Zimmer Biomet Holdings, Inc. (ZBH)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for a durable business bought at a sensible price. Zimmer Biomet is a large orthopedic device maker with knee, hip, S.E.T. and sports-medicine products sold worldwide. That scale and surgeon relationships offer some switching costs, but the numbers do not show a wide moat: FairStock puts ROE at 6.41% and ROCE at 3.88%, and the Piotroski score is 6/9, so capital returns are only fair. Financial health is mixed. Debt/equity is 0.60, Altman Z 2.03, and trailing free cash flow is $1.4B, an 8.0% FCF yield, which is attractive. Growth is uneven. In fiscal year 2025, the year ended 2025-12-31, revenue was $8.2B, up from $7.7B in fiscal year 2024, the year ended 2024-12-31, and $7.4B in fiscal year 2023, the year ended 2023-12-31. But net income was $705.1M in fiscal year 2025 versus $903.8M in fiscal year 2024. Recent quarters show improvement: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.2B and net income $198.3M, versus net income of $152.8M in fiscal Q2 2025, the quarter ended 2025-06-30. The Lynch category is STALWART, with 15.1% profit growth over four years and 4.8% revenue growth. Valuation at the 2026-10-13 close of $92.08 gives a FairStock P/E of 22.35, P/B of 1.39, PEG of 0.75, EV/EBITDA of 10.57, Graham Number of $78.37 and a -17.49% margin of safety—so the price is above Graham's conservative estimate. The stock could work if margins keep recovering, but at 22 times earnings I want a wider discount. The FairStock score of 47/100 fits: decent cash generation, unexceptional returns, and a price that already assumes improvement.

In plain English: Zimmer Biomet makes orthopedic implants and related medical devices, such as knee and hip replacements, sold around the world. The business looks only moderately strong: sales are growing slowly, profits have been uneven, and returns on the money invested in it are modest. At the recent close of $92.08 on 2026-10-13, the shares look a bit expensive compared with the company's profits and asset value, though cash generation is solid.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer