Is the business good?
How good a business is ZBH?
Zimmer Biomet earns 4.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
4.7%
Return on invested capital · cost of capital 9.0% · 4.3 points below what the capital costs: growth destroys value
- Operating margin
- 14%
Operating margin · Medical Devices median 11% · 12 months to Q1 2026
- Cash conversion
- 1.92×
Cash conversion · 1.60× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 1.4% |
| FY2021 | 13% |
| FY2022 | 10% |
| FY2023 | 17% |
| FY2024 | 17% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q1 2026
- 70%
- Operating margin12 months to Q1 2026
- 14%
- Net margin12 months to Q1 2026
- 9.0%
- Free cash flow margin
- 17%
- R&D as % of revenue
- 5.4%
- Revenue, trailing twelve months
- $8.41B
- Free cash flow, trailing twelve months
- $1.46B
- Net income, trailing twelve months
- $761M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Medical Devices
Ranks #14 of 35 by Smart Score