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Zimmer Biomet Holdings

SWX:ZBH
Snowflake Description

Moderate growth potential and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZBH
SWX
$30B
Market Cap
  1. Home
  2. CH
  3. Healthcare
Company description

Zimmer Biomet Holdings, Inc., together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The last earnings update was 9 days ago. More info.


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ZBH Share Price and Events
7 Day Returns
0%
SWX:ZBH
0.7%
CH Medical Equipment
-0.4%
CH Market
1 Year Returns
23.5%
SWX:ZBH
33.3%
CH Medical Equipment
12.3%
CH Market
ZBH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zimmer Biomet Holdings (ZBH) 0% 6% 8.4% 23.5% 41.4% 36.3%
CH Medical Equipment 0.7% 2.5% 4.3% 33.3% 85.6% 109.4%
CH Market -0.4% 2.6% 6.7% 12.3% 21.5% 13.4%
1 Year Return vs Industry and Market
  • ZBH underperformed the Medical Equipment industry which returned 33.3% over the past year.
  • ZBH outperformed the Market in Switzerland which returned 12.3% over the past year.
Price Volatility
ZBH
Industry
5yr Volatility vs Market

ZBH Value

 Is Zimmer Biomet Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zimmer Biomet Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zimmer Biomet Holdings.

SWX:ZBH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year CH Government Bond Rate 3.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SWX:ZBH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate 3.3%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.84
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.84 (1 + (1- 21%) (29.02%))
1.022
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (1.022 * 5.96%)
9.36%

Discounted Cash Flow Calculation for SWX:ZBH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Zimmer Biomet Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SWX:ZBH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.36%)
2020 1,575.50 Analyst x4 1,440.59
2021 1,588.67 Analyst x3 1,328.25
2022 1,507.00 Analyst x1 1,152.08
2023 1,697.00 Analyst x1 1,186.25
2024 1,734.79 Est @ 2.23% 1,108.83
2025 1,778.88 Est @ 2.54% 1,039.65
2026 1,828.00 Est @ 2.76% 976.87
2027 1,881.30 Est @ 2.92% 919.27
2028 1,938.17 Est @ 3.02% 865.97
2029 1,998.23 Est @ 3.1% 816.35
Present value of next 10 years cash flows $10,834.00
SWX:ZBH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,998.23 × (1 + 3.28%) ÷ (9.36% – 3.28%)
$33,888.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $33,888.49 ÷ (1 + 9.36%)10
$13,844.72
SWX:ZBH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $10,834.00 + $13,844.72
$24,678.72
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $24,678.72 / 205.68
$119.98
SWX:ZBH Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in SWX:ZBH represents 0.98358x of NYSE:ZBH
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.98358x
Value per Share
(Listing Adjusted, CHF)
= Value per Share (USD) x Listing Adjustment Factor
= $ 119.98 x 0.98358
CHF118.01
Value per share (CHF) From above. CHF118.01
Current discount Discount to share price of CHF142.00
= -1 x (CHF142.00 - CHF118.01) / CHF118.01
-20.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Zimmer Biomet Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zimmer Biomet Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zimmer Biomet Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:ZBH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $-0.44
NYSE:ZBH Share Price ** NYSE (2019-11-13) in USD $144.37
Switzerland Medical Equipment Industry PE Ratio Median Figure of 7 Publicly-Listed Medical Equipment Companies 33.29x
Switzerland Market PE Ratio Median Figure of 171 Publicly-Listed Companies 19.37x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zimmer Biomet Holdings.

