Download PDF

1. Company Snapshot

1.a. Company Description

Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates in the musculoskeletal healthcare business in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.The company designs, manufactures, and markets orthopaedic reconstructive products, such as knee and hip products; S.E.T. products, including 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 toss 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, as well as robotic, surgical and bone cement 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 orthopedic 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.

Show Full description

1.b. Last Insights on ZBH

Zimmer Biomet Holdings, Inc. faced scrutiny due to the cancellation of emerging markets distributor orders and a reduced top-line revenue forecast. The company's Q3 2025 financial results, announced on November 5, 2025, led to a significant market reaction. Several shareholder rights law firms, including Hagens Berman, Levi & Korsinsky, and Glancy Prongay & Murray LLP, have initiated investigations into potential securities law violations. Additionally, some investors, such as Brandywine Global Investment Management LLC and Creative Planning, have increased their holdings in the company. Analysts have assigned a consensus rating of "Hold" to the stock.

1.c. Company Highlights

2. Zimmer Biomet's Q3 Earnings: A Mixed Bag

Zimmer Biomet reported adjusted earnings per share of $1.90, up 9.2% year-over-year, and free cash flow of $278 million, with operating cash flows of $419 million. The company's revenue growth was 5% on an organic constant currency basis, with the U.S. business accelerating to 5.6%, driven by new product launches, including Persona OsseoTi, Oxford, and ROSA. However, unexpected weakness in Eastern Europe, Latin America, and non-core segments of S.E.T. impacted growth by nearly 120 basis points. The company's cash and cash equivalents stood at approximately $1.3 billion.

Publication Date: Nov -06

📋 Highlights
  • US Revenue Growth Acceleration: Q3 US sales rose 5.6%, the strongest since mid-2023, driven by 3.5% Knees, 4% Hips, and 6.4% S.E.T. growth, offset by 120 bps drag from Eastern Europe, Latin America, and non-core S.E.T. segments.
  • 2025 Guidance Adjustments: Organic growth revised to 3.5–4% due to $20M international market volatility and a $40M tariff headwind, while maintaining adjusted EPS guidance of $8.10–$8.30 amid slower U.S. revision markets.
  • Financial Strength and Cash Flow: Adjusted EPS increased 9.2% to $1.90, free cash flow reached $278M, and cash reserves hit $1.3B, with net debt leverage in the low 3s, supporting disciplined capital allocation and share buybacks.
  • Innovation Pipeline Progress: Launched iodine-coated implants (FDA Breakthrough Designated) and Monogram’s AI robotics (2027 launch), with Paragon 28 contributing 270 bps to sales growth and Wave 2 innovations focused on customer-centric products.
  • Strategic and Operational Shifts: Reoriented incentives toward growth, margins, and cash flow; 50–100 bps FX boost expected in 2025, but LRP requires 5–6% annual growth over next two years to realign with long-term targets.

Segment Performance

The Knees franchise grew 5.3% globally, and the Robots business had a strong quarter. The U.S. Knees grew 3.5%, Hips grew 4%, and S.E.T. grew 6.4%. The company's Paragon 28 acquisition is performing well, with organic growth in the upper single-digit range. However, Restorative therapies, primarily HA injections, experienced softness due to commercial execution challenges and reimbursement changes.

Guidance Update

The company updated its 2025 guidance, expecting organic constant currency revenue growth of 3.5% to 4%, and maintained its adjusted EPS guidance of $8.10 to $8.30. The updated revenue range considers continued weakness in restorative therapies, a more measured outlook for certain international emerging markets, and a modest slowdown in the U.S. revision market for both hips and knees. To get back on track with its long-range plan, the company would need to deliver 5-6% growth in each of the next 2 years.

Innovation Pipeline

The company's innovation pipeline is progressing well, with the iodine-coated implant receiving FDA Breakthrough Designation, which may enable premium pricing and better reimbursement dynamics. The company is on track to launch the Monogram Technologies' semi-autonomous AI-driven orthopedic robotic system in early 2027. The Wave 1 innovation cycle drove 5.6% growth in the U.S. market, and Wave 2 focuses on customer-centric innovation.

Valuation

With a P/E Ratio of 21.54 and an EV/EBITDA of 10.16, the market is pricing in a certain level of growth. The company's ROIC is 4.72%, and ROE is 6.25%. Analysts estimate next year's revenue growth at 5.9%. The actual EPS came out at $1.16 relative to estimates at $1.88, indicating a significant miss.

