CluenexZimmer Biomet ZBH
Zimmer Biomet scores average on business quality (4.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Zimmer Biomet does
Zimmer Biomet designs and manufactures orthopedic reconstructive implants, sports medicine devices, and surgical products. Hospitals and orthopedic surgeons purchase these medical devices to perform joint replacements and related procedures. The company is leaning into digital health integrations and robotic surgical tech to defend its hospital relationships.
- What it does best
Zimmer Biomet dominates joint reconstruction through deep surgeon loyalty, generating a gross margin of 69.9%. This hardware ecosystem resists displacement because surgeons train extensively on specific robotic knee and hip platforms.
- The main risk
Net debt sits at $6.9B while interest coverage reads 4.9x, leaving earnings thin if hospital procedure volumes slow down or pricing pressure mounts from group purchasing organizations.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at 16.8% with an FCF margin of 12.7%, reflecting moderate profitability compared to peers. Returns remain muted with a return on equity of 6.4%, showing limited operating leverage at current scale.
Surgeon switching costs anchor the moat, supported by a gross margin in the top quartile of its sector at 69.9%. Hospitals rarely swap implant vendors easily due to extensive clinical training requirements.
Revenue grew to $8.5B, showing a middle of the pack revenue growth rank of 46th percentile. Growth is steady at 7.2% annually, moving in line with historical trends.
Debt-to-equity is 0.6 and interest coverage sits at 4.9x, leaving the balance sheet manageable. Free cash flow reached $1.1B, showing steady cash generation getting slightly softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $824K outside pre-planned sales.
Our sealed record on ZBH
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Zimmer Biomet scores average on the Cluenex quality check (4.8 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 2 sold $824K outside pre-planned sales.
Nov 4, 2026, before the open.
See ZBH today
- Today's verdict on ZBH, and why
- Fair value with cautious, base and optimistic cases
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- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Zimmer Biomet (ZBH)”, https://cluenex.com/stocks/zbh/, data as of Oct 10, 2026.