{"schemaVersion":1,"research":true,"symbol":"zbh","name":"Zimmer Biomet Holdings","topic":"moat","path":"/stock/zbh/moat","status":"published","version":4,"updatedAt":"2026-10-18T14:25:57.747Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"uncertain","summary":"Zimmer Biomet has proprietary technology, established customer relationships and demonstrated product demand, but the passages do not establish durable differentiation or customer switching costs. Pricing power is weak: selling prices reduced first-half 2026 sales by 0.7%, including purchase incentives, following positive price realization in 2024. Procurement pressure and distribution disruption show erosion risks, while growth and cash generation argue against concluding that the franchise lacks competitive value. The evidence remains insufficient to establish a moat.","advantages":[{"mechanism":"intangible_assets","claim":"Proprietary technology and intellectual property are current business assets; their ability to confer durable competitive superiority remains unproven. Increased robot sales demonstrate demand, while expected benefits from acquired robotics remain potential.","durability":"No product-specific exclusivity periods, comparative clinical outcomes or sustained competitive gains establish the duration of an advantage. Accounting useful lives do not establish moat duration.","risks":"Technology substitution, patent circumvention and procurement pressure could weaken differentiation. Actual price declines demonstrate limited ability to monetize differentiation through higher prices.","invalidation":"The candidate advantage would be undermined by loss of material exclusivity accompanied by substitution, or sustained declines in differentiated-product demand despite continued development spending. Comparative product outcomes and sustained adoption attributable to protected technology would strengthen the case.","competitors":[],"evidenceIds":["e1","e2","e3","e4"],"counterEvidenceIds":["e5","e6"]},{"mechanism":"switching_costs","claim":"Product knowledge and professional customer relationships could support repeat business, but the passages do not demonstrate customer dependence, retraining costs or restrictions on switching suppliers.","durability":"Relationships exist, but their persistence and economic value are not quantified. They partly reside with employees and independent distributors rather than exclusively with the company.","risks":"Relationship portability, distributor changes and purchasing-group selection can interrupt access to customers. China distributor claims are realized disruption; possible future customer losses remain risks.","invalidation":"Documented customer migration following representative departures, or supplier changes without meaningful training or workflow disruption, would undermine the candidate switching-cost mechanism. Demonstrated repeat purchasing through competitive tenders and quantified workflow dependence would strengthen it.","competitors":[],"evidenceIds":["e7","e8"],"counterEvidenceIds":["e9","e10","e11"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Risk factors / reliance on proprietary technology","excerpt":"Our success depends in part on our proprietary technology, processes, methodologies and information."},{"id":"e2","sourceId":"filing-1","location":"Risk factors / intellectual property protection arrangements","excerpt":"We rely on a combination of patent, copyright, trademark, trade secret and other intellectual property laws and nondisclosure, license, assignment and confidentiality arrangements to establish, maintain and protect our proprietary rights, as well as the intellectual property rights of third parties whose assets we license."},{"id":"e3","sourceId":"filing-2","location":"MD&A / realized volume and mix contributors","excerpt":"In addition, opportunistic end-of-quarter customer purchases, increased ROSA® Robot and bone cement sales, market growth and new product introductions contributed positively to volume and mix trends in both periods."},{"id":"e4","sourceId":"filing-2","location":"Acquisitions / expected Monogram robotics benefits","excerpt":"Monogram's semi- and fully-autonomous robotic technologies are expected to add to our suite of orthopedic robotics, enabling solutions and analytics to address the needs of surgeons pre-, intra- and post-operatively."