Zimmer Biomet (ZBH)

Health Care · $20.5B market cap · SEC CIK 0001136869

Next reports on Feb 8, 2027, after the close, with analysts expecting $2.52 in earnings per share.

52-week range $79.12 to $112.55. 5% below its 52-week high and 36% above its low.

The case for ZBH

• Generated $1.5B of free cash flow in FY2025, 18% of revenue.
• Free cash flow of 7.2% of its market value a year: a lot of cash for the price.
• Gross margin of 70% absorbs cost shocks.
• Moves less than the market (beta 0.45).
• Pays a modest 1.0% dividend.

The case against

• Expensive for its growth: 26.8× earnings, where 4% a year of growth plus a 1.0% dividend would justify about 16×.
• Return on equity of only 6%.
• Growth is weak (29/100): revenue +7.0%, EPS −2.3%, +3.2% a year over five years.
• Long-term debt of $6.9B against $592M of cash.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.

The financials

The financials, five years deep

Pulled from Zimmer Biomet's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

Risk factors ZBH lists in its 10-K

• security laws and regulations, we could face substantial penalties and our business, operations and financial condition could be adversely affected
• Our success depends on our ability to effectively develop and market our products against those of our competitors
• Our restructuring programs may not be successful or we may not fully realize the expected cost savings and/or operating efficiencies from our restructuring initiatives
• Our product portfolio rationalization activities may not be successful or we may not fully realize the expected cost savings and/or operating efficiencies from our portfolio rationalization initiatives
• We may not be able to effectively integrate acquired businesses into our operations or achieve expected cost savings or profitability from our acquisitions
• Interruption of manufacturing or distribution operations could adversely affect our business, financial condition and results of operations
• Challenges integrating, transitioning and implementing a new enterprise resource planning ("ERP") system have adversely affected our business and operations, and may in the future have further adverse effects
• Natural disasters, or legal, regulatory or market measures to address natural disasters, could materially adversely affect our business and financial results
• Our commitments, goals and disclosures related to corporate responsibility matters, and the perception of our activities in these areas, may adversely impact us
• Changes in tax laws in countries in which we do business are expected to negatively impact our effective tax rate; further changes in tax laws may have a further negative impact
• We may have additional tax liabilities as a result of examinations and audits
• If our independent agents and distributors are characterized as employees, we would be subject to additional tax and other liabilities
• Future material impairments in the carrying value of our intangible assets, including goodwill, would negatively affect our operating results
• The spinoff of ZimVie Inc. and the divestiture of our retained interest in ZimVie Inc. could result in substantial tax liability
• We conduct a significant amount of our sales and manufacturing activities outside of the U.S., which subjects us to additional business risks and may cause our profitability to decline due to increased costs
• Tariffs, trade restrictions and other trade measures have adversely affected, and could continue to adversely affect, our business and financial results
• We are subject to risks arising from currency exchange rate fluctuations, which can increase our costs, cause our profitability to decline and expose us to counterparty risks
• We are subject to complex and expensive laws and governmental regulations relating to the development, design, product standards, packaging, advertising, promotion, post-market surveillance,
• manufacturing, labeling and marketing of our products, non-compliance with which could adversely affect our business, financial condition and results of operations
• If we fail to comply with healthcare fraud and abuse laws and regulations, we could face substantial penalties and our business, operations and financial condition could be adversely affected
• If we fail to comply with data privacy and security laws and regulations, we could face substantial penalties and our business, operations and financial condition could be adversely affected
• Pending and future product liability claims and litigation could adversely impact our financial condition and results of operations and impair our reputation
• We are involved in legal proceedings that may result in adverse outcomes
• Anti-takeover provisions in our organizational documents could delay or prevent a change of control

Filings

Other Health Care companies