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Zimmer Biomet (ZBH) Stock Analysis

This is a peer-relative look at Zimmer Biomet (ZBH): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Health Care Equipment & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Zimmer Biomet (ZBH)
Profile ItemZBH
NameZimmer Biomet Holdings Inc.
Country/RegionUnited States
GICS SectorHealth Care
GICS Industry GroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
GICS Sub-IndustryHealth Care Equipment
Market Capitalization19.98 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJuly 25, 2001
Security TypeCommon Stock

Price Performance

Cumulative Growth

ZBH
GSPC
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Zimmer Biomet (ZBH) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Zimmer Biomet (ZBH) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Zimmer Biomet (ZBH) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Zimmer Biomet (ZBH) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ZBHIndustry group median
Total Return (1Y)24.04%21.53%
Total Return (3Y, Annualized)2.38%9.81%
Total Return (5Y, Annualized)-2.74%-2.76%

Risk Profile

Drawdown History

ZBH
GSPC
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Zimmer Biomet (ZBH) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Zimmer Biomet (ZBH) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Zimmer Biomet (ZBH) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ZBHIndustry group median
Volatility (1Y, Annualized)32.39%50.93%
Beta (5Y)0.420.85
Max Drawdown (5Y)-43.94%-70.34%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ZBH is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Zimmer Biomet (ZBH) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ZBHIndustry group median
Sharpe Ratio (1Y)0.610.34
Sortino Ratio (1Y)0.930.54

Profitability

ROE (TTM)

Zimmer Biomet (ZBH) posts ROE of 6.03%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

ZBH

Health Care Equipment & Services industry group

6.03%

Group distribution
Max
47.61%
Q3
14.36%
ZBH
6.03%
Median
5.45%
Q1
-10.67%
Min
-47.01%
Largest peers
ISRG
17.93%
SYK
16.02%
UNH
15.77%
MDT
10.65%
ABT
9.14%
ZBH
6.03%
MCK
--
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Where Zimmer Biomet (ZBH) stands on ROE within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Zimmer Biomet (ZBH) keeps 8.95% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

ZBH

Health Care Equipment & Services industry group

8.95%

Group distribution
Max
29.35%
Q3
9.33%
ZBH
8.95%
Median
2.18%
Q1
-6.29%
Min
-28.46%
Largest peers
ISRG
25.54%
MDT
13.93%
SYK
13.78%
ABT
9.75%
ZBH
8.95%
UNH
3.53%
MCK
1.12%
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Where Zimmer Biomet (ZBH) stands on net margin within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Zimmer Biomet (ZBH) turns 17.35% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

ZBH

Health Care Equipment & Services industry group

17.35%

Group distribution
Max
35.43%
ZBH
17.35%
Q3
14.14%
Median
6.81%
Q1
-0.28%
Min
-16.29%
Largest peers
ISRG
33.29%
SYK
22.96%
MDT
19.33%
ZBH
17.35%
ABT
11.66%
UNH
5.82%
MCK
1.48%
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Where Zimmer Biomet (ZBH) stands on operating margin within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Zimmer Biomet (ZBH) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ZBHIndustry group median
ROE (TTM)6.03%5.45%
ROA (TTM)3.81%3.17%
Net Margin (TTM)8.95%2.18%
Operating Margin (TTM)17.35%6.81%
Gross Margin (TTM)69.33%55.21%

Growth

Revenue Growth

Zimmer Biomet (ZBH) grew revenue 7.20%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Zimmer Biomet (ZBH): Revenue Growth across different time periods, set against Health Care Equipment & Services industry-group medians.

EPS Growth

Zimmer Biomet (ZBH) grew earnings per share -19.86%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Zimmer Biomet (ZBH): EPS Growth across different time periods, set against Health Care Equipment & Services industry-group medians.

