📊 ZBH Key Takeaways
Is Zimmer Biomet Holdings, Inc.. (ZBH) a Good Investment?
Zimmer Biomet exhibits strong free cash flow generation (323M, 15.5% FCF margin) and healthy operating margins (17.9%), but recent major acquisition has suppressed net profitability and returns on capital. The critically low ROE (1.9%) and ROA (1.0%) indicate poor efficiency in deploying shareholder capital, while tight interest coverage (1.7x) leaves limited room for earnings deterioration.
Zimmer Biomet shows solid underlying cash generation and a generally sound balance sheet, with strong free cash flow, acceptable leverage, and adequate liquidity. However, profitability is only moderate for a medical device company, EPS declined materially year over year, and the reported revenue surge appears low quality or distorted relative to flat net income, which makes the growth profile less convincing.
Zimmer Biomet Holdings, Inc.. Key Strengths (ZBH)
- Exceptional free cash flow generation ($323.1M with 15.5% FCF margin) demonstrates earnings quality
- Healthy gross margin (61.6%) and operating margin (17.9%) in core business operations
- Conservative leverage with 0.50x debt-to-equity ratio and manageable debt service
- Strong free cash flow generation with a 17.9% FCF margin supports debt service and strategic flexibility
- Liquidity appears healthy, with a 1.98x current ratio and 1.10x quick ratio
- Leverage is manageable overall, with debt-to-equity of 0.55x and positive operating income
ZBH Stock Risks: Zimmer Biomet Holdings, Inc.. Investment Risks
- Severely depressed returns on equity (1.9%) and assets (1.0%) indicate massive capital inefficiency post-acquisition
- Tight interest coverage (1.7x) provides minimal cushion; any earnings decline threatens debt covenants
- Net income flat despite 2911% revenue growth signals substantial integration costs and margin compression that may persist
- Reported revenue growth is inconsistent with flat net income, raising concerns about comparability or growth quality
- Profitability metrics are only middle-of-the-road, with 15.6% gross margin and 8.6% net margin
- Interest coverage of 4.9x and long-term debt of $6.93B leave less room if operating performance weakens
Key Metrics to Watch
- Return on equity recovery trajectory as acquisition integrates
- Interest coverage ratio sustainability with current debt load
- Operating margin normalization and SG&A leverage improvement
- Free cash flow conversion and organic growth separation from acquisition effects
- Operating margin and diluted EPS trend
- Free cash flow consistency and interest coverage
Zimmer Biomet Holdings, Inc.. (ZBH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Zimmer Biomet Holdings, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ZBH Profit Margin, ROE & Profitability Analysis
ZBH vs Healthcare Sector: How Zimmer Biomet Holdings, Inc.. Compares
How Zimmer Biomet Holdings, Inc.. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Zimmer Biomet Holdings, Inc.. Stock Overvalued? ZBH Valuation Analysis 2026
Based on fundamental analysis, Zimmer Biomet Holdings, Inc.. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Zimmer Biomet Holdings, Inc.. Balance Sheet: ZBH Debt, Cash & Liquidity
ZBH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Zimmer Biomet Holdings, Inc..'s revenue has shown modest growth of 3% over the 5-year period. The most recent EPS of $4.88 reflects profitable operations.
ZBH Revenue Growth, EPS Growth & YoY Performance
ZBH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.9B | $182.0M | $0.91 |
| Q3 2025 | $1.8B | $230.9M | $1.16 |
| Q2 2025 | $1.9B | $152.8M | $0.77 |
| Q1 2025 | $1.9B | $172.4M | $0.84 |
| Q3 2024 | $1.8B | $162.7M | $0.77 |
| Q2 2024 | $1.9B | $209.6M | $1.00 |
| Q1 2024 | $1.8B | $172.4M | $0.84 |
| Q3 2023 | $1.7B | $162.7M | $0.77 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Zimmer Biomet Holdings, Inc.. Dividends, Buybacks & Capital Allocation
ZBH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Zimmer Biomet Holdings, Inc.. (CIK: 0001136869)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 3, 2026 | 4 | xslF345X06/form4-06032026_080620.xml | View → |
| Jun 2, 2026 | 4 | xslF345X06/form4-06022026_080619.xml | View → |
| May 27, 2026 | 8-K | zbh-20260522.htm | View → |
| May 27, 2026 | 4 | xslF345X06/form4-05272026_080533.xml | View → |
| May 27, 2026 | 4 | xslF345X06/form4-05272026_080534.xml | View → |
❓ Frequently Asked Questions about ZBH
What is the AI rating for ZBH?
Zimmer Biomet Holdings, Inc.. (ZBH) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ZBH's key strengths?
Claude: Exceptional free cash flow generation ($323.1M with 15.5% FCF margin) demonstrates earnings quality. Healthy gross margin (61.6%) and operating margin (17.9%) in core business operations. ChatGPT: Strong free cash flow generation with a 17.9% FCF margin supports debt service and strategic flexibility. Liquidity appears healthy, with a 1.98x current ratio and 1.10x quick ratio.
What are the risks of investing in ZBH?
Claude: Severely depressed returns on equity (1.9%) and assets (1.0%) indicate massive capital inefficiency post-acquisition. Tight interest coverage (1.7x) provides minimal cushion; any earnings decline threatens debt covenants. ChatGPT: Reported revenue growth is inconsistent with flat net income, raising concerns about comparability or growth quality. Profitability metrics are only middle-of-the-road, with 15.6% gross margin and 8.6% net margin.
What is ZBH's revenue and growth?
Zimmer Biomet Holdings, Inc.. reported revenue of $2.1B.
Does ZBH pay dividends?
Zimmer Biomet Holdings, Inc.. pays dividends, with $46.9M distributed to shareholders in the trailing twelve months.
Where can I find ZBH SEC filings?
Official SEC filings for Zimmer Biomet Holdings, Inc.. (CIK: 0001136869) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ZBH's EPS?
Zimmer Biomet Holdings, Inc.. has a diluted EPS of $1.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ZBH's fundamental grade?
Based on our AI fundamental analysis in June 2026, Zimmer Biomet Holdings, Inc.. has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ZBH stock overvalued or undervalued?
Valuation metrics for ZBH: ROE of 1.9% (sector avg: 15%), net margin of 11.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is ZBH's AI grade for 2026?
Our dual AI analysis gives Zimmer Biomet Holdings, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ZBH's free cash flow?
Zimmer Biomet Holdings, Inc..'s operating cash flow is $359.4M, with capital expenditures of $36.3M. FCF margin is 15.5%.
How does ZBH compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 11.4% (avg: 12%), ROE 1.9% (avg: 15%), current ratio 1.73 (avg: 2).