NYSE:GMED

Stock Analysis Report

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Market Cap

US$7.5b

Last Updated

2021/06/23 07:38 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with questionable track record.


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 +/- 3% a week.

Volatility Over Time: GMED's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

3.1%

GMED

3.0%

US Medical Equipment

0.5%

US Market


1 Year Return

66.2%

GMED

41.4%

US Medical Equipment

42.6%

US Market

Return vs Industry: GMED exceeded the US Medical Equipment industry which returned 41.4% over the past year.

Return vs Market: GMED exceeded the US Market which returned 42.6% over the past year.


Shareholder returns

GMEDIndustryMarket
7 Day3.1%3.0%0.5%
30 Day5.0%3.5%1.9%
90 Day23.0%10.8%7.9%
1 Year66.2%66.2%42.6%41.4%44.9%42.6%
3 Year51.4%51.4%72.3%68.1%64.4%54.1%
5 Year213.3%213.3%155.1%136.6%128.3%102.7%

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

Valuation

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

60.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GMED ($74.66) is trading above our estimate of fair value ($71.82)

Significantly Below Fair Value: GMED is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GMED is poor value based on its PE Ratio (60.5x) compared to the US Medical Equipment industry average (58.8x).

PE vs Market: GMED is poor value based on its PE Ratio (60.5x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: GMED is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: GMED's PB Ratio (4.8x) is in line with the US Medical Equipment industry average.


Future Growth

How is Globus Medical forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMED's forecast earnings growth (12.3% per year) is above the savings rate (2%).

Earnings vs Market: GMED's earnings (12.3% per year) are forecast to grow slower than the US market (15.7% per year).

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

Revenue vs Market: GMED's revenue (9.3% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: GMED's revenue (9.3% 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 (11.4%).


Past Performance

How has Globus Medical performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMED has high quality earnings.

Growing Profit Margin: GMED's current net profit margins (14.7%) are lower than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: GMED's earnings have grown by 2% 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 (-17.8%) over the past year, making it difficult to compare to the Medical Equipment industry average (11.1%).


Return on Equity

High ROE: GMED's Return on Equity (7.8%) is considered low.


Financial Health

How is Globus Medical's financial position?


Financial Position Analysis

Short Term Liabilities: GMED's short term assets ($814.4M) exceed its short term liabilities ($123.7M).

Long Term Liabilities: GMED's short term assets ($814.4M) exceed its long term liabilities ($51.2M).


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

Management

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

3.8yrs

Average management tenure


CEO

Dave Demski (62 yo)

3.83yrs

Tenure

US$4,026,977

Compensation

Mr. David M. Demski, also known as Dave, serves as an Independent Director of Axonics Inc. since January 1, 2021. Mr. Demski has been the Chief Executive Officer of Globus Medical, Inc. since August 29, 20...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD4.03M) is below average for companies of similar size in the US market ($USD6.60M).

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 (3.8 years average tenure).


Board Members

Experienced Board: GMED's board of directors are seasoned and experienced ( 10 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 3.1%.


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$7.493b
  • Shares outstanding: 100.36m
  • Website: https://www.globusmedical.com

Number of Employees


Location

  • Globus Medical, Inc.
  • 2560 General Armistead Avenue
  • Audubon
  • Pennsylvania
  • 19403
  • United States

Listings


Biography

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 fusi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 07:38
End of Day Share Price2021/06/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.