Growth Metrics

Zimmer Biomet (ZBH) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ZBHIndustry group median
Revenue Growth (YoY)7.20%11.55%
Revenue Growth (3Y CAGR)5.85%10.83%
EPS Growth (YoY)-19.86%4.88%
EPS Growth (3Y CAGR)47.78%14.59%

Financial Strength

Current Ratio (MRQ)

Zimmer Biomet (ZBH) has current ratio of 1.46, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

ZBH

Health Care Equipment & Services industry group

1.46

Group distribution
Max
7.59
Q3
4.00
Median
1.98
ZBH
1.46
Q1
1.37
Min
0.30
Largest peers
ISRG
3.33
SYK
2.18
MDT
2.07
ZBH
1.46
ABT
1.46
MCK
0.90
UNH
0.74
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Where Zimmer Biomet (ZBH) stands on current ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Zimmer Biomet (ZBH) has debt-to-equity ratio of 0.60, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

ZBH

Health Care Equipment & Services industry group

0.60

Group distribution
Max
1.88
Q3
0.91
ZBH
0.60
Median
0.58
Q1
0.16
Min
0.00
Largest peers
UNH
0.70
SYK
0.66
ABT
0.61
ZBH
0.60
MDT
0.55
ISRG
--
MCK
--
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Where Zimmer Biomet (ZBH) stands on debt-to-equity ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Zimmer Biomet (ZBH) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ZBHIndustry group median
Current Ratio (MRQ)1.461.98
Debt / Equity (MRQ)0.600.58
Net Debt / EBITDA2.852.04

Dividends

Dividend Yield (TTM)

Zimmer Biomet (ZBH) has dividend yield of 0.90%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

ZBH

Health Care Equipment & Services industry group

0.90%

Group distribution
ZBH
0.90%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MDT
2.72%
UNH
2.29%
ABT
2.22%
SYK
1.05%
ZBH
0.90%
MCK
0.32%
ISRG
0.00%
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Where Zimmer Biomet (ZBH) stands on dividend yield within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Zimmer Biomet (ZBH) has payout ratio of 24.24%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

ZBH

Health Care Equipment & Services industry group

24.24%

Group distribution
ZBH
24.24%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
ABT
92.54%
MDT
70.02%
UNH
51.71%
SYK
37.49%
ZBH
24.24%
MCK
8.77%
ISRG
0.00%
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Where Zimmer Biomet (ZBH) stands on payout ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Zimmer Biomet (ZBH) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ZBHIndustry group median
Dividend Yield (TTM)0.90%0.00%
Dividend Payout Ratio (TTM)24.24%0.00%

Valuation

P/E Ratio (TTM)

Zimmer Biomet (ZBH) trades at P/E ratio of 26.66, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

ZBH

Health Care Equipment & Services industry group

26.66

Group distribution
Max
80.41
Q3
47.62
Median
29.93
ZBH
26.66
Q1
21.19
Min
4.21
Largest peers
ISRG
54.75
ABT
41.02
SYK
34.70
MCK
27.36
ZBH
26.66
MDT
25.01
UNH
22.50
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Where Zimmer Biomet (ZBH) stands on P/E ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Zimmer Biomet (ZBH) trades at 2.33 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

ZBH

Health Care Equipment & Services industry group

2.33

Group distribution
Max
8.80
Q3
4.32
ZBH
2.33
Median
2.13
Q1
1.10
Min
0.03
Largest peers
ISRG
13.82
SYK
4.72
ABT
3.95
MDT
3.47
ZBH
2.33
UNH
0.78
MCK
0.29
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Where Zimmer Biomet (ZBH) stands on P/S ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Zimmer Biomet (ZBH) trades at 1.58 on P/B ratio, in the lower book-value quartile for its industry. Investors are paying less for the balance-sheet equity than they pay for most peers, with returns on that equity still central to the read.

ZBH

Health Care Equipment & Services industry group

1.58

Group distribution
Max
11.68
Q3
6.12
Median
3.00
Q1
1.73
ZBH
1.58
Min
-1.31
Largest peers
ISRG
9.82
SYK
5.29
ABT
3.73
UNH
3.60
MDT
2.59
ZBH
1.58
MCK
-30.85
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Where Zimmer Biomet (ZBH) stands on P/B ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Zimmer Biomet (ZBH) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ZBHIndustry group median
P/E Ratio (TTM)26.6629.93
P/S Ratio (TTM)2.332.13
P/B Ratio (MRQ)1.583.00
Free Cash Flow Yield (TTM)7.22%3.50%