Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.


GLOBUS MEDICAL INC - A

New York Stock Exchange, Inc. / Health Care / Health Care Equipment & Supplies

Fundamental Rating

6

GMED gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. GMED is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. GMED is not overvalued while it is showing excellent growth. This is an interesting combination. This makes GMED very considerable for growth investing!


Dividend Valuation Growth Profitability Health

6

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 2024 100M 200M 300M 400M 500M

1.2 Ratios

The Return On Assets of GMED (3.94%) is better than 80.42% of its industry peers.
GMED has a better Return On Equity (4.54%) than 77.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.32%, GMED is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GMED is below the industry average of 7.84%.
Industry RankSector Rank
ROA 3.94%
ROE 4.54%
ROIC 5.32%
ROA(3y)4.51%
ROA(5y)5.45%
ROE(3y)5.28%
ROE(5y)6.24%
ROIC(3y)5.75%
ROIC(5y)6.34%
GMED Yearly ROA, ROE, ROICGMED Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

GMED's Profit Margin of 7.39% is amongst the best of the industry. GMED outperforms 80.95% of its industry peers.
In the last couple of years the Profit Margin of GMED has declined.
The Operating Margin of GMED (11.48%) is better than 77.78% of its industry peers.
In the last couple of years the Operating Margin of GMED has declined.
GMED's Gross Margin of 60.59% is in line compared to the rest of the industry. GMED outperforms 58.73% of its industry peers.
In the last couple of years the Gross Margin of GMED has declined.
Industry RankSector Rank
OM 11.48%
PM (TTM) 7.39%
GM 60.59%
OM growth 3Y-24.6%
OM growth 5Y-17.28%
PM growth 3Y-35.97%
PM growth 5Y-27.03%
GM growth 3Y-7.75%
GM growth 5Y-5.24%
GMED Yearly Profit, Operating, Gross MarginsGMED Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GMED is destroying value.
GMED has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GMED has been increased compared to 5 years ago.
The debt/assets ratio for GMED is higher compared to a year ago.
GMED Yearly Shares OutstandingGMED Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2024 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 8.97 indicates that GMED is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.97, GMED belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
The Debt to FCF ratio of GMED is 0.00, which is an excellent value as it means it would take GMED, only 0.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GMED (0.00) is better than 95.24% 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 has a Debt to Equity ratio of 0.00. This is in the better half of the industry: GMED outperforms 70.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.97
ROIC/WACC0.6
WACC8.83%
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 2024 1B 2B 3B 4B

2.3 Liquidity

GMED has a Current Ratio of 4.45. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.45, GMED is doing good in the industry, outperforming 69.84% of the companies in the same industry.
A Quick Ratio of 2.72 indicates that GMED has no problem at all paying its short term obligations.
GMED has a Quick ratio of 2.72. This is in the better half of the industry: GMED outperforms 60.32% of its industry peers.
Industry RankSector Rank
Current Ratio 4.45
Quick Ratio 2.72
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 2024 500M 1B 1.5B 2B

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3. Growth

3.1 Past

GMED shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.02%, which is quite impressive.
Measured over the past years, GMED shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.19% on average per year.
The Revenue has grown by 32.26% in the past year. This is a very strong growth!
The Revenue has been growing by 26.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)23.02%
EPS 3Y15.46%
EPS 5Y13.19%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)32.26%
Revenue growth 3Y38.03%
Revenue growth 5Y26.25%
Sales Q2Q%-1.41%

3.2 Future

The Earnings Per Share is expected to grow by 12.10% on average over the next years. This is quite good.
Based on estimates for the next years, GMED will show a small growth in Revenue. The Revenue will grow by 7.25% on average per year.
EPS Next Y11.73%
EPS Next 2Y13%
EPS Next 3Y13.05%
EPS Next 5Y12.1%
Revenue Next Year11.82%
Revenue Next 2Y9.96%
Revenue Next 3Y8.75%
Revenue Next 5Y7.25%

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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less 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 2029 2030 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 2029 2030 2 4 6

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 18.75, the valuation of GMED can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 81.48% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GMED to the average of the S&P500 Index (24.95), we can say GMED is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.50, the valuation of GMED can be described as correct.
GMED's Price/Forward Earnings ratio is rather cheap when compared to the industry. GMED is cheaper than 83.07% of the companies in the same industry.
GMED is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.99, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.75
Fwd PE 14.5
GMED Price Earnings VS Forward Price EarningsGMED Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GMED is valued cheaper than 83.07% of the companies in the same industry.
90.48% of the companies in the same industry are more expensive than GMED, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.2
EV/EBITDA 13.42
GMED Per share dataGMED EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

GMED's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent 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 13.05% in the coming years.
PEG (NY)1.6
PEG (5Y)1.42
EPS Next 2Y13%
EPS Next 3Y13.05%

0

5. Dividend

5.1 Amount

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