},{"id":"e5","sourceId":"filing-1","location":"Risk factors / patent challenges and circumvention","excerpt":"Further, our currently pending or future patent applications may not result in patents being issued to us, patents issued to or licensed by us in the past or in the future may be challenged or circumvented by competitors, and such patents may be found invalid, unenforceable or insufficiently broad to protect our technology or to provide us with any competitive advantage."},{"id":"e6","sourceId":"filing-2","location":"MD&A / realized global selling-price effects","excerpt":"Pricing Trends Global selling prices had a negative effect of 0.8 percent and 0.7 percent on year-over-year sales during the three and six-month periods ended June 30, 2026, respectively."},{"id":"e7","sourceId":"filing-1","location":"Risk factors / product knowledge and customer relationships","excerpt":"Additionally, certain of our key employees and third parties have detailed knowledge of our products and instruments and have developed professional relationships with existing and potential customers due to this knowledge."},{"id":"e8","sourceId":"filing-1","location":"Accounting policies / customer relationship attrition","excerpt":"For customer relationship intangible assets, we assign useful lives based upon historical levels of customer attrition."},{"id":"e9","sourceId":"filing-1","location":"Risk factors / protection of employee and distributor relationships","excerpt":"Recent legal and regulatory changes may affect our ability to enforce post-termination obligations from certain employees and third parties with respect to non-competition, non-solicitation and protection of confidential information, which may negatively impact our ability to retain key employees and third-party distributors and to protect our information and relationships with our customers."},{"id":"e10","sourceId":"filing-1","location":"Risk factors / purchasing-group supplier selection and exclusivity","excerpt":"If we are not one of the providers selected by a group purchasing organization, affiliated hospitals and other members may be less likely to purchase our products, and, if the group purchasing organization has negotiated a strict compliance contract for another manufacturer’s products, we may be precluded from making sales to members of the group purchasing organization for the duration of the contractual arrangement."},{"id":"e11","sourceId":"filing-2","location":"Contingencies / China distributor legal claims","excerpt":"In connection with our ongoing efforts to transform our sales and distribution strategies and go-to-market model in China, including making significant changes across our independent distributor network, some of the displaced or impacted distributors in China have formally and informally raised legal claims against us."},{"id":"e12","sourceId":"filing-4","location":"2024 MD&A / positive price realization and growth drivers","excerpt":"Net sales growth was driven by a combination of market growth, new product introductions, positive price realization and commercial execution across the organization."},{"id":"e13","sourceId":"filing-2","location":"MD&A / realized volume-based discounts","excerpt":"In addition, volume-based discounts to incentivize customer purchases had a negative effect on our pricing in both periods."},{"id":"e14","sourceId":"filing-2","location":"Segment reporting / sales, segment profits and consolidated reconciliation","excerpt":"Segment operating profit measures by segment are as follows (in millions): 24 Americas EMEA Asia Pacific Total Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2026 2025 2026 2025 2026 2025 2026 2025 Net Sales $ 1,359.0 $ 1,287.0 $ 478.5 $ 458.1 $ 339.5 $ 332.2 $ 2,177.0 $ 2,077.3 Cost of products sold, excluding intangible asset amortization 309.3 292.7 182.6 166.6 124.2 117.6 Selling, general and administrative 432.7 385.2 142.8 136.0 107.3 90.7 Research and development 71.1 73.6 1.9 1.7 3.9 3.5 Segment profit $ 546.0 $ 535.6 $ 151.1 $ 153.8 $ 104.1 $ 120.3 $ 801.2 $ 809.7 Corporate items 311.7 349.1 Intangible asset amortization 163.4 160.6 Other income (expense), net (1.9 ) (3.9 ) Interest expense, net 72.9 79.3 Earnings before income taxes $ 255.1 $ 224.6 Americas EMEA Asia Pacific Total Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 2026 2025 2026 2025 Net Sales $ 2,683.5 $ 2,493.8 $ 968.3 $ 899.9 $ 611.8 $ 592.7 $ 4,263.7 $ 3,986.4 Cost of products sold, excluding intangible asset amortization 618.0 570.9 369.0 332.5 212.1 201.0 Selling, general and administrative 