GLOBUS MEDICAL INC - A (GMED)
US3795772082 - Common Stock
Taking everything into account, GMED scores 6 out of 10 in our fundamental rating. GMED was compared to 192 industry peers in the Health Care Equipment & Supplies industry. GMED has an average financial health and profitability rating. GMED is growing strongly while it is still valued neutral. This is a good combination! These ratings could make GMED a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
GMED had positive earnings in the past year.
GMED had a positive operating cash flow in the past year.
Each year in the past 5 years GMED has been profitable.
GMED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GMED's Return On Assets of 2.42% is fine compared to the rest of the industry. GMED outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 3.07%, GMED is in the better half of the industry, outperforming 74.48% of the companies in the same industry.
GMED has a Return On Invested Capital of 3.28%. This is in the better half of the industry: GMED outperforms 73.44% of its industry peers.
GMED had an Average Return On Invested Capital over the past 3 years of 6.95%. This is in line with the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.07% | ||
| ROIC | 3.28% |
ROA(3y)6.4%
ROA(5y)7.08%
ROE(3y)7.31%
ROE(5y)7.96%
ROIC(3y)6.95%
ROIC(5y)7.2%
1.3 Margins
Looking at the Profit Margin, with a value of 7.83%, GMED belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Profit Margin of GMED has declined.
GMED's Operating Margin of 12.87% is amongst the best of the industry. GMED outperforms 82.81% of its industry peers.
In the last couple of years the Operating Margin of GMED has declined.
Looking at the Gross Margin, with a value of 65.05%, GMED is in the better half of the industry, outperforming 68.23% of the companies in the same industry.
GMED's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.87% | ||
| PM (TTM) | 7.83% | ||
| GM | 65.05% |
OM growth 3Y-4.18%
OM growth 5Y-12.3%
PM growth 3Y-15.46%
PM growth 5Y-18.62%
GM growth 3Y-3.53%
GM growth 5Y-3.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GMED is destroying value.
The number of shares outstanding for GMED has been increased compared to 1 year ago.
Compared to 5 years ago, GMED has more shares outstanding
The debt/assets ratio for GMED is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.88 indicates that GMED is not in any danger for bankruptcy at the moment.
GMED has a Altman-Z score of 4.88. This is in the better half of the industry: GMED outperforms 77.60% of its industry peers.
GMED has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as GMED would need 2.53 years to pay back of all of its debts.
The Debt to FCF ratio of GMED (2.53) is better than 89.58% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that GMED is not too dependend on debt financing.
GMED has a Debt to Equity ratio of 0.10. This is comparable to the rest of the industry: GMED outperforms 57.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 4.88 |
ROIC/WACC0.33
WACC9.95%
2.3 Liquidity
A Current Ratio of 4.88 indicates that GMED has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.88, GMED is in the better half of the industry, outperforming 68.75% 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 comparable to the rest of the industry: GMED outperforms 56.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.88 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.56% over the past year.
Measured over the past 5 years, GMED shows a small growth in Earnings Per Share. The EPS has been growing by 6.89% on average per year.
The Revenue has grown by 53.36% in the past year. This is a very strong growth!
GMED shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.08% yearly.
EPS 1Y (TTM)12.56%
EPS 3Y17.67%
EPS 5Y6.89%
EPS growth Q2Q1.69%
Revenue 1Y (TTM)53.36%
Revenue growth 3Y25.74%
Revenue growth 5Y17.08%
Revenue growth Q2Q124.6%
3.2 Future
The Earnings Per Share is expected to grow by 16.87% on average over the next years. This is quite good.
Based on estimates for the next years, GMED will show a quite strong growth in Revenue. The Revenue will grow by 17.14% on average per year.
EPS Next Y17.81%
EPS Next 2Y19.96%
EPS Next 3Y19.9%
EPS Next 5Y16.87%
Revenue Next Year58.01%
Revenue Next 2Y30.37%
Revenue Next 3Y22.52%
Revenue Next 5Y17.14%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GMED is valuated rather expensively with a Price/Earnings ratio of 21.64.
Compared to the rest of the industry, the Price/Earnings ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 85.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.55, GMED is valued at the same level.
With a Price/Forward Earnings ratio of 18.37, GMED is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GMED is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GMED to the average of the S&P500 Index (20.92), we can say GMED is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.64 | ||
| Fwd PE | 18.37 |
4.2 Price Multiples
80.73% 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 cheaper than 81.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.32 | ||
| EV/EBITDA | 19.26 |
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.
GMED's earnings are expected to grow with 19.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)3.14
EPS Next 2Y19.96%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
GMED does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GLOBUS MEDICAL INC - A
NYSE:GMED (5/1/2024, 7:04:00 PM)
After market: 50.43 0 (0%)50.43
+0.64 (+1.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.64 | ||
| Fwd PE | 18.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.22
PEG (5Y)3.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.87% | ||
| PM (TTM) | 7.83% | ||
| GM | 65.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.88 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.56%
EPS 3Y17.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)53.36%
Revenue growth 3Y25.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y