Don't overlook NYSE:GMED—a stock with solid growth prospects and a reasonable valuation.

Take a closer look at GLOBUS MEDICAL INC - A (NYSE:GMED), an affordable growth stock uncovered by our stock screener. NYSE:GMED boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Unpacking NYSE:GMED's Growth Rating

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 7 for growth:

• GMED shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.56%, which is quite good.
• Looking at the last year, GMED shows a very strong growth in Revenue. The Revenue has grown by 53.36%.
• Measured over the past years, GMED shows a quite strong growth in Revenue. The Revenue has been growing by 17.08% on average per year.
• The Earnings Per Share is expected to grow by 16.87% on average over the next years. This is quite good.
• The Revenue is expected to grow by 17.14% 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.

Valuation Examination for 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:

• 84.69% of the companies in the same industry are more expensive than GMED, based on the Price/Earnings ratio.
• Based on the Price/Forward Earnings ratio, GMED is valued cheaper than 87.76% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 82.14% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, GMED is valued cheaply inside the industry as 81.12% of the companies are valued more expensively.
• GMED has a very decent profitability rating, which may justify a higher PE ratio.
• GMED's earnings are expected to grow with 19.90% in the coming years. This may justify a more expensive valuation.

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 4.98 indicates that GMED is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.98, GMED belongs to the best of the industry, outperforming 80.10% of the companies in the same industry.
• 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.
• The Debt to FCF ratio of GMED (2.53) is better than 89.80% 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 4.88 indicates that GMED has no problem at all paying its short term obligations.
• GMED has a Current ratio of 4.88. This is in the better half of the industry: GMED outperforms 68.88% of its industry peers.
• 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.

Exploring NYSE:GMED's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:GMED has earned a 6 out of 10:

• GMED's Return On Assets of 2.42% is fine compared to the rest of the industry. GMED outperforms 74.49% of its industry peers.
• GMED has a Return On Equity of 3.07%. This is in the better half of the industry: GMED outperforms 73.98% of its industry peers.
• GMED has a Return On Invested Capital of 3.28%. This is in the better half of the industry: GMED outperforms 73.98% of its industry peers.
• The Profit Margin of GMED (7.83%) is better than 81.63% of its industry peers.
• GMED has a better Operating Margin (12.87%) than 82.65% of its industry peers.
• Looking at the Gross Margin, with a value of 65.05%, GMED is in the better half of the industry, outperforming 69.39% of the companies in the same industry.

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

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.