domonic zarrini zimmer holdings, inc. (zmh)-nyse 112.09
DESCRIPTION
Company Overview Zimmer Holdings, Inc. designs, develops, manufactures, and markets orthopaedic and dental reconstructive implants, spinal implants, trauma products and related surgical products. The Company also provides other healthcare related services. Ticker: ZMH Sector: Health Care Industry: Medical Equipment & Devices Sub-Industry: Medical Devices Headquarters: Warsaw, IN Employees: 8,500 CEO: David Dvorak Market Cap: 19.02BTRANSCRIPT
Domonic Zarrini
Zimmer Holdings, Inc. (ZMH)-NYSE 112.09
Screening ProcessFocus on Domestic Stocks
• Industry Classification: • Healthcare Equipment and Services (primary)
• 99601• Exchanges (All Listing):
• Major US Exchanges • 279
• Forward P/E:• Capital IQ (NTM) Greater than 17
• 126• LT EPS Growth Rate:
• Capital IQ (Latest) Greater than 7• 115
• EPS Surprise – Capital IQ (FY)• Greater than 0
• 58
Company Overview• Zimmer Holdings, Inc. designs, develops, manufactures, and
markets orthopaedic and dental reconstructive implants, spinal implants, trauma products and related surgical products. The Company also provides other healthcare related services.
• Ticker: ZMH• Sector: Health Care• Industry: Medical Equipment & Devices• Sub-Industry: Medical Devices• Headquarters: Warsaw, IN• Employees: 8,500• CEO: David Dvorak• Market Cap: 19.02B
Revenue Drivers
• Reconstructive Implants• Competitive advantage lies in hip & knee
reconstructive implants due to acquisition of Centerpulse
• Sell contracts primarily to hospitals, clinics, private practices, orthopedic surgeons
Recent Trends
• Decreased debt by over 3%, bringing it down to just over 20%
• Stryker increased debt from 17.1% to 31.5% in a span of 2 years
• Zimmer is not taking advantage of cheap debt in the market
• Increased use of off-balance sheet financing by way of lease agreements
• Grew long term capital leases by 6%
Sector Overview
S&P 500, Sector, & Subsector Chart
Geographical Distribution and Product Segments
SWOT AnalysisStrengths
Strong manufacturing and commercial capabilities
Extensive portfolio of orthopedic reconstructive implants
WeaknessesWeak presence in emerging Asian
markets may restrict growth
OpportunitiesStrategic acquisitions and joint venturesFavorable demographic trends in the US
likely to boost demand for the company’s medical devices
ThreatsGroup purchasing organizations’ cost
containment measuresInadequate levels of reimbursement
may affect the company’s sale growth
Earnings and PE Growth
Earnings Analysis
Balance Sheet Analysis
Earnings Surprise
EPS Projections
Altman-Z Score
Discounted Cash Flow
EPS Growth
Competitor/Industry Comparison
Recommendation
Undervalued: BUY