Zimmer Biomet Holdings, Inc. (ZBH) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Healthcare · Medical Devices
Is Zimmer Biomet Holdings, Inc. a safe investment right now?
Zimmer Biomet Holdings, Inc.'s Altman Z-Score of 2.4 places it in the gray zone. Our fair value estimate is $122.43 (Strong Buy Zone). Moat rating: 2.6/5 stars.
Could Zimmer Biomet Holdings, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 2.4 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives ZBH's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.1098 | 1.2 | 0.13 |
| B · Retained Earnings / Total Assets | RE / TA | 0.5028 | 1.4 | 0.7 |
| C · EBIT / Total Assets | EBIT / TA | 0.0487 | 3.3 | 0.16 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.7527 | 0.6 | 1.05 |
| E · Revenue / Total Assets | Rev / TA | 0.3565 | 1.0 | 0.36 |
How has ZBH's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 2.38 | Gray |
| 2023 | 2.53 | Gray |
| 2024 | 2.63 | Gray |
| 2025 | 2.4 | Gray |
Source: Calculated from ZBH's latest 10-K filing on SEC EDGAR.
What is Zimmer Biomet Holdings, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $5.49 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $3.55 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $8.40 | 21 analysts consensus |
| Trailing P/E | 26.2x | Current market pricing |
| Fair P/E (β discount) | 22.3x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $102.95 (21 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Zimmer Biomet Holdings, Inc. have a durable competitive advantage?
Moat rating: 2.6/5.
What makes up ZBH's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is ZBH's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 3.2% | — |
| 2023 | 7.0% | Rising |
| 2024 | 6.7% | Stable |
| 2025 | 5.6% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Zimmer Biomet Holdings, Inc.'s dividend safe?
Can Zimmer Biomet Holdings, Inc. afford its dividend?
Payout ratio is 27.0%. FCF covers the dividend 5.3x. 15 consecutive years of payments.
Zimmer Biomet Holdings, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $8.2B | $7.7B | $6.9B | Rising |
| Net Income | $0.7B | $0.9B | $0.2B | Rising |
| Free Cash Flow | $1.4B | $1.1B | $1.1B | Rising |
| Gross Margin | 69.7% | 71.5% | 70.9% | Stable |
Recent events that affect our ZBH analysis
ZBH earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.86. Revenue estimate: $2.07B. Our current Fair Value: $122.43 — a significant beat or miss could shift this estimate.
ZBH analyst consensus: 30% bullish (8 of 27 analysts)
3 Strong Buy, 5 Buy, 17 Hold, 1 Sell, 1 Strong Sell. Consensus target: $102.95 (10.7% upside). Compare with our independent Fair Value: $122.43.
ZBH paid $0.2400/share dividend
Dividend Safety Grade: A. Payout ratio: 27.0%.
ZBH beat EPS estimates by 0.9%
Reported EPS: $2.42 vs estimate $2.40. Earnings strength supports our Fair Value of $122.43 (31.6% above current price).
ZBH paid $0.2400/share dividend
Dividend Safety Grade: A. Payout ratio: 27.0%.
ZBH beat EPS estimates by 1.8%
Reported EPS: $1.90 vs estimate $1.87. Earnings strength supports our Fair Value of $122.43 (31.6% above current price).
ZBH paid $0.2400/share dividend
Dividend Safety Grade: A. Payout ratio: 27.0%.
ZBH missed EPS estimates by 34.7%
Reported EPS: $0.77 vs estimate $1.18. Our Fair Value of $122.43 may face downward pressure if the trend continues.
ZBH paid $0.2400/share dividend
Dividend Safety Grade: A. Payout ratio: 27.0%.
ZBH beat EPS estimates by 4.2%
Reported EPS: $0.91 vs estimate $0.87. Earnings strength supports our Fair Value of $122.43 (31.6% above current price).
ZBH paid $0.2400/share dividend
Dividend Safety Grade: A. Payout ratio: 27.0%.
ZBH beat EPS estimates by 0.8%
Reported EPS: $2.31 vs estimate $2.29. Earnings strength supports our Fair Value of $122.43 (31.6% above current price).
