NYSE:GMED stands out as a growth opportunity that won't break the bank.

Uncover the potential of GLOBUS MEDICAL INC - A (NYSE:GMED), a growth stock that our stock screener found to be reasonably priced. NYSE:GMED is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Growth Assessment of NYSE:GMED

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:GMED was assigned a score of 8 for growth:

• 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.
• GMED shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.42% yearly.
• GMED shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.86%.
• The Revenue has been growing by 9.97% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 17.47% on average over the next years. This is quite good.
• Based on estimates for the next years, GMED will show a very strong growth in Revenue. The Revenue will grow by 24.28% 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

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:GMED has achieved a 6 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 83.92% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 85.93% of the companies listed in the same industry.
• Based on the Enterprise Value to EBITDA ratio, GMED is valued a bit cheaper than 79.40% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, GMED is valued cheaply inside the industry as 81.41% of the companies are valued more expensively.
• The excellent profitability rating of GMED may justify a higher PE ratio.
• GMED's earnings are expected to grow with 17.69% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NYSE:GMED

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:GMED has earned a 7 out of 10:

• GMED has an Altman-Z score of 4.98. This indicates that GMED is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.98, GMED is in the better half of the industry, outperforming 77.89% of the companies in the same industry.
• 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.
• With an excellent Debt to FCF ratio value of 3.18, GMED belongs to the best of the industry, outperforming 88.94% of the companies in the same industry.
• 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 better Current ratio (4.47) than 62.81% 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.

Analyzing Profitability Metrics

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:

• GMED's Return On Assets of 2.95% is fine compared to the rest of the industry. GMED outperforms 77.89% of its industry peers.
• Looking at the Return On Equity, with a value of 3.77%, GMED is in the better half of the industry, outperforming 74.87% of the companies in the same industry.
• GMED's Return On Invested Capital of 3.88% is fine compared to the rest of the industry. GMED outperforms 76.88% of its industry peers.
• The 3 year average ROIC (8.17%) for GMED is well above the current ROIC(3.88%). The reason for the recent decline needs to be investigated.
• Looking at the Profit Margin, with a value of 12.88%, GMED belongs to the top of the industry, outperforming 91.46% of the companies in the same industry.
• In the last couple of years the Profit Margin of GMED has grown nicely.
• The Operating Margin of GMED (19.38%) is better than 92.96% of its industry peers.
• GMED has a better Gross Margin (71.19%) than 82.41% of its industry peers.

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.

Disclaimer

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.