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GLOBUS MEDICAL INC - A (GMED) Stock Fundamental Analysis

NYSE:GMED - New York Stock Exchange, Inc. - US3795772082 - Common Stock - Currency: USD

93.12  +0.33 (+0.36%)

After market: 93.12 0 (0%)

Fundamental Rating

5

Overall GMED gets a fundamental rating of 5 out of 10. We evaluated GMED against 191 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! These ratings could make GMED a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

GMED had positive earnings in the past year.
In the past year GMED had a positive cash flow from operations.
In the past 5 years GMED has always been profitable.
GMED had a positive operating cash flow in each of the past 5 years.
GMED Yearly Net Income VS EBIT VS OCF VS FCFGMED Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

1.2 Ratios

With a decent Return On Assets value of 1.80%, GMED is doing good in the industry, outperforming 73.16% of the companies in the same industry.
GMED has a better Return On Equity (2.25%) than 74.21% of its industry peers.
GMED's Return On Invested Capital of 3.01% is fine compared to the rest of the industry. GMED outperforms 73.16% of its industry peers.
GMED had an Average Return On Invested Capital over the past 3 years of 6.95%. This is in line with the industry average of 8.09%.
Industry RankSector 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%
GMED Yearly ROA, ROE, ROICGMED Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

GMED has a better Profit Margin (3.69%) than 74.21% of its industry peers.
In the last couple of years the Profit Margin of GMED has declined.
GMED's Operating Margin of 6.80% is fine compared to the rest of the industry. GMED outperforms 74.21% of its industry peers.
In the last couple of years the Operating Margin of GMED has declined.
GMED has a Gross Margin (58.14%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GMED has declined.
Industry RankSector 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%
GMED Yearly Profit, Operating, Gross MarginsGMED Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

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6

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.
Compared to 1 year ago, GMED has more shares outstanding
Compared to 5 years ago, GMED has more shares outstanding
GMED has a worse debt/assets ratio than last year.
GMED Yearly Shares OutstandingGMED Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
GMED Yearly Total Debt VS Total AssetsGMED Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 9.88 indicates that GMED is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.88, GMED belongs to the best of the industry, outperforming 87.89% of the companies in the same industry.
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 better Debt to FCF ratio (1.49) than 88.42% of its industry peers.
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 70.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.49
Altman-Z 9.88
ROIC/WACC0.33
WACC9.11%
GMED Yearly LT Debt VS Equity VS FCFGMED Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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 of 2.51. This is comparable to the rest of the industry: GMED outperforms 46.32% of its industry peers.
GMED has a Quick Ratio of 1.64. This is a normal value and indicates that GMED is financially healthy and should not expect problems in meeting its short term obligations.
GMED has a Quick ratio (1.64) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.51
Quick Ratio 1.64
GMED Yearly Current Assets VS Current LiabilitesGMED Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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7

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.
Looking at the last year, GMED shows a very strong growth in Revenue. The Revenue has grown by 102.10%.
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.
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 16.20% on average per year.
GMED is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.13% yearly.
EPS Next Y30.63%
EPS Next 2Y22.26%
EPS Next 3Y19.57%
EPS Next 5Y16.2%
Revenue Next Year60.65%
Revenue Next 2Y30.87%
Revenue Next 3Y22.34%
Revenue Next 5Y16.13%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
GMED Yearly Revenue VS EstimatesGMED Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
GMED Yearly EPS VS EstimatesGMED Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

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5

4. Valuation

4.1 Price/Earnings Ratio

GMED is valuated quite expensively with a Price/Earnings ratio of 32.11.
Based on the Price/Earnings ratio, GMED is valued a bit cheaper than 74.74% of the companies in the same industry.
GMED is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.74 indicates a quite expensive valuation of GMED.
GMED's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GMED is cheaper than 76.84% of the companies in the same industry.
GMED's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
Industry RankSector Rank
PE 32.11
Fwd PE 26.74
GMED Price Earnings VS Forward Price EarningsGMED Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

69.47% of the companies in the same industry are more expensive than GMED, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GMED is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 50.27
EV/EBITDA 33.81
GMED Per share dataGMED EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

GMED's 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)4.66
EPS Next 2Y22.26%
EPS Next 3Y19.57%

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0

5. Dividend

5.1 Amount

No dividends for GMED!.
Industry RankSector Rank
Dividend Yield N/A

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GLOBUS MEDICAL INC - A

NYSE:GMED (1/30/2025, 4:42:31 PM)

