Zimmer Biomet Holdings

ZBH

Medical - Devices · Healthcare

Price

$100.98

+2.01 (+2.03%)

Market Cap

$19.54B

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Exceptional

Stability

Strong

Valuation

Good

Dividends

Weak

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Share count falling — buybacks

−5.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 210.4M (2021) → 198.7M (2025)

Winston Score History

The full picture

Zimmer Biomet makes medical devices used to replace or repair damaged joints in the human body. Its main products are artificial knees, hips, shoulders, and spine implants, which are sold to hospitals and surgeons around the world. The company is one of the largest orthopedic device makers globally, competing closely with a small group of rivals including Stryker and Johnson & Johnson.

Zimmer Biomet earns money by selling its implants and related surgical instruments directly to hospitals and surgical centers. It operates in over 25 countries, with the United States generating the largest share of its roughly $7 billion in annual revenue. The company's moat comes from deep relationships with surgeons, who tend to stick with the implant systems they are trained on. The key growth driver is an aging global population that will need more joint replacements over time, while the main risk is ongoing pressure from hospital customers to lower device prices.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-100.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-100.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$459M/ year

→ Flat (+5% vs prior year)

5.6% of revenue

Below sector average (18%)

Steady R&D investment year-over-year

Insider Activity

0.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$410M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Zimmer Biomet Holdings's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

N/A

Data not available

Profit after running costs

Operating Margin

N/A

Data not available

Return on the money invested

ROCE

4.6%

Weak — 4.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

-19.2%

Shrinking sales (-19.2% YoY)

Profit growth

EPS YoY

-24.8%

Earnings shrinking (-24.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

275%

Turns 275% of profit into real cash

Spare cash per sale

FCF Margin

20.2%

Converts sales into free cash efficiently (20.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.51

Conservative — low debt load (0.51)

Covers its interest

Interest Cover

4.68x

Adequate interest coverage (4.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

32.6x

Pricey — P/E 32.6

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+22.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (32.6 → 9.9)

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Dividends

Dividend

Dividend Yield

1.00%

Small dividend — 1.00% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+0.0%

Dividend flat

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