Investors should take note of NYSE:GMED, a growth stock that remains attractively priced.

Our stock screener has spotted GLOBUS MEDICAL INC - A (NYSE:GMED) as a growth stock which is not overvalued. NYSE:GMED is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Growth Insights: 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:

• The Earnings Per Share has grown by an nice 17.77% over the past year.
• The Earnings Per Share has been growing by 9.42% on average over the past years. This is quite good.
• The Revenue has grown by 22.84% in the past year. This is a very strong growth!
• 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.
• Based on estimates for the next years, GMED will show a very strong growth in Revenue. The Revenue will grow by 23.57% on average per year.
• 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.

A Closer Look at Valuation for NYSE:GMED

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:GMED, the assigned 6 reflects its valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 85.15% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, GMED is valued cheaply inside the industry as 86.14% of the companies are valued more expensively.
• Based on the Enterprise Value to EBITDA ratio, GMED is valued cheaply inside the industry as 80.69% of the companies are valued more expensively.
• 82.67% of the companies in the same industry are more expensive than GMED, based on the Price/Free Cash Flow ratio.
• 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.

Unpacking NYSE:GMED's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:GMED has received a 7 out of 10:

• An Altman-Z score of 4.23 indicates that GMED is not in any danger for bankruptcy at the moment.
• GMED has a Altman-Z score of 4.23. This is in the better half of the industry: GMED outperforms 78.71% of its industry peers.
• The Debt to FCF ratio of GMED is 3.18, which is a good value as it means it would take GMED, 3.18 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of GMED (3.18) is better than 89.11% of its industry peers.
• A Debt/Equity ratio of 0.10 indicates that GMED is not too dependend on debt financing.
• GMED has a Current Ratio of 4.47. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.
• GMED has a Quick Ratio of 2.36. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.

Assessing Profitability for NYSE:GMED

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:GMED scores a 8 out of 10:

• GMED's Return On Assets of 2.95% is fine compared to the rest of the industry. GMED outperforms 78.22% of its industry peers.
• GMED has a better Return On Equity (3.77%) than 75.25% of its industry peers.
• With a decent Return On Invested Capital value of 3.88%, GMED is doing good in the industry, outperforming 76.73% of the companies in the same industry.
• The last Return On Invested Capital (3.88%) for GMED is well below the 3 year average (8.17%), which needs to be investigated, but indicates that GMED had better years and this may not be a problem.
• Looking at the Profit Margin, with a value of 12.87%, GMED belongs to the top of the industry, outperforming 91.09% of the companies in the same industry.
• GMED's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 19.38%, GMED belongs to the top of the industry, outperforming 93.07% of the companies in the same industry.
• With an excellent Gross Margin value of 71.19%, GMED belongs to the best of the industry, outperforming 82.67% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

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.