Globus Medical, Inc.
Globus Medical, Inc. Fundamental Analysis
Globus Medical, Inc. (GMED) shows moderate financial fundamentals with a PE ratio of 28.52, profit margin of 15.30%, and ROE of 9.99%. The company generates $2.8B in annual revenue with strong year-over-year growth of 60.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze GMED's fundamental strength across five key dimensions:
Efficiency Score
WeakGMED struggles to generate sufficient returns from assets.
Valuation Score
ModerateGMED shows balanced valuation metrics.
Growth Score
ModerateGMED shows steady but slowing expansion.
Financial Health Score
ExcellentGMED maintains a strong and stable balance sheet.
Profitability Score
ModerateGMED maintains healthy but balanced margins.
Key Financial Metrics
Is GMED Expensive or Cheap?
P/E Ratio
GMED trades at 28.52 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GMED's PEG of 1.49 indicates fair valuation.
Price to Book
The market values Globus Medical, Inc. at 2.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.10 times EBITDA. This signals the market has high growth expectations.
How Well Does GMED Make Money?
Net Profit Margin
For every $100 in sales, Globus Medical, Inc. keeps $15.30 as profit after all expenses.
Operating Margin
Core operations generate 13.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.99 in profit for every $100 of shareholder equity.
ROA
Globus Medical, Inc. generates $8.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Globus Medical, Inc. generates strong operating cash flow of $711.64M, reflecting robust business health.
Free Cash Flow
Globus Medical, Inc. generates strong free cash flow of $576.72M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.31 in free cash annually.
FCF Yield
GMED converts 4.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How GMED Stacks Against Its Sector Peers
| Metric | GMED Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.52 | 29.43 | Neutral |
| ROE | 9.99% | 800.00% | Weak |
| Net Margin | 15.30% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 4.13 | 4.64 | Strong Liquidity |
| ROA | 8.32% | -17936.00% (disorted) | Weak |
GMED outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Globus Medical, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
134.34%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-51.53%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
121.16%
Industry Style: Defensive, Growth, Innovation
High Growth