GICS Sector : Healthcare
ZimVie Inc., a medical technology company, develops, manufactures, and delivers a portfolio of products and solutions designed to treat a range of spine pathologies, and support dental tooth replacement and restoration procedures worldwide.It offers dental implant systems, prosthetic and abutment products, surgical instrumentation, and kits; bone grafts, barrier membranes, allografts, and collagen wound care products; intraoral scanners; and virtual treatment planning services, guided surgery solutions, CAD/CAM workflow systems, and patient-specific restorative components and intra-oral scanners, as well as spinal fusion implants and instrumentation for various spinal procedures, biologics, and bone healing technologies.The company also provides MIS solutions, such as Vital MIS and Timberline; and motion preservation solutions, including Mobi-C and The Tether.
ZimVie reported a solid first quarter with total revenues of $112 million, showcasing significant progress in margin expansion. The company achieved an adjusted EBITDA of over $17 million, marking a 15.7% EBITDA margin, a 500 basis point improvement year-over-year. This surpasses the company's initial target of a 15% EBITDA margin for the first year post the spine business sale. On the bottom line, the company delivered an EPS of $0.27, beating consensus estimates of $0.21, reflecting strong cost management and operational efficiency. CEO Vafa Jamali highlighted, "Our performance in terms of profitability is coming in better than expected," underscoring the success of their margin enhancement strategies.
Publication Date: May -13
The dental implant segment experienced a low single-digit decline in Q1, attributed to ongoing macroeconomic pressures. However, March and April showed improving trends, with implant volumes growing year-over-year in April. The recent launch of the immediate molar implant system has been a bright spot, exceeding internal growth expectations and bolstering the company's premium product offerings. This innovation not only strengthens ZimVie's competitive position but also provides a growth driver for the remainder of the year.
ZimVie's biomaterials portfolio grew 1% during the quarter, benefiting from its high-quality and broad product range. The company remains optimistic about this segment's long-term potential. In digital solutions, excluding oral scanner sales, the business saw high single-digit growth, with the implant concierge service growing 11% year-over-year. The upcoming launch of the implant concierge service in Japan in Q2 is expected to further accelerate growth. Surgical guide sales also performed well, with RealGUIDE software sales growing in the mid-teens, demonstrating strong adoption of digital dentistry solutions.
ZimVie acquired a distributor in Costa Rica, enhancing its market position and improving margins by reducing third-party selling costs. Internationally, Japan delivered mid-single-digit growth, while Europe was mixed, with strong performance in France offset by competitive pressures in Iberia. The company's supply chain flexibility and manufacturing capabilities are proving effective in mitigating tariff impacts and maintaining profitability.
Current valuation metrics indicate a P/S ratio of 0.56 and an EV/EBITDA of 53.46, suggesting the market is pricing in expectations of continued growth and margin expansion. The free cash flow yield of 2.91% also underscores the company's ability to generate cash and invest in strategic initiatives. While the stock appears expensive on an absolute basis, the company's strong execution and growth prospects may justify the premium.
ZimVie Announces Completion of its Acquisition by ARCHIMED
Oct -20
ZimVie Stockholders Vote to Approve Acquisition by ARCHIMED
Oct -10
ZIMVIE INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of ZimVie Inc. - ZIMV
Sep -16
SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates DAY and NWE on Behalf of Shareholders
Aug -23
ZimVie Reports Second Quarter 2025 Financial Results
Jul -30
ZimVie to Report Second Quarter 2025 Financial Results on July 30, 2025
Jul -25
ZimVie Announces Exclusive Distribution Agreement with Osstem Implant to Expand Premium Dental Implant Offering in China
Jul -23
SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates ITOS and ZIMV on Behalf of Shareholders
Jul -22
Dental segment growth of 1.0% driven by increasing demand for dental implants and prosthetics, fueled by an aging population and rising awareness of oral health. Additionally, advancements in digital dentistry and adoption of CAD/CAM technologies are expected to contribute to growth.
A porous titanium alloy used for dental and orthopedic implants, providing a strong and durable structure for bone growth.
A line of dental implant surfaces designed to promote osseointegration and improve implant stability.
A line of synthetic biomaterials used in orthopedic and dental applications, providing a biocompatible and durable structure for tissue repair.
A line of biologic products used to enhance bone growth and repair, including bone graft substitutes and osteoinductive factors.
The threat of substitutes for ZimVie Inc. is moderate due to the presence of alternative treatments for obesity and related diseases.
The bargaining power of customers is low due to the specialized nature of ZimVie's products and the lack of alternative options for patients.
The bargaining power of suppliers is moderate due to the presence of multiple suppliers for raw materials and the company's dependence on a few key suppliers.
The threat of new entrants is high due to the growing demand for obesity treatments and the potential for new companies to enter the market.
The intensity of rivalry is high due to the presence of established competitors in the market and the high stakes involved in the development of obesity treatments.
| Value | |
|---|---|
| Debt Weight | 55.60% |
| Debt Cost | 3.95% |
| Equity Weight | 44.40% |
| Equity Cost | 13.85% |
| WACC | 8.34% |
| Leverage | 125.24% |
Value: 4.8
Growth: 4.4
Quality: 4.9
Yield: 0.0
Momentum: 8.5
Volatility: 4.7
1-Year Total Return ->
Value: 8.6
Growth: 4.9
Quality: 4.7
Yield: 0.0
Momentum: 0.0
Volatility: 1.7
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Value: 5.1
Growth: 2.3
Quality: 3.4
Yield: 0.0
Momentum: 6.5
Volatility: 0.3
1-Year Total Return ->
Value: 8.0
Growth: 2.3
Quality: 5.0
Yield: 0.0
Momentum: 0.0
Volatility: 2.0
1-Year Total Return ->
Value: 6.6
Growth: 3.4
Quality: 4.1
Yield: 0.0
Momentum: 0.0
Volatility: 2.7
1-Year Total Return ->
Value: 8.4
Growth: 1.8
Quality: 3.6
Yield: 0.0
Momentum: 0.5
Volatility: 1.3
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