For those who appreciate growth without the sticker shock, NYSE:GMED is worth considering.

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.

Understanding NYSE:GMED's Growth Score

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.
• Looking at the last year, GMED shows a very strong growth in Revenue. The Revenue has grown by 77.60%.
• 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 17.70% yearly.
• The Revenue is expected to grow by 17.25% 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 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:

• Based on the Price/Earnings ratio, GMED is valued a bit cheaper than 79.14% of the companies in the same industry.
• GMED's Price/Forward Earnings ratio is rather cheap when compared to the industry. GMED is cheaper than 81.82% of the companies in the same industry.
• Based on the Enterprise Value to EBITDA ratio, GMED is valued a bit cheaper than the industry average as 72.19% of the companies are valued more expensively.
• 77.01% of the companies in the same industry are more expensive than GMED, based on the Price/Free Cash Flow ratio.
• 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 19.77% in the coming years.

A Closer Look at Health for 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 6 reflects its health status:

• An Altman-Z score of 6.49 indicates that GMED is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 6.49, GMED belongs to the best of the industry, outperforming 82.89% of the companies in the same industry.
• The Debt to FCF ratio of GMED is 2.80, which is a good value as it means it would take GMED, 2.80 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 2.80, GMED belongs to the best of the industry, outperforming 85.56% of the companies in the same industry.
• GMED has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
• GMED's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. GMED outperforms 66.84% 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.

Analyzing Profitability Metrics

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 1.35% is fine compared to the rest of the industry. GMED outperforms 73.80% of its industry peers.
• GMED's Return On Equity of 1.70% is fine compared to the rest of the industry. GMED outperforms 73.80% of its industry peers.
• GMED's Return On Invested Capital of 3.18% is fine compared to the rest of the industry. GMED outperforms 71.12% of its industry peers.
• Looking at the Profit Margin, with a value of 3.51%, GMED is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
• GMED's Operating Margin of 9.14% is fine compared to the rest of the industry. GMED outperforms 77.01% of its industry peers.
• GMED's Gross Margin of 62.13% is fine compared to the rest of the industry. GMED outperforms 60.43% 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.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.