Globus Medical
Market Cap
US$5.9b
Last Updated
2020/11/28 23:58 UTC
Data Sources
Company Financials +
Executive Summary
Globus Medical, Inc., a medical device company, focuses on the development and commercialization of implants that heal patients with musculoskeletal disorders. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Globus Medical's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GMED is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: GMED's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
3.6%
GMED
-0.2%
US Medical Equipment
2.8%
US Market
1 Year Return
7.1%
GMED
17.7%
US Medical Equipment
20.7%
US Market
Return vs Industry: GMED underperformed the US Medical Equipment industry which returned 17.7% over the past year.
Return vs Market: GMED underperformed the US Market which returned 20.7% over the past year.
Shareholder returns
| GMED | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.6% | -0.2% | 2.8% |
| 30 Day | 14.2% | 4.2% | 12.3% |
| 90 Day | 6.1% | 3.6% | 6.4% |
| 1 Year | 7.1%7.1% | 18.7%17.7% | 23.4%20.7% |
| 3 Year | 59.3%59.3% | 69.6%65.3% | 47.2%37.4% |
| 5 Year | 124.3%124.3% | 136.8%118.5% | 94.1%72.7% |
Long-Term Price Volatility Vs. Market
How volatile is Globus Medical's share price compared to the market and industry in the last 5 years?
Simply Wall St News
7 months ago | Simply Wall St
How Does Globus Medical, Inc. (NYSE:GMED) Affect Your Portfolio Volatility?7 months ago | Simply Wall St
A Rising Share Price Has Us Looking Closely At Globus Medical, Inc.'s (NYSE:GMED) P/E Ratio8 months ago | Simply Wall St
Estimating The Fair Value Of Globus Medical, Inc. (NYSE:GMED)Valuation
Is Globus Medical undervalued compared to its fair value and its price relative to the market?
18.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GMED ($59.92) is trading below our estimate of fair value ($73.18)
Significantly Below Fair Value: GMED is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: GMED is poor value based on its PE Ratio (62.4x) compared to the US Medical Equipment industry average (48.8x).
PE vs Market: GMED is poor value based on its PE Ratio (62.4x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: GMED is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: GMED is good value based on its PB Ratio (4.2x) compared to the US Medical Equipment industry average (4.4x).
Next Steps
Future Growth
How is Globus Medical forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
27.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GMED's forecast earnings growth (27.8% per year) is above the savings rate (2.2%).
Earnings vs Market: GMED's earnings (27.8% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GMED's revenue (11.5% per year) is forecast to grow faster than the US market (10.2% per year).
High Growth Revenue: GMED's revenue (11.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GMED's Return on Equity is forecast to be low in 3 years time (12.9%).
Next Steps
Past Performance
How has Globus Medical performed over the past 5 years?
4.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GMED has high quality earnings.
Growing Profit Margin: GMED's current net profit margins (12.4%) are lower than last year (19%).
Past Earnings Growth Analysis
Earnings Trend: GMED's earnings have grown by 4.3% per year over the past 5 years.
Accelerating Growth: GMED's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GMED had negative earnings growth (-35.3%) over the past year, making it difficult to compare to the Medical Equipment industry average (0.2%).
Return on Equity
High ROE: GMED's Return on Equity (6.7%) is considered low.
Next Steps
Financial Health
How is Globus Medical's financial position?
Financial Position Analysis
Short Term Liabilities: GMED's short term assets ($812.0M) exceed its short term liabilities ($100.0M).
Long Term Liabilities: GMED's short term assets ($812.0M) exceed its long term liabilities ($24.6M).
Debt to Equity History and Analysis
Debt Level: GMED is debt free.
Reducing Debt: GMED has not had any debt for past 5 years.
Debt Coverage: GMED has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: GMED has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Globus Medical current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate GMED's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate GMED's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GMED's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GMED's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GMED's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.3yrs
Average management tenure
CEO
Dave Demski (62 yo)
3.25yrs
Tenure
US$3,449,794
Compensation
Mr. David M. Demski, also known as Dave, has been the Chief Executive Officer of Globus Medical, Inc. since August 29, 2017 and has been its President since April 2019. Mr. Demski served as Group President...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD3.45M) is below average for companies of similar size in the US market ($USD6.90M).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Executive Chairman | 17.83yrs | US$2.27m | 22.73% $ 1.3b | |
| CEO, President & Director | 3.25yrs | US$3.45m | 0.15% $ 8.9m | |
| Senior VP & CFO | 1.25yrs | US$959.17k | no data | |
| Senior VP | no data | US$1.12m | no data | |
| Executive VP & Chief Commercial Officer | 1.25yrs | US$1.91m | no data | |
| Senior Vice President of Business Development & Investor Relations | no data | no data | no data | |
| Executive Vice President of International Sales | 2.83yrs | US$1.31m | no data | |
| VP & Controller | 1.25yrs | no data | no data | |
| Executive Officer | 13.42yrs | no data | no data | |
| Executive Officer | 13.42yrs | no data | no data | |
| Executive Officer | 13.42yrs | no data | no data | |
| Executive Officer | 13.42yrs | no data | no data |
8.3yrs
Average Tenure
53yo
Average Age
Experienced Management: GMED's management team is seasoned and experienced (8.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Executive Chairman | 17.83yrs | US$2.27m | 22.73% $ 1.3b | |
| CEO, President & Director | 3.25yrs | US$3.45m | 0.15% $ 8.9m | |
| Independent Director | 9.33yrs | US$416.96k | 0% $ 0 | |
| Independent Director | 1.5yrs | US$373.07k | 0% $ 0 | |
| Independent Director | 5.25yrs | US$406.96k | 0% $ 0 | |
| Independent Director | 0.92yr | US$409.94k | 0.0020% $ 120.0k | |
| Independent Director | 17.67yrs | US$394.46k | 0.90% $ 53.2m | |
| Independent Director | 9.58yrs | US$404.46k | 0% $ 0 |
9.5yrs
Average Tenure
59.5yo
Average Age
Experienced Board: GMED's board of directors are considered experienced (9.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Globus Medical, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Globus Medical, Inc.
- Ticker: GMED
- Exchange: NYSE
- Founded: 2003
- Industry: Health Care Equipment
- Sector: Healthcare
- Market Cap: US$5.913b
- Shares outstanding: 98.68m
- Website: https://www.globusmedical.com
Number of Employees
Location
- Globus Medical, Inc.
- 2560 General Armistead Avenue
- Audubon
- Pennsylvania
- 19403
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GMED | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Aug 2012 |
| GM0N | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Aug 2012 |
| GMED * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Aug 2012 |
Biography
Globus Medical, Inc., a medical device company, focuses on the development and commercialization of implants that heal patients with musculoskeletal disorders. Its spine product portfolio includes a range ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/28 23:58 |
| End of Day Share Price | 2020/11/27 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.