GLOBUS MEDICAL INC - A (NYSE:GMED) - A Strong Growth Stock with Reasonable Valuation

GLOBUS MEDICAL INC - A (NYSE:GMED) was identified as an affordable growth stock by our stock screener. The company demonstrates solid growth potential while maintaining reasonable valuation metrics, along with strong profitability and financial health. Below, we examine why GMED fits the criteria for investors seeking growth at a reasonable price.

Growth Prospects

GMED has shown strong historical growth, with key highlights including:

• Revenue Growth: Revenue increased by 32.26% over the past year, with a 5-year average annual growth rate of 26.25%.
• Earnings Growth: Earnings per share (EPS) grew by 23.02% in the last year, supported by a 5-year average annual growth of 13.19%.
• Future Expectations: Analysts project EPS growth of 12.10% annually, indicating continued expansion.

Valuation

Despite its growth, GMED remains reasonably priced:

• P/E Ratio: At 19.33, GMED trades below the industry average of 28.26 and the S&P 500 average of 26.52.
• Forward P/E: The forward P/E of 15.81 suggests a fair valuation relative to future earnings.
• Enterprise Value/EBITDA: GMED is cheaper than 89.89% of its peers based on this metric.

Profitability & Financial Health

The company maintains strong fundamentals:

• Profit Margins: An operating margin of 17.79% outperforms 89.89% of industry peers.
• Balance Sheet Strength: With no debt and a current ratio of 4.45, GMED has ample liquidity.
• ROIC & ROE: Return on invested capital (8.24%) and return on equity (4.54%) are above industry averages.

For a deeper analysis, review the full fundamental report for GMED.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.