Investors seeking growth at a reasonable cost should explore NYSE:GMED.

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.

Assessing Growth for NYSE:GMED

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 8 out of 10:

• The Earnings Per Share has grown by an nice 17.77% over the past year.
• GMED shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.42% yearly.
• Looking at the last year, GMED shows a very strong growth in Revenue. The Revenue has grown by 22.86%.
• The Revenue has been growing by 9.97% on average over the past years. This is quite good.
• GMED is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.47% yearly.
• GMED is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.81% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Understanding NYSE:GMED's Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:GMED was assigned a score of 6 for valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 84.85% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 85.35% of the companies listed in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GMED indicates a somewhat cheap valuation: GMED is cheaper than 79.29% of the companies listed in the same industry.
• 82.83% of the companies in the same industry are more expensive than GMED, based on the Price/Free Cash Flow ratio.
• The excellent profitability rating of GMED may justify a higher PE ratio.
• A more expensive valuation may be justified as GMED's earnings are expected to grow with 17.46% in the coming years.

Deciphering NYSE:GMED's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:GMED has achieved a 7 out of 10:

• GMED has an Altman-Z score of 4.79. This indicates that GMED is financially healthy and has little risk of bankruptcy at the moment.
• GMED's Altman-Z score of 4.79 is fine compared to the rest of the industry. GMED outperforms 76.77% of its industry peers.
• GMED has a debt to FCF ratio of 3.18. This is a good value and a sign of high solvency as GMED would need 3.18 years to pay back of all of its debts.
• GMED has a Debt to FCF ratio of 3.18. This is amongst the best in the industry. GMED outperforms 88.38% of its industry peers.
• A Debt/Equity ratio of 0.10 indicates that GMED is not too dependend on debt financing.
• A Current Ratio of 4.47 indicates that GMED has no problem at all paying its short term obligations.
• GMED has a Current ratio of 4.47. This is in the better half of the industry: GMED outperforms 62.12% of its industry peers.
• GMED has a Quick Ratio of 2.36. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.

Profitability Analysis for NYSE:GMED

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:GMED has achieved a 8:

• GMED's Return On Assets of 2.95% is fine compared to the rest of the industry. GMED outperforms 77.27% of its industry peers.
• Looking at the Return On Equity, with a value of 3.77%, GMED is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
• GMED's Return On Invested Capital of 3.88% is fine compared to the rest of the industry. GMED outperforms 76.77% of its industry peers.
• The last Return On Invested Capital (3.88%) for GMED is well below the 3 year average (8.17%), which needs to be investigated, but indicates that GMED had better years and this may not be a problem.
• Looking at the Profit Margin, with a value of 12.88%, GMED belongs to the top of the industry, outperforming 91.41% of the companies in the same industry.
• GMED's Profit Margin has improved in the last couple of years.
• The Operating Margin of GMED (19.38%) is better than 92.93% of its industry peers.
• GMED has a better Gross Margin (71.19%) than 82.32% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of GMED contains the most current fundamental analsysis.

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.