ZBHNEUTRAL

Gross Margin

72.4%

Higher than 66% of Healthcare sector peers

Updated 22h ago

Sector Performance

66th percentile

ZBH

72.4%

Sector Median

68.9%

Sector Avg

-20.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after paying the direct costs of producing its goods.

Zimmer Biomet’s current gross margin of 72.4% means it keeps $0.724 of every dollar in sales after covering manufacturing costs, which is a strong profitability signal. This level sits above the healthcare sector median of 68.9% and places the company at the 66th percentile among its sector peers, indicating above-average cost efficiency. The year-over-year and quarter-over-quarter changes are both listed as N/A, and no trend direction is available across the last eight quarters, so there is no basis to assess whether margins are improving or deteriorating. With a high gross margin but no trend data, the metric suggests a stable competitive advantage but leaves the outlook unclear. This combination of a healthy profit level and absent trend information supports the overall NEUTRAL verdict, as the margin strength is a positive factor that is tempered by the lack of recent momentum.

Frequently Asked Questions

What does the Gross Margin tell investors about ZBH?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ZBH's Gross Margin compare to its sector?

ZBH's Gross Margin of 72.4% compares to a Healthcare sector median of 68.9%, placing it in the 66th percentile.

Who are ZBH's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: AMGN (68.2%), TDOC (67.8%), TECH (66.9%), NTRA (64.8%), RMD (62.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.