For those who appreciate growth without the sticker shock, NYSE:GMED is worth considering.

Last update: Dec 4, 2023

GLOBUS MEDICAL INC - A (NYSE:GMED) has caught the eye of our stock screener as an affordable growth stock. NYSE:GMED is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

A Closer Look at Growth for NYSE:GMED

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:GMED has received a 8 out of 10:

GMED shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.77%, which is quite good.
The Earnings Per Share has been growing by 9.42% on average over the past years. This is quite good.
Looking at the last year, GMED shows a very strong growth in Revenue. The Revenue has grown by 22.86%.
GMED shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
Based on estimates for the next years, GMED will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.77% on average per year.
The Revenue is expected to grow by 23.57% on average over the next years. This is a very strong growth
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.

Understanding NYSE:GMED's Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:GMED was assigned a score of 6 for valuation:

85.15% of the companies in the same industry are more expensive than GMED, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.04, GMED is valued a bit cheaper.
Based on the Price/Forward Earnings ratio, GMED is valued cheaper than 86.14% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, GMED is valued cheaply inside the industry as 81.68% 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.
A more expensive valuation may be justified as GMED's earnings are expected to grow with 13.92% in the coming years.

Evaluating Health: NYSE:GMED

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:GMED, the assigned 7 reflects its health status:

An Altman-Z score of 4.32 indicates that GMED is not in any danger for bankruptcy at the moment.
GMED has a Altman-Z score of 4.32. This is in the better half of the industry: GMED outperforms 76.24% of its industry peers.
GMED has a debt to FCF ratio of 3.18. This is a good value and a sign of high solvency as GMED would need 3.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.18, GMED belongs to the top of the industry, outperforming 89.11% of the companies in the same industry.
GMED has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
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's Current ratio of 4.47 is fine compared to the rest of the industry. GMED outperforms 63.86% of its industry peers.
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.

A Closer Look at Profitability for NYSE:GMED

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:GMED has achieved a 8:

Looking at the Return On Assets, with a value of 2.95%, GMED is in the better half of the industry, outperforming 78.22% of the companies in the same industry.
The Return On Equity of GMED (3.77%) is better than 75.74% of its industry peers.
GMED has a Return On Invested Capital of 3.88%. This is in the better half of the industry: GMED outperforms 77.23% of its industry peers.
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.
With an excellent Profit Margin value of 12.88%, GMED belongs to the best of the industry, outperforming 91.58% of the companies in the same industry.
GMED's Profit Margin has improved in the last couple of years.
The Operating Margin of GMED (19.38%) is better than 93.07% of its industry peers.
The Gross Margin of GMED (71.19%) is better than 82.18% of its industry peers.

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

For an up to date full fundamental analysis you can check the fundamental report of GMED

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.