ZBH

Zimmer Biomet Holdings Inc

Healthcare


Presented:10/17/2019
Price:$138.51
Cap:$28.44B
Current Price:$104.60
Cap:$21.30B

Presented

Date10/17/2019
Price$138.51
Market Cap$28.44B
Ent Value$32.66B
P/E RatioN/A
Book Value$56.90
Div Yield0.69%
Shares O/S205.32M
Ave Daily Vol1,161,406
Short Int1.17%

Current

Price$104.60
Market Cap$21.30B
Zimmer Biomet Holdings, Inc. provides musculoskeletal healthcare services. It designs, manufactures and markets orthopedic reconstructive products, sports medicine, biologics, extremities & trauma products, office based technologies, spine, craniomaxillofacial & thoracic products, dental implants and related surgical products. Its products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. Zimmer Biomet Holdings was founded by Justin O. Zimmer in 1927 and is headquartered in Warsaw, IN.

Publicly traded companies mentioned herein: Medtronic plc (MDT), Stryker Corp (SYK), Zimmer Biomet Holdings Inc (ZBH)

Highlights

The presenter is long shares of Zimmer Biomet Holdings (ZBH) and believes that following years of underperformance the current management team has the company at an inflection point that should drive top/bottom line growth and with that, a commensurate rerating of the multiple. ZBH currently has a $28B market cap, $8B in net debt, and a $37B EV. At the current price of ~$136 ZBH trades at 13.6x the presenters 2022 EPS, which he believes is a significant discount to medical device peers that trade above 20x. Based on his 2022 EPS estimate of $10.00 coupled with a rerating of the multiple closer to peers, the presenter sees ~50% upside implying a price target of $200/share. 

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Idea Discussion

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