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

GLOBUS MEDICAL INC - A (NYSE:GMED) was identified as an affordable growth stock by our stock screener. NYSE:GMED is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Exploring NYSE:GMED's Growth

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!
• The Revenue has been growing by 17.08% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 16.96% on average over the next years. This is quite good.
• The Revenue is expected to grow by 17.15% 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.

What does the Valuation looks like for NYSE:GMED

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 5 reflects its valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of GMED indicates a somewhat cheap valuation: GMED is cheaper than 80.00% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, GMED is valued cheaply inside the industry as 82.63% of the companies are valued more expensively.
• GMED's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GMED is cheaper than 73.68% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, GMED is valued a bit cheaper than the industry average as 77.37% 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 19.77% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Health for NYSE:GMED?

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:GMED has received a 6 out of 10:

• An Altman-Z score of 6.34 indicates that GMED is not in any danger for bankruptcy at the moment.
• GMED has a Altman-Z score of 6.34. This is amongst the best in the industry. GMED outperforms 82.63% of its industry peers.
• 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 has a better Debt to FCF ratio (2.80) than 85.79% of its industry peers.
• A Debt/Equity ratio of 0.00 indicates that GMED is not too dependend on debt financing.
• GMED has a Debt to Equity ratio of 0.00. This is in the better half of the industry: GMED outperforms 67.37% of its industry peers.
• 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.

Exploring NYSE:GMED's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:GMED was assigned a score of 6 for profitability:

• GMED has a Return On Assets of 1.35%. This is in the better half of the industry: GMED outperforms 74.21% 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 74.21% of the companies in the same industry.
• GMED has a Return On Invested Capital of 3.18%. This is in the better half of the industry: GMED outperforms 71.58% of its industry peers.
• GMED has a better Profit Margin (3.51%) than 73.68% of its industry peers.
• Looking at the Operating Margin, with a value of 9.14%, GMED is in the better half of the industry, outperforming 77.37% of the companies in the same industry.
• With a decent Gross Margin value of 62.13%, GMED is doing good in the industry, outperforming 60.53% of the companies in the same industry.

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

Our latest full fundamental report of GMED contains the most current fundamental analsysis.

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.