GLOBUS MEDICAL INC - A (GMED)
US3795772082 - Common Stock
We assign a fundamental rating of 5 out of 10 to GMED. GMED was compared to 187 industry peers in the Health Care Equipment & Supplies industry. GMED has only an average score on both its financial health and profitability. GMED is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes GMED very considerable for growth investing!
1. Profitability
1.1 Basic Checks
GMED had positive earnings in the past year.
GMED had a positive operating cash flow in the past year.
Each year in the past 5 years GMED has been profitable.
GMED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GMED has a Return On Assets of 1.80%. This is in the better half of the industry: GMED outperforms 72.73% of its industry peers.
GMED has a Return On Equity of 2.25%. This is in the better half of the industry: GMED outperforms 73.80% of its industry peers.
With a decent Return On Invested Capital value of 3.01%, GMED is doing good in the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GMED is in line with the industry average of 8.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 2.25% | ||
| ROIC | 3.01% |
ROA(3y)6.4%
ROA(5y)7.08%
ROE(3y)7.31%
ROE(5y)7.96%
ROIC(3y)6.95%
ROIC(5y)7.2%
1.3 Margins
With a decent Profit Margin value of 3.69%, GMED is doing good in the industry, outperforming 73.80% of the companies in the same industry.
In the last couple of years the Profit Margin of GMED has declined.
The Operating Margin of GMED (6.80%) is better than 73.80% of its industry peers.
In the last couple of years the Operating Margin of GMED has declined.
Looking at the Gross Margin, with a value of 58.14%, GMED is in line with its industry, outperforming 55.08% of the companies in the same industry.
GMED's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.8% | ||
| PM (TTM) | 3.69% | ||
| GM | 58.14% |
OM growth 3Y-4.18%
OM growth 5Y-12.3%
PM growth 3Y-15.46%
PM growth 5Y-18.62%
GM growth 3Y-3.53%
GM growth 5Y-3.48%
2. Health
2.1 Basic Checks
GMED has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GMED has been increased compared to 1 year ago.
The number of shares outstanding for GMED has been increased compared to 5 years ago.
The debt/assets ratio for GMED is higher compared to a year ago.
2.2 Solvency
GMED has an Altman-Z score of 9.13. This indicates that GMED is financially healthy and has little risk of bankruptcy at the moment.
GMED's Altman-Z score of 9.13 is amongst the best of the industry. GMED outperforms 87.17% of its industry peers.
GMED has a debt to FCF ratio of 1.49. This is a very positive value and a sign of high solvency as it would only need 1.49 years to pay back of all of its debts.
GMED has a Debt to FCF ratio of 1.49. This is amongst the best in the industry. GMED outperforms 88.24% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GMED is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.00, GMED is doing good in the industry, outperforming 68.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.49 | ||
| Altman-Z | 9.13 |
ROIC/WACC0.34
WACC8.99%
2.3 Liquidity
GMED has a Current Ratio of 2.51. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.
GMED has a Current ratio (2.51) which is in line with its industry peers.
A Quick Ratio of 1.64 indicates that GMED should not have too much problems paying its short term obligations.
The Quick ratio of GMED (1.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.00% over the past year.
Measured over the past 5 years, GMED shows a small growth in Earnings Per Share. The EPS has been growing by 6.89% on average per year.
GMED shows a strong growth in Revenue. In the last year, the Revenue has grown by 102.10%.
GMED shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.08% yearly.
EPS 1Y (TTM)25%
EPS 3Y17.67%
EPS 5Y6.89%
EPS Q2Q%45.61%
Revenue 1Y (TTM)102.1%
Revenue growth 3Y25.74%
Revenue growth 5Y17.08%
Sales Q2Q%63.1%
3.2 Future
Based on estimates for the next years, GMED will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.70% on average per year.
GMED is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.25% yearly.
EPS Next Y27.69%
EPS Next 2Y22.36%
EPS Next 3Y19.57%
EPS Next 5Y17.7%
Revenue Next Year59.96%
Revenue Next 2Y30.68%
Revenue Next 3Y22.2%
Revenue Next 5Y17.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GMED is valuated quite expensively with a Price/Earnings ratio of 29.21.
Compared to the rest of the industry, the Price/Earnings ratio of GMED indicates a somewhat cheap valuation: GMED is cheaper than 78.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.29, GMED is valued at the same level.
A Price/Forward Earnings ratio of 24.29 indicates a rather expensive valuation of GMED.
Based on the Price/Forward Earnings ratio, GMED is valued a bit cheaper than the industry average as 79.68% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, GMED is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.21 | ||
| Fwd PE | 24.29 |
4.2 Price Multiples
GMED's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GMED is cheaper than 71.66% of the companies in the same industry.
78.61% of the companies in the same industry are more expensive than GMED, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.73 | ||
| EV/EBITDA | 30.81 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GMED's earnings are expected to grow with 19.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)4.24
EPS Next 2Y22.36%
EPS Next 3Y19.57%
5. Dividend
5.1 Amount
No dividends for GMED!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GLOBUS MEDICAL INC - A
NYSE:GMED (11/22/2024, 8:04:00 PM)
After market: 84.2367 -0.48 (-0.57%)84.72
-0.19 (-0.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.21 | ||
| Fwd PE | 24.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.05
PEG (5Y)4.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 2.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.8% | ||
| PM (TTM) | 3.69% | ||
| GM | 58.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25%
EPS 3Y17.67%
EPS 5Y
EPS Q2Q%
EPS Next Y27.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)102.1%
Revenue growth 3Y25.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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OCF growth 5Y