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

Last update: Aug 21, 2024

Our stock screening tool has pinpointed GLOBUS MEDICAL INC - A (NYSE:GMED) as a growth stock that isn't overvalued. NYSE:GMED is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

ChartMill's Evaluation of 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:

GMED shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.33%, which is quite good.
The Revenue has grown by 103.89% 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 17.70% on average over the next years. This is quite good.
Based on estimates for the next years, GMED will show a quite strong growth in Revenue. The Revenue will grow by 17.25% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Insights: NYSE:GMED

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:GMED has achieved a 5 out of 10:

81.68% of the companies in the same industry are more expensive than GMED, based on the Price/Earnings ratio.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 83.25% of the companies listed in the same industry.
GMED's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GMED is cheaper than 75.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GMED is valued a bit cheaper than 77.49% of the companies in the same industry.
A more expensive valuation may be justified as GMED's earnings are expected to grow with 19.64% in the coming years.

Assessing Health for NYSE:GMED

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:

GMED has an Altman-Z score of 6.64. This indicates that GMED is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.64, GMED belongs to the best of the industry, outperforming 83.25% of the companies in the same industry.
The Debt to FCF ratio of GMED is 2.68, which is a good value as it means it would take GMED, 2.68 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.68, GMED belongs to the best of the industry, outperforming 86.39% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that GMED is not too dependend on debt financing.
The Debt to Equity ratio of GMED (0.00) is better than 68.06% of its industry peers.
A Current Ratio of 2.42 indicates that GMED has no problem at all paying its short term obligations.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:GMED scores a 5 out of 10:

GMED's Return On Assets of 0.81% is fine compared to the rest of the industry. GMED outperforms 73.30% of its industry peers.
The Return On Equity of GMED (1.02%) is better than 73.30% of its industry peers.
GMED has a better Return On Invested Capital (3.06%) than 72.77% of its industry peers.
With a decent Profit Margin value of 1.82%, GMED is doing good in the industry, outperforming 74.35% of the companies in the same industry.
GMED has a Operating Margin of 7.53%. This is in the better half of the industry: GMED outperforms 74.35% of its industry peers.

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

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.