ZBH FCF Yield Analysis
Updated 11h ago·SEC filings & market data
Key Takeaway
The current FCF Yield of 7.4% means ZBH generates $7.40 of free cash flow per $100 of its stock price, a measure of cash return to shareholders.
Sector Performance
79th percentileZBH
7.5%
Sector Median
4.2%
Sector Avg
9.3%
Prior Period
7.4%(Aug 2026)
Deep Analysis
The current FCF Yield of 7.4% means ZBH generates $7.40 of free cash flow per $100 of its stock price, a measure of cash return to shareholders.
This sits above the sector median of 4.2%, placing the company at the 78th percentile among peers, so the yield is high relative to its industry. However, the metric is decreasing: it fell 10.8% year-over-year and 2.6% quarter-over-quarter, with the last eight quarters showing a consistent downward path. A high but declining yield implies investors currently receive a strong cash return, yet that return is eroding, which may signal slowing cash generation or a rising share price. This combination of an above-median level with a negative trend creates a balanced risk profile, where the current income cushions but does not negate the deterioration. The metric supports the NEUTRAL verdict, as the strong starting yield is offset by the clear downward momentum.
Frequently Asked Questions
What does the FCF Yield tell investors about ZBH?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are ZBH's closest peers by FCF Yield?
The closest peers by FCF Yield include: RARE (-18.7%), CG (-19.3%), RXRX (-20.3%), PLUG (-22.0%), NTLA (-22.5%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master ZBH's Valuation
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7.5%
Sector Median
4.2%
Sector Avg
9.3%
How ZBH's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.