GLOBUS MEDICAL INC - A (GMED) Stock Fundamental Analysis
NYSE:GMED - US3795772082 - Common Stock
61.88 USD
+0.5 (+0.81%)
61.8788 USD
0 (0%)
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 has a correct valuation and a medium growth rate. With these ratings, GMED could be worth investigating further for quality 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.
GMED had positive earnings in each of the past 5 years.
Each year in the past 5 years GMED had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GMED (7.19%) is better than 88.65% of its industry peers.
GMED has a Return On Equity of 8.30%. This is amongst the best in the industry. GMED outperforms 81.62% of its industry peers.
GMED has a better Return On Invested Capital (9.00%) than 88.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GMED is in line with the industry average of 8.44%.
The last Return On Invested Capital (9.00%) for GMED is above the 3 year average (7.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 8.3% | ||
| ROIC | 9% |
ROA(3y)4.51%
ROA(5y)5.45%
ROE(3y)5.28%
ROE(5y)6.24%
ROIC(3y)7.5%
ROIC(5y)7.39%
1.3 Margins
Looking at the Profit Margin, with a value of 13.58%, GMED belongs to the top of the industry, outperforming 90.27% 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 19.48% is amongst the best of the industry. GMED outperforms 91.35% of its industry peers.
GMED's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 68.97%, GMED is in the better half of the industry, outperforming 76.22% of the companies in the same industry.
In the last couple of years the Gross Margin of GMED has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.48% | ||
| PM (TTM) | 13.58% | ||
| GM | 68.97% |
OM growth 3Y-4.88%
OM growth 5Y-4.91%
PM growth 3Y-35.97%
PM growth 5Y-27.03%
GM growth 3Y-3.49%
GM growth 5Y-2.63%
2. Health
2.1 Basic Checks
GMED has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GMED has more shares outstanding
Compared to 5 years ago, GMED has more shares outstanding
GMED has a worse debt/assets ratio than last year.
2.2 Solvency
GMED has an Altman-Z score of 9.00. 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 9.00, GMED belongs to the top of the industry, outperforming 90.81% 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.
With an excellent Debt to FCF ratio value of 0.00, GMED belongs to the best of the industry, outperforming 95.14% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that GMED is not too dependend on debt financing.
The Debt to Equity ratio of GMED (0.00) is better than 72.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9 |
ROIC/WACC1.04
WACC8.68%
2.3 Liquidity
GMED has a Current Ratio of 4.07. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.
GMED has a better Current ratio (4.07) than 70.27% of its industry peers.
A Quick Ratio of 2.26 indicates that GMED has no problem at all paying its short term obligations.
GMED has a Quick ratio (2.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.07 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.59% over the past year.
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 17.44% in the past year. This is quite good.
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)21.59%
EPS 3Y15.46%
EPS 5Y13.19%
EPS Q2Q%14.67%
Revenue 1Y (TTM)17.44%
Revenue growth 3Y38.03%
Revenue growth 5Y26.25%
Sales Q2Q%18.37%
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 12.10% on average per year.
GMED is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.25% yearly.
EPS Next Y4.19%
EPS Next 2Y9.07%
EPS Next 3Y10.4%
EPS Next 5Y12.1%
Revenue Next Year13.98%
Revenue Next 2Y10.93%
Revenue Next 3Y9.46%
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.
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
With a Price/Earnings ratio of 19.28, GMED is valued on the expensive side.
GMED's Price/Earnings ratio is a bit cheaper when compared to the industry. GMED is cheaper than 80.00% of the companies in the same industry.
GMED's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
With a Price/Forward Earnings ratio of 16.57, GMED is valued correctly.
81.62% of the companies in the same industry are more expensive than GMED, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.67. GMED is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.28 | ||
| Fwd PE | 16.57 |
4.2 Price Multiples
GMED's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GMED is cheaper than 90.81% of the companies in the same industry.