SWX:ZBH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ZBH Share Price ÷ EPS (both in USD)

= 144.37 ÷ -0.44

-327.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zimmer Biomet Holdings is loss making, we can't compare its value to the CH Medical Equipment industry average.
  • Zimmer Biomet Holdings is loss making, we can't compare the value of its earnings to the Switzerland market.
Price based on expected Growth
Does Zimmer Biomet Holdings's expected growth come at a high price?
Raw Data
SWX:ZBH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -327.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
23.7%per year
Switzerland Medical Equipment Industry PEG Ratio Median Figure of 6 Publicly-Listed Medical Equipment Companies 2.34x
Switzerland Market PEG Ratio Median Figure of 124 Publicly-Listed Companies 2.14x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Zimmer Biomet Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Zimmer Biomet Holdings's assets?
Raw Data
SWX:ZBH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $58.76
NYSE:ZBH Share Price * NYSE (2019-11-13) in USD $144.37
Switzerland Medical Equipment Industry PB Ratio Median Figure of 9 Publicly-Listed Medical Equipment Companies 6.21x
Switzerland Market PB Ratio Median Figure of 214 Publicly-Listed Companies 1.65x
SWX:ZBH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ZBH Share Price ÷ Book Value per Share (both in USD)

= 144.37 ÷ 58.76

2.46x

* Primary Listing of Zimmer Biomet Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zimmer Biomet Holdings is good value based on assets compared to the CH Medical Equipment industry average.
X
Value checks
We assess Zimmer Biomet Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Zimmer Biomet Holdings has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ZBH Future Performance

 How is Zimmer Biomet Holdings expected to perform in the next 1 to 3 years based on estimates from 27 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zimmer Biomet Holdings expected to grow at an attractive rate?
  • Zimmer Biomet Holdings's earnings growth is expected to exceed the low risk savings rate of 3.3%.
Growth vs Market Checks
  • Zimmer Biomet Holdings's earnings growth is expected to exceed the Switzerland market average.
  • Zimmer Biomet Holdings's revenue growth is positive but not above the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:ZBH Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:ZBH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts 23.7%
SWX:ZBH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts 2.8%
Switzerland Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 38.7%
Switzerland Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 9.9%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SWX:ZBH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:ZBH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 8,898 2,275 6
2022-12-31 8,644 2,070 6
2021-12-31 8,397 2,133 1,383 19
2020-12-31 8,154 2,055 1,275 27
2019-12-31 7,962 1,871 1,156 27
2019-11-14
SWX:ZBH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 7,928 1,542 -90
2019-06-30 7,872 1,448 -359
2019-03-31 7,891 1,541 -308
2018-12-31 7,933 1,747 -379
2018-09-30 7,930 1,771 1,753
2018-06-30 7,907 1,750 1,690
2018-03-31 7,849 1,797 1,689
2017-12-31 7,803 1,582 1,814
2017-09-30 7,748 1,807 652
2017-06-30 7,768 1,696 712
2017-03-31 7,752 1,635 497
2016-12-31 7,668 1,632 306

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zimmer Biomet Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Zimmer Biomet Holdings's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:ZBH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below

All data from Zimmer Biomet Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:ZBH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 7.99 8.13 7.84 2.00
2022-12-31 7.19 7.28 7.09 2.00
2021-12-31 6.52 7.16 5.99 8.00
2020-12-31 5.85 7.63 4.77 11.00
2019-12-31 5.41 5.99 3.39 11.00
2019-11-14
SWX:ZBH Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 -0.44
2019-06-30 -1.76
2019-03-31 -1.51
2018-12-31 -1.86
2018-09-30 8.63
2018-06-30 8.33
2018-03-31 8.35
2017-12-31 8.98
2017-09-30 3.24
2017-06-30 3.55
2017-03-31 2.48
2016-12-31 1.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Zimmer Biomet Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Zimmer Biomet Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zimmer Biomet Holdings has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ZBH Past Performance

