | 9.9% | 9.3% | 13.1% | 9.8% | 10.2% | 13.9% | 18.4% | 13.6% | 13.2% | 12.9% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 146M | 157M | 188M | 194M | 195M | 197M | 199M | 200M | 201M | 201M | 196M | 190M | 189M |
| Dividend Yield | 0.9% | 0.8% | 0.9% | 0.9% | 0.9% | 0.8% | 0.8% | 0.7% | 0.8% | 0.8% | 0.9% | 1.0% | 0.6% |
| Share Buybacks | 401M | 150M | 416M | 0 | 0 | 0 | 0 | 0 | 126M | 692M | 868M | 487M | 507M |
| Buyback Yield | 2.2% | 0.8% | 2.1% | N/A | N/A | N/A | N/A | N/A | 0.5% | 2.8% | 4.0% | 2.7% | 1.7% |
| Stock-Based Comp | 49M | 46M | 57M | 54M | 66M | 84M | 74M | 76M | 105M | 100M | 101M | 90M | 95M |
| Debt Repayment | 64M | 500M | 800M | 940M | 1.4B | 3.5M | 22M | 13M | 243M | 34M | 0 | 23M | 23M |
| Balance Sheet | |||||||||||||
| Net Debt | -270M | 9.9B | 10.6B | 9.6B | 8.4B | 7.9B | 7.6B | 6.9B | 5.5B | 5.6B | 5.9B | 7.2B | 7.0B |
| Cash & Equiv. | 1.1B | 1.5B | 634M | 524M | 543M | 618M | 802M | 378M | 376M | 416M | 526M | 592M | 424M |
| Long-Term Debt | 1.4B | 11.5B | 10.7B | 8.9B | 8.4B | 6.7B | 7.6B | 5.5B | 5.2B | 4.9B | 5.3B | 6.9B | 6.3B |
| Debt/Equity | 0.22 | 1.16 | 1.16 | 0.86 | 0.79 | 0.69 | 0.69 | 0.58 | 0.49 | 0.48 | 0.52 | 0.61 | 0.59 |
| Interest Coverage | 16.4 | 1.6 | 2.3 | 2.4 | 0.1 | 5.0 | 0.4 | 4.1 | 4.2 | 6.4 | 14.8 | 3.8 | 3.8 |
| Equity | 6.5B | 9.9B | 9.7B | 11.7B | 11.3B | 12.4B | 12.2B | 12.7B | 12.0B | 12.5B | 12.5B | 12.7B | 12.7B |
| Total Assets | 9.7B | 27.2B | 26.7B | 26.0B | 24.1B | 24.6B | 24.4B | 23.5B | 21.1B | 21.5B | 21.4B | 23.1B | 22.7B |
| Total Liabilities | 3.1B | 17.3B | 17.0B | 14.3B | 12.9B | 12.2B | 12.2B | 10.8B | 9.0B | 9.0B | 8.9B | 10.4B | 10.0B |
| Intangibles | 604M | 8.7B | 8.8B | 8.4B | 7.7B | 7.3B | 7.1B | 5.5B | 5.1B | 4.9B | 4.6B | 4.7B | 4.5B |
| Retained Earnings | 8.4B | 8.3B | 8.5B | 10.0B | 9.5B | 10.4B | 10.1B | 10.3B | 9.6B | 10.4B | 11.1B | 11.6B | 11.8B |
| Working Capital | 3.3B | 4.2B | 2.3B | 1.5B | 2.0B | 1.3B | 2.5B | 1.4B | 2.1B | 1.8B | 2.2B | 2.5B | 2.1B |
| Current Assets | 4.3B | 5.9B | 4.7B | 4.6B | 4.4B | 4.7B | 5.1B | 4.9B | 4.4B | 4.6B | 4.7B | 5.1B | 5.0B |
| Current Liabilities | 1.0B | 1.6B | 2.4B | 3.1B | 2.4B | 3.4B | 2.6B | 3.5B | 2.4B | 2.9B | 2.5B | 2.6B | 2.9B |
| Per Share Data | |||||||||||||
| EPS | 4.08 | 0.75 | 1.51 | 8.90 | -1.86 | 5.47 | -0.67 | 1.91 | 1.10 | 4.88 | 4.43 | 3.55 | 2.39 |
| Owner EPS | 3.55 | 0.46 | 2.64 | 2.29 | 3.15 | 2.39 | 1.12 | 2.31 | 1.54 | 2.53 | 1.97 | 2.58 | 1.47 |
| Book Value | 37.08 | 50.29 | 47.73 | 57.59 | 55.29 | 59.88 | 58.82 | 60.21 | 57.14 | 59.48 | 61.11 | 63.93 | 39.69 |
| Cash Flow/Share | 5.96 | 4.32 | 8.06 | 7.76 | 8.57 | 7.67 | 5.81 | 7.13 | 6.45 | 7.54 | 7.35 | 8.54 | 5.86 |
| Dividends/Share | 0.85 | 0.85 | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 | 0.59 |
| Shares Out. | 176.6M | 196.6M | 202.6M | 203.8M | 203.9M | 206.9M | 207.3M | 210.3M | 210.4M | 209.8M | 204.0M | 198.6M | 319.3M |
| Valuation | |||||||||||||
| P/E Ratio | 24.9 | 122.2 | 63.5 | 12.8 | N/A | 26.1 | N/A | 63.0 | 111.6 | 24.5 | 23.8 | 25.5 | 38.3 |
| P/FCF | 19.7 | 26.3 | 13.0 | 15.8 | 12.1 | 20.8 | 26.3 | 18.7 | 22.1 | 19.4 | 16.6 | 12.2 | 20.0 |
| EV/EBIT | 17.0 | 59.6 | 36.3 | 42.0 | 833.2 | 33.4 | N/A | 38.6 | 45.0 | 24.2 | 21.4 | 22.7 | 30.7 |
| Price/Book | 2.7 | 1.8 | 2.0 | 2.0 | 1.8 | 2.4 | 2.4 | 2.0 | 2.1 | 2.0 | 1.7 | 1.4 | 2.3 |
| Price/Sales | 3.4 | 3.2 | 2.8 | 2.9 | 2.8 | 3.1 | 3.8 | 4.4 | 3.4 | 3.5 | 3.0 | 2.4 | 3.5 |
| FCF Yield | 5.1% | 3.8% | 7.5% | 6.1% | 8.0% | 4.7% | 3.7% | 5.4% | 4.5% | 5.2% | 6.0% | 8.2% | 5.0% |
| Market Cap | 17.9B | 18.0B | 19.4B | 23.3B | 19.8B | 29.6B | 29.6B | 25.3B | 25.8B | 25.1B | 21.5B | 18.0B | 29.2B |
| Avg. Price | 89.38 | 96.97 | 102.03 | 107.19 | 107.32 | 117.88 | 123.74 | 143.21 | 112.64 | 122.12 | 113.02 | 98.82 | 91.35 |
| Year-End Price | 101.35 | 91.32 | 93.04 | 110.79 | 94.22 | 138.70 | 138.76 | 120.26 | 122.74 | 119.41 | 105.59 | 90.53 | 91.35 |
ZIMMER BIOMET HOLDINGS, INC. passes 5 of 9 quality checks, suggesting mixed fundamentals.
