ZBH
Zimmer Biomet
$96.12
▼ 1.1%Updated Aug 7, 11:30 AM ET
ZBH at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 50/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 2.8% over the last 12 months
Market Cap
$17.28B
P/E
24.44x
Forward P/E (est.)
28.63x
ROE
6.0%
Revenue Growth
9.2%
EPS Growth
-14.6%
Profit Margin
9.1%
FCF Yield
7.5%
Debt / Equity
0.59x
ROIC
6.0%
Interest Coverage
—
Current Ratio
1.73x
Dividend Yield
1.0%
Implied Growth (rev. DCF)
0.4%
Rating Score
50/100
Zimmer Biomet (ZBH) is a large-cap company in the Health Care Equipment industry, part of the Health Care sector of the S&P 500, with a market value around $17.28B.
In its latest reported year it generated about $8.23B in revenue and $705.10M in net profit.
Our model rates ZBH Neutral (50/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
15.8% average over the last 3 years
±5.4 pts around 10.7% across 10 years
grew in 8 of the last 9 year-over-year periods
positive in 9 of 9 years
6.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ZBH's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ZBH trades near $96.12, above its 50-day average ($86.01) and 200-day average ($91.83). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 51 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. ZBH's is $2.65 (~2.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ZBH found buyers near $83.72 (support) and sellers near $93.34 (resistance); its 52-week range is $79.12–$108.29. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.0× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
4.8%
Revenue moved from $7.67B in 2016 to $8.23B in 2025, a 0.8% compound annual growth rate. The most recent year grew a steady 9.2% year over year. Slower, mature growth is common for established businesses.
Gross Margin
70.0%
Operating Margin
13.3%
Net Margin
8.6%
ROE
6.0%
Zimmer Biomet keeps about 9.1% of each sales dollar as net profit, with a 70.0% gross margin and 13.3% operating margin. Return on equity is 6.0% and return on invested capital about 6.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$1.00B
Net Debt
$575.80M
Net Debt / EBITDA
0.52x
Debt / Equity
0.59x
Leverage: debt-to-equity is 0.6x, with a current ratio of 1.7x. That is a moderate, manageable debt load for most businesses. It carries roughly $1.00B of total debt against $424.20M of cash.
Operating CF
$1.70B
Free Cash Flow
$1.47B
FCF Margin
17.9%
In the latest year Zimmer Biomet produced about $1.70B of operating cash flow and $1.47B of free cash flow after capital spending. That is a free-cash-flow yield of about 7.5% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
1.0%
Per share (latest FY)
$0.96
Total paid (latest FY)
$190.30M
History on record
10 years
dividend uses 13% of free cash flow
27% of net income paid out
no current raise streak
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
24.44x
P/S
2.1x
P/B
1.51x
EV / EBITDA
—
ZBH trades at 24.4x trailing earnings (about 28.6x on estimated forward earnings), 2.1x sales, and 1.5x book value. Reverse-engineering today's price implies the market expects roughly 0.4% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$175.28
Current price
$96.12
Starting FCF (latest 10-K)
$1.47B
Growth, years 1–5
9.2%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where ZBH sits versus its Health Care sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 83 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How ZBH stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.
In the Health Care sector (324 S&P 500 companies), ZBH ranks #46 of 324 by our overall rating. It trades at roughly in line versus the sector on earnings (24.4x P/E vs. 27.3x median) with a lower return on equity (6.0% vs. 14.1%) and faster revenue growth (9.2% vs. 7.6%).
P/E vs sector
24.4x
median 27.3x
ROE vs sector
6.0%
median 14.1%
Growth vs sector
9.2%
median 7.6%
Sector rank
#46
of 324 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 324 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $96.12 today · expected CAGR -2% – 10%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $8.97B | $9.78B | $10.66B | $11.62B | $12.67B |
| Net income | $807.51M | $880.19M | $959.40M | $1.05B | $1.14B |
| EPS | $4.49 | $4.90 | $5.34 | $5.82 | $6.34 |
| Share price (low) | $62.88 | $68.54 | $74.70 | $81.43 | $88.76 |
| Share price (high) | $107.79 | $117.49 | $128.07 | $139.59 | $152.15 |
| CAGR (low–high) | -35% / 12% | -16% / 11% | -8% / 10% | -4% / 10% | -2% / 10% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ZBH:
- Healthy free-cash-flow yield (~7.5%) funds buybacks and dividends.
- As an established S&P 500 member in Health Care, it brings scale and a long operating history.
The case against ZBH:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Zimmer Biomet is a large-cap health care business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 24.4x earnings, which our model scores Neutral (50/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 33 Wall Street analysts covering ZBH recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
ZBH's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
ZBH — frequently asked questions
Is ZBH a good stock to buy?
We don't give buy or sell advice. Our model rates Zimmer Biomet Neutral (50/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ZBH's rating on The Stocks School?
Zimmer Biomet currently scores 50/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ZBH's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Zimmer Biomet's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ZBH calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this ZBH analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ZBH. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.