  How has Zimmer Biomet Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zimmer Biomet Holdings's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zimmer Biomet Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Zimmer Biomet Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Zimmer Biomet Holdings's 1-year growth to the CH Medical Equipment industry average as it is not currently profitable.
Earnings and Revenue History
Zimmer Biomet Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zimmer Biomet Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:ZBH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 7,927.50 -90.20 3,265.30 429.40
2019-06-30 7,871.80 -359.10 3,231.10 410.70
2019-03-31 7,890.80 -307.80 3,213.00 397.70
2018-12-31 7,932.90 -379.20 3,186.40 391.70
2018-09-30 7,930.20 1,753.30 3,118.60 385.50
2018-06-30 7,906.60 1,689.90 3,070.80 381.00
2018-03-31 7,848.50 1,689.10 3,029.30 374.50
2017-12-31 7,803.30 1,813.80 2,991.80 369.90
2017-09-30 7,748.10 652.00 2,988.40 370.60
2017-06-30 7,767.80 712.00 3,011.90 375.00
2017-03-31 7,752.30 496.50 2,971.80 371.00
2016-12-31 7,668.40 305.90 2,906.40 365.60
2016-09-30 7,604.40 363.30 2,900.20 355.80
2016-06-30 7,533.80 226.70 2,864.80 343.50
2016-03-31 6,767.40 84.40 2,577.00 306.20
2015-12-31 5,997.80 147.00 2,284.20 268.80
2015-09-30 5,287.10 173.80 1,999.80 229.20
2015-06-30 4,630.90 324.70 1,730.30 191.80
2015-03-31 4,646.20 670.20 1,730.30 188.30
2014-12-31 4,673.30 720.30 1,750.70 187.40
2014-09-30 4,691.10 802.40 1,788.50 187.50
2014-06-30 4,659.40 783.70 1,803.70 191.00
2014-03-31 4,646.00 763.90 1,817.50 198.10
2013-12-31 4,623.40 780.40 1,749.30 203.00
2013-09-30 4,563.20 677.90 1,817.30 213.10
2013-06-30 4,514.40 701.60 1,809.30 217.20
2013-03-31 4,469.90 764.00 1,804.60 219.50
2012-12-31 4,471.70 755.00 1,807.10 225.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Zimmer Biomet Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Zimmer Biomet Holdings used its assets less efficiently than the CH Medical Equipment industry average last year based on Return on Assets.
  • It is difficult to establish if Zimmer Biomet Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Zimmer Biomet Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zimmer Biomet Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ZBH Health

 How is Zimmer Biomet Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zimmer Biomet Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zimmer Biomet Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zimmer Biomet Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Zimmer Biomet Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zimmer Biomet Holdings Company Filings, last reported 1 month ago.

SWX:ZBH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 12,085.50 8,345.90 512.50
2019-06-30 11,662.20 8,719.30 403.10
2019-03-31 11,539.30 8,810.60 586.80
2018-12-31 11,276.10 8,941.20 542.80
2018-09-30 12,223.00 9,201.40 524.60
2018-06-30 12,044.20 9,536.10 481.20
2018-03-31 11,999.50 11,111.90 1,765.40
2017-12-31 11,735.50 10,142.50 524.40
2017-09-30 10,450.20 10,424.70 480.80
2017-06-30 10,279.50 10,683.70 450.00
2017-03-31 9,934.20 11,512.80 1,039.50
2016-12-31 9,669.90 11,241.40 634.10
2016-09-30 9,746.20 11,582.00 488.70
2016-06-30 9,549.30 11,033.50 976.30
2016-03-31 9,661.00 11,117.40 1,010.20
2015-12-31 9,889.40 11,497.40 1,623.90
2015-09-30 9,993.30 11,914.60 1,810.20
2015-06-30 10,125.90 12,049.80 1,883.60
2015-03-31 6,583.00 9,061.20 9,281.90
2014-12-31 6,551.70 1,484.80 1,695.80
2014-09-30 6,541.40 1,676.40 1,747.10
2014-06-30 6,452.30 1,687.40 1,698.00
2014-03-31 6,237.70 1,682.80 1,588.10
2013-12-31 6,300.10 1,679.30 1,807.60
2013-09-30 6,139.00 1,687.70 1,505.80
2013-06-30 5,889.60 1,688.10 1,235.80
2013-03-31 5,712.40 1,702.80 1,201.20
2012-12-31 5,866.30 1,820.90 1,555.90
  • Zimmer Biomet Holdings's level of debt (69.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (25.6% vs 69.1% today).
  • Debt is not well covered by operating cash flow (18.5%, less than 20% of total debt).
  • Zimmer Biomet Holdings is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Zimmer Biomet Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zimmer Biomet Holdings has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ZBH Dividends

