# Zimmer Biomet Holdings (ZBH.US)

Canonical: https://gigainvestors.com/s/ZBH

Analysis as of: 2026-10-16T07:33:20.143Z. Financial observations: FY1998–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $94.38 per share; close as of 2026-10-15.

Estimated value: low $94.52 per share, central $107.38 per share, high $124.50 per share. Buy at or below the central value $107.38 per share. Valuation as of 2026-10-16T07:33:20.143Z; scenarios are not confidence intervals.

Expected annual return: 11.0% at the stated quote. About 11.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 0.52×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.10×

- FY2018: 0.00×

- FY2019: 0.14×

- FY2020: 0.01×

- FY2021: 0.13×

- FY2022: 0.10×

- FY2023: 0.17×

- FY2024: 0.17×

- FY2025: 0.17×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 9.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 7.4%

- ROIC, second-lowest year: 0.6%

- Typical minus recent gross margin: 9.7 pp

- Typical gross margin (annual median): 71.3%

- Recent gross margin (lower of latest and 3-year median): 61.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.6%

- ROIC including acquisitions, ten-year median: 7.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.5%

- FY2017: 7.5%

- FY2018: 0.3%

- FY2019: 10.9%

- FY2020: 0.6%

- FY2021: 7.4%

- FY2022: 5.7%

- FY2023: 13.6%

- FY2024: 12.2%

- FY2025: 11.9%

### economics: pass

- Owner earnings / net income, 5-yr: 2.10×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $6.9B

- Net income, five-year total: $3.3B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 4.3 pp

- Working capital / revenue, final three-year average: 45.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 2.96×

- FY2022: 4.19×

- FY2023: 1.54×

- FY2024: 1.71×

- FY2025: 2.23×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.5% vs 12.2%

- Per-share earnings: 1.47 to 4.43 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: -$3.6B

- Cumulative retained earnings: $3.1B

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.8%

- Per-share value change: $2.97

- Per-share value, starting three-year median: $1.47

- Per-share value, ending three-year median: $4.43

- Buybacks concentrated in cheaper years (correlation): 0.37

- Average buyback yield: 2.3%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $1.9B

- Cumulative net income, 10 years: $6.0B

- ROIC, first three-year median: 6.5%

- ROIC, last three-year median: 12.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.47

- FY2017: $8.64

- FY2018: -$1.81

- FY2019: $5.32

- FY2020: -$0.67

- FY2021: $1.91

- FY2022: $1.10

- FY2023: $4.88

- FY2024: $4.43

- FY2025: $3.55

### accounting: pass

- Sloan accruals: -4.3%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 5.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.41×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.15×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.0%

- FY2017: 0.9%

- FY2018: -8.8%

- FY2019: -1.8%

- FY2020: -5.5%

- FY2021: -4.7%

- FY2022: -5.0%

- FY2023: -2.6%

- FY2024: -2.8%

- FY2025: -4.3%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mark Hillman](https://gigainvestors.com/HCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 35% since Jun 2023 · "Zimmer Biomet reports 2025 revenue growth yet tempers 2026 outlook" (finance.yahoo.com, Feb 2026) · sales +7.2%

Story as of 2026-10-16T09:59:54.983Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.7% a year for ten years

- 2025-05-05: Zimmer Biomet lowers 2025 profit forecast on acquisition costs, tariff uncertainty ([finance.yahoo.com](https://finance.yahoo.com/news/zimmer-biomet-lowers-2025-profit-114004651.html))

- 2025-08-07: Zimmer Biomet raises annual profit forecast on strong demand for medical devices ([finance.yahoo.com](https://finance.yahoo.com/news/zimmer-biomet-raises-annual-profit-120911216.html))

- 2025-11-05: Zimmer cuts 2025 organic sales growth forecast on weakness in international markets ([finance.yahoo.com](https://finance.yahoo.com/news/zimmer-cuts-2025-organic-sales-152529531.html))

- 2026-01-13: Zimmer Biomet drops after cautious remarks on outlook ([seekingalpha.com](https://seekingalpha.com/news/4538872-zimmer-biomet-drops-cautious-remarks-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-11: ZBH Q4 Deep Dive: U.S. Salesforce Overhaul Drives Guidance Caution Amid Product Momentum ([finance.yahoo.com](https://finance.yahoo.com/news/zbh-q4-deep-dive-u-053119513.html))

- 2026-08-05: Zimmer Biomet reports 4.8% YoY revenue uptick in Q2; raises 2026 outlook ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/zimmer-biomet-reports-4-8-161500257.html))

### Sales · FY2024–2025

sales +7.2%; source https://www.sec.gov/Archives/edgar/data/1136869/000119312526059853/zbh-20251231.htm; observed 2026-02-20.

