Investors seeking growth at a reasonable cost should explore NYSE:GMED.

Last update: Dec 25, 2023

Our stock screener has singled out GLOBUS MEDICAL INC - A (NYSE:GMED) as an attractive growth opportunity. NYSE:GMED is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Analysis for NYSE:GMED

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:GMED has earned a 8 for growth:

The Earnings Per Share has grown by an nice 17.77% over the past year.
Measured over the past years, GMED shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.42% on average per year.
The Revenue has grown by 22.86% in the past year. This is a very strong growth!
Measured over the past years, GMED shows a quite strong growth in Revenue. The Revenue has been growing by 9.97% on average per year.
GMED is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.47% yearly.
GMED is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.28% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Valuation Insights: 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:

GMED's Price/Earnings ratio is rather cheap when compared to the industry. GMED is cheaper than 84.58% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, GMED is valued cheaper than 87.56% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, GMED is valued a bit cheaper than the industry average as 79.60% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GMED is valued cheaper than 82.09% of the companies in the same industry.
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 17.69% in the coming years.

Health Analysis for NYSE:GMED

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:GMED, the assigned 7 for health provides valuable insights:

An Altman-Z score of 4.86 indicates that GMED is not in any danger for bankruptcy at the moment.
The Altman-Z score of GMED (4.86) is better than 77.61% 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 89.05% of its industry peers.
GMED has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 4.47 indicates that GMED has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.47, GMED is doing good in the industry, outperforming 63.68% of the companies in the same industry.
A Quick Ratio of 2.36 indicates that GMED has no problem at all paying 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 78.11% of its industry peers.
The Return On Equity of GMED (3.77%) is better than 75.12% of its industry peers.
With a decent Return On Invested Capital value of 3.88%, GMED is doing good in the industry, outperforming 77.11% 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.
GMED has a better Profit Margin (12.88%) than 91.54% of its industry peers.
In the last couple of years the Profit Margin of GMED has grown nicely.
GMED has a Operating Margin of 19.38%. This is amongst the best in the industry. GMED outperforms 93.03% of its industry peers.
GMED has a Gross Margin of 71.19%. This is amongst the best in the industry. GMED outperforms 82.09% of its industry peers.

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

Check the latest full fundamental report of GMED for a complete fundamental analysis.

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.