 What is Zimmer Biomet Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.66%
Current annual income from Zimmer Biomet Holdings dividends. Estimated to be 0.72% next year.
If you bought CHF2,000 of Zimmer Biomet Holdings shares you are expected to receive CHF13 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Zimmer Biomet Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Switzerland (1.85%).
  • Zimmer Biomet Holdings's dividend is below the markets top 25% of dividend payers in Switzerland (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SWX:ZBH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
Switzerland Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 1%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 163 Stocks 2.9%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.2%
Switzerland Bottom 25% Dividend Yield 25th Percentile 1.8%
Switzerland Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SWX:ZBH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.10 5.00
2020-12-31 1.05 8.00
2019-12-31 0.97 8.00
2019-11-14
SWX:ZBH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-09-03 0.960 0.696
2019-06-11 0.960 0.756
2019-03-07 0.960 0.786
2018-12-12 0.960 0.863
2018-09-13 0.960 0.797
2018-06-14 0.960 0.808
2018-03-12 0.960 0.855
2017-12-18 0.960 0.792
2017-08-07 0.960 0.834
2017-07-27 0.960 0.800
2017-03-01 0.960 0.783
2016-12-19 0.960 0.854
2016-08-23 0.960 0.830
2016-05-23 0.960 0.777
2016-02-24 0.960 0.883
2015-12-14 0.880 0.891
2015-08-24 0.880 0.880
2015-05-05 0.880 0.804
2015-02-24 0.880 0.753
2014-12-15 0.880 0.758
2014-08-26 0.880 0.833
2014-05-23 0.880 0.860
2014-03-05 0.880 0.912
2013-12-16 0.800 0.847
2013-09-09 0.800 0.920
2013-06-14 0.800 1.003
2013-03-08 0.800 1.047
2012-12-14 0.720 0.996
2012-09-14 0.720 1.100
2012-06-15 0.720 1.156
2011-12-19 0.720 1.196

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zimmer Biomet Holdings is not paying a notable dividend for Switzerland, therefore no need to check if the payments are stable.
  • Zimmer Biomet Holdings is not paying a notable dividend for Switzerland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Zimmer Biomet Holdings's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Zimmer Biomet Holdings's dividends as it is not paying a notable one for Switzerland.
Future Payout to shareholders
  • No need to calculate the sustainability of Zimmer Biomet Holdings's dividends in 3 years as they are not expected to pay a notable one for Switzerland.
X
Income/ dividend checks
We assess Zimmer Biomet Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zimmer Biomet Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zimmer Biomet Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ZBH Management

 What is the CEO of Zimmer Biomet Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bryan Hanson
COMPENSATION $9,710,434
AGE 52
TENURE AS CEO 1.9 years
CEO Bio

Mr. Bryan C. Hanson has been President, Chief Executive Officer and a member of the Board of Directors of Zimmer Biomet Holdings Inc. since December 19, 2017. Prior to joining Zimmer Biomet, Mr. Hanson was an Executive Vice President and Group President of Minimally Invasive Therapies Group at Medtronic plc from January 2015 to December 18, 2017, where he oversaw and provided strategic direction to that approximately $9 billion business. Mr. Hanson served as President of Covidien Group at Medtronic plc October 1, 2014. He has more than 20 years in the medical device industry. Mr. Hanson served as the Group President of Medical Devices & United States at Covidien Plc from October 2013 to October 1, 2014 and also served as its Senior Vice President since July 01, 2011. He served as Group President of Surgical Solutions at Covidien plc from July 01, 2011 to October 2013. Prior to leading Covidien’s Surgical Solutions Group, Mr. Hanson’s experiences include serving as President of Covidien’s Energy-based Devices business, which he doubled in size and led to become the fastest growing business unit in the Company’s Medical Devices segment. Mr. Hanson also served as President of Covidien’s Patient Care Division, which included traditional wound care, advanced wound care, urology and incontinent care; Vice President of International Marketing across all Covidien businesses; and Vice President/General Manager of the Vascular Therapies Division. Outside of business, Mr. Hanson is devoted to his family and dedicated to the needs of underprivileged children. Involved in the Fresh Air Fund, Mr. Hanson and his family participate in their Volunteer Host Family Program, hosting children from low-income communities for the summer over the past eight years. He is also on the board of Americares, an emergency response and global health organization committed to saving lives and building healthier futures for people in crisis. In addition, he sits on the University Of Colorado Leeds School Of Business Advisory Board. He also completed the Kellogg School of Management Finance for Executives program in 2010 and the Harvard Executive Education in Leadership program in 2013. Mr. Hanson holds a Bachelor of Science degree in Finance from Florida State University.

