Globus Medical (GMED) AI Stock Analysis

• Market Cap: $7.26B
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 39.5
• Beta (1Y): 0.91
• Revenue Growth: 32.26%
• EPS Growth: 112.87%
• Country: US
• Employees: 5,300
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Devices
• EPS (TTM): 1.50
• Shares Outstanding: 112,949,280
• 10 Day Avg. Volume: 1,252,544
• 30 Day Avg. Volume: 1,497,609
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 3.93
• Enterprise Value/Gross Profit: 6.89
• Enterprise Value/Ebitda: 20.27
• 1Y Price Target: $82.33
• Price Target Upside: 53.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 69 Neutral
• Price Target: $57.00 ▲(6.26% Upside)

Globus Medical shows strong financial health and promising strategic initiatives like new leadership and a share buyback program, which are positive signals. However, technical indicators suggest current negative momentum, and valuation metrics indicate potential overvaluation. Future growth opportunities from acquisitions and product launches are balanced by current operational challenges.

Positive Factors

Financial Performance

The reaffirmation of FY25 guidance suggests confidence in the company's future performance despite recent changes.

Leadership Stability

With Globus founder David Paul remaining as Executive Chairman and Pfeil's promotion bringing further continuity, analysts feel comfortable for now in GMED's direction and reiterate a BUY recommendation.

Sales Growth

GMED announced preliminary Q2/25 sales to be an as-reported increase of +18.4% year-over-year.

Negative Factors

Market Concerns

The unexpected management change at Globus Medical has raised concerns among investors.

Market Environment

The challenging market environment and the need for significant growth in the Spine business make it difficult for Globus Medical to meet its guidance.

Sales Performance

The base business of Globus Medical showed weaker-than-expected sales, missing analyst expectations.

Globus Medical Business Overview & Revenue Model

Company Description

Globus Medical (GMED) is a leading medical device company specializing in the design, development, and commercialization of healthcare solutions, primarily in the musculoskeletal sector. The company's core products include a wide range of innovative and technologically advanced devices for spinal surgery, trauma, and orthopedic applications. Globus Medical is recognized for its commitment to improving patient care through high-quality, state-of-the-art products that address a variety of clinical needs.

How the Company Makes Money

Globus Medical generates revenue through the sale of its medical devices and solutions, primarily focusing on spinal implants, robotics, and imaging systems. The company earns income by selling these products to hospitals, surgical centers, and healthcare providers globally. Key revenue streams include sales from innovative devices such as spinal implants, minimally invasive surgery products, and enabling technologies like robotics and imaging. Additionally, Globus Medical benefits from strategic partnerships and collaborations that enhance its product offerings and market reach. The company's focus on research and development ensures a steady pipeline of new products, helping to sustain and grow its financial performance.

Globus Medical Financial Statement Overview

Summary

Globus Medical exhibits strong financial health with impressive revenue growth and efficient cash flow management. The balance sheet is solid with low leverage, and the company maintains healthy profit margins. While there are minor concerns regarding the net profit margin, the overall financial trajectory is positive, positioning the company well for future growth.

Income Statement

Globus Medical has demonstrated strong revenue growth with a significant increase from $789 million in 2020 to $2.52 billion in 2024. The gross profit margin remains robust, indicating efficient cost management. However, the net profit margin has decreased slightly, suggesting increased expenses or cost pressures. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent financial management and low leverage risk. The equity ratio is strong, reflecting a high proportion of equity financing. Return on equity has decreased, but remains positive, suggesting effective use of shareholder funds.

