GLOBUS MEDICAL INC - A (GMED) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GMED - US3795772082 - Common Stock
89.03 USD
-0.76 (-0.85%)
89.1 USD
+0.07 (+0.08%)
Overall GMED gets a fundamental rating of 6 out of 10. We evaluated GMED against 188 industry peers in the Health Care Equipment & Supplies industry. GMED scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GMED is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make GMED a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year GMED was profitable.
In the past year GMED had a positive cash flow from operations.
GMED had positive earnings in each of the past 5 years.
GMED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.32%, GMED belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
GMED's Return On Equity of 9.63% is amongst the best of the industry. GMED outperforms 84.57% of its industry peers.
GMED's Return On Invested Capital of 8.29% is amongst the best of the industry. GMED outperforms 85.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GMED is below the industry average of 8.78%.
The 3 year average ROIC (5.79%) for GMED is below the current ROIC(8.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 9.63% | ||
| ROIC | 8.29% |
ROA(3y)4.51%
ROA(5y)5.45%
ROE(3y)5.28%
ROE(5y)6.24%
ROIC(3y)5.79%
ROIC(5y)6.37%
1.3 Margins
GMED has a Profit Margin of 15.30%. This is amongst the best in the industry. GMED outperforms 90.96% of its industry peers.
GMED's Profit Margin has declined in the last couple of years.
GMED's Operating Margin of 17.37% is amongst the best of the industry. GMED outperforms 88.30% of its industry peers.
GMED's Operating Margin has declined in the last couple of years.
GMED has a Gross Margin of 67.05%. This is in the better half of the industry: GMED outperforms 70.74% of its industry peers.
In the last couple of years the Gross Margin of GMED has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.37% | ||
| PM (TTM) | 15.3% | ||
| GM | 67.05% |
OM growth 3Y-23.93%
OM growth 5Y-16.84%
PM growth 3Y-35.97%
PM growth 5Y-27.03%
GM growth 3Y-7.75%
GM growth 5Y-5.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GMED is destroying value.
Compared to 1 year ago, GMED has more shares outstanding
GMED has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GMED is higher compared to a year ago.
2.2 Solvency
GMED has an Altman-Z score of 11.90. This indicates that GMED is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.90, GMED belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
GMED has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
The Debt to FCF ratio of GMED (0.00) is better than 94.68% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GMED is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.00, GMED is doing good in the industry, outperforming 76.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.9 |
ROIC/WACC0.97
WACC8.56%
2.3 Liquidity
GMED has a Current Ratio of 4.13. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.13, GMED is doing good in the industry, outperforming 71.81% of the companies in the same industry.
A Quick Ratio of 2.47 indicates that GMED has no problem at all paying its short term obligations.
GMED has a Quick ratio (2.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.13 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
GMED shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.76%, which is quite impressive.
GMED shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.19% yearly.
GMED shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.75%.
The Revenue has been growing by 26.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)22.76%
EPS 3Y15.46%
EPS 5Y13.19%
EPS Q2Q%42.17%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y38.03%
Revenue growth 5Y26.25%
Sales Q2Q%22.91%
3.2 Future
The Earnings Per Share is expected to grow by 10.62% on average over the next years. This is quite good.
GMED is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.32% yearly.
EPS Next Y4.11%
EPS Next 2Y8.82%
EPS Next 3Y10.32%
EPS Next 5Y10.62%
Revenue Next Year14.02%
Revenue Next 2Y10.95%
Revenue Next 3Y9.46%
Revenue Next 5Y8.32%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GMED is valuated quite expensively with a Price/Earnings ratio of 25.01.
GMED's Price/Earnings ratio is a bit cheaper when compared to the industry. GMED is cheaper than 78.72% of the companies in the same industry.
GMED is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
GMED is valuated rather expensively with a Price/Forward Earnings ratio of 23.94.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GMED indicates a somewhat cheap valuation: GMED is cheaper than 75.00% of the companies listed in the same industry.
GMED is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 23.94 |
4.2 Price Multiples
82.45% of the companies in the same industry are more expensive than GMED, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GMED is valued cheaply inside the industry as 85.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.91 | ||
| EV/EBITDA | 15.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of GMED may justify a higher PE ratio.
