Zimmer Biomet Holdings, Inc.
Zimmer Biomet Holdings, Inc. Fundamental Analysis
Zimmer Biomet Holdings, Inc. (ZBH.SW) shows weak financial fundamentals with a PE ratio of 23.62, profit margin of 8.57%, and ROE of 5.60%. The company generates $8.2B in annual revenue with moderate year-over-year growth of 7.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ZBH.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakZBH.SW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentZBH.SW trades at attractive valuation levels.
Growth Score
ModerateZBH.SW shows steady but slowing expansion.
Financial Health Score
ExcellentZBH.SW maintains a strong and stable balance sheet.
Profitability Score
WeakZBH.SW struggles to sustain strong margins.
Key Financial Metrics
Is ZBH.SW Expensive or Cheap?
P/E Ratio
ZBH.SW trades at 23.62 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ZBH.SW's PEG of -1.56 indicates potential undervaluation.
Price to Book
The market values Zimmer Biomet Holdings, Inc. at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.68 times EBITDA. This is generally considered low.
How Well Does ZBH.SW Make Money?
Net Profit Margin
For every $100 in sales, Zimmer Biomet Holdings, Inc. keeps $8.57 as profit after all expenses.
Operating Margin
Core operations generate 14.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.60 in profit for every $100 of shareholder equity.
ROA
Zimmer Biomet Holdings, Inc. generates $3.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zimmer Biomet Holdings, Inc. produces operating cash flow of $1.68B, showing steady but balanced cash generation.
Free Cash Flow
Zimmer Biomet Holdings, Inc. generates strong free cash flow of $1.57B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.02 in free cash annually.
FCF Yield
ZBH.SW converts 9.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.008
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ZBH.SW Stacks Against Its Sector Peers
| Metric | ZBH.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.62 | 28.54 | Better (Cheaper) |
| ROE | 5.60% | 738.00% | Weak |
| Net Margin | 8.57% | -43982.00% (disorted) | Weak |
| Debt/Equity | 0.59 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.98 | 2806.01 | Neutral |
| ROA | 3.05% | -14624.00% (disorted) | Weak |
ZBH.SW outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zimmer Biomet Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.44%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
630.78%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
47.29%
Industry Style: Defensive, Growth, Innovation
High Growth