Cash Flow

Globus Medical's cash flow is robust, with a substantial increase in operating cash flow and free cash flow over the years. The free cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. The company has managed capital expenditures effectively, supporting sustainable growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.52B	1.57B	1.02B	958.10M	789.04M
Gross Profit	1.48B	1.02B	759.12M	718.88M	571.58M
EBITDA	378.94M	346.58M	304.50M	250.28M	178.35M
Net Income	102.98M	122.87M	190.17M	149.19M	102.28M
Balance Sheet
Total Assets	5.25B	5.09B	2.08B	1.96B	1.68B
Cash, Cash Equivalents and Short-Term Investments	890.06M	517.79M	446.06M	443.45M	426.74M
Total Debt	537.19M	520.40M	6.01M	0.00	0.00
Total Liabilities	1.07B	1.09B	229.75M	215.88M	173.19M
Stockholders Equity	4.18B	4.00B	1.85B	1.74B	1.51B
Cash Flow
Free Cash Flow	405.21M	165.22M	104.42M	219.38M	135.13M
Operating Cash Flow	520.64M	243.50M	178.47M	276.27M	198.79M
Investing Cash Flow	-176.05M	302.97M	-110.36M	-375.94M	-117.32M
Financing Cash Flow	-27.70M	-231.82M	-109.96M	54.15M	-38.66M

Globus Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMED, the sentiment is Negative. The current price of 53.64 is below the 20-day moving average (MA) of 54.85, below the 50-day MA of 57.36, and below the 200-day MA of 73.12, indicating a bearish trend. The MACD of -1.39 indicates Negative momentum. The RSI at 41.58 is Neutral, neither overbought nor oversold. The STOCH value of 50.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GMED.

Globus Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNN	76 Outperform	$15.56B	31.38	9.20%	2.11%	5.16%	56.79%
ZBH	74 Outperform	$18.21B	20.40	7.31%	1.06%	3.30%	-2.39%
STE	70 Outperform	$22.02B	36.00	9.46%	1.00%	0.32%	64.36%
GMED	69 Neutral	$7.26B	39.52	4.63%	―	32.26%	112.87%
LIVN	61 Neutral	$2.32B	30.62	-17.87%	―	8.57%	-1154.64%
OFIX	55 Neutral	$482.32M	―	-24.63%	―	4.84%	0.85%
Sector *	50 Neutral	AU$2.60B	3.65	-58.14%	2.69%	36.37%	13.78%

Globus Medical Corporate Events

Globus Medical Announces New CEO and CFO

On July 18, 2025, Globus Medical announced leadership changes with Daniel T. Scavilla resigning as President and CEO, and Keith W. Pfeil appointed as his successor. Pfeil, who has been with the company since 2019, previously served as Chief Operating Officer and Chief Financial Officer. Kyle Kline was also appointed as the new Chief Financial Officer. The company reported preliminary second-quarter sales results, showing an 18.4% increase over the previous year, driven by strong performance in the US Spine business. These leadership transitions and sales results indicate a strategic focus on maintaining growth and innovation in the musculoskeletal technology sector.

The most recent analyst rating on (GMED) stock is a Hold with a $77.00 price target. To see the full list of analyst forecasts on Globus Medical stock, see the GMED Stock Forecast page.

Globus Medical Approves Key Proposals at Annual Meeting

On June 4, 2025, Globus Medical held its Annual Meeting of Stockholders, where several key proposals were approved. These included the amendment to the 2021 Equity Incentive Plan, the ratification of Deloitte & Touche LLP as the independent registered public accounting firm, and the approval of executive compensation. The stockholders also decided to hold an annual advisory vote on executive compensation.

The most recent analyst rating on (GMED) stock is a Buy with a $77.00 price target. To see the full list of analyst forecasts on Globus Medical stock, see the GMED Stock Forecast page.

Globus Medical Announces $500M Share Buyback Program

On May 15, 2025, Globus Medical announced a $500 million share repurchase program authorized by its Board of Directors, reflecting confidence in the company’s intrinsic value and commitment to long-term shareholder value. The program, aimed at addressing recent share price volatility, will be funded through cash reserves and executed based on market conditions and strategic priorities, with no set time limit.

The most recent analyst rating on (GMED) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Globus Medical stock, see the GMED Stock Forecast page.