GLOBUS MEDICAL INC - A (GMED) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GMED - US3795772082 - Common Stock
94.47 USD
-0.15 (-0.16%)
94.55 USD
+0.08 (+0.08%)
Overall GMED gets a fundamental rating of 6 out of 10. We evaluated GMED against 185 industry peers in the Health Care Equipment & Supplies industry. GMED gets an excellent profitability rating and is at the same time showing great financial health properties. GMED is showing excellent growth while it is valued at reasonable prices. 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.
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 has a Return On Assets of 8.32%. This is amongst the best in the industry. GMED outperforms 90.27% of its industry peers.
Looking at the Return On Equity, with a value of 9.63%, GMED belongs to the top of the industry, outperforming 84.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.29%, GMED belongs to the top of the industry, outperforming 85.41% 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 8.84%.
The last Return On Invested Capital (8.29%) for GMED is above the 3 year average (5.79%), which is a sign of increasing profitability.
| 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's Profit Margin of 15.30% is amongst the best of the industry. GMED outperforms 91.35% of its industry peers.
In the last couple of years the Profit Margin of GMED has declined.
GMED has a Operating Margin of 17.37%. This is amongst the best in the industry. GMED outperforms 88.65% 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 71.35% 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
GMED has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GMED has been increased compared to 1 year ago.
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
An Altman-Z score of 12.46 indicates that GMED is not in any danger for bankruptcy at the moment.
The Altman-Z score of GMED (12.46) is better than 90.27% of its industry peers.
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.
GMED's Debt to FCF ratio of 0.00 is amongst the best of the industry. GMED outperforms 94.59% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GMED is not too dependend on debt financing.
GMED's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. GMED outperforms 76.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.46 |
ROIC/WACC0.85
WACC9.76%
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.
The Current ratio of GMED (4.13) is better than 70.27% of its industry peers.
GMED has a Quick Ratio of 2.47. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.47, GMED is in the better half of the industry, outperforming 60.54% of the companies in the same 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.
Looking at the last year, GMED shows a quite strong growth in Revenue. The Revenue has grown by 11.75% in the last year.
Measured over the past years, GMED shows a very strong growth in Revenue. The Revenue has been growing by 26.25% on average per year.
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
Based on estimates for the next years, GMED will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.62% on average per year.
Based on estimates for the next years, GMED will show a quite strong growth in Revenue. The Revenue will grow by 8.32% on average per year.
EPS Next Y23.27%
EPS Next 2Y15.72%
EPS Next 3Y13.69%
EPS Next 5Y10.62%
Revenue Next Year15.27%
Revenue Next 2Y11.6%
Revenue Next 3Y9.75%
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
A Price/Earnings ratio of 26.54 indicates a quite expensive valuation of GMED.
77.84% of the companies in the same industry are more expensive than GMED, based on the Price/Earnings ratio.
GMED is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.47, GMED is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GMED indicates a somewhat cheap valuation: GMED is cheaper than 80.00% of the companies listed in the same industry.
GMED is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.54 | ||
| Fwd PE | 22.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GMED indicates a rather cheap valuation: GMED is cheaper than 81.62% of the companies listed in the same industry.
87.57% of the companies in the same industry are more expensive than GMED, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.18 | ||
| EV/EBITDA | 16.19 |
4.3 Compensation for Growth
GMED's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GMED has a very decent profitability rating, which may justify a higher PE ratio.
GMED's earnings are expected to grow with 13.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)2.01
EPS Next 2Y15.72%
EPS Next 3Y13.69%
5. Dividend
5.1 Amount
GMED does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
94.47
-0.15 (-0.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners108.37%
Inst Owner Change0%
Ins Owners0.71%
Ins Owner Change1.38%
Market Cap12.64B
Revenue(TTM)2.77B
Net Income(TTM)423.78M
Analysts77.14
Price Target98.26 (4.01%)
Short Float %3.71%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)8.35%
PT rev (3m)16.7%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)21.64%
EPS NY rev (1m)0.06%
EPS NY rev (3m)18.32%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.54 | ||
| Fwd PE | 22.47 | ||
| P/S | 4.56 | ||
| P/FCF | 22.18 | ||
| P/OCF | 17.68 | ||
| P/B | 2.87 | ||
| P/tB | 5.77 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)3.56
EY3.77%
EPS(NY)4.21
Fwd EY4.45%
FCF(TTM)4.26
FCFY4.51%
OCF(TTM)5.34
OCFY5.66%
SpS20.69
BVpS32.87
TBVpS16.37
PEG (NY)1.14
PEG (5Y)2.01
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 | 12.46 |
F-Score9
WACC9.76%
ROIC/WACC0.85
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 Y23.27%
EPS Next 2Y15.72%
EPS Next 3Y13.69%
EPS Next 5Y10.62%
Revenue 1Y (TTM)11.75%
Revenue growth 3Y38.03%
Revenue growth 5Y26.25%
Sales Q2Q%22.91%
Revenue Next Year15.27%
Revenue Next 2Y11.6%
Revenue Next 3Y9.75%
Revenue Next 5Y8.32%
EBIT growth 1Y109.04%
EBIT growth 3Y5%
EBIT growth 5Y5%
EBIT Next Year69.49%
EBIT Next 3Y26.3%
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.
Can you provide the valuation status for GLOBUS MEDICAL INC - A?
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 are the PE and PB ratios of GLOBUS MEDICAL INC - A (GMED) stock?
The Price/Earnings (PE) ratio for GLOBUS MEDICAL INC - A (GMED) is 26.54 and the Price/Book (PB) ratio is 2.87.
Can you provide the expected EPS growth for GMED stock?
The Earnings per Share (EPS) of GLOBUS MEDICAL INC - A (GMED) is expected to grow by 23.27% in the next year.