GLOBUS MEDICAL INC - A (GMED) Stock Fundamental Analysis
NYSE:GMED - New York Stock Exchange, Inc. - US3795772082 - Common Stock - Currency: USD
GMED gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 188 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making GMED a very profitable company, without any liquidiy or solvency issues. GMED is growing strongly while it is still valued neutral. This is a good combination! This makes GMED very considerable for growth and 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.
Each year in the past 5 years GMED has been profitable.
Each year in the past 5 years GMED had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.94%, GMED belongs to the top of the industry, outperforming 81.38% of the companies in the same industry.
With a decent Return On Equity value of 4.54%, GMED is doing good in the industry, outperforming 78.19% of the companies in the same industry.
The Return On Invested Capital of GMED (8.24%) is better than 87.23% 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 7.89%.
The 3 year average ROIC (7.50%) for GMED is below the current ROIC(8.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 4.54% | ||
| ROIC | 8.24% |
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
GMED has a Profit Margin of 7.39%. This is amongst the best in the industry. GMED outperforms 80.32% of its industry peers.
GMED's Profit Margin has declined in the last couple of years.
GMED has a Operating Margin of 17.79%. This is amongst the best in the industry. GMED outperforms 89.36% 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 66.86%, GMED is in the better half of the industry, outperforming 71.28% 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 | 17.79% | ||
| PM (TTM) | 7.39% | ||
| GM | 66.86% |
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
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.
GMED has more shares outstanding than it did 5 years ago.
GMED has a worse debt/assets ratio than last year.
2.2 Solvency
GMED has an Altman-Z score of 9.17. This indicates that GMED is financially healthy and has little risk of bankruptcy at the moment.
GMED's Altman-Z score of 9.17 is amongst the best of the industry. GMED outperforms 88.83% 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 95.74% of its industry peers.
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 71.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.17 |
ROIC/WACC0.94
WACC8.79%
2.3 Liquidity
A Current Ratio of 4.45 indicates that GMED has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.45, GMED is doing good in the industry, outperforming 68.62% 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.
With a decent Quick ratio value of 2.72, GMED is doing good in the industry, outperforming 61.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
GMED shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.02%, which is quite impressive.
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 32.26% in the past year. This is a very strong growth!
The Revenue has been growing by 26.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)23.02%
EPS 3Y15.46%
EPS 5Y13.19%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)32.26%
Revenue growth 3Y38.03%
Revenue growth 5Y26.25%
Sales Q2Q%-1.41%
3.2 Future
GMED is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.10% yearly.
The Revenue is expected to grow by 7.25% on average over the next years.
EPS Next Y6.18%
EPS Next 2Y9.85%
EPS Next 3Y10.77%
EPS Next 5Y12.1%
Revenue Next Year13.86%
Revenue Next 2Y11.41%
Revenue Next 3Y9.87%
Revenue Next 5Y7.25%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GMED is valuated rather expensively with a Price/Earnings ratio of 19.00.
GMED's Price/Earnings ratio is rather cheap when compared to the industry. GMED is cheaper than 80.32% 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 26.31.
A Price/Forward Earnings ratio of 15.55 indicates a correct valuation of GMED.
GMED's Price/Forward Earnings ratio is rather cheap when compared to the industry. GMED is cheaper than 80.85% of the companies in the same industry.
GMED is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 15.55 |
4.2 Price Multiples
89.36% of the companies in the same industry are more expensive than GMED, based on the Enterprise Value to EBITDA ratio.
90.43% 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 | 15.41 | ||
| EV/EBITDA | 10.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GMED does not grow enough to justify the current Price/Earnings ratio.
GMED has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)1.44
EPS Next 2Y9.85%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
GMED does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.9
-1.3 (-2.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.74%
Inst Owner Change3.15%
Ins Owners0.69%
Ins Owner Change-0.98%
Market Cap7.97B
Analysts76.19
Price Target87.63 (48.78%)
Short Float %4.02%
Short Ratio2.85
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)0.04%
Min EPS beat(2)-10.39%
Max EPS beat(2)10.48%
EPS beat(4)3
Avg EPS beat(4)8.53%
Min EPS beat(4)-10.39%
Max EPS beat(4)25.45%
EPS beat(8)5
Avg EPS beat(8)7.1%
EPS beat(12)8
Avg EPS beat(12)4.94%
EPS beat(16)11
Avg EPS beat(16)5.07%
Revenue beat(2)1
Avg Revenue beat(2)-3.08%
Min Revenue beat(2)-6.31%
Max Revenue beat(2)0.16%
Revenue beat(4)3
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-6.31%
Max Revenue beat(4)1.57%
Revenue beat(8)5
Avg Revenue beat(8)-1.66%
Revenue beat(12)6
Avg Revenue beat(12)-0.98%
Revenue beat(16)8
Avg Revenue beat(16)-0.43%
PT rev (1m)-11.85%
PT rev (3m)-12.95%
EPS NQ rev (1m)-3.79%
EPS NQ rev (3m)-9.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.84%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)10.12%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)6.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 15.55 | ||
| P/S | 3.18 | ||
| P/FCF | 15.41 | ||
| P/OCF | 12.35 | ||
| P/B | 1.95 | ||
| P/tB | 4.23 | ||
| EV/EBITDA | 10.56 |
EPS(TTM)3.1
EY5.26%
EPS(NY)3.79
Fwd EY6.43%
FCF(TTM)3.82
FCFY6.49%
OCF(TTM)4.77
OCFY8.1%
SpS18.55
BVpS30.2
TBVpS13.91
PEG (NY)3.08
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 4.54% | ||
| ROCE | 10.32% | ||
| ROIC | 8.24% | ||
| ROICexc | 9.22% | ||
| ROICexgc | 21.46% | ||
| OM | 17.79% | ||
| PM (TTM) | 7.39% | ||
| GM | 66.86% | ||
| FCFM | 20.61% |
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 | 48.32% | ||
| Cap/Sales | 5.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.74% | ||
| Profit Quality | 278.93% | ||
| Current Ratio | 4.45 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z | 9.17 |
F-Score9
WACC8.79%
ROIC/WACC0.94
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)23.02%
EPS 3Y15.46%
EPS 5Y13.19%
EPS Q2Q%-5.56%
EPS Next Y6.18%
EPS Next 2Y9.85%
EPS Next 3Y10.77%
EPS Next 5Y12.1%
Revenue 1Y (TTM)32.26%
Revenue growth 3Y38.03%
Revenue growth 5Y26.25%
Sales Q2Q%-1.41%
Revenue Next Year13.86%
Revenue Next 2Y11.41%
Revenue Next 3Y9.87%
Revenue Next 5Y7.25%
EBIT growth 1Y157.29%
EBIT growth 3Y31.28%
EBIT growth 5Y20.06%
EBIT Next Year59.56%
EBIT Next 3Y26.02%
EBIT Next 5Y19.9%
FCF growth 1Y342%
FCF growth 3Y22.69%
FCF growth 5Y31.98%
OCF growth 1Y245.03%
OCF growth 3Y23.51%
OCF growth 5Y24.8%