- FY2016: $7.7B 

- FY2017: $7.8B 

- FY2018: $7.9B 

- FY2019: $8.0B 

- FY2020: $6.1B 

- FY2021: $6.8B 

- FY2022: $6.9B 

- FY2023: $7.4B 

- FY2024: $7.7B 

- FY2025: $8.2B 

### Gross margin · FY2025

gross margin 61.6%; source https://www.sec.gov/Archives/edgar/data/1136869/000119312526059853/zbh-20251231.htm; observed 2026-02-20.

- FY2016: 68.9% 

- FY2017: 72.7% 

- FY2018: 71.4% 

- FY2019: 71.8% 

- FY2020: 70.2% 

- FY2021: 71.3% 

- FY2022: 70.9% 

- FY2023: 71.8% 

- FY2024: 71.5% 

- FY2025: 61.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical devices; annual sales are USD 8.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1136869/000119312526059853/zbh-20251231.htm (filed 2026-02-20); FY2025: revenue 8231500000; grossProfit 5071900000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ZBH.US: Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates as a medical technology company worldwide. The company designs, manufactures, and markets orthopedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, upper extremities, and trauma and CMFT products; sports medicine products for the repair of soft tissue injuries, used in the knee and shoulder; and craniomaxillofacial and thoracic products comprising 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 offers technology and data, bone cement, and surgical products; and a suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence. 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, hospitals, healthcare institutions, stocking distributors, healthcare dealers, and other specialists, as well as agents, healthcare purchasing organizations, or buying groups. It also offers ROSA Robot, which utilizes robotic technologies to assist a surgeon with implant positioning in total knee arthroplasty or partial knee arthroplasty; and the ZBEdge Platform connects robotic and digital technologies together to collect data before, during and after surgery, that can deliver insights to surgeons to assist in making informed decisions on patient care. 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.

### Why customers stay

Margins ranged from 61.6% to 71.8% during 2023–25; it earns 7.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 71.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 71.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1136869/000119312526059853/zbh-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 61.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.0649786181434905],[2017,0.07480230218520424],[2018,0.002650901437534747],[2019,0.10946025269681194],[2020,0.006231218262066347],[2021,0.07362571192999495],[2022,0.05735819863018436],[2023,0.13614015702205837],[2024,0.12208696552473025],[2025,0.11945888586093723]]; median 0.07421400705759959. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 71% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1136869/000119312526059853/zbh-20251231.htm (filed 2026-02-20); Gross margin observations: [[2021,0.712858670338201],[2022,0.7090015706278189],[2023,0.7181845230045171]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 487 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 184700000; owner earnings 1160500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 156000000; owner earnings 2720500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 162700000; owner earnings 498600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 0; upkeep 404700000; owner earnings 1733000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 0; upkeep 117900000; owner earnings 641600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 0; upkeep 152000000; owner earnings 1187300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 187900000; owner earnings 969900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 394500000; owner earnings 1581200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 356800000; owner earnings 1543300000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1136869/000119312526059853/zbh-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 224500000; owner earnings 1574500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,188400000],[2017,193600000],[2018,195200000],[2019,196700000],[2020,198500000],[2021,200100000],[2022,201200000],[2023,200900000],[2024,196000000],[2025,190300000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1136869/000119312526059853/zbh-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 487000000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ZBH.US SharesStats.PercentInsiders = 0.16199999999999998 percentage points; cache date 2026-10-16.

### What could break it

"We are subject to risks arising from currency exchange rate fluctuations" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1136869/000119312526059853/zbh-20251231.htm (filed 2026-02-20); We are subject to risks arising from currency exchange rate fluctuations

### What the price says

The price assumes cash profits shrink 0.7% yearly over ten years; actual growth was 8.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate -0.02321565414806598. Price 94.38; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.5382160066293595 → FY2025 7.924006039255159. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $105.40 per share

