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

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

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:GMED has achieved a 7 out of 10:

• The Earnings Per Share has grown by an nice 15.60% over the past year.
• The Revenue has grown by 77.60% 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 17.08% 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 16.96% yearly.
• 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.

What does the Valuation looks like for NYSE:GMED

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:GMED scores a 5 out of 10:

• Based on the Price/Earnings ratio, GMED is valued cheaply inside the industry as 80.73% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 83.33% of the companies listed 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 75.52% of the companies listed in the same industry.
• 77.60% of the companies in the same industry are more expensive than GMED, based on the Price/Free Cash Flow ratio.
• A more expensive valuation may be justified as GMED's earnings are expected to grow with 19.77% in the coming years.

Deciphering NYSE:GMED's Health Rating

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 6.27 indicates that GMED is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 6.27, GMED belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
• GMED has a debt to FCF ratio of 2.80. This is a good value and a sign of high solvency as GMED would need 2.80 years to pay back of all of its debts.
• GMED's Debt to FCF ratio of 2.80 is amongst the best of the industry. GMED outperforms 86.46% of its industry peers.
• GMED has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.00, GMED is doing good in the industry, outperforming 67.19% of the companies in the same industry.
• GMED has a Current Ratio of 2.33. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.

Understanding 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 5 out of 10:

• GMED has a better Return On Assets (1.35%) than 73.96% of its industry peers.
• Looking at the Return On Equity, with a value of 1.70%, GMED is in the better half of the industry, outperforming 73.96% of the companies in the same industry.
• With a decent Return On Invested Capital value of 3.18%, GMED is doing good in the industry, outperforming 71.35% of the companies in the same industry.
• The Profit Margin of GMED (3.51%) is better than 73.44% of its industry peers.
• GMED's Operating Margin of 9.14% is fine compared to the rest of the industry. GMED outperforms 77.08% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

This article should in no way be interpreted as advice. 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.