858.2 744.8 292.3 259.3 195.3 175.9 Research and development 143.0 144.6 3.7 3.8 7.2 6.8 Segment profit $ 1,064.3 $ 1,033.5 $ 303.4 $ 304.3 $ 197.1 $ 209.1 $ 1,564.8 $ 1,546.9 Corporate items 540.1 643.1 Intangible asset amortization 325.5 311.6 Other income (expense), net 1.1 (6.9 ) Interest expense, net 141.7 145.5 Earnings before income taxes $ 556.4 $ 453.6 Depreciation and amortization included in segment profit is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Americas $ 45.1 $ 45.8 $ 90.0 $ 86.5 EMEA 16.8 15.9 33.8 31.5 Asia Pacific 15.7 15.0 31.1 30.2 Corporate items 29.8 34.5 60.4 66.4 Intangible asset amortization 163.4 160.6 325.5 311.6 Total $ 270.8 $ 271.8 $ 540.8 $ 526.2 16."},{"id":"e15","sourceId":"filing-4","location":"Risk factors / realized China procurement effects","excerpt":"For example, China has implemented volume-based procurement (“VBP”) processes designed to reduce medical spending, which have in the past resulted in, and could in the future result in, reduced margins on covered devices and products, required renegotiation of distributor arrangements, and incurrence of inventory-related charges."},{"id":"e16","sourceId":"filing-1","location":"Risk factors / purchasing-group negotiated pricing","excerpt":"Group purchasing organizations negotiate pricing arrangements with medical supply manufacturers and distributors, and these negotiated prices are made available to a group purchasing organization’s affiliated hospitals and other members."},{"id":"e17","sourceId":"filing-2","location":"Statements of cash flows / first-half cash generation, investment and financing","excerpt":"AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions, unaudited) For the Six Months Ended June 30, 2026 2025 Cash flows provided by (used in) operating activities: Net earnings $ 437.9 $ 336.0 Adjustments to reconcile net earnings to cash provided by operating activities: Depreciation and amortization 540.8 526.2 Share-based compensation 48.8 40.8 Changes in operating assets and liabilities, net of acquired assets and liabilities Income taxes (80.1 ) (132.0 ) Receivables (24.0 ) (18.6 ) Inventories (51.4 ) (40.2 ) Accounts payable and accrued liabilities (91.0 ) 40.4 Other assets and liabilities 26.1 8.3 Net cash provided by operating activities 807.2 761.0 Cash flows provided by (used in) investing activities: Additions to instruments (162.6 ) (140.2 ) Additions to other property, plant and equipment (90.5 ) (94.7 ) Net investment hedge settlements 10.8 3.5 Business combination investments, net of acquired cash - (1,226.3 ) Acquisition of intangible assets (101.2 ) (32.4 ) Other investing activities (6.3 ) (0.3 ) Net cash used in investing activities (349.8 ) (1,490.4 ) Cash flows provided by (used in) financing activities: Net proceeds from revolving facilities 30.0 220.0 Proceeds from senior notes - 1,748.1 Redemption of senior notes - (863.0 ) Dividends paid to stockholders (93.4 ) (95.3 ) Proceeds from employee stock compensation plans 12.4 17.1 Business combination contingent consideration payments (69.2 ) (17.4 ) Debt issuance costs (1.3 ) (17.3 ) Repurchase of common stock (500.8 ) (237.0 ) Other financing activities (17.9 ) (16.1 ) Net cash (used in) provided by financing activities (640.3 ) 739.2 Effect of exchange rates on cash and cash equivalents 1.1 21.6 Change in cash and cash equivalents (181.9 ) 31.4 Cash and cash equivalents, beginning of year 591.9 525.5 Cash and cash equivalents, end of period $ 410.0 $ 556.9 The accompanying notes are an integral part of these condensed consolidated financial statements."},{"id":"e18","sourceId":"filing-2","location":"MD&A / repurchases funded by cash and revolving borrowings","excerpt":"In the 2026 period, we repurchased $500.8 million of our common stock using cash on hand and net borrowings from our revolving credit facilities."},{"id":"e19","sourceId":"filing-2","location":"Acquisitions / Paragon 28 consideration and purchase allocation","excerpt":"The following table summarizes the final estimates of fair value of the assets acquired and liabilities assumed related to the Paragon 28 acquisition (in millions): Cash consideration $ 1,241.5 Contingent consideration 35.0 Fair value of consideration transferred $ 1,276.5 Cash $ 15.2 Accounts receivable, net 42.0 Inventories 152.6 Prepaid expenses and other current assets 5.6 Intangible assets subject to amortization: Technology 324.0 Trademarks and trade names 44.0 Customer relationships 91.5 Intangible assets not subject to amortization: In-process research and development (IPR&D) 103.0 Property, plant and equipment 68.0 Other assets 2.4 Current liabilities (93.2 ) Deferred income taxes (89.8 ) Other long-term liabilities (1.9 ) Total identifiable net assets $ 663.4 Goodwill $ 613.1 The weighted average amortization periods selected for technology, trademarks and trade names and customer relationships were 10 years, 15 years and 5 years, respectively."