Zimmer Biomet (ZBH)
Health Care · $18.1B market cap · SEC CIK 0001136869
$93.98
▼-0.36% on the day
close of Sep 22, 2026
54
Mixed
fundamentals score out of 100
fundamentals score out of 100
Next reports on Nov 3, 2026, before the open, with analysts expecting $1.90 in earnings per share.
The case for ZBH
- Generated $1.5B of free cash flow in FY2025, 18% of revenue.
- Free cash flow of 8.1% of its market value a year: a lot of cash for the price.
- Revenue growing 8.6% year over year.
- Gross margin of 70% absorbs cost shocks.
- Moves less than the market (beta 0.50).
- Pays a modest 1.0% dividend.
The case against
- Return on equity of only 6%.
- Growth is weak (29/100): revenue +8.6%, EPS +0.1%, +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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 77 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 29 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 51 |
| Momentumhow the price has behaved lately | 53 |
| Stabilityhow violently it moves, what it owes and what it pays you | 67 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 22.5× |
|---|---|
| Price / book | 1.32× |
| Price / sales | 2.1× |
| Revenue growth (YoY) | +8.6% |
| EPS growth (YoY) | +0.1% |
| Gross margin | 70% |
| Operating margin | 14% |
| Net margin | 9% |
| Return on equity | 6% |
| Debt / equity | 0.59× |
| Current ratio | 1.69 |
| Dividend yield | 1.04% |
| Beta | 0.50 |
| 52-week range | $79.12 – $106.88 |
| Position in that range | 54% of the way up |
| 3-month return | +7.2% |
| 1-year return | -5.8% |
Five years of financials, as filed
Pulled from Zimmer Biomet's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $8.2B | $7.7B | $7.4B | $6.9B | $6.8B |
| Operating income | $1.1B | $1.3B | $1.3B | $696M | $860M |
| Net income | $705M | $904M | $1.0B | $231M | $402M |
| Operating cash flow | $1.7B | $1.5B | $1.6B | $1.4B | $1.5B |
| Capital expenditure | $225M | $204M | $291M | $188M | $144M |
| Total assets | $23.1B | $21.4B | $21.5B | $21.1B | $23.5B |
| Total liabilities | $10.4B | $8.9B | $9.0B | $9.0B | $10.8B |
| Shareholder equity | $12.7B | $12.5B | $12.5B | $12.0B | $12.7B |
| Cash | $592M | $526M | $416M | $376M | $378M |
| Long-term debt | $6.9B | $5.3B | $4.9B | $5.2B | $5.5B |
| Free cash flow | $1.5B | $1.3B | $1.3B | $1.2B | $1.4B |
| Operating margin | 13.3% | 16.7% | 17.3% | 10.0% | 12.6% |
| Net margin | 8.6% | 11.8% | 13.8% | 3.3% | 5.9% |
| Diluted shares | 199M | 204M | 210M | 210M | 210M |
Share count is down 5.6% over 4 years. Buybacks have been shrinking the pie.
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
- Risks Related to our Business, Operations and Strategy
- 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
- Financial, Credit and Liquidity Risks
- 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