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 candidate by our stock screener. The company combines solid growth with sound profitability and financial health, while trading at a reasonable valuation. Below, we examine why GMED fits the criteria for investors seeking growth at a reasonable price.

Growth Prospects

• Strong Revenue & Earnings Growth: GMED reported a 32.3% year-over-year revenue increase, with earnings per share (EPS) growing by 23%. Over the past five years, EPS has expanded at an average annual rate of 13.2%.
• Future Expectations: Analysts project EPS growth of 12.1% annually, indicating sustained momentum. While revenue growth is expected to moderate to 7.3%, it remains positive.

Valuation Assessment

• Attractive Multiples: GMED trades at a P/E ratio of 19.4, below the S&P 500 average (27.2) and cheaper than 80.8% of its industry peers. Its forward P/E of 15.9 is also reasonable.
• Enterprise Value/EBITDA: The stock is priced attractively relative to EBITDA, with 90.4% of industry competitors trading at higher multiples.

Profitability & Financial Health

• High Margins: GMED maintains a gross margin of 66.9% and an operating margin of 17.8%, outperforming most peers.
• Strong Balance Sheet: The company has no debt, a current ratio of 4.5, and a quick ratio of 2.7, reflecting ample liquidity. Its Altman-Z score of 9.3 signals low bankruptcy risk.

While GMED’s valuation isn’t deeply discounted, its combination of growth, profitability, and financial stability makes it a compelling candidate for investors seeking balanced exposure to the healthcare equipment sector.

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 observations here are based on current data, but investors should conduct their own research before making decisions.