},{"id":"e20","sourceId":"filing-2","location":"MD&A / expected restructuring savings","excerpt":"We expect to reduce gross annual pre-tax operating expenses by approximately $175 million relative to the 2024 baseline expenses by the end of 2027 as program benefits under the 2025 Restructuring Plan are realized."},{"id":"e21","sourceId":"filing-3","location":"Executive compensation / 2025 target compensation composition","excerpt":"2025 Target Total Direct Compensation(1) NEO Base Salary Annual Incentive(2) PRSUs(2) (Grant Date Fair Value) RSUs(3) (Grant Date Fair Value) Ivan Tornos 8.2% 15.4% 38.2% 38.2% Suketu Upadhyay 15.0% 18.9% 33.1% 33.1% Kevin Thornal 6.5% 8.1% 42.7% 42.7% Jehanzeb Noor(4) 9.0% 9.6% 38.0% 28.8% Wilfred van Zuilen 21.4% 21.0% 28.8% 28.8% (1) Percentages are computed based on the underlying individual whole numbers and therefore may not equal 100%."},{"id":"e22","sourceId":"filing-3","location":"Executive compensation / 2025 cash incentive metrics and payouts","excerpt":"Zimmer Biomet 34 Executive compensation Element and Key Characteristics Objectives Base Salary • Only fixed compensation component; payable in cash • Reviewed annually and adjusted when appropriate • 2025 NEO increases: 3.35% - 4.5% • Provide a base level of competitive cash compensation • Recognize increased responsibilities through promotional increases • Attract and retain executive talent Annual Cash Incentive Opportunity • Variable compensation component payable in cash based on performance against established goals and assessment of individual performance • Target awards are based on percentage of base salary • Tied to company financial results and individual objectives to drive total company performance in 2025: o 40%: Constant currency revenue o 40%: Adjusted operating profit o 20%: Free cash flow • Payouts for 2025 could range between 0% and 200% of target • 2025 NEO payouts: 125.9% of target for Messrs."},{"id":"e23","sourceId":"filing-3","location":"Executive compensation / executive equity ownership requirements","excerpt":"We require executives to hold equity with a value equal to a multiple of six times salary for our CEO and two or three times salary for each other NEO."},{"id":"e24","sourceId":"filing-3","location":"Executive compensation / share retention requirement","excerpt":"100% of net after-tax shares received upon vesting or exercise of awards must be retained until an executive meets the guideline."},{"id":"e25","sourceId":"filing-3","location":"Executive compensation / incentive compensation clawback","excerpt":"Incentive compensation to executive officers under cash and equity incentive plans are subject to clawback in the event of financial restatements, in compliance with NYSE listing standards."},{"id":"e26","sourceId":"filing-4","location":"2024 MD&A / ERP disruption to order fulfillment","excerpt":"As a result of this ERP implementation, we experienced operational challenges which affected our ability to fulfill certain customer orders."},{"id":"e27","sourceId":"filing-4","location":"2024 MD&A / shipping recovery","excerpt":"Shipping levels returned to similar levels that existed prior to the implementation by the end of the year."},{"id":"e28","sourceId":"filing-2","location":"Acquisitions / achieved Monogram development milestone","excerpt":"The first development milestone was achieved in January 2026."