ZIMMER BIOMET HOLDINGS, INC. trades at 25.7x trailing earnings, compared to its 15-year median P/E of 25.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 12.1x vs a median of 17.6x. The company's 5-year average ROIC is 4.9% with a gross margin of 71.0%. Total shareholder yield (dividends + buybacks) is 2.4%. At current prices, the estimated annualized return to fair value is +0.4%.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) reported annual revenue of $8.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) has a net profit margin of 8.6%. This is a modest margin.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) generated $1.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) has a debt-to-equity ratio of 0.61. This indicates moderate leverage.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) reported earnings per share (EPS) of $3.55 in its most recent fiscal year.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) has a return on equity (ROE) of 5.6%. This indicates moderate shareholder returns.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) has a 5-year average gross margin of 71.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for ZIMMER BIOMET HOLDINGS, INC. (ZBH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ZIMMER BIOMET HOLDINGS, INC. (ZBH) has a book value per share of $63.93, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is executing a multi-year initiative to convert a substantial portion of the U.S. sales force from independent sales agents to company employees, with approximately one-third of the organizational changes already completed and the entire transformation expected to be finished by the end of 2027. The company expects modest disruption from this transition in 2026, with turnover rates in the single-digit range against a target of no more than 12%, and anticipates rapid productivity increases in territories that have already transitioned. Management is also increasing the number of robotic clinical sales representatives, targeting to hire over 200 by the end of 2027 in anticipation of the semiautonomous version of the mBô robot launching in early 2027, followed by the fully autonomous version in late 2027 or early 2028. International go-to-market model evolution, particularly in emerging markets, is ongoing and performing in accordance with plan, though it is impacting near-term growth. The company expects to exit 2026 with double-digit growth rates in its foot and ankle business and remains committed to meaningful return of capital to shareholders while prioritizing innovation and diversification through strategic investments such as becoming the exclusive orthopedic investor in the Mobility Revolution Fund.
Based on recent SEC filings and earnings calls, ZIMMER BIOMET HOLDINGS, INC. (ZBH) has provided the following forward guidance: Organic constant currency revenue growth: 1%-3% (FY2026); Adjusted EPS: $8.40-$8.55 (FY2026); Free cash flow growth: 9%-11% (FY2026); Reported revenue growth: 2.5%-4.5% (FY2026); Operating margin: down slightly less than 50 basis points from 2025 (FY2026), plus 4 additional metrics.
Free cash flow growth (FY2026): “We expect our free cash flow growth to be in the range of 9%-11% versus the previous guide of 8%-10%.”
Reported revenue growth (FY2026): “our reported sales guidance also remains unchanged at 2.5%-4.5% for the full year”
Operating margin (FY2026): “We now expect 2026 operating margins to be better than anticipated, down slightly less than 50 basis points from 2025”
Gross margin (FY2026): “As you think about gross margin for the full year, we still expect it to be down modestly versus prior year at around 71%, give or take.”
Paragon 28 contribution to reported sales growth (FY2026): “Paragon 28 to contribute around 100 basis points to reported sales growth in 2026 before being reflected in organic growth”
Foot and ankle business growth (FY2026 exit): “We expect to exit 2026 strongly in the double-digit growth rates.”