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 moderate 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


Market Performance


7 Day Return

1.4%

GMED

1.1%

US Medical Equipment

-0.6%

US Market


1 Year Return

-4.2%

GMED

9.9%

US Medical Equipment

0.7%

US Market

GMED underperformed the Medical Equipment industry which returned 9.9% over the past year.

GMED underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

GMEDIndustryMarket
7 Day1.4%1.1%-0.6%
30 Day3.0%1.3%2.9%
90 Day21.8%3.0%1.3%
1 Year-4.2%-4.2%10.8%9.9%2.9%0.7%
3 Year129.6%129.6%70.1%64.9%44.6%35.2%
5 Year166.5%166.5%138.9%111.8%61.9%44.2%

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

3 weeks ago | Simply Wall St

Here's Why I Think Globus Medical (NYSE:GMED) Is An Interesting Stock

Valuation

Is Globus Medical undervalued based on future cash flows and its price relative to the stock market?

35.68x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Globus Medical's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Globus Medical's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Globus Medical is good value based on earnings compared to the US Medical Equipment industry average.

Globus Medical is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Globus Medical is poor value based on expected growth next year.


Price Based on Value of Assets

Globus Medical is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

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

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Globus Medical's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

Globus Medical's earnings are expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).

Globus Medical's revenue growth is expected to exceed the United States of America market average.

Globus Medical's earnings growth is expected to exceed the United States of America market average.

Globus Medical's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Globus Medical is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Globus Medical's year on year earnings growth rate has been positive over the past 5 years.

Globus Medical's 1-year earnings growth is less than its 5-year average (6.6% vs 10.2%)

Globus Medical's earnings growth has not exceeded the US Medical Equipment industry average in the past year (6.6% vs 28.2%).


Return on Equity

Globus Medical has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Globus Medical used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Globus Medical's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Globus Medical's financial position?


Financial Position Analysis

Globus Medical is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Globus Medical's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Globus Medical has no debt.

Globus Medical has not taken on any debt in the past 5 years.

Globus Medical has no debt, it does not need to be covered by operating cash flow.

Globus Medical has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Globus Medical has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Globus Medical's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Globus Medical's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Globus Medical has not reported any payouts.

Unable to verify if Globus Medical's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Globus Medical has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Globus Medical's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Dave Demski (61yo)

2.1yrs

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

Dave's remuneration is lower than average for companies of similar size in United States of America.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.9yrs

Average Tenure

52yo

Average Age

The average tenure for the Globus Medical management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.4yrs

Average Tenure

58yo

Average Age

The tenure for the Globus Medical board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Brian Kearns (52yo)

    Senior Vice President of Business Development & Investor Relations

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

    CEO, President & Director

    • Tenure: 2.1yrs
    • Compensation: US$3.39m
  • David Paul (52yo)

    Co-Founder & Executive Chairman

    • Tenure: 16.7yrs
    • 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: 1.7yrs
    • Compensation: US$1.31m
  • Steven Payne (48yo)

    VP & Controller

    • Tenure: 0.08yrs
  • Dan Scavilla (54yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 0.08yrs
    • Compensation: US$1.88m
  • Keith Pfeil (39yo)

    Senior VP & CFO

    • Tenure: 0.08yrs
  • Kelly Huller

    Senior VP

    • Tenure: 0yrs

Board Members

  • Ann Rhoads (54yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: US$400.58k
  • Steve Zarrilli (58yo)

    Director

    • Tenure: 0.3yrs
  • Jim Tobin (74yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$390.58k
  • Dave Demski (61yo)

    CEO, President & Director

    • Tenure: 2.1yrs
    • Compensation: US$3.39m
  • David Paul (52yo)

    Co-Founder & Executive Chairman

    • Tenure: 16.7yrs
    • Compensation: US$2.25m
  • David Davidar (53yo)

    Director

    • Tenure: 16.5yrs
    • Compensation: US$370.58k
  • Dan Lemaitre (65yo)

    Director

    • Tenure: 8.4yrs
    • 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$5.137b
  • 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 Analysis2019/09/22 00:29
End of Day Share Price2019/09/20 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.