CEO Compensation
  • Bryan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Bryan's remuneration is higher than average for companies of similar size in Switzerland.
Management Team Tenure

Average tenure and age of the Zimmer Biomet Holdings management team in years:

1.8
Average Tenure
48.5
Average Age
  • The average tenure for the Zimmer Biomet Holdings management team is less than 2 years, this suggests a new team.
Management Team

Bryan Hanson

TITLE
President
COMPENSATION
$10M
AGE
52
TENURE
1.9 yrs

Chad Phipps

TITLE
Senior VP
COMPENSATION
$3M
AGE
47
TENURE
12.5 yrs

Sang Yi

TITLE
President of Asia Pacific
COMPENSATION
$4M
AGE
57
TENURE
4.4 yrs

Ivan Tornos

TITLE
Group President of Orthopedics
COMPENSATION
$4M
AGE
43
TENURE
1 yrs

Suky Upadhyay

TITLE
Executive VP & CFO
AGE
50
TENURE
0.3 yrs

Kenneth Tripp

TITLE
Senior Vice President of Global Operations & Logistics
TENURE
1.6 yrs

Carrie Nichol

TITLE
VP, Controller & Chief Accounting Officer
AGE
40
TENURE
0.1 yrs

Zeeshan Tariq

TITLE
VP & Chief Information Officer
TENURE
3.3 yrs

Cole Lannum

TITLE
Senior Vice President of Investor Relations
TENURE
1.7 yrs

Angela Main

TITLE
Senior VP
TENURE
4.4 yrs
Board of Directors Tenure

Average tenure and age of the Zimmer Biomet Holdings board of directors in years:

6.7
Average Tenure
62.5
Average Age
  • The tenure for the Zimmer Biomet Holdings board of directors is about average.
Board of Directors

