Zimmer Biomet Holdings, Inc. Fundamental Analysis (XETRA: ZIM.DE)
Zimmer Biomet Holdings, Inc. Fundamental Analysis (XETRA: ZIM.DE)
Zimmer Biomet Holdings, Inc. (XETRA: ZIM.DE) shows weak financial fundamentals with a PE ratio of 28.80, profit margin of 9.05%, and ROE of 6.01%. The company generates N/A 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 51.5/100 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 ZIM.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakZIM.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateZIM.DE shows balanced valuation metrics.
Growth Score
ModerateZIM.DE shows steady but slowing expansion.
Financial Health Score
ExcellentZIM.DE maintains a strong and stable balance sheet.
Profitability Score
WeakZIM.DE struggles to sustain strong margins.
Key Financial Metrics
Is ZIM.DE Expensive or Cheap?
P/E Ratio
ZIM.DE trades at 28.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ZIM.DE's PEG of -1.64 indicates potential undervaluation.
Price to Book
The market values Zimmer Biomet Holdings, Inc. at 1.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.91 times EBITDA. This is generally considered low.
How Well Does ZIM.DE Make Money?
Net Profit Margin
For every $100 in sales, Zimmer Biomet Holdings, Inc. keeps $9.05 as profit after all expenses.
Operating Margin
Core operations generate 16.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.01 in profit for every $100 of shareholder equity.
ROA
Zimmer Biomet Holdings, Inc. generates $3.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $5.83 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.73
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
0.07
vs 25 benchmark
How ZIM.DE Stacks Against Its Sector Peers
| Metric | ZIM.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.80 | 32.14 | Better (Cheaper) |
| ROE | 6.01% | 550.00% | Weak |
| Net Margin | 9.05% | 30133.00% | Weak |
| Debt/Equity | 0.59 | 0.56 | Neutral |
| Current Ratio | 1.73 | 5.70 | Neutral |
| ROA | 3.35% | 3.00% | Neutral |
ZIM.DE 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