Globus Medical (GMED) AI Stock Analysis

• Market Cap: $12.21B
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.77
• Revenue Growth: 11.75%
• EPS Growth: 364.73%
• Country: US
• Employees: 5,300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.18
• Shares Outstanding: 112,175,354
• 10 Day Avg. Volume: 1,610,796
• 30 Day Avg. Volume: 1,684,810
• PEG Ratio: -3.60
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 4.46
• P/FCF Ratio: 27.70
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 4.29
• Enterprise Value/Gross Profit: 6.68
• Enterprise Value/Ebitda: 16.55
• 1Y Price Target: $106.50
• Price Target Upside: 17.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: $110.00 ▲(21.31% Upside)

Globus Medical's strong financial performance and positive earnings call are the most significant factors driving the stock score. The technical analysis suggests caution due to overbought conditions, while the valuation indicates moderate pricing. The company's strategic growth initiatives and successful integration of acquisitions further support a positive outlook.

Positive Factors

Low leverage / strong balance sheet

Extremely low leverage gives Globus durable financial flexibility to fund R&D, pursue bolt-on acquisitions, and withstand cyclical healthcare downturns without relying on expensive external financing. This balance sheet strength supports sustained strategic investment and optionality.

Strong cash flow generation

Consistent free cash flow growth and strong cash conversion provide a reliable internal funding source for product development, commercialization, and integration costs. Durable cash generation reduces financing risk and enables reinvestment or shareholder returns while supporting long-term growth initiatives.

Successful acquisition integration

Positive contribution and margins from the Nevro acquisition demonstrate effective integration capabilities. Durable execution on M&A expands addressable markets and product breadth, diversifies revenue streams, and can accelerate scale benefits and margin improvement over the medium term.

Negative Factors

Enabling Technologies revenue decline

A sizable, sustained drop in Enabling Technologies signals structural demand or product adoption issues. Slower capital sales and a shift to leasing/rentals can reduce upfront revenue and compress margins, undermining long-term segment profitability and predictable revenue streams.

Gross margin compression

Eroding gross margins point to persistent cost pressures, adverse product mix, or pricing challenges. If sustained, margin compression could limit operating leverage and free cash flow growth, constraining the firm's ability to fund innovation, acquisitions, or shareholder-friendly capital allocation.

Concentration in U.S. Spine segment

Reliance on the U.S. Spine business for a large share of growth creates concentration risk. Structural changes in U.S. reimbursement, competitive entrants, or elective surgery volumes could disproportionately affect revenue and margin sustainability versus a more evenly diversified segment base.

Globus Medical Business Overview & Revenue Model

Company Description

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. In addition, it distributes human cell, tissue, and cellular and tissue-based products. Globus Medical, Inc. was incorporated in 2003 and is headquartered in Audubon, Pennsylvania.

How the Company Makes Money

Globus Medical generates revenue primarily through the sale of its spinal implant and surgical instrument products to hospitals and surgical centers. The company has a diversified revenue model that includes direct sales, as well as partnerships with distributors in various regions. Key revenue streams include the sale of its core products, which encompass a variety of spinal fusion systems, and biologic materials used in spinal surgery. Additionally, GMED invests in research and development to create new products and improve existing ones, which can lead to increased market share and higher sales. The company's strong focus on innovation, along with strategic partnerships and collaborations with healthcare providers, contributes significantly to its earnings by enhancing product offerings and expanding its reach in the medical device market.

Globus Medical Financial Statement Overview

Summary

Globus Medical exhibits strong financial performance with robust revenue growth, improved profitability, a stable balance sheet with low leverage, and strong cash flow generation. The company is well-positioned in the medical devices industry, with a solid foundation for future growth.

Income Statement

Globus Medical demonstrates strong revenue growth with a 5.46% increase in TTM, supported by a healthy gross profit margin of 46.69%. The net profit margin has improved significantly to 15.30% in TTM, indicating enhanced profitability. However, the gross profit margin has decreased from previous years, suggesting potential cost pressures.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The return on equity is solid at 9.99%, reflecting efficient use of equity to generate profits. The equity ratio is strong, showcasing financial stability and low risk.

Cash Flow

Globus Medical's cash flow is strong with a 10.94% growth in free cash flow, indicating improved cash generation. The operating cash flow to net income ratio of 1.53 suggests efficient conversion of income to cash. The free cash flow to net income ratio of 0.81 further supports the company's strong cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.77B	2.52B	1.57B	1.02B	958.10M	789.04M
Gross Profit	1.78B	1.48B	1.02B	759.12M	718.88M	571.58M
EBITDA	717.98M	473.73M	346.58M	304.50M	264.73M	178.35M
Net Income	423.78M	102.98M	122.87M	190.17M	149.19M	102.28M
Balance Sheet
Total Assets	5.10B	5.25B	5.09B	2.08B	1.96B	1.68B
Cash, Cash Equivalents and Short-Term Investments	390.52M	890.06M	517.79M	446.06M	443.45M	426.74M
Total Debt	119.34M	537.19M	520.40M	6.01M	0.00	0.00
Total Liabilities	696.82M	1.07B	1.09B	229.75M	215.88M	173.19M
Stockholders Equity	4.40B	4.18B	4.00B	1.85B	1.74B	1.51B
Cash Flow
Free Cash Flow	579.61M	405.21M	165.22M	104.42M	219.38M	135.13M
Operating Cash Flow	715.20M	520.64M	243.50M	178.47M	276.27M	198.79M
Investing Cash Flow	-347.69M	-176.05M	302.97M	-110.36M	-375.94M	-117.32M
Financing Cash Flow	-632.64M	-27.70M	-231.82M	-109.96M	54.15M	-38.66M

Globus Medical Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 90.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMED, the sentiment is Neutral. The current price of 90.68 is below the 20-day moving average (MA) of 92.22, above the 50-day MA of 89.56, and above the 200-day MA of 68.37, indicating a neutral trend. The MACD of 0.96 indicates Positive momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 20.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GMED.

Globus Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMED	82 Outperform	$12.21B	29.31	10.01%	―	11.75%	364.73%
ZBH	73 Outperform	$17.26B	21.55	6.41%	1.05%	5.47%	-23.03%
BSX	72 Outperform	$138.71B	50.02	12.66%	―	21.62%	54.80%
SYK	72 Outperform	$141.33B	44.00	15.08%	0.95%	10.95%	-18.32%
SNN	69 Neutral	$14.44B	30.20	9.20%	2.28%	5.78%	61.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PHG	50 Neutral	$27.19B	-35.15	―	3.30%	-0.76%	-55.03%