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 Q4 Earnings: A Strong Finish to 2025

Zimmer Biomet reported a strong fourth quarter in 2025, with sales growth of 5.4% on an organic constant currency basis, driven by healthy end markets, new product momentum, and the ongoing evolution of its U.S. sales channel. The company's adjusted earnings per share (EPS) came in at $2.42, beating estimates of $2.38. For the full year 2025, Zimmer Biomet grew organic constant currency sales by 3.9% and generated $8.20 in adjusted EPS. The company's free cash flow for the year was $1.172 billion, representing an 11% increase year over year. The strong finish to 2025 sets the stage for the company's guidance for 2026.

Publication Date: Feb -14

📋 Highlights
  • Q4 Organic Growth:: 5.4% driven by end markets and new product momentum, with U.S. Knee growth at 6%.
  • 2026 Guidance:: 1-3% organic revenue growth and adjusted EPS of $8.30-$8.45, with free cash flow growth of 8-10%.
  • Free Cash Flow:: $1.172 billion in 2025, up 11% YoY, with four consecutive years of high single-digit growth.
  • New Product Launch:: Iodine-based product (iodine) priced 40% higher than non-iodine alternatives, launching internationally in 2026.
  • Salesforce Transition:: Adding 200+ dedicated reps for high-growth areas (e.g., robotics, ASC), aiming for full conversion by 2027.

2026 Guidance

For 2026, Zimmer Biomet expects organic constant currency revenue growth in the low single-digit range, or 1% to 3%. The company also expects adjusted EPS of $8.30 to $8.45, representing a 1.2% to 3% increase from 2025. The guidance is more conservative than the company's historical performance, reflecting the ongoing transformation of its U.S. sales channel and some headwinds from price erosion and higher raw material costs. As Suketu Upadhyay noted, "We're looking at three things. Number one, obviously, is the US Salesforce transition. That is a deep priority in 2026."

Valuation

Zimmer Biomet's current valuation multiples are relatively reasonable, with a P/E Ratio of 26.97 and an EV/EBITDA ratio of 11.74. The company's ROE is 5.6%, and its ROIC is 5.48%. The Dividend Yield is 1.0%, and the Free Cash Flow Yield is 9.67%. These metrics suggest that the company's shares are not overly expensive, especially given its strong track record of growth and cash generation.

Operational Highlights

The company's U.S. knee growth was driven by increased penetration of Persona OsteoTide, while its robotics and navigation strategy continues to pay dividends, with technology and data, bone cement, and surgical cells increasing over 10% in the quarter. The SCT business continues to perform strongly, growing mid-teens in the quarter. The company's ASC strategy is also showing promise, with 20-22% of hips and knees performed in ASCs in 2025.

Outlook

Analysts expect Zimmer Biomet's revenue to grow by 3.7% in 2026. The company's guidance and operational highlights suggest that it is on track to deliver mid-single-digit growth in the SCT segment and to make progress on its ASC strategy. While there may be some disruption associated with the US go-to-market transformation, the company believes this is the right step to create a strong and desired future company.

3. NewsRoom

Card image cap

ZBH Investor Alert: Hagens Berman Investigates Zimmer Biomet (ZBH) Over Alleged Emerging Market Failures and "Inconsistent" Execution

Feb -18

Source: prnewswire.com

Card image cap

ABN Amro Investment Solutions Sells 11,020 Shares of Zimmer Biomet Holdings, Inc. $ZBH

Feb -16

Source: defenseworld.net

Card image cap

A Closer Look at Healthcare Sector Earnings: AZN vs. EW vs. ZBH

Feb -12

Source: marketbeat.com

Card image cap

Zimmer Biomet Holdings Inc (ZBH) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Sales Force Transition

Feb -12

Source: gurufocus.com

Card image cap

Zimmer Biomet Holdings, Inc. (ZBH) Q4 2025 Earnings Call Transcript

Feb -10

Source: seekingalpha.com

Card image cap

ZBH Q4 Earnings & Revenues Top Estimates, Stock Up in Pre-Market

Feb -10

Source: zacks.com

Card image cap

Zimmer (ZBH) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -10

Source: zacks.com

Card image cap

Zimmer Biomet (ZBH) Q4 Earnings and Revenues Top Estimates

Feb -10

Source: zacks.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: 4.4/10

Value: 5.6

Growth: 4.0

Quality: 6.3

Yield: 1.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
ShockWave Medical

A-Score: 4.2/10

Value: 0.0

Growth: 9.7

Quality: 7.1

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
RxSight

A-Score: 3.5/10

Value: 7.7

Growth: 6.6

Quality: 5.3

Yield: 0.0

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
PROCEPT BioRobotics

A-Score: 3.4/10

Value: 6.6

Growth: 6.2

Quality: 4.5

Yield: 0.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Integer

A-Score: 3.2/10

Value: 4.5

Growth: 5.1

Quality: 4.7

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Glaukos

A-Score: 3.2/10

Value: 6.2

Growth: 1.8

Quality: 5.5

Yield: 0.0

Momentum: 1.5

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

98.75$

Current Price

98.75$

Potential

-0.00%

Expected Cash-Flows