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

US Only

Above 10, Above 20

50 SMA > 500K

GLOBUS MEDICAL INC - A### New York Stock Exchange, Inc. / Health Care / Health Care Equipment & Supplies

Technical Analysis

Fundamental Analysis

Analyst Ratings, Profile & Chart

**GMED** gets a fundamental rating of **7** out of 10. The analysis compared the fundamentals against 202 industry peers in the **Health Care Equipment & Supplies** industry. **GMED** has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. **GMED** is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, **GMED** could be worth investigating further for growth and quality investing!.

In the past year **GMED** was profitable.

In the past year **GMED** had a positive cash flow from operations.

With a decent **Return On Assets** value of **2.95%**, **GMED** is doing good in the industry, outperforming **78.22%** of the companies in the same industry.

With a decent **Return On Invested Capital** value of **3.88%**, **GMED** is doing good in the industry, outperforming **77.23%** of the companies in the same industry.

Measured over the past 3 years, the **Average Return On Invested Capital** for **GMED** is in line with the industry average of **8.48%**.

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.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 2.95% | ||

ROE | 3.77% | ||

ROIC | 3.88% |

ROA(3y)7.63%

ROA(5y)9.01%

ROE(3y)8.55%

ROE(5y)9.99%

ROIC(3y)8.17%

ROIC(5y)9.27%

In the last couple of years the **Operating Margin** of **GMED** has declined.

In the last couple of years the **Gross Margin** of **GMED** has remained more or less at the same level.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 19.38% | ||

PM (TTM) | 12.88% | ||

GM | 71.19% |

OM growth 3Y0.87%

OM growth 5Y-2.42%

PM growth 3Y-2%

PM growth 5Y1.97%

GM growth 3Y-1.25%

GM growth 5Y-0.56%

The number of shares outstanding for **GMED** has been increased compared to 5 years ago.

There is no outstanding debt for **GMED**. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

An Altman-Z score of **4.35** indicates that **GMED** is not in any danger for bankruptcy at the moment.

Looking at the **Altman-Z score**, with a value of **4.35**, **GMED** is in the better half of the industry, outperforming **76.24%** of the companies in the same industry.

The Debt to FCF ratio of **GMED** is **3.18**, which is a good value as it means it would take **GMED**, **3.18** years of fcf income to pay off all of its debts.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.1 | ||

Debt/FCF | 3.18 | ||

Altman-Z | 4.35 |

ROIC/WACC0.38

WACC10.12%

A Current Ratio of **4.47** indicates that **GMED** has no problem at all paying its short term obligations.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 4.47 | ||

Quick Ratio | 2.36 |

The **Earnings Per Share** has grown by an nice **17.77%** over the past year.

Looking at the last year, **GMED** shows a very strong growth in **Revenue**. The Revenue has grown by **22.86%**.

Measured over the past years, **GMED** shows a quite strong growth in **Revenue**. The Revenue has been growing by **9.97%** on average per year.

EPS 1Y (TTM)17.77%

EPS 3Y6.99%

EPS 5Y9.42%

EPS growth Q2Q14%

Revenue 1Y (TTM)22.86%

Revenue growth 3Y9.2%

Revenue growth 5Y9.97%

Revenue growth Q2Q50.96%

Based on estimates for the next years, **GMED** will show a quite strong growth in **Earnings Per Share**. The EPS will grow by **17.47%** on average per year.

The **Revenue** is expected to grow by **24.28%** on average over the next years. This is a very strong growth

EPS Next Y13.39%

EPS Next 2Y15.95%

EPS Next 3Y17.69%

EPS Next 5Y17.47%

Revenue Next Year51.67%

Revenue Next 2Y55.41%

Revenue Next 3Y37.61%

Revenue Next 5Y24.28%

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.

Based on the **Price/Earnings** ratio of **20.05**, the valuation of **GMED** can be described as rather expensive.

When comparing the **Price/Earnings** ratio of **GMED** to the average of the S&P500 Index (**24.97**), we can say **GMED** is valued inline with the index average.

Based on the **Price/Forward Earnings** ratio of **16.71**, the valuation of **GMED** can be described as correct.

Based on the **Price/Forward Earnings** ratio, **GMED** is valued cheaper than 88.12% of the companies in the same industry.

Compared to an average S&P500 **Price/Forward Earnings** ratio of **20.05**, **GMED** is valued at the same level.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 20.05 | ||

Fwd PE | 16.71 |

Based on the **Enterprise Value to EBITDA** ratio, **GMED** is valued cheaper than 82.18% of the companies in the same industry.

Based on the **Price/Free Cash Flow** ratio, **GMED** is valued cheaper than 82.67% of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 49.64 | ||

EV/EBITDA | 18.77 |

The **PEG Ratio(NY)**, which compensates the Price/Earnings for growth, indicates a correct valuation of the company.

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 **17.69%** in the coming years.

PEG (NY)1.5

PEG (5Y)2.13

EPS Next 2Y15.95%

EPS Next 3Y17.69%

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | N/A |