ZBH
Zimmer Biomet Holdings, Inc.$93.73
Unclear
Target $101.24
Report: Mar 12, 2026Healthcare • Medical - Devices • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$93.73+8.0%
Rec: UnclearConviction: Medium
Entry Target
$77.88
(17% below current)
Fair Value
$101.24
(8% above current)
Stop Loss
$84.59
(10% below current)
Position Size
Starter
Time Horizon
Strategic
Key Metrics
Live Snapshot
Market Data
52 Week High$114.44
52 Week Low$84.59
Avg. 3 Month Volume2.19M
Efficiency
LTM Gross Margin69.7%
LTM EBITDA Margin26.9%
LTM EBIT Margin13.7%
LTM Operating Margin13.3%
LTM ROA3.1%
LTM ROE5.6%
LTM ROIC8.8%
LTM ROCE5.6%
Capital Structure
Market Cap (MM)$17.7B
Enterprise Value (MM)$24.6B
Shares Outstanding197.10M
Total Debt (MM)$7.52B
Cash & Equivalents (MM)$591.90M
LTM Net Debt (MM)$6.93B
LTM Net Debt/EBITDA3.1x
Growth
TTM Rev. Growth7.2%
Last 3-Yr Rev. CAGR5.9%
Last 3-Yr EBITDA CAGR15.6%
Last 3-Yr EPS CAGR48.5%
Valuation
Street Target Price$105.60
LTM EV/Revenue3.0x
LTM EV/Gross Profit4.3x
LTM EV/EBIT21.9x
LTM EV/EBITDA11.1x
LTM P/E25.1x
LTM EV/FCF21.0x
LTM P/FCF15.1x
LTM P/TB2.1x
LTM P/B1.4x
Dividend Yield1.1%
Payout Ratio26.9%
Executive SummarySituation: Current price is $93.73 versus fair value $101.24 (8.0% expected return), and valuation confidence is stable. Debate: Bull case depends on U.S. Bear case centers on Moat Erosion via Technological Disruption. Conclusion: Recommendation is Unclear; maintain no position until reliability and catalyst evidence improve.
Bull Case
Leadership in the high-growth robotics segment (ROSA) will drive market share gains in the ASC channel; the $1.1 billion Paragon 28 acquisition provides a dominant foothold in the fast-growing foot and ankle market.
Bear Case
The U.S. sales force transition will lead to permanent market share loss to Stryker; persistent pricing erosion of 100 basis points and $40 million in tariff headwinds will continue to compress operating margins.
Key Catalysts
Long-Term (18+ months)Impact: High
U.S. Sales Force Specialization Completion. This addresses the primary market concern regarding commercial disruption and should validate th...
Near-Term (0-6 months)Impact: Moderate
Japan Iodine-Treated Hip Launch. This product launch in Q1 2026 is expected to command a 40% price uplift, serving as a critical proof point...
Long-Term (18+ months)Impact: Moderate
Zimmer Biomet is relevant for analysis now because it is trading near its 52-week low ($84.59 - $114.44 range) following a 15% collapse, cre...
Primary Risks
Concern: High
Moat Erosion via Technological Disruption. Stryker's Mako system could achieve a dominant 'standard of care' status in robotics, permanently...
Concern: Medium
Securities Fraud Investigation and Litigation. The ongoing investigation into 2025 revenue forecasting could lead to significant legal liabi...
Concern: Medium
The governance outlook is defined by the following Outcome Tree: 1. Status Quo: Management successfully completes the sales force transition...
Recent Activity
2025-11-05SEC Filing (8-K)
-15.15%Zimmer Biomet reports Q3 2025 financial results with 9.7% revenue growth and $1.90 adjusted EPS
2025-08-07SEC Filing (8-K)
+7.99%Zimmer Biomet reports Q2 2025 results with 7.0% sales growth and tightens full-year guidance.
2025-02-06SEC Filing (8-K)
-5.14%Zimmer Biomet reports Q4 and full-year 2024 results with 4.3% Q4 sales growth and announces Paragon 28 acquisition.
2024-10-30SEC Filing (8-K)
+5.71%Zimmer Biomet reports Q3 2024 financial results with 4.0% net sales growth and updates full-year guidance downward.
2022-02-08SEC Filing (8-K)
+7.36%Zimmer Biomet reports Q4 and full-year 2021 results, announces ZimVie spinoff.
Valuation Table
9.8/10Decision Grade
Scenario Range
$75
Bear
$145
Bull
$94