Investors should take note of NYSE:GMED, a growth stock that remains attractively priced.

Here's GLOBUS MEDICAL INC - A (NYSE:GMED) for you, a growth stock our stock screener believes is undervalued. NYSE:GMED is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Evaluating Growth: 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 7 out of 10:

• The Earnings Per Share has grown by an nice 12.56% over the past year.
• Looking at the last year, GMED shows a very strong growth in Revenue. The Revenue has grown by 53.36%.
• 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 17.14% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Analysis for NYSE:GMED

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:

• 85.42% 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 87.50% of the companies in the same industry.
• GMED's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GMED is cheaper than 80.73% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, GMED is valued cheaply inside the industry as 81.77% of the companies are valued more expensively.
• The decent profitability rating of GMED 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.

A Closer Look at Health for NYSE:GMED

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:GMED has earned a 6 out of 10:

• GMED has an Altman-Z score of 4.88. This indicates that GMED is financially healthy and has little risk of bankruptcy at the moment.
• GMED has a better Altman-Z score (4.88) than 77.60% of its industry peers.
• The Debt to FCF ratio of GMED is 2.53, which is a good value as it means it would take GMED, 2.53 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of GMED (2.53) is better than 89.58% of its industry peers.
• A Debt/Equity ratio of 0.10 indicates that GMED is not too dependend on debt financing.
• A Current Ratio of 4.88 indicates that GMED has no problem at all paying its short term obligations.
• GMED's Current ratio of 4.88 is fine compared to the rest of the industry. GMED outperforms 68.75% of its industry peers.
• A Quick Ratio of 2.72 indicates that GMED has no problem at all paying its short term obligations.

Evaluating Profitability: NYSE:GMED

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:GMED, the assigned 6 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 2.42%, GMED is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• With a decent Return On Equity value of 3.07%, GMED is doing good in the industry, outperforming 74.48% of the companies in the same industry.
• GMED has a better Return On Invested Capital (3.28%) than 73.44% of its industry peers.
• GMED's Profit Margin of 7.83% is amongst the best of the industry. GMED outperforms 81.25% of its industry peers.
• With an excellent Operating Margin value of 12.87%, GMED belongs to the best of the industry, outperforming 82.81% 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 68.23% 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.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.