PEG (NY)6.08
PEG (5Y)1.9
EPS Next 2Y8.82%
EPS Next 3Y10.32%
5. Dividend
5.1 Amount
GMED does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
89.03
-0.76 (-0.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners103.37%
Inst Owner Change1.96%
Ins Owners0.68%
Ins Owner Change-2.77%
Market Cap11.92B
Revenue(TTM)2.77B
Net Income(TTM)423.78M
Analysts75.24
Price Target90.69 (1.86%)
Short Float %4.37%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.7%
Min EPS beat(2)11.6%
Max EPS beat(2)47.79%
EPS beat(4)3
Avg EPS beat(4)14.87%
Min EPS beat(4)-10.39%
Max EPS beat(4)47.79%
EPS beat(8)6
Avg EPS beat(8)14.29%
EPS beat(12)9
Avg EPS beat(12)10.13%
EPS beat(16)11
Avg EPS beat(16)6.78%
Revenue beat(2)1
Avg Revenue beat(2)0.59%
Min Revenue beat(2)-1.49%
Max Revenue beat(2)2.67%
Revenue beat(4)2
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-6.31%
Max Revenue beat(4)2.67%
Revenue beat(8)5
Avg Revenue beat(8)-0.3%
Revenue beat(12)7
Avg Revenue beat(12)-0.72%
Revenue beat(16)8
Avg Revenue beat(16)-0.84%
PT rev (1m)7.71%
PT rev (3m)7.71%
EPS NQ rev (1m)21.65%
EPS NQ rev (3m)21.35%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 23.94 | ||
| P/S | 4.3 | ||
| P/FCF | 20.91 | ||
| P/OCF | 16.66 | ||
| P/B | 2.71 | ||
| P/tB | 5.44 | ||
| EV/EBITDA | 15.33 |
EPS(TTM)3.56
EY4%
EPS(NY)3.72
Fwd EY4.18%
FCF(TTM)4.26
FCFY4.78%
OCF(TTM)5.34
OCFY6%
SpS20.69
BVpS32.87
TBVpS16.37
PEG (NY)6.08
PEG (5Y)1.9
Graham Number51.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 9.63% | ||
| ROCE | 10.39% | ||
| ROIC | 8.29% | ||
| ROICexc | 9.06% | ||
| ROICexgc | 18.9% | ||
| OM | 17.37% | ||
| PM (TTM) | 15.3% | ||
| GM | 67.05% | ||
| FCFM | 20.58% |
ROA(3y)4.51%
ROA(5y)5.45%
ROE(3y)5.28%
ROE(5y)6.24%
ROIC(3y)5.79%
ROIC(5y)6.37%
ROICexc(3y)7.27%
ROICexc(5y)8.25%
ROICexgc(3y)12.85%
ROICexgc(5y)12.55%
ROCE(3y)7.25%
ROCE(5y)7.98%
ROICexgc growth 3Y0.63%
ROICexgc growth 5Y-2.08%
ROICexc growth 3Y-23.17%
ROICexc growth 5Y-16.59%
OM growth 3Y-23.93%
OM growth 5Y-16.84%
PM growth 3Y-35.97%
PM growth 5Y-27.03%
GM growth 3Y-7.75%
GM growth 5Y-5.24%
F-Score9
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 52.62% | ||
| Cap/Sales | 5.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.46% | ||
| Profit Quality | 134.49% | ||
| Current Ratio | 4.13 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z | 11.9 |
F-Score9
WACC8.56%
ROIC/WACC0.97
Cap/Depr(3y)69.29%
Cap/Depr(5y)78.11%
Cap/Sales(3y)5.6%
Cap/Sales(5y)6.16%
Profit Quality(3y)194.29%
Profit Quality(5y)172.4%
High Growth Momentum
Growth
EPS 1Y (TTM)22.76%
EPS 3Y15.46%
EPS 5Y13.19%
EPS Q2Q%42.17%
EPS Next Y4.11%
EPS Next 2Y8.82%
EPS Next 3Y10.32%
EPS Next 5Y10.62%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y38.03%
Revenue growth 5Y26.25%
Sales Q2Q%22.91%
Revenue Next Year14.02%
Revenue Next 2Y10.95%
Revenue Next 3Y9.46%
Revenue Next 5Y8.32%
EBIT growth 1Y109.04%
EBIT growth 3Y5%
EBIT growth 5Y5%
EBIT Next Year55.19%
EBIT Next 3Y24.18%
EBIT Next 5Y17.51%
FCF growth 1Y341.47%
FCF growth 3Y22.69%
FCF growth 5Y31.98%
OCF growth 1Y252.66%
OCF growth 3Y23.51%
OCF growth 5Y24.8%
GLOBUS MEDICAL INC - A / GMED FAQ
What is the ChartMill fundamental rating of GLOBUS MEDICAL INC - A (GMED) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GMED.
What is the valuation status for GMED stock?
ChartMill assigns a valuation rating of 5 / 10 to GLOBUS MEDICAL INC - A (GMED). This can be considered as Fairly Valued.
Can you provide the profitability details for GLOBUS MEDICAL INC - A?
GLOBUS MEDICAL INC - A (GMED) has a profitability rating of 7 / 10.
What is the valuation of GLOBUS MEDICAL INC - A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GLOBUS MEDICAL INC - A (GMED) is 25.01 and the Price/Book (PB) ratio is 2.71.
What is the financial health of GLOBUS MEDICAL INC - A (GMED) stock?
The financial health rating of GLOBUS MEDICAL INC - A (GMED) is 7 / 10.