| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 79.40 | 18 |
| Intrinsic value (DCF) | 43.26 | -36 |
| Graham-Dodd Method | 20.20 | -70 |
| Graham Formula | 42.20 | -37 |
Zimmer Biomet Holdings, Inc. (ZBH) is a global leader in musculoskeletal healthcare, specializing in the design, manufacture, and marketing of innovative orthopedic and dental solutions. Headquartered in Warsaw, Indiana, the company operates across the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Zimmer Biomet's product portfolio includes orthopaedic reconstructive devices (knee and hip replacements), sports medicine, biologics, spine and craniomaxillofacial products, as well as robotic and surgical technologies. Serving orthopedic surgeons, neurosurgeons, hospitals, and dental professionals, Zimmer Biomet plays a pivotal role in treating bone and joint disorders. With a legacy dating back to 1927, the company has solidified its position in the medical devices sector through continuous innovation and strategic acquisitions, including its merger with Biomet in 2015. Zimmer Biomet's commitment to improving patient outcomes and advancing surgical precision makes it a key player in the $50B+ global orthopedic market.
Zimmer Biomet presents a stable investment opportunity within the medical devices sector, supported by its diversified product portfolio and strong market presence in orthopedic solutions. The company's revenue of $7.68B (CHF) and net income of $903.8M (CHF) reflect robust operational performance, while its beta of 0.79 suggests lower volatility compared to the broader market. Key strengths include leadership in joint reconstruction (knee/hip) and growing adoption of ROSA® robotic surgical systems. However, investors should note its substantial debt load ($6.2B CHF) and exposure to pricing pressures in healthcare markets. The dividend yield (~1.1%) adds income appeal, but growth depends on successful integration of recent acquisitions and innovation in high-margin segments like robotics and biologics.
Zimmer Biomet competes in the highly consolidated orthopedic devices market, where differentiation stems from product innovation, surgeon relationships, and robotic/digital surgery capabilities. The company holds #2 market share in knee implants (~25%) and #3 in hips (~20%), trailing Stryker and Johnson & Johnson's DePuy Synthes. Its 2015 merger with Biomet strengthened its extremities and dental segments, though integration challenges initially hampered growth. Zimmer's ROSA robotics platform competes directly with Stryker's Mako system, but lags in installed base (1,200+ vs. Mako's 1,800+). In spine, it trails Medtronic and Globus Medical. The company's scale enables R&D spending ($600M+ annually), but smaller rivals like Smith+Nephew focus on higher-growth sports medicine. Pricing power is constrained by hospital cost containment, pushing Zimmer to emphasize value-added services like ZBEdge™ connected intelligence suite. Geographic diversification (45% ex-US sales) provides stability, but emerging market penetration trails Medtronic.