Zimmer Biomet Holdings, Inc.(ZBH)Fundamental Analysis & FinancialsNYSE
Valuation, growth, margins and balance sheet
Valuation Snapshot
What the multiples imply about expectations
Market value is $20.14B, which makes it a large-cap company (market value of $10B to $200B). The trailing P/E is 25.63, between 15 and 30. Price-to-book is 1.59, at or below 5. EV/EBITDA is 10.80, at or below 20. 0 of 3 of these measures are above the level often used to mark a high valuation (P/E 30, price-to-book 5, EV/EBITDA 20).
Valuation Metrics
Ratios and multiples
Financial Health
Liquidity and leverage
The company's financial health appears moderate. Moderate ROE and moderate ROA reflect reasonably efficient capital use. Debt is manageable within acceptable ranges.
Valuation Multiples
Current valuation metrics
Quarterly Earnings History
Recent quarterly financial performance and trends
| Quarter | Revenue | Net Income | Gross Profit | EPS (Basic) | EPS (Diluted) | Gross Margin | Net Margin |
|---|---|---|---|---|---|---|---|
| Jun 2026(Latest) | $2.18B | $198.30M | $1.54B | $1.03 | $1.03 | 70.8% | 9.1% |
| Mar 2026 | $2.09B | $238.10M | $1.51B | $1.22 | $1.22 | 72.4% | 11.4% |
| Dec 2025 | $2.24B | $139.30M | $1.45B | N/A | N/A | 64.7% | 6.2% |
| Sep 2025 | $2.00B | $230.90M | $1.44B | $1.17 | $1.16 | 72.0% | 11.5% |
| Jun 2025 | $2.08B | $152.80M | $1.49B | $0.77 | $0.77 | 71.5% | 7.4% |
Key Insights:
- Revenue increased by 4.3% from previous quarter
- Net margin of 9.1% indicates moderate profitability
- EPS declined by 15.6% quarter-over-quarter
Financial Efficiency
Utilization and collections performance
Asset Turnover 0.37 indicates low efficiency. Receivables Turnover 4.99 and DSO 73.11 reflect poor collections. Working Capital Turnover 3.35 means yearly revenue is 3.35 times working capital. ROIC 4.0% highlights weak capital returns.
Efficiency Metrics
Profitability & Growth
Margins and earnings power
Efficiency Performance Matrix
4-quadrant analysis of operational efficiency vs profitability
Efficiency vs Profitability Quadrants
High Margin
Low Margin
High Margin
Low Margin
Efficiency Analysis
Asset Turnover
Receivables Turnover
Working Capital
Overall Efficiency Score
Profit-focused operations with efficiency opportunities
⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.
• Bubble size represents ROIC magnitude
• Green (Optimal): Excellent efficiency-profitability balance
• Blue (Efficiency-Driven): High turnover, room to improve margins
• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency
• Red (Weak Operations): Areas needing improvement on both dimensions
Market Data & Share Structure
Comprehensive valuation metrics and ownership breakdown
Market Data & Capitalization
Share Statistics & Ownership
Profitability Margin Pyramid
Hierarchical view of margin compression from revenue to net income
Margin Hierarchy by Profitability Level
Margin Analysis
Total Revenue
Gross Profit
EBITDA
Net Income
Margin Quality Assessment
Moderate margins requiring efficiency improvements
• Larger circles represent higher dollar amounts
• Margin percentages show profitability at each level
• Blue: Revenue base
• Green: Gross profitability
• Yellow: Operating performance
• Red: Net profitability
Operating Cash & Liquidity
Core cash generation and short-term solvency
Cash Flow Analysis
Operating Cash Flow (TTM)
$1.88B
Cash from core operations
Free Cash Flow (TTM)
$1.51B
Available after capex
Financial Position & Liquidity
Current Ratio
1.69
Healthy
Quick Ratio
0.74
Fair
Net Cash
-$7.14B
Net debtor
Total Cash
$464.50M
Balance sheet cash
Total Debt
$7.60B
Outstanding borrowings
Cash Conversion Cycle
Working capital efficiency measurement
Days Sales Outstanding
73.1
days to collect payment
Days Inventory Outstanding
334.7
days to turn inventory
Cash Conversion Cycle
363.4
net days of cycle
Extended cash conversion cycle may tie up working capital.
Ownership & Shareholder Sentiment
Insider, institutional, and short interest positions
Insider Ownership
0.16%
Minimal stake
Short % of Float
5.51%
Notable short
Short Ratio (Days)
3.6d
days to cover
Ownership structure shows limited insider stake and mixed institutional participation.
Dividends & Shareholder Returns
Policy stance and implications
The company maintains a very sustainable dividend policy with a payout ratio of 23.3% (FCF coverage: 8.2x). Free cash flow was 8.2 times the dividends paid.
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