NYSE:GMED

Stock Analysis Report

Executive Summary

Globus Medical, Inc., a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-1.2%

GMED

-1.6%

US Medical Equipment

0.07%

US Market


1 Year Return

-3.6%

GMED

13.8%

US Medical Equipment

8.9%

US Market

Return vs Industry: GMED underperformed the US Medical Equipment industry which returned 13.8% over the past year.

Return vs Market: GMED underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

GMEDIndustryMarket
7 Day-1.2%-1.6%0.07%
30 Day-4.3%-4.3%-0.3%
90 Day14.0%-4.3%-1.6%
1 Year-3.6%-3.6%14.7%13.8%11.3%8.9%
3 Year127.6%127.6%70.7%65.6%46.3%36.8%
5 Year140.8%140.8%117.3%93.5%62.1%44.3%

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?

34.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GMED ($49.9) is trading above our estimate of fair value ($39.56)

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


Price To Earnings Ratio

PE vs Industry: GMED is good value based on its PE Ratio (34.3x) compared to the Medical Equipment industry average (41.8x).

PE vs Market: GMED is poor value based on its PE Ratio (34.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: GMED is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: GMED is overvalued based on its PB Ratio (3.8x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

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

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMED's forecast earnings growth (14% per year) is above the savings rate (2.7%).

Earnings vs Market: GMED's earnings (14% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: GMED's revenue (8.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: GMED's revenue (8.3% 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 (15.1%).


Next Steps

Past Performance

How has Globus Medical performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GMED's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: GMED's earnings growth over the past year (6.6%) is below its 5-year average (10.2% per year).

Earnings vs Industry: GMED earnings growth over the past year (6.6%) underperformed the Medical Equipment industry 28.2%.


Return on Equity

High ROE: GMED's Return on Equity (11.1%) is considered low.


Return on Assets

ROA vs Industry: GMED has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: GMED's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Globus Medical's financial position?


Financial Position Analysis

Short Term Liabilities: GMED's short term assets ($583.9M) exceeds its short term liabilities ($84.2M)

Long Term Liabilities: GMED's short term assets (583.9M) exceeds its long term liabilities (19.0M)


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

Inventory Level: GMED has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GMED's debt is covered by short term assets.


Next Steps

Dividend

What is Globus Medical's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate GMED's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GMED's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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

What is the CEO of Globus Medical's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Dave Demski (61yo)

2.2yrs

Tenure

US$3,394,012

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

Experienced Management: GMED's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Age and Tenure

8.5yrs

Average Tenure

58yo

Average Age

Experienced Board: GMED's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Brian Kearns (52yo)

    Senior Vice President of Business Development & Investor Relations

    • Tenure: 0yrs
  • Dave Demski (61yo)

    CEO, President & Director

    • Tenure: 2.2yrs
    • Compensation: US$3.39m
  • David Paul (52yo)

    Co-Founder & Executive Chairman

    • Tenure: 16.8yrs
    • Compensation: US$2.25m
  • Mike Reeder

    Executive Officer

    • Tenure: 12.3yrs
  • Richard Holifield

    Executive Officer

    • Tenure: 12.3yrs
  • A. Murphy (54yo)

    Executive Vice President of International Sales

    • Tenure: 1.8yrs
    • Compensation: US$1.31m
  • Steven Payne (48yo)

    VP & Controller

    • Tenure: 0.2yrs
  • Dan Scavilla (54yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 0.2yrs
    • Compensation: US$1.88m
  • Keith Pfeil (39yo)

    Senior VP & CFO

    • Tenure: 0.2yrs
  • Kelly Huller

    Senior VP

    • Tenure: 0yrs

Board Members

  • Ann Rhoads (54yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$400.58k
  • Steve Zarrilli (58yo)

    Director

    • Tenure: 0.4yrs
  • Jim Tobin (74yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$390.58k
  • Dave Demski (61yo)

    CEO, President & Director

    • Tenure: 2.2yrs
    • Compensation: US$3.39m
  • David Paul (52yo)

    Co-Founder & Executive Chairman

    • Tenure: 16.8yrs
    • Compensation: US$2.25m
  • David Davidar (53yo)

    Director

    • Tenure: 16.6yrs
    • Compensation: US$370.58k
  • Dan Lemaitre (65yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: US$388.08k

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$4.945b
  • Shares outstanding: 99.10m
  • Website: https://www.globusmedical.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMEDNYSE (New York Stock Exchange)YesClass A Common StockUSUSDAug 2012
GM0NDB (Deutsche Boerse AG)YesClass A Common StockDEEURAug 2012
GMED *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNAug 2012

Biography

Globus Medical, Inc., a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The company offe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:26
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.