Zimmer Biomet Holdings Inc.

Overview Key strengths Key risks Leading global market positions in key product categories (hip and knee implants). Substantial product concentration in the hip and knee segments (67% of 2022 revenue combined). Substantial intellectual property (IP) and high barriers to entry. Competition-driven pricing pressure and technological obsolescence risk. One of the strongest profitability profiles among rated medical device companies, with EBITDA margins of over 30%. Slow growth in core markets increases merger and acquisition (M&A) appetite to support faster revenue expansion. Zimmer?s performance in fiscal year 2022 was in line with our expectations despite these industry wide headwinds. The company increased its revenue by 6.6% on a constant-currency basis and 1.6% on a reported basis (when incorporating a 500 basis point

...We believe the company is well positioned to weather industry wide headwinds (i.e. the depreciation of foreign currencies relative to the dollar, inflation, labor shortages, and supply chain disruptions). Zimmer's performance in fiscal year 2022 was in line with our expectations despite these industry wide headwinds. The company increased its revenue by 6.6% on a constant-...

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