After market: 93.12 0 (0%)

93.12

+0.33 (+0.36%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-05 2024-11-05/amc
Earnings (Next)02-20 2025-02-20/amc
Inst Owners103.58%
Inst Owner Change0.3%
Ins Owners0.78%
Ins Owner Change2.09%
Market Cap14.77B
Analysts78.18
Price Target97.37 (4.56%)
Short Float %1.84%
Short Ratio2.38
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.02%
Min EPS beat(2)8.6%
Max EPS beat(2)25.45%
EPS beat(4)3
Avg EPS beat(4)13.71%
Min EPS beat(4)-3.57%
Max EPS beat(4)25.45%
EPS beat(8)6
Avg EPS beat(8)7.77%
EPS beat(12)8
Avg EPS beat(12)4.08%
EPS beat(16)12
Avg EPS beat(16)7.74%
Revenue beat(2)2
Avg Revenue beat(2)0.95%
Min Revenue beat(2)0.33%
Max Revenue beat(2)1.57%
Revenue beat(4)3
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)1.57%
Revenue beat(8)5
Avg Revenue beat(8)-0.45%
Revenue beat(12)6
Avg Revenue beat(12)-0.7%
Revenue beat(16)8
Avg Revenue beat(16)0.66%
PT rev (1m)5.44%
PT rev (3m)20.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.45%
EPS NY rev (1m)0%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.99%
Valuation
Industry RankSector Rank
PE 32.11
Fwd PE 26.74
P/S 5.96
P/FCF 50.27
P/OCF 35.59
P/B 3.63
P/tB 8.23
EV/EBITDA 33.81
EPS(TTM)2.9
EY3.11%
EPS(NY)3.48
Fwd EY3.74%
FCF(TTM)1.85
FCFY1.99%
OCF(TTM)2.62
OCFY2.81%
SpS15.63
BVpS25.66
TBVpS11.32
PEG (NY)1.05
PEG (5Y)4.66
Profitability
Industry RankSector Rank
ROA 1.8%
ROE 2.25%
ROCE 3.95%
ROIC 3.01%
ROICexc 3.6%
ROICexgc 9.9%
OM 6.8%
PM (TTM) 3.69%
GM 58.14%
FCFM 11.85%
ROA(3y)6.4%
ROA(5y)7.08%
ROE(3y)7.31%
ROE(5y)7.96%
ROIC(3y)6.95%
ROIC(5y)7.2%
ROICexc(3y)8.92%
ROICexc(5y)9.34%
ROICexgc(3y)12.19%
ROICexgc(5y)12.29%
ROCE(3y)9.12%
ROCE(5y)9.44%
ROICexcg growth 3Y-5.08%
ROICexcg growth 5Y-16.3%
ROICexc growth 3Y-22.02%
ROICexc growth 5Y-25.06%
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%
F-Score6
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.49
Debt/EBITDA 0
Cap/Depr 47.17%
Cap/Sales 4.89%
Interest Coverage 250
Cash Conversion 97.53%
Profit Quality 321.05%
Current Ratio 2.51
Quick Ratio 1.64
Altman-Z 9.88
F-Score6
WACC9.11%
ROIC/WACC0.33
Cap/Depr(3y)81.28%
Cap/Depr(5y)95.89%
Cap/Sales(3y)6.05%
Cap/Sales(5y)7.05%
Profit Quality(3y)112.15%
Profit Quality(5y)106.75%
High Growth Momentum
Growth
EPS 1Y (TTM)25%
EPS 3Y17.67%
EPS 5Y6.89%
EPS Q2Q%45.61%
EPS Next Y30.63%
EPS Next 2Y22.26%
EPS Next 3Y19.57%
EPS Next 5Y16.2%
Revenue 1Y (TTM)102.1%
Revenue growth 3Y25.74%
Revenue growth 5Y17.08%
Sales Q2Q%63.1%
Revenue Next Year60.65%
Revenue Next 2Y30.87%
Revenue Next 3Y22.34%
Revenue Next 5Y16.13%
EBIT growth 1Y-29.07%
EBIT growth 3Y20.49%
EBIT growth 5Y2.67%
EBIT Next Year156.81%
EBIT Next 3Y49.18%
EBIT Next 5Y30.83%
FCF growth 1Y148.78%
FCF growth 3Y6.94%
FCF growth 5Y6.27%
OCF growth 1Y117.5%
OCF growth 3Y6.99%
OCF growth 5Y6.04%