3. NewsRoom

Card image cap

Boston Partners Has $62.20 Million Stake in Zimmer Biomet Holdings, Inc. $ZBH

Nov -28

Source: defenseworld.net

Card image cap

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Given Consensus Recommendation of “Hold” by Analysts

Nov -26

Source: defenseworld.net

Card image cap

Zimmer Biomet Holdings (ZBH) Faces Investor Scrutiny Amid Emerging Markets Distributor Orders Cancelation, Reduced Top-Line Revenue Forecast -- Hagens Berman

Nov -24

Source: globenewswire.com

Card image cap

Creative Planning Boosts Holdings in Zimmer Biomet Holdings, Inc. $ZBH

Nov -24

Source: defenseworld.net

Card image cap

Brandywine Global Investment Management LLC Acquires 9,786 Shares of Zimmer Biomet Holdings, Inc. $ZBH

Nov -23

Source: defenseworld.net

Card image cap

Bragar Eagel & Squire, P.C. Is Investigating Gauzy and Zimmer Biomet and Encourages Investors to Contact the Firm

Nov -20

Source: globenewswire.com

Card image cap

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Zimmer Biomet Holdings, Inc. - ZBH

Nov -20

Source: prnewswire.com

Card image cap

Securities Fraud Investigation Into Zimmer Biomet Holdings, Inc. (ZBH) Continues – Shareholders Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz

Nov -19

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.72%)

6. Segments

Knees

Expected Growth: 4.5%

Zimmer Biomet's knee segment growth is driven by increasing demand for joint replacement procedures, fueled by an aging population and rising obesity rates. Additionally, advancements in technology, such as robotic-assisted surgeries and personalized implants, are improving outcomes and driving adoption. Expanding access to healthcare in emerging markets and strategic partnerships also contribute to the 4.5% growth.

Hips

Expected Growth: 4.8%

Zimmer Biomet's hip segment growth of 4.8% is driven by increasing demand for elective surgeries, adoption of premium products such as Persona and Trabecular Metal, and expansion in emerging markets. Additionally, the company's focus on digital and robotic technologies, such as Rosa, is enhancing the surgical experience and driving growth.

Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic

Expected Growth: 5.2%

Zimmer Biomet's 5.2% growth driven by increasing demand for Sports Medicine procedures, rising incidence of extremities injuries, growing adoption of minimally invasive Trauma solutions, advancements in Craniomaxillofacial reconstruction, and expanding use of Thoracic implants in emerging markets.

Other

Expected Growth: 4.2%

Zimmer Biomet's 'Other' segment growth of 4.2% is driven by increasing demand for dental implants, growth in emerging markets, and expansion of the company's spine and dental product portfolios. Additionally, strategic partnerships and investments in digital health technologies are contributing to the segment's growth.

7. Detailed Products

Knee Implants

Designed to replace damaged or arthritic knee joints, Zimmer Biomet's knee implants are engineered to provide patients with a natural range of motion and reduce pain.

Hip Implants

Zimmer Biomet's hip implants are designed to restore mobility and alleviate pain in patients with damaged or arthritic hip joints.

Spinal Implants

Zimmer Biomet's spinal implants are designed to treat a range of spinal disorders, including degenerative disc disease, scoliosis, and spinal fractures.

Dental Implants

Zimmer Biomet's dental implants are designed to replace missing teeth and restore oral function and aesthetics.

Trauma Implants

Zimmer Biomet's trauma implants are designed to treat a range of orthopedic trauma injuries, including fractures and soft tissue damage.

Extremities Implants

Zimmer Biomet's extremities implants are designed to treat a range of upper and lower extremity disorders, including osteoarthritis and fractures.

Bone Cement and Accessories

Zimmer Biomet's bone cement and accessories are designed to facilitate orthopedic surgical procedures.

Dental Surgical Instruments

Zimmer Biomet's dental surgical instruments are designed to facilitate dental implant and oral surgery procedures.

8. Zimmer Biomet Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Zimmer Biomet Holdings, Inc. operates in the medical device industry, where substitutes are limited. However, the company faces competition from alternative treatments and therapies, which could potentially substitute for its products.

Bargaining Power Of Customers

Zimmer Biomet Holdings, Inc. sells its products to hospitals, clinics, and other healthcare providers, which have limited bargaining power due to the specialized nature of the products.

Bargaining Power Of Suppliers

Zimmer Biomet Holdings, Inc. relies on a network of suppliers for raw materials and components. While the company has some bargaining power, suppliers also have some leverage due to the specialized nature of the products.

Threat Of New Entrants

The medical device industry has high barriers to entry, including regulatory hurdles and significant research and development investments. This limits the threat of new entrants for Zimmer Biomet Holdings, Inc.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share. Zimmer Biomet Holdings, Inc. faces intense competition from companies such as Johnson & Johnson, Stryker, and Medtronic.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.81%
Debt Cost 3.95%
Equity Weight 68.19%
Equity Cost 9.08%
WACC 7.45%
Leverage 46.64%

11. Quality Control: Zimmer Biomet Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Zimmer Biomet

A-Score: 4.7/10

Value: 4.5

Growth: 3.9

Quality: 6.1

Yield: 1.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
ShockWave Medical

A-Score: 4.0/10

Value: 0.0

Growth: 9.8

Quality: 6.9

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
RxSight

A-Score: 3.6/10

Value: 8.2

Growth: 6.6

Quality: 5.3

Yield: 0.0

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
Integer

A-Score: 3.5/10

Value: 5.1

Growth: 5.1

Quality: 4.3

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
PROCEPT BioRobotics

A-Score: 3.4/10

Value: 6.4

Growth: 6.2

Quality: 4.2

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Glaukos

A-Score: 3.0/10

Value: 6.4

Growth: 1.8

Quality: 5.3

Yield: 0.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

94.28$

Current Price

94.28$

Potential

-0.00%

Expected Cash-Flows