Despite its growth, GLOBUS MEDICAL INC - A (NYSE:GMED) remains within the realm of affordability.

Take a closer look at GLOBUS MEDICAL INC - A (NYSE:GMED), an affordable growth stock uncovered by our stock screener. GMED boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. GMED has received a 7 out of 10:

• The Earnings Per Share has grown by an impressive 34.76% over the past year.
• The Earnings Per Share has been growing by 13.19% on average over the past years. This is quite good.
• GMED shows a strong growth in Revenue. In the last year, the Revenue has grown by 60.63%.
• GMED shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.25% yearly.
• Based on estimates for the next years, GMED will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.27% on average per year.

A Closer Look at Valuation for GMED

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. GMED was assigned a score of 5 for valuation:

• Based on the Price/Earnings ratio, GMED is valued cheaper than 82.11% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 28.64, GMED is valued a bit cheaper.
• 78.95% of the companies in the same industry are more expensive than GMED, based on the Price/Forward Earnings ratio.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GMED indicates a somewhat cheap valuation: GMED is cheaper than 76.32% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 85.26% of the companies listed in the same industry.
• GMED's earnings are expected to grow with 13.49% in the coming years. This may justify a more expensive valuation.

Health Insights: GMED

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. GMED scores a 6 out of 10:

• An Altman-Z score of 6.70 indicates that GMED is not in any danger for bankruptcy at the moment.
• GMED has a better Altman-Z score (6.70) than 84.74% of its industry peers.
• GMED has a debt to FCF ratio of 1.10. This is a very positive value and a sign of high solvency as it would only need 1.10 years to pay back of all of its debts.
• GMED has a better Debt to FCF ratio (1.10) than 91.58% of its industry peers.
• A Debt/Equity ratio of 0.00 indicates that GMED is not too dependend on debt financing.
• GMED's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. GMED outperforms 71.05% of its industry peers.
• A Current Ratio of 2.54 indicates that GMED has no problem at all paying its short term obligations.

Profitability Examination for 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, GMED has achieved a 5:

• GMED's Return On Assets of 1.96% is fine compared to the rest of the industry. GMED outperforms 75.26% of its industry peers.
• The Return On Equity of GMED (2.47%) is better than 76.32% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 3.99%, GMED is in the better half of the industry, outperforming 75.79% of the companies in the same industry.
• With a decent Profit Margin value of 4.09%, GMED is doing good in the industry, outperforming 76.32% of the companies in the same industry.
• With a decent Operating Margin value of 8.72%, GMED is doing good in the industry, outperforming 77.37% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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.