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ZBH:NYSEZimmer Biomet Holdings, Inc. Analysis

Data as of 2026-03-11 - not real-time

$91.70

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Zimmer Biomet (ZBH) is trading at $91.7, below its 20‑day ($96.8) and 50‑day ($92.2) moving averages, with a bearish MACD histogram and an RSI of 40.5, suggesting short‑term pressure around the $90.2 support level. Despite the technical weakness, the company delivered a Q4 earnings beat, posted 10.9% revenue growth, and announced a new share‑buyback alongside a $0.24 quarterly dividend, reinforcing confidence in cash flow and dividend sustainability. The DCF fair‑value of $113.7 and analyst median target of $100 imply an upside of roughly 9‑12%, while a forward PE of 10.2 versus a trailing PE of 25.8 highlights strong earnings acceleration expectations. With a low beta (0.35), moderate volatility (24% 30‑day), solid gross margins (≈70%) and a payout ratio of 27%, ZBH appears undervalued yet positioned for medium‑term upside.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Recent earnings beat and buyback support near current price
  • Technical downside pressure with MACD bearish and decreasing volume
  • Proximity to $90.2 support level limiting downside risk

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • 10.9% revenue growth and forward PE of 10.2 indicating earnings acceleration
  • DCF upside of ~12% and analyst median target above current price
  • Sustainable dividend (27% payout) backed by strong operating cash flow

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Strategic digital and robotic product pipeline (ROSA, ZBEdge) driving future growth
  • Low beta and solid cash generation supporting dividend stability
  • Undervaluation relative to intrinsic value and industry peers

Key Metrics & Analysis

Financial Health

Revenue Growth10.90%
Profit Margin8.57%
P/E Ratio25.8
ROE5.60%
ROA3.94%
Debt/Equity61.97
P/B Ratio1.4
Op. Cash Flow$1.7B
Free Cash Flow$1.4B
Industry P/E25.2

Technical Analysis

TrendNeutral
RSI40.5
Support$90.22
Resistance$101.49
MA 20$96.82
MA 50$92.18
MA 200$95.27
MACDBearish
VolumeDecreasing
Fear & Greed Index76.91

Valuation

Fair Value$113.75
Target Price$102.65
Upside/Downside11.94%
GradeUndervalued
TypeBlend
Dividend Yield1.05%

Risk Assessment

Beta0.35
Volatility24.21%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.