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

GMED fundamental analysis
Snowflake Score
Valuation	2/6
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 in the United States and internationally.

Rewards

Trading at 45.2% below our estimate of its fair value

Earnings are forecast to grow 11.9% per year

Earnings grew by 16.7% over the past year

Risk Analysis

No risks detected for GMED from our risk checks.

Globus Medical Competitors

Medtronic

NYSE:MDT

US$137.5b

Stryker

NYSE:SYK

US$87.8b

Baxter International

NYSE:BAX

US$36.9b

Zimmer Biomet Holdings

NYSE:ZBH

US$24.6b

Price History & Performance

Summary of all time highs, changes and price drops for Globus Medical
Historical stock prices
Current Share Price	US$64.92
52 Week High	US$84.23
52 Week Low	US$57.21
Beta	1.11
1 Month Change	-17.82%
3 Month Change	-2.01%
1 Year Change	-8.74%
3 Year Change	59.98%
5 Year Change	110.30%
Change since IPO	380.89%

Recent News & Updates

May 06

Is It Too Late To Consider Buying Globus Medical, Inc. (NYSE:GMED)?

Globus Medical, Inc. ( NYSE:GMED ), might not be a large cap stock, but it received a lot of attention from a...

Shareholder Returns

	GMED	US Medical Equipment	US Market
7D	2.1%	0.5%	-2.7%
1Y	-8.7%	-16.2%	-12.9%

Return vs Industry: GMED exceeded the US Medical Equipment industry which returned -16.2% over the past year.

Return vs Market: GMED exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is GMED's price volatile compared to industry and market?
GMED volatility
GMED Average Weekly Movement	6.4%
Medical Equipment Industry Average Movement	10.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: GMED is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GMED's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	2,400	Dan Scavilla	https://www.globusmedical.com

Globus Medical, Inc., a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. It offers spine products, such as traditional fusion implants comprising 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 that consist of 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$6.61b
Earnings (TTM)	US$141.95m
Revenue (TTM)	US$961.31m

46.5x

P/E Ratio

6.9x

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$961.31m
Cost of Revenue	US$243.36m
Gross Profit	US$717.94m
Other Expenses	US$576.00m
Earnings	US$141.95m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.40
Gross Margin	74.68%
Net Profit Margin	14.77%
Debt/Equity Ratio	0.0%

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?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

45.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GMED ($64.92) is trading below our estimate of fair value ($118.55)

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

Price To Earnings Ratio

PE vs Industry: GMED is poor value based on its PE Ratio (46.5x) compared to the US Medical Equipment industry average (35.2x).

PE vs Market: GMED is poor value based on its PE Ratio (46.5x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: GMED is poor value based on its PEG Ratio (3.9x)

Price to Book Ratio

PB vs Industry: GMED is overvalued based on its PB Ratio (3.7x) compared to the US Medical Equipment industry average (2.4x).

Future Growth

How is Globus Medical forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

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 (1.9%).

Earnings vs Market: GMED's earnings (11.9% per year) are forecast to grow slower than the US market (12.5% per year).

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

Revenue vs Market: GMED's revenue (10.7% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: GMED's revenue (10.7% 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 (13.1%).

Past Performance

How has Globus Medical performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GMED has high quality earnings.

Growing Profit Margin: GMED's current net profit margins (14.8%) are higher than last year (14.7%).

Past Earnings Growth Analysis

Earnings Trend: GMED's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: GMED's earnings growth over the past year (16.7%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: GMED earnings growth over the past year (16.7%) exceeded the Medical Equipment industry 14.5%.

Return on Equity

High ROE: GMED's Return on Equity (8%) is considered low.

Financial Health

How is Globus Medical's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GMED's short term assets ($916.6M) exceed its short term liabilities ($141.5M).

Long Term Liabilities: GMED's short term assets ($916.6M) exceed its long term liabilities ($71.8M).

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 Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GMED has not reported any payouts.

Discover strong dividend paying companies

Management

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

14.9yrs

Average management tenure

CEO

Dan Scavilla (56 yo)

0.083

Tenure

US$1,935,989

Compensation

Mr. Daniel T. Scavilla, also known as Dan, serves as President and Chief Executive Officer at Globus Medical, Inc. since April 21, 2022 and serves as its Director since April 2022. He had been Executive Vi...

CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD1.94M) is below average for companies of similar size in the US market ($USD8.23M).

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

Leadership Team

Experienced Management: GMED's management team is seasoned and experienced (14.9 years average tenure).

Board Members

Experienced Board: GMED's board of directors are considered experienced (8.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31