Despite its growth, NYSE:GMED remains within the realm of affordability.

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.

Exploring NYSE:GMED's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:GMED scores a 7 out of 10:

• The Earnings Per Share has grown by an impressive 25.00% over the past year.
• Looking at the last year, GMED shows a very strong growth in Revenue. The Revenue has grown by 53.35%.
• GMED shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.08% yearly.
• 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.

Understanding NYSE:GMED's Valuation Score

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:GMED boasts a 5 out of 10:

• Based on the Price/Earnings ratio, GMED is valued cheaper than 81.28% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, GMED is valued cheaply inside the industry as 83.42% of the companies are valued more expensively.
• Based on the Enterprise Value to EBITDA ratio, GMED is valued a bit cheaper than 74.87% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of GMED indicates a somewhat cheap valuation: GMED is cheaper than 73.80% of the companies listed in the same industry.
• GMED's earnings are expected to grow with 19.12% in the coming years. This may justify a more expensive valuation.

A Closer Look at 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 7.17. This indicates that GMED is financially healthy and has little risk of bankruptcy at the moment.
• GMED has a better Altman-Z score (7.17) than 83.42% of its industry peers.
• GMED has a debt to FCF ratio of 2.68. This is a good value and a sign of high solvency as GMED would need 2.68 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.68, GMED belongs to the top of the industry, outperforming 86.63% of the companies in the same industry.
• A Debt/Equity ratio of 0.00 indicates that GMED is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.00, GMED is in the better half of the industry, outperforming 67.91% of the companies in the same industry.
• A Current Ratio of 2.42 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 5 is a significant indicator of profitability:

• GMED has a better Return On Assets (0.81%) than 71.12% of its industry peers.
• The Return On Equity of GMED (1.02%) is better than 71.12% of its industry peers.
• With a decent Return On Invested Capital value of 3.06%, GMED is doing good in the industry, outperforming 73.26% of the companies in the same industry.
• GMED has a better Profit Margin (1.82%) than 72.19% of its industry peers.
• GMED has a Operating Margin of 7.53%. This is in the better half of the industry: GMED outperforms 74.87% 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.

Disclaimer

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.