Globus Medical (GMED) AI Stock Analysis

• Market Cap: $7.59B
• Dividend Yield: N/A
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.91
• Revenue Growth: 17.43%
• EPS Growth: 775.48%
• Country: US
• Employees: 5,300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.86
• Shares Outstanding: 112,620,210
• 10 Day Avg. Volume: 1,022,701
• 30 Day Avg. Volume: 1,251,307
• 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: 1.05
• Enterprise Value/Revenue: 3.03
• Enterprise Value/Gross Profit: 4.82
• Enterprise Value/Ebitda: 12.84
• 1Y Price Target: $83.00
• Price Target Upside: 47.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $67.00 ▲(19.17% Upside)

Globus Medical's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. While technical analysis and valuation suggest a more cautious outlook, recent corporate events support a positive strategic direction. The overall score reflects a balanced view of strengths and potential risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Globus Medical's products and effective sales strategies, enhancing its competitive position.

Innovation and Product Launches

Continuous innovation and new product launches strengthen Globus Medical's market position and drive long-term growth by meeting evolving medical needs.

Leadership Changes

New leadership with a strategic focus on growth and innovation can enhance operational efficiency and drive the company's long-term strategic objectives.

Negative Factors

Declining Profit Margins

Declining profit margins may indicate rising costs or pricing pressures, potentially impacting long-term profitability and financial health.

International Revenue Challenges

Flat international growth suggests challenges in expanding global market presence, which could limit future revenue diversification and growth potential.

Lingering Supply Chain Issues

Persistent supply chain issues can disrupt operations and delay product availability, affecting customer satisfaction and revenue growth.

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 devices and related surgical instrumentation. The company operates on a direct sales model, where its sales force promotes and sells products directly to hospitals and surgical centers, allowing them to establish strong relationships with healthcare providers. Key revenue streams include the sale of spinal fusion devices, which are often used in surgeries to stabilize the spine, as well as minimally invasive surgical products that cater to the growing demand for less invasive surgical options. Additionally, GMED benefits from recurring revenue through product sales tied to surgical procedures and implants. Strategic partnerships with healthcare institutions and a focus on research and development further contribute to its earnings by enabling the company to innovate and expand its product portfolio, thus enhancing its market position.

Globus Medical Financial Statement Overview

Summary

Globus Medical exhibits strong financial health with consistent revenue growth, robust profitability margins, and a solid balance sheet with low leverage. The company effectively generates cash flow, supporting its operations and growth initiatives. Minor concerns include declining ROE and net profit margins.

Income Statement

Globus Medical shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 4.61%. The company maintains a healthy gross profit margin of 63.87% and a net profit margin of 13.58%, indicating efficient cost management and profitability. EBIT and EBITDA margins are also robust at 17.50% and 27.86% respectively, reflecting strong operational performance. However, the net profit margin has decreased from previous years, suggesting some pressure on profitability.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial risk. The return on equity (ROE) is moderate at 8.58%, showing decent profitability relative to shareholder equity. The equity ratio is strong, suggesting a stable financial structure. However, the ROE has seen a decline from previous years, which could be a point of concern.

Cash Flow

The company demonstrates strong cash flow generation with a significant free cash flow growth rate of 90.2% in the TTM period. The operating cash flow to net income ratio is 1.58, indicating good cash conversion efficiency. The free cash flow to net income ratio is 0.79, showing a healthy cash flow relative to earnings. Despite these strengths, the cash flow ratios have shown some volatility over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.63B	2.52B	1.57B	1.02B	958.10M	789.04M
Gross Profit	1.65B	1.48B	1.02B	759.12M	718.88M	571.58M
EBITDA	618.80M	473.73M	346.58M	304.50M	264.73M	178.35M
Net Income	356.65M	102.98M	122.87M	190.17M	149.19M	102.28M
Balance Sheet
Total Assets	4.96B	5.25B	5.09B	2.08B	1.96B	1.68B
Cash, Cash Equivalents and Short-Term Investments	229.45M	890.06M	517.79M	446.06M	443.45M	426.74M
Total Debt	121.10M	537.19M	520.40M	6.01M	0.00	0.00
Total Liabilities	665.41M	1.07B	1.09B	229.75M	215.88M	173.19M
Stockholders Equity	4.30B	4.18B	4.00B	1.85B	1.74B	1.51B
Cash Flow
Free Cash Flow	522.43M	405.21M	165.22M	104.42M	219.38M	135.13M
Operating Cash Flow	669.16M	520.64M	243.50M	178.47M	276.27M	198.79M
Investing Cash Flow	-286.81M	-176.05M	302.97M	-110.36M	-375.94M	-117.32M
Financing Cash Flow	-581.02M	-27.70M	-231.82M	-109.96M	54.15M	-38.66M

Globus Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 56.22 is below the 20-day moving average (MA) of 59.91, below the 50-day MA of 57.74, and below the 200-day MA of 70.29, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 5.93 is Positive, 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	78 Outperform	16.17B	33.07	7.83%	2.01%	5.78%	61.52%
GMED	76 Outperform	$7.59B	21.70	8.62%	―	17.43%	775.48%
SYK	75 Outperform	144.08B	49.84	13.77%	0.88%	11.36%	-15.66%
BSX	75 Outperform	145.95B	58.62	11.16%	―	21.45%	36.19%
ZBH	74 Outperform	19.79B	24.14	6.57%	0.96%	4.11%	-14.43%
PHG	56 Neutral	26.64B	-34.20	-5.85%	3.17%	-0.76%	-55.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.