Globus Medical (NYSE:GMED) - Share price, News & Analysis

GMED fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

GMED Stock Overview

Globus Medical, Inc., a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders.

Rewards

Trading at 21.2% below our estimate of its fair value

Earnings are forecast to grow 11.9% per year

Earnings grew by 97.2% over the past year

Risk Analysis

Shareholders have been diluted in the past year

Globus Medical Competitors

Integer Holdings

NYSE:ITGR

US$2.6b

Alphatec Holdings

NasdaqGS:ATEC

US$1.0b

SI-BONE

NasdaqGM:SIBN

US$673.1m

SeaSpine Holdings

NasdaqGS:SPNE

US$435.5m

Price History & Performance

Summary of all time highs, changes and price drops for Globus Medical
Historical stock prices
Current Share Price	US$67.93
52 Week High	US$84.23
52 Week Low	US$59.37
Beta	1.11
1 Month Change	-5.19%
3 Month Change	-15.00%
1 Year Change	4.00%
3 Year Change	55.95%
5 Year Change	160.67%
Change since IPO	403.19%

Recent News & Updates

Jan 21

Should You Think About Buying Globus Medical, Inc. (NYSE:GMED) Now?

While Globus Medical, Inc. ( NYSE:GMED ) might not be the most widely known stock at the moment, it received a lot of...

Nov 28

Are Globus Medical, Inc. (NYSE:GMED) Investors Paying Above The Intrinsic Value?

Today we will run through one way of estimating the intrinsic value of Globus Medical, Inc. ( NYSE:GMED ) by taking the...

Nov 10

Returns On Capital At Globus Medical (NYSE:GMED) Paint A Concerning Picture

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd...

Oct 19

At US$76.32, Is Globus Medical, Inc. (NYSE:GMED) Worth Looking At Closely?

While Globus Medical, Inc. ( NYSE:GMED ) might not be the most widely known stock at the moment, it received a lot of...

Shareholder Returns

	GMED	US Medical Equipment	US Market
7D	-7.5%	-3.9%	-4.0%
1Y	4.0%	-0.9%	6.6%

Return vs Industry: GMED exceeded the US Medical Equipment industry which returned -0.9% over the past year.

Return vs Market: GMED underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is GMED's price volatile compared to industry and market?
GMED volatility
GMED Average Weekly Movement	4.5%
Medical Equipment Industry Average Movement	8.2%
Market Average Movement	6.6%
10% most volatile stocks in US Market	15.7%
10% least volatile stocks in US Market	2.4%

Stable Share Price: GMED is not significantly more volatile than the rest 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.

About the Company

Founded	Employees	CEO	Website
2003	2,200	Dave Demski	https://www.globusmedical.com

Globus Medical, Inc., a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders. Its offers spine products, such as consists of traditional fusion implants, such as pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative, deformity, tumors, and trauma conditions; treatment options for motion preservation technologies, such as dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional pain management solutions to treat vertebral compression fractures; and regenerative biologic products, comprising of allografts and synthetic alternatives. The company also offers products for the treatment of orthopedic trauma, including fracture plates, compression screws, intramedullary nails, and external fixation systems; and hip and knee joint solutions, including modular hip stems and acetabular cups, as well as posterior stabilizing and cruciate retaining knee arthroplasty implants.

Globus Medical Fundamentals Summary

How do Globus Medical's earnings and revenue compare to its market cap?
GMED fundamental statistics
Market Cap	US$6.89b
Earnings (TTM)	US$187.04m
Revenue (TTM)	US$941.53m

36.9x

P/E Ratio

7.3x

P/S Ratio

Is GMED overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GMED income statement (TTM)
Revenue	US$941.53m
Cost of Revenue	US$238.29m
Gross Profit	US$703.24m
Expenses	US$516.20m
Earnings	US$187.04m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.84
Gross Margin	74.69%
Net Profit Margin	19.87%
Debt/Equity Ratio	0%

How did GMED perform over the long term?

See historical performance and comparison

Valuation

Is Globus Medical undervalued compared to its fair value and its price relative to the market?

21.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GMED ($67.93) is trading below our estimate of fair value ($86.2)

Significantly Below Fair Value: GMED is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: GMED is good value based on its PE Ratio (36.9x) compared to the US Medical Equipment industry average (46.2x).

PE vs Market: GMED is poor value based on its PE Ratio (36.9x) compared to the US market (16.7x).

Price to Earnings Growth Ratio

PEG Ratio: GMED is poor value based on its PEG Ratio (3.1x)

Price to Book Ratio

PB vs Industry: GMED is overvalued based on its PB Ratio (4x) compared to the US Medical Equipment industry average (3.4x).

Future Growth

How is Globus Medical forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

11.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMED's forecast earnings growth (11.9% per year) is above the savings rate (2%).

Earnings vs Market: GMED's earnings (11.9% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: GMED's earnings are forecast to grow, but not significantly.

Revenue vs Market: GMED's revenue (10.1% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: GMED's revenue (10.1% 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 (11.7%).

Past Performance

How has Globus Medical performed over the past 5 years?

6.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GMED has high quality earnings.

Growing Profit Margin: GMED's current net profit margins (19.9%) are higher than last year (12.4%).

Past Earnings Growth Analysis

Earnings Trend: GMED's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: GMED's earnings growth over the past year (97.2%) exceeds its 5-year average (6% per year).

Earnings vs Industry: GMED earnings growth over the past year (97.2%) exceeded the Medical Equipment industry 51.2%.

Return on Equity

High ROE: GMED's Return on Equity (10.9%) is considered low.

Financial Health

How is Globus Medical's financial position?

Financial Position Analysis

Short Term Liabilities: GMED's short term assets ($980.5M) exceed its short term liabilities ($122.5M).

Long Term Liabilities: GMED's short term assets ($980.5M) exceed its long term liabilities ($69.8M).

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

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

Explore strong dividend paying companies in the Healthcare industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure

CEO

Dave Demski (63 yo)

4.42yrs

Tenure

US$4,026,977

Compensation

Mr. David M. Demski, also known as Dave, serves as an Director of Axonics Inc. since January 1, 2021. Mr. Demski has been the Chief Executive Officer of Globus Medical, Inc. since August 29, 2017 and has b...

CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD4.03M) is below average for companies of similar size in the US market ($USD6.45M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: GMED's management team is considered experienced (4.4 years average tenure).

Board Members

Experienced Board: GMED's board of directors are seasoned and experienced ( 10.6 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 been diluted in the past year, with total shares outstanding growing by 2.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/01/21 23:46
End of Day Share Price	2022/01/21 00:00
Earnings	2021/09/30
Annual Earnings	2020/12/31