},{"id":"e29","sourceId":"filing-3","location":"Proxy / disclosed governance structure and established compensation policies","excerpt":"Corporate Governance Strengths Board Composition Board Oversight and Stock Ownership ✓ Diverse Board with effective mix of skills, experiences and perspectives ✓ Robust Board and executive succession planning and risk oversight ✓ Active Board refreshment and average Board tenure of 9.2 years ✓ Rigorous stock ownership guidelines for directors and executives; new stock retention guidelines for named executive officers ✓ Effective annual Board and Board committee evaluation process ✓ Directors and executives prohibited from hedging and pledging our stock under our insider trading policy ✓ Majority voting and director resignation policy in uncontested director elections ✓ Independent director equity-based compensation not paid out until cessation of service Board Structure and Independence Shareholder Rights and Accountability ✓ 100% independent director nominees, except CEO ✓ Annual election of all directors ✓ Lead Independent Director role ✓ Proxy access right for shareholders ✓ 100% independent Board committees ✓ Single class voting structure (one share, one vote) ✓ Independent directors regularly meet without management present ✓ Charter permits shareholders to call a special meeting ✓ Robust Code of Business Conduct and Ethics applicable to directors, officers and employees ✓ Compensation Recovery (“Clawback”) Policy covers incentive-based compensation X No poison pill X No supermajority voting requirements Zimmer Biomet 3 Proxy Statement SUMMARY Proposal 2 – Ratification of the Appointment of PwC Our Board recommends a vote FOR this proposal ● PwC’s report contained in our 2025 Annual Report is unqualified ● Audit and audit-related fees represent 85% of total fees paid to PwC for 2025 Proposal 3 – Advisory Vote to Approve Named Executive Officer Compensation Our Board recommends a vote FOR this proposal Executive Compensation Best Practices What We Do ✓ Pay for performance ✓ Require robust stock ownership guidelines ✓ Require termination of employment in connection with a change in control for accelerated equity vesting (double trigger) ✓ Require non-competition agreement for equity award eligibility ✓ Require shares received upon equity award vesting to be retained in accordance with stock ownership guidelines ✓ Subject executives’ cash and equity-based incentives to clawback, including in the event of: ● an accounting restatement due to material noncompliance with financial reporting requirements under the securities laws (as to cash bonuses and equity-based incentives that are performance-based) ● certain violations of our Code of Business Conduct and Ethics or other conduct deemed detrimental to the interests of the company (as to equity-based incentives) What We Don’t Do x Offer employment contracts to our executives, except as required in non-U.S."},{"id":"e30","sourceId":"filing-3","location":"Proxy / combined chairman and CEO structure and independent-chair proposal","excerpt":"jurisdictions x Pay dividends or accrue dividend equivalents on unearned performance-based equity awards x Provide excise tax gross-ups in new change in control severance agreements (since 2009) x Allow hedging or pledging of company securities x Reprice or exchange underwater stock options without shareholder approval Proposal 4 – Shareholder Proposal for Independent Board Chairman Our Board recommends a vote AGAINST this proposal ● It is important for the Board to have the flexibility to determine the most effective leadership structure using its best business judgment in light of the company’s circumstances at any given time ● A one-size-fits-all leadership structure is not in the best interests of the company or its shareholders ● A Lead Independent Director will be maintained whenever the Chairman is not an independent director ● The roles, responsibilities, and authorities of the company’s Lead Independent Director are equivalent to that of an independent Chairman, providing for an effective counterweight when the Chairman is not an independent director ● Our independent Board, which consists entirely of independent directors other than our Chairman and CEO, combined with the robust independent Lead Independent Director role and our strong corporate governance practices and policies, enable effective Board oversight Zimmer Biomet 4 Proxy Statement SUMMARY CORPORATE GOVERNANCE Every day, the Zimmer Biomet team works towards our mission of alleviating pain and improving quality of life for people around the world."},{"id":"e31","sourceId":"filing-4","location":"Internal controls / reported unqualified auditor opinion for 2024","excerpt":"PricewaterhouseCoopers LLP, an independent registered public accounting firm, audited the effectiveness of our internal control over financial reporting as of December 31, 2024 and issued an unqualified opinion thereon as stated in their report, which appears under Item 8 of this Annual Report on Form 10-K."