Larry Glasscock

TITLE
Non-Executive Chairman
COMPENSATION
$452K
AGE
71
TENURE
6.5 yrs

Bryan Hanson

TITLE
President
COMPENSATION
$10M
AGE
52
TENURE
1.9 yrs

Art Higgins

TITLE
Independent Director
COMPENSATION
$317K
AGE
63
TENURE
12.8 yrs

Bob Hagemann

TITLE
Independent Director
COMPENSATION
$318K
AGE
62
TENURE
11.7 yrs

Betsy Bernard

TITLE
Independent Director
COMPENSATION
$306K
AGE
64
TENURE
10.8 yrs

Chris Begley

TITLE
Independent Director
COMPENSATION
$301K
AGE
67
TENURE
7.3 yrs

Gail Boudreaux

TITLE
Independent Director
COMPENSATION
$289K
AGE
58
TENURE
6.9 yrs

Mick Farrell

TITLE
Independent Director
COMPENSATION
$286K
AGE
47
TENURE
4.9 yrs

Mike Michelson

TITLE
Independent Director
COMPENSATION
$285K
AGE
68
TENURE
4.8 yrs

Tessa Hilado

TITLE
Independent Director
COMPENSATION
$48K
AGE
54
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • Zimmer Biomet Holdings individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CHF) Value (CHF)
10. Sep 19 Sell Didier Deltort Individual 06. Sep 19 09. Sep 19 -444 CHF139.09 CHF-61,340
03. Sep 19 Sell Chad Phipps Individual 29. Aug 19 29. Aug 19 -7,000 CHF136.26 CHF-953,820
09. Aug 19 Sell Sang Yi Individual 08. Aug 19 08. Aug 19 -147 CHF135.36 CHF-19,897
29. May 19 Sell Sang Yi Individual 24. May 19 24. May 19 -426 CHF115.04 CHF-49,008
04. Mar 19 Buy Syed Jafry Individual 01. Mar 19 01. Mar 19 1,925 CHF125.34 CHF241,274
19. Feb 19 Buy Arthur Higgins Individual 15. Feb 19 15. Feb 19 500 CHF124.04 CHF62,022
14. Feb 19 Buy Michael Farrell Individual 13. Feb 19 13. Feb 19 2,000 CHF124.51 CHF249,027
11. Feb 19 Buy Larry Glasscock Individual 08. Feb 19 08. Feb 19 2,000 CHF120.12 CHF240,247
11. Feb 19 Buy Michael Michelson Individual 08. Feb 19 08. Feb 19 2,085 CHF119.72 CHF249,620
08. Feb 19 Buy Maria Hilado Individual 07. Feb 19 07. Feb 19 1,650 CHF118.28 CHF195,160
08. Feb 19 Buy Bryan Hanson Individual 07. Feb 19 07. Feb 19 2,100 CHF119.28 CHF250,154
06. Feb 19 Buy Gail Boudreaux Individual 05. Feb 19 05. Feb 19 2,095 CHF119.38 CHF250,103
06. Feb 19 Buy Christopher Begley Individual 06. Feb 19 06. Feb 19 2,540 CHF117.36 CHF298,084
06. Feb 19 Buy Betsy Bernard Individual 06. Feb 19 06. Feb 19 4,250 CHF117.59 CHF499,707
06. Feb 19 Buy Robert Hagemann Individual 05. Feb 19 05. Feb 19 2,000 CHF119.88 CHF239,761
X
Management checks
We assess Zimmer Biomet Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zimmer Biomet Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ZBH News

Simply Wall St News

ZBH Company Info

Description

Zimmer Biomet Holdings, Inc., together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through four segments: Spine, less Asia Pacific; Office Based Technologies; Craniomaxillofacial and Thoracic; and Dental. The company provides orthopaedic reconstructive products, such as knee and hip replacement products; S.E.T. products, including surgical, sports medicine, biologics, foot and ankle, extremities, and trauma products; spine products comprising medical devices and surgical instruments; and 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. It also offers dental products that include dental reconstructive implants, and dental prosthetic and regenerative products; and bone cement and office based technology products. The company’s products and solutions are used to treat patients suffering from disorders of, or injuries to, bones, joints, or supporting soft tissues. It serves orthopaedic surgeons, neurosurgeons, oral surgeons, dentists, hospitals, stocking distributors, healthcare dealers, and other specialists, as well as agents, healthcare purchasing organizations, or buying groups. The company was formerly known as Zimmer Holdings, Inc. and changed its name to Zimmer Biomet Holdings, Inc. in June 2015. Zimmer Biomet Holdings, Inc. was founded in 1927 and is headquartered in Warsaw, Indiana.

Details
Name: Zimmer Biomet Holdings, Inc.
ZBH
Exchange: SWX
Founded: 1927
$29,314,559,804
205,684,362
Website: http://www.zimmerbiomet.com
Address: Zimmer Biomet Holdings, Inc.
345 East Main Street,
Warsaw,
Indiana, 46580,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ZBH Common Stock New York Stock Exchange US USD 25. Jul 2001
DB ZIM Common Stock Deutsche Boerse AG DE EUR 25. Jul 2001
SWX ZBH Common Stock SIX Swiss Exchange CH CHF 25. Jul 2001
Number of employees
Current staff
Staff numbers
19,000
Zimmer Biomet Holdings employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/14 20:47
End of day share price update: 2019/11/13 00:00
Last estimates confirmation: 2019/11/14
Last earnings filing: 2019/11/05
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.