Common questions about Zimmer Biomet Holdings, Inc.
What is Zimmer Biomet Holdings, Inc. stock price today?
Zimmer Biomet Holdings, Inc. (ZBH) stock price is $93.04 as of the latest market close, traded on the NYSE exchange.
What does Zimmer Biomet Holdings, Inc. do?
Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates as a medical technology company worldwide. It designs, manufactures, and markets orthopedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, upper extremities, and trauma and CMFT products; sports medicine products for the repair of soft tissue injuries, used in the knee and shoulder; and craniomaxillofacial and thoracic products comprising face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest to facilitate healing or reconstruction after open-heart surgery, trauma, or for deformities of the chest.
What is Zimmer Biomet Holdings, Inc. market cap?
Zimmer Biomet Holdings, Inc. has a market capitalization of $18.20B, classifying it as a large-cap stock in the Healthcare sector.
What sector and industry is ZBH in?
Zimmer Biomet Holdings, Inc. operates in the Healthcare sector, specifically within the Medical Devices industry. It trades on the NYSE under the ticker symbol ZBH.
Is ZBH stock overvalued or undervalued?
Based on our valuation model, Zimmer Biomet Holdings, Inc. trades 24.0% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $122.43
- Current Price: $93.04
- Valuation Zone: Strong Buy Zone
What is ZBH stock forecast and analyst target price?
Based on 21 Wall Street analysts, the consensus price target for Zimmer Biomet Holdings, Inc. is $102.95, implying upside of 10.7% from the current price.
- Analyst High Target: $130.00
- Analyst Low Target: $88.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Zimmer Biomet Holdings, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Zimmer Biomet Holdings, Inc.:
- Revenue growth (current year est.): 3.9%
- EPS growth (current year est.): 2.4%
- Revenue growth (next year est.): 3.7%
- EPS growth (next year est.): 7.1%
What are Zimmer Biomet Holdings, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $8.2B | Rising |
| Net Income | $0.7B | Rising |
| Free Cash Flow | $1.4B | Rising |
| Gross Margin | 69.7% | Stable |
What is ZBH's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 26.2x
- Forward P/E (next 12 months est.): 10.3x
- FairValueLabs Fair P/E: 22.3x
How volatile is ZBH stock?
Zimmer Biomet Holdings, Inc. has a beta of 0.61, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Zimmer Biomet Holdings, Inc. have?
Zimmer Biomet Holdings, Inc.'s balance sheet shows:
- Total Cash: $620.9M
- Total Debt: $7.87B
- Net Cash Position: $-7.25B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Zimmer Biomet Holdings, Inc.'s free cash flow?
Zimmer Biomet Holdings, Inc. generated $1.35B in trailing twelve-month free cash flow (from $1.70B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Zimmer Biomet Holdings, Inc. pay a dividend, and is it safe?
Yes, Zimmer Biomet Holdings, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.0%
- Payout Ratio: 27.0%
- Consecutive Years Paid: 15
- 5-Year Dividend Growth: -23.8%
- FairValueLabs Safety Grade: A
Is Zimmer Biomet Holdings, Inc. at risk of going bankrupt?
Zimmer Biomet Holdings, Inc.'s Altman Z-Score is 2.40, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Zimmer Biomet Holdings, Inc. have a durable competitive advantage?
Zimmer Biomet Holdings, Inc. scores 2.6/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is ZBH's return on equity (ROE)?
Zimmer Biomet Holdings, Inc.'s return on equity is 5.6%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy ZBH stock?
ZBH shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol ZBH
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is ZBH a value stock or speculative?
FairValueLabs classifies Zimmer Biomet Holdings, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Zimmer Biomet Holdings, Inc.?
The current CEO of Zimmer Biomet Holdings, Inc. is Mr. Ivan Tornos.
What is ZBH's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $3.55
- Forward EPS (next 12 months est.): $8.99
- Analyst consensus EPS (this year): $8.40
- Analyst consensus EPS (next year): $8.99
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
ZBH analysis methodology: How we calculate fair value, Z-Scores, and moat ratings