},{"id":"e32","sourceId":"filing-2","location":"MD&A / acquisition, currency, purchase timing and underlying growth contributors","excerpt":"Net sales growth was driven by a combination of our Paragon 28 acquisition, positive effects of changes in foreign currency exchange rates, opportunistic end-of-quarter customer purchases, increased ROSA® Robot and bone cement sales, market growth and new product introductions."}],"changes":["Retained the previous uncertain verdict: the expanded evidence still does not demonstrate durable differentiation or switching costs.","Added historical positive price realization in 2024, balancing the demonstrated deterioration in 2026 pricing.","Added numerical pricing and management assessments using supplied operating results, compensation disclosures and governance policies; moat criteria remain ungraded."],"limitations":["The competition passages identify generic competitors without naming product-market rivals. Names appearing in executive biographies, acquisitions or compensation discussions do not establish rival coverage; competitor arrays are therefore empty.","The supplied filings describe intellectual property and relationships but provide no comparative clinical outcomes, market-share trajectory, customer switching costs or quantified retention.","Operating results support assessments without independent research, but management explanations of growth drivers and expected acquisition or restructuring benefits remain issuer assertions.","The proxy supplies actual compensation policies and historical payouts, but the passages do not establish executives' actual compliance with ownership guidelines or complete long-term award performance conditions.","Source dates are treated as filed dates. Interim results are unaudited, and proposed shareholder actions are not treated as adopted policies."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":null,"rationale":"Proprietary rights and customer relationships exist, but their relative competitive benefit is not established. Uncertainty reflects insufficient evidence, rather than demonstrated interchangeability.","evidenceIds":["e1","e2","e7"]},{"criterion":"durability","grade":null,"rationale":"No demonstrated duration of protected economic advantage is supplied. Patent risks and expected robotics benefits cannot establish durability.","evidenceIds":["e4","e5"]},{"criterion":"customer_dependency","grade":null,"rationale":"Relationship knowledge and an attrition-based accounting policy do not establish customer dependence or costly switching.","evidenceIds":["e7","e8","e10"]},{"criterion":"erosion_resilience","grade":null,"rationale":"Price declines, procurement effects and distributor disruption show pressures, while product demand persists. Without an established structural advantage, its resilience cannot be graded.","evidenceIds":["e3","e6","e11","e15"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":1,"rationale":"Positive price realization contributed to 2024 growth, but global prices reduced first-half 2026 sales by 0.7% and second-quarter sales by 0.8%. Volume discounts contributed to the decline, demonstrating fragile pricing power.","evidenceIds":["e6","e12","e13"]},{"criterion":"retention","grade":2,"rationale":"Indirect operating evidence supports continuing demand through product sales and growth, alongside established customer relationships. Acquisition contributions, currency effects and opportunistic purchases prevent treating growth as proof of strong customer retention; no retention rate is inferred.","evidenceIds":["e3","e7","e32"]},{"criterion":"margin_resilience","grade":2,"rationale":"First-half segment profit increased from $1,546.9 million to $1,564.8 million, lagging sales growth from $3,986.4 million to $4,263.7 million; second-quarter segment profit declined despite higher sales. Higher consolidated pretax earnings provide an offset, but historical procurement-related margin reductions limit evidence of pricing-led resilience.","evidenceIds":["e14","e15"]},{"criterion":"contractual_freedom","grade":1,"rationale":"Purchasing groups negotiate prices and can impose supplier exclusivity, while China's procurement processes have required distributor renegotiations and reduced margins. These disclosed constraints support a weak grade despite incomplete customer contract terms.","evidenceIds":["e10","e15","e16"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"First-half 2026 operating cash flow of $807.2 million funded substantial instrument and plant