Zimmer Biomet Holdings, Inc. (ZBH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DexCom, Inc.

Intuitive Surgical, Inc.

Medtronic Plc

Edwards Lifesciences Corp.

Agilent Technologies, Inc.

West Pharmaceutical Services, Inc.

IDEXX Laboratories, Inc.

GE Healthcare Technologies, Inc.

Zimmer Biomet Holdings, Inc.

Becton, Dickinson & Co.

Mettler-Toledo International, Inc.

Why is Zimmer Biomet Holdings, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.19% and Operating profit at 14.17% over the last 5 years

Negative results in Jun 25

NET PROFIT(9M) At USD 753.55 MM has Grown at -28.26%
INTEREST COVERAGE RATIO(Q) Lowest at 869.79
DEBT-EQUITY RATIO (HY) Highest at 56.01 %

With ROCE of 7.93%, it has a fair valuation with a 1.85 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -15.93%, its profits have fallen by -7.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.93% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zimmer Biomet Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zimmer Biomet Holdings, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zimmer Biomet Holdings, Inc.

-15.78%

-0.57

30.98%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.19%

EBIT Growth (5y)

14.17%

EBIT to Interest (avg)

6.38

Debt to EBITDA (avg)

2.71

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.40

Tax Ratio

12.92%

Dividend Payout Ratio

21.66%

Pledged Shares

Institutional Holding

99.22%

ROCE (avg)

6.76%

ROE (avg)

8.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.25

EV to EBIT

23.35

EV to EBITDA

13.72

EV to Capital Employed

1.85

EV to Sales

4.37

PEG Ratio

Dividend Yield

71.99%

ROCE (Latest)

7.93%

ROE (Latest)

8.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,663 MM

RAW MATERIAL COST(Y)

Fallen by -0.19% (YoY

NET SALES(Q)

Highest at USD 2,077.3 MM

-14What is not working for the Company

NET PROFIT(9M)

At USD 753.55 MM has Grown at -28.26%

INTEREST COVERAGE RATIO(Q)

Lowest at 869.79

DEBT-EQUITY RATIO (HY)

Highest at 56.01 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.17 times

INTEREST(Q)

Highest at USD 75.8 MM

EPS(Q)

Lowest at USD 0.77

Here's what is working for Zimmer Biomet Holdings, Inc.

Operating Cash Flow

Highest at USD 1,663 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 2,077.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Raw Material Cost

Fallen by -0.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 271.8 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Zimmer Biomet Holdings, Inc.

Interest

At USD 75.8 MM has Grown at 19.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 869.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At USD 753.55 MM has Grown at -28.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Interest

Highest at USD 75.8 MM

in the last five periods and Increased by 19.75% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

EPS

Lowest at USD 0.77

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 56.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 5.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio