NYSE:GMED is showing good growth, while it is not too expensive.

Take a closer look at GLOBUS MEDICAL INC - A (NYSE:GMED), an affordable growth stock uncovered by our stock screener. NYSE:GMED boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Analysis for NYSE:GMED

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:GMED has achieved a 8 out of 10:

• GMED shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.21%, which is quite good.
• The Earnings Per Share has been growing by 9.42% on average over the past years. This is quite good.
• GMED shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.63%.
• GMED shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
• GMED is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.77% yearly.
• GMED is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.57% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

How do we evaluate the Valuation for NYSE:GMED?

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:GMED has earned a 6 for valuation:

• Based on the Price/Earnings ratio, GMED is valued cheaper than 80.60% of the companies in the same industry.
• 84.08% of the companies in the same industry are more expensive than GMED, based on the Price/Forward Earnings ratio.
• 80.10% of the companies in the same industry are more expensive than GMED, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, GMED is valued cheaply inside the industry as 81.59% of the companies are valued more expensively.
• GMED has an outstanding profitability rating, which may justify a higher PE ratio.
• GMED's earnings are expected to grow with 13.92% in the coming years. This may justify a more expensive valuation.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:GMED was assigned a score of 9 for health:

• An Altman-Z score of 21.22 indicates that GMED is not in any danger for bankruptcy at the moment.
• GMED has a better Altman-Z score (21.22) than 95.52% of its industry peers.
• There is no outstanding debt for GMED. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 7.80 indicates that GMED has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 7.80, GMED belongs to the best of the industry, outperforming 81.09% of the companies in the same industry.
• GMED has a Quick Ratio of 5.63. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.
• GMED's Quick ratio of 5.63 is fine compared to the rest of the industry. GMED outperforms 74.13% of its industry peers.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:GMED, the assigned 8 is a significant indicator of profitability:

• GMED's Return On Assets of 9.24% is amongst the best of the industry. GMED outperforms 91.54% of its industry peers.
• GMED's Return On Equity of 10.29% is amongst the best of the industry. GMED outperforms 88.06% of its industry peers.
• GMED has a Return On Invested Capital of 9.69%. This is amongst the best in the industry. GMED outperforms 90.55% of its industry peers.
• The 3 year average ROIC (8.17%) for GMED is below the current ROIC(9.69%), indicating increased profibility in the last year.
• GMED has a Profit Margin of 18.63%. This is amongst the best in the industry. GMED outperforms 94.53% of its industry peers.
• In the last couple of years the Profit Margin of GMED has grown nicely.
• The Operating Margin of GMED (22.59%) is better than 94.53% of its industry peers.
• With an excellent Gross Margin value of 74.17%, GMED belongs to the best of the industry, outperforming 86.07% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of GMED contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.