investment. However, $500.8 million of repurchases used cash and revolving borrowings, alongside technology spending and acquisition obligations. Paragon 28's $1,276.5 million consideration is documented, but returns on that investment and projected restructuring savings are not demonstrated.","evidenceIds":["e17","e18","e19","e20"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Actual 2025 compensation disclosures show substantial equity weighting and cash incentives tied to revenue, adjusted operating profit and free cash flow. Ownership multiples, mandatory share retention and clawbacks provide strong disclosed alignment mechanisms. Actual ownership compliance and complete long-term performance conditions remain unestablished.","evidenceIds":["e21","e22","e23","e24","e25"]},{"criterion":"execution","grade":2,"rationale":"Indirect operating evidence is mixed: product demand and cash generation continued, shipping recovered after the 2024 ERP disruption, and Monogram achieved a development milestone. Order-fulfillment disruption and China distributor claims show execution costs. Growth includes acquisition, currency and purchase-timing benefits, so it cannot establish exceptional management execution.","evidenceIds":["e3","e11","e17","e26","e27","e28","e32"]},{"criterion":"governance","grade":3,"rationale":"Disclosed annual director elections, independent committees, shareholder rights, a lead independent director and clawback policies support strong formal governance. The reported unqualified 2024 internal-control audit adds demonstrated oversight evidence. Combined chairman and CEO roles remain a limitation; the independent-chair shareholder proposal is not treated as adopted.","evidenceIds":["e25","e29","e30","e31"]}]}],"financialAssessments":[],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","basisHash":"b8cddedcb74dba341464360525d3623202698c567d65d17230e194008f30cbfb","updatedAt":"2026-10-18T14:25:57.747Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/1136869/000119312526059853/zbh-20251231.htm","publishedAt":"2026-02-20","sha256":"a6382937c46b796d1bcc7c63f65fb23e3c541758328840a59af057ed7e4472a6","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/1136869/000119312526335044/zbh-20260630.htm","publishedAt":"2026-08-05","sha256":"aee805d30adb7b1c538f433b036159cf1a0dc5650a74428bd5ee332d09464772","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/1136869/000119312526135661/zbh-20260331.htm","publishedAt":"2026-04-01","sha256":"76d80d488fa9599c85ab6fd025eed8a460d524d9b3f7bcb37953739f3054581d","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/1136869/000095017025026604/zbh-20241231.htm","publishedAt":"2025-02-25","sha256":"b85fe5ab21a89639521ada629d9854e375ef25d98f8a18e8deac8f98bb06b5c7","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/1136869/000095017024019353/zbh-20231231.htm","publishedAt":"2024-02-23","sha256":"b9a3de8055efc2bd65ec5343978bdc8901d7329c67a8d133a7993dc9da25f8ac","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/1136869/000119312526201710/zbh-20260331.htm","publishedAt":"2026-05-01","sha256":"382925f17970f34ae9e91491056f7ffcfa30acc0eac36ddc7282f53d074fa83c","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:04d7d18492973761836ec9a9110419fe3a802215a6864111dbde67c0a67b64c2","usage":{"input_tokens":86988,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":3357,"reasoning_output_tokens":111},"basisSupplement":{"previousHash":"c89027358b390ec5d31d4c9acea8a71f667c4d310efd6d0cf18799b034b6ba13","checkedAt":"2026-10-18T16:49:32.080Z","rule":"dated historical and missing inputs only; accepted observations and research date retained"}},"signals":[{"period":"2021","end":"2021-12-31","values":{"gross_margin":70.12582629335647,"operating_margin":9.955080268497486,"roic":3.866422118920375,"fcf_margin":16.936780582425158,"sbc_revenue":1.0885378116944437},"issues":{"peg":"Prior-year TTM earnings per diluted share is zero or negative; a growth-adjusted multiple is undefined.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","interest_coverage":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","buybacks":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2022","end":"2022-12-31","values":{"gross_margin":70.90015706278189,"operating_margin":10.033285782215883,"roic":2.7456156613486438,"fcf_margin":16.834536520699146,"sbc_revenue":1.5129901007219126},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. 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