One-glance verdict
Overvalued
$25.61 our estimate vs market $38.21
49% above our estimate, beyond the bull case
Fundamentals snapshot
Carl Zeiss Meditec AG
CZMWY · PNK · Healthcare · Medical Instruments & Supplies
Current price
$38.21
52-week range
$26.65 - $53.40
Market cap
$3.34B
Balance sheet
Healthy
8.39x Adequate
Net debt $623.73M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 7.8% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Operating margin compressed from 20.9% to 11.1% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 1.3%).
What this company does
Carl Zeiss Meditec AG
Carl Zeiss Meditec AG sells high-tech equipment for eye care and delicate surgeries, like machines that help doctors diagnose and treat eye diseases, and microscopes for surgeons. Their income primarily comes from selling these specialized medical devices and the ongoing service and supplies needed to keep them running, which helps ensure they have steady sales even when new equipment isn't purchased. This business model is important because it means they can predict their earnings more reliably, similar to how a subscription service provides regular income.
How the company got here
Carl Zeiss Meditec AG has a long history, tracing its roots back to 1846 when Carl Zeiss founded an optical workshop in Jena, Germany. Initially focused on precision optics for microscopes, the company's expertise eventually expanded into medical technology. A key turning point was the strategic decision to focus on specialized areas within healthcare, particularly eye care and microsurgery, leveraging its deep understanding of optics and precision engineering. This focus allowed the company to develop innovative solutions that have become essential tools for medical professionals worldwide.
What it actually does
Carl Zeiss Meditec AG is a company that makes high-tech equipment used by doctors to diagnose and treat patients. Think of them as creating the sophisticated tools that allow surgeons to perform delicate operations or eye doctors to see incredibly small details inside your eye. Their products help medical professionals improve patient outcomes through advanced imaging, precise surgical instruments, and digital data management.
Ophthalmology
This segment is all about eye care. Carl Zeiss Meditec provides a wide range of products that help doctors diagnose and treat eye conditions, from common issues like cataracts to more complex chronic diseases. This includes devices for eye exams, like those that measure vision or examine the retina, as well as surgical equipment such as microscopes and lasers used in procedures like cataract surgery or vision correction. They also offer artificial lenses implanted during surgery. This part of the business is a significant contributor to the company's overall revenue, serving eye care professionals globally.
Microsurgery
The Microsurgery segment focuses on tools for minimally invasive procedures across various surgical fields, not just eyes. These are operations where surgeons use small incisions and specialized instruments, often guided by advanced visualization systems. Carl Zeiss Meditec offers equipment for surgical visualization, interoperative radiotherapy (radiation delivered during surgery), and pathology (the study of diseases). They also provide specialized surgical instruments and digital solutions to help manage surgical data and workflows. This segment represents a smaller but important part of the company's business, supporting a range of surgical specialties.
What management is betting on now
Carl Zeiss Meditec is focusing on advancing digital solutions within its medical technology offerings. This includes developing systems for better storage, analysis, and sharing of clinical data, which can improve patient care and operational efficiency for healthcare providers. They are also investing in innovative technologies, such as using virtual reality to enhance glaucoma care, demonstrating a commitment to pushing the boundaries of medical treatment. These strategic priorities aim to solidify their position as a leader in specialized medical devices and digital health solutions.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $25.61 vs current price $38.21
Our most-likely fair value is $25.61 a share — about 33.0% below today's price of $38.21, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net debt $623.7M. Interest coverage 8.4x.
Net debt
$623.73M
Interest coverage
8.39x
Carl Zeiss Meditec AG's profit covers its interest bill about 8.4 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CZMWY
BASELINE
Carl Zeiss Meditec AG
Total debt $650.49M Interest coverage 8.39x This is the baseline the peer rows are being compared against.
Total debt $33.64M Interest coverage -10.00x -100% vs CZMWY This peer has almost no interest-payment cushion compared with CZMWY.
Total debt $2.00B Interest coverage 0.21x -98% vs CZMWY Carries about 40.2x less debt cushion than CZMWY.
Total debt $815.87M Interest coverage 3.30x -61% vs CZMWY Carries about 2.5x less debt cushion than CZMWY.
Total debt $1.12B Interest coverage 8.41x +0% vs CZMWY Has roughly the same debt cushion as CZMWY.
Total debt $5.10B Interest coverage 0.45x -95% vs CZMWY Carries about 18.8x less debt cushion than CZMWY.
What you should know
The case for and against CZMWY
3 Rewards
2 Risks
Rewards
-
Revenue grew 7.8% last year.
-
Free cash flow was positive in 4/10 years.
-
Trades at 23.6x P/E vs peer median 66.6x (64.6% cheaper).
Risks
-
Operating margin compressed from 20.9% to 11.1% over 3 years.
-
Insider ownership is only 0.0% (peer median: 1.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.59x
Forward P/E
—
P/B
1.42x
P/S
1.53x
EV/EBITDA
18.02x
PEG ratio
1.19x
Profitability
How much profit each dollar creates
Gross margin
51.6%
Operating margin
11.1%
Net margin
5.6%
ROE
—
ROA
—
Health
Liquidity and balance-sheet strength
Debt / equity
0.28x
Current ratio
—
Quick ratio
—
Total debt
$650.49M
Total cash
$26.76M
Growth
How the business has been compounding
Revenue TTM
$2.44B
Revenue 5Y CAGR
5.4%
EPS TTM
1.62
EPS 5Y CAGR
-21.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$234.98M
Free CF TTM
$149.22M
FCF margin
6.1%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
39.1%
Last ex-div date
2026-03-30