NYSE:GMED is not too expensive for the growth it is showing.

Our stock screening tool has pinpointed GLOBUS MEDICAL INC - A (NYSE:GMED) as a growth stock that isn't overvalued. NYSE:GMED is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Growth Analysis for NYSE:GMED

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:GMED, the assigned 7 reflects its growth potential:

• The Earnings Per Share has grown by an nice 12.56% over the past year.
• The Revenue has grown by 53.36% in the past year. This is a very strong growth!
• The Revenue has been growing by 17.08% on average over the past years. This is quite good.
• Based on estimates for the next years, GMED will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.87% on average per year.
• The Revenue is expected to grow by 17.15% on average over the next years. This is quite good.
• 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.

Understanding NYSE:GMED's Valuation Score

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:

• Based on the Price/Earnings ratio, GMED is valued cheaply inside the industry as 83.16% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, GMED is valued cheaper than 85.20% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GMED indicates a somewhat cheap valuation: GMED is cheaper than 79.59% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 82.65% of the companies listed in the same industry.
• GMED has a very decent 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 20.56% in the coming years.

Health Assessment of 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 6 out of 10:

• An Altman-Z score of 5.32 indicates that GMED is not in any danger for bankruptcy at the moment.
• GMED has a Altman-Z score of 5.32. This is in the better half of the industry: GMED outperforms 78.57% of its industry peers.
• GMED has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as GMED would need 2.53 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.53, GMED belongs to the top of the industry, outperforming 89.80% 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.
• A Current Ratio of 4.88 indicates that GMED has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 4.88, GMED is in the better half of the industry, outperforming 66.84% of the companies in the same industry.
• GMED has a Quick Ratio of 2.72. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.

Evaluating Profitability: 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 6 out of 10:

• The Return On Assets of GMED (2.42%) is better than 73.98% of its industry peers.
• Looking at the Return On Equity, with a value of 3.07%, GMED is in the better half of the industry, outperforming 73.98% of the companies in the same industry.
• GMED's Return On Invested Capital of 3.28% is fine compared to the rest of the industry. GMED outperforms 74.49% of its industry peers.
• GMED has a Profit Margin of 7.83%. This is amongst the best in the industry. GMED outperforms 81.12% of its industry peers.
• With an excellent Operating Margin value of 12.87%, GMED belongs to the best of the industry, outperforming 83.16% of the companies in the same industry.
• GMED's Gross Margin of 65.05% is fine compared to the rest of the industry. GMED outperforms 70.41% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.