- 2016-11: $101.86 per share

- 2016-12: $103.20 per share

- 2017-01: $118.33 per share

- 2017-02: $117.08 per share

- 2017-03: $122.11 per share

- 2017-04: $119.65 per share

- 2017-05: $119.21 per share

- 2017-06: $128.40 per share

- 2017-07: $121.32 per share

- 2017-08: $114.27 per share

- 2017-09: $117.09 per share

- 2017-10: $121.62 per share

- 2017-11: $117.10 per share

- 2017-12: $120.67 per share

- 2018-01: $127.12 per share

- 2018-02: $116.25 per share

- 2018-03: $109.04 per share

- 2018-04: $115.17 per share

- 2018-05: $111.51 per share

- 2018-06: $111.44 per share

- 2018-07: $125.52 per share

- 2018-08: $123.63 per share

- 2018-09: $131.47 per share

- 2018-10: $113.59 per share

- 2018-11: $117.02 per share

- 2018-12: $103.72 per share

- 2019-01: $109.56 per share

- 2019-02: $124.12 per share

- 2019-03: $127.70 per share

- 2019-04: $123.16 per share

- 2019-05: $113.93 per share

- 2019-06: $117.74 per share

- 2019-07: $135.13 per share

- 2019-08: $139.20 per share

- 2019-09: $137.27 per share

- 2019-10: $138.23 per share

- 2019-11: $145.28 per share

- 2019-12: $149.68 per share

- 2020-01: $147.90 per share

- 2020-02: $136.15 per share

- 2020-03: $101.08 per share

- 2020-04: $119.70 per share

- 2020-05: $126.34 per share

- 2020-06: $119.36 per share

- 2020-07: $134.86 per share

- 2020-08: $140.88 per share

- 2020-09: $136.14 per share

- 2020-10: $132.10 per share

- 2020-11: $149.12 per share

- 2020-12: $154.09 per share

- 2021-01: $153.67 per share

- 2021-02: $163.06 per share

- 2021-03: $160.08 per share

- 2021-04: $177.16 per share

- 2021-05: $168.33 per share

- 2021-06: $160.82 per share

- 2021-07: $163.42 per share

- 2021-08: $150.45 per share

- 2021-09: $146.36 per share

- 2021-10: $143.12 per share

- 2021-11: $119.60 per share

- 2021-12: $127.04 per share

- 2022-01: $123.02 per share

- 2022-02: $127.19 per share

- 2022-03: $127.90 per share

- 2022-04: $120.75 per share

- 2022-05: $120.21 per share

- 2022-06: $105.06 per share

- 2022-07: $110.39 per share

- 2022-08: $106.32 per share

- 2022-09: $104.55 per share

- 2022-10: $113.35 per share

- 2022-11: $120.10 per share

- 2022-12: $127.50 per share

- 2023-01: $127.34 per share

- 2023-02: $123.87 per share

- 2023-03: $129.20 per share

- 2023-04: $138.44 per share

- 2023-05: $127.34 per share

- 2023-06: $145.60 per share

- 2023-07: $138.15 per share

- 2023-08: $119.12 per share

- 2023-09: $112.22 per share

- 2023-10: $104.41 per share

- 2023-11: $116.31 per share

- 2023-12: $121.70 per share

- 2024-01: $125.60 per share

- 2024-02: $124.36 per share

- 2024-03: $131.98 per share

- 2024-04: $120.28 per share

- 2024-05: $115.15 per share

- 2024-06: $108.53 per share

- 2024-07: $111.35 per share

- 2024-08: $115.46 per share

- 2024-09: $107.95 per share

- 2024-10: $106.92 per share

- 2024-11: $112.10 per share

- 2024-12: $105.63 per share

- 2025-01: $109.48 per share

- 2025-02: $104.32 per share

- 2025-03: $113.18 per share

- 2025-04: $103.05 per share

- 2025-05: $92.17 per share

- 2025-06: $91.21 per share

- 2025-07: $91.65 per share

- 2025-08: $106.10 per share

- 2025-09: $98.50 per share

- 2025-10: $100.56 per share

- 2025-11: $97.52 per share

- 2025-12: $89.92 per share

- 2026-01: $87.07 per share

- 2026-02: $98.44 per share

- 2026-03: $90.42 per share

- 2026-04: $82.43 per share

- 2026-05: $82.33 per share

- 2026-06: $86.09 per share

- 2026-07: $93.93 per share

- 2026-08: $100.04 per share

- 2026-09: $88.83 per share

- 2026-10: $94.38 per share

## Annual estimated value (USD per share)

- FY2016: low $84.14 per share, central $95.42 per share, high $110.44 per share

- FY2017: low $84.50 per share, central $95.91 per share, high $111.09 per share

- FY2018: low $64.44 per share, central $73.07 per share, high $84.56 per share

- FY2019: low $64.17 per share, central $72.72 per share, high $84.10 per share

- FY2020: low $52.25 per share, central $59.00 per share, high $67.99 per share

- FY2021: low $62.83 per share, central $71.33 per share, high $82.65 per share

- FY2022: low $51.54 per share, central $58.49 per share, high $67.74 per share

- FY2023: low $68.30 per share, central $77.54 per share, high $89.85 per share

- FY2024: low $73.41 per share, central $83.28 per share, high $96.41 per share

- FY2025: low $88.76 per share, central $100.70 per share, high $116.60 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1136869/000119312526059853/zbh-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.