91.35% 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 | 16 | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GMED has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.6
PEG (5Y)1.46
EPS Next 2Y9.07%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
No dividends for GMED!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.88
+0.5 (+0.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.4%
Inst Owner Change2.64%
Ins Owners0.69%
Ins Owner Change-0.98%
Market Cap8.36B
Analysts76.19
Price Target84.2 (36.07%)
Short Float %4.26%
Short Ratio3.15
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)1
Avg EPS beat(2)0.6%
Min EPS beat(2)-10.39%
Max EPS beat(2)11.6%
EPS beat(4)3
Avg EPS beat(4)9.28%
Min EPS beat(4)-10.39%
Max EPS beat(4)25.45%
EPS beat(8)5
Avg EPS beat(8)8.04%
EPS beat(12)8
Avg EPS beat(12)5.67%
EPS beat(16)11
Avg EPS beat(16)4.32%
Revenue beat(2)0
Avg Revenue beat(2)-3.9%
Min Revenue beat(2)-6.31%
Max Revenue beat(2)-1.49%
Revenue beat(4)2
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-6.31%
Max Revenue beat(4)1.57%
Revenue beat(8)4
Avg Revenue beat(8)-2.13%
Revenue beat(12)6
Avg Revenue beat(12)-1.07%
Revenue beat(16)7
Avg Revenue beat(16)-1.09%
PT rev (1m)-3.2%
PT rev (3m)-15.3%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)-10.38%
EPS NY rev (1m)1.36%
EPS NY rev (3m)-1.87%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)10.32%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.28 | ||
| Fwd PE | 16.57 | ||
| P/S | 3.18 | ||
| P/FCF | 16 | ||
| P/OCF | 12.49 | ||
| P/B | 1.95 | ||
| P/tB | 4.05 | ||
| EV/EBITDA | 10.29 |
EPS(TTM)3.21
EY5.19%
EPS(NY)3.74
Fwd EY6.04%
FCF(TTM)3.87
FCFY6.25%
OCF(TTM)4.95
OCFY8.01%
SpS19.45
BVpS31.81
TBVpS15.28
PEG (NY)4.6
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 8.3% | ||
| ROCE | 11.28% | ||
| ROIC | 9% | ||
| ROICexc | 9.48% | ||
| ROICexgc | 19.67% | ||
| OM | 19.48% | ||
| PM (TTM) | 13.58% | ||
| GM | 68.97% | ||
| FCFM | 19.89% |
ROA(3y)4.51%
ROA(5y)5.45%
ROE(3y)5.28%
ROE(5y)6.24%
ROIC(3y)7.5%
ROIC(5y)7.39%
ROICexc(3y)9.36%
ROICexc(5y)9.51%
ROICexgc(3y)18.38%
ROICexgc(5y)15.86%
ROCE(3y)9.4%
ROCE(5y)9.26%
ROICexcg growth 3Y25.82%
ROICexcg growth 5Y11.96%
ROICexc growth 3Y-3.93%
ROICexc growth 5Y-4.62%
OM growth 3Y-4.88%
OM growth 5Y-4.91%
PM growth 3Y-35.97%
PM growth 5Y-27.03%
GM growth 3Y-3.49%
GM growth 5Y-2.63%
F-Score9
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 53.97% | ||
| Cap/Sales | 5.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.4% | ||
| Profit Quality | 146.48% | ||
| Current Ratio | 4.07 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 9 |
F-Score9
WACC8.68%
ROIC/WACC1.04
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)21.59%
EPS 3Y15.46%
EPS 5Y13.19%
EPS Q2Q%14.67%
EPS Next Y4.19%
EPS Next 2Y9.07%
EPS Next 3Y10.4%
EPS Next 5Y12.1%
Revenue 1Y (TTM)17.44%
Revenue growth 3Y38.03%
Revenue growth 5Y26.25%
Sales Q2Q%18.37%
Revenue Next Year13.98%
Revenue Next 2Y10.93%
Revenue Next 3Y9.46%
Revenue Next 5Y7.25%
EBIT growth 1Y203.64%
EBIT growth 3Y31.28%
EBIT growth 5Y20.06%
EBIT Next Year57.98%
EBIT Next 3Y25.83%
EBIT Next 5Y19.9%
FCF growth 1Y331.76%
FCF growth 3Y22.69%
FCF growth 5Y31.98%
OCF growth 1Y261.32%
OCF growth 3Y23.51%
OCF growth 5Y24.8%