Globus Medical (GMED) AI Stock Analysis

• Market Cap: $7.87B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 42.9
• Beta (1Y): 0.95
• Revenue Growth: 32.26%
• EPS Growth: 112.87%
• Country: US
• Employees: 5,300
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Devices
• EPS (TTM): 0.68
• Shares Outstanding: 112,949,280
• 10 Day Avg. Volume: 1,004,261
• 30 Day Avg. Volume: 1,749,073
• PEG Ratio: 1.42
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 71.46
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 5.11
• Enterprise Value/Ebitda: 3.71
• 1Y Price Target: $87.38
• Price Target Upside: 52.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 68 Neutral
• Price Target: $63.00 ▲(9.81%Upside)

Globus Medical's stock score is bolstered by strong financial performance and strategic corporate actions like the Nevro acquisition and share buyback program. However, technical analysis indicates short-term weakness, and the high P/E ratio suggests a premium valuation, which may limit upside potential. The company's ability to navigate operational challenges and execute its growth strategy will be key to future performance.

Positive Factors

Acquisition strategy

The acquisition of Nevro Corp. is expected to be earnings accretive in year two of operation.

Growth potential

There is potential for upside due to conservative guidance and greater synergies, along with faster-than-expected growth in enabling technology and strong hiring trends.

Market positioning

GMED is seen as well-positioned in a challenging market due to its US-centric business, reasonable valuation, strong fundamentals, and momentum from recent hiring and product launches.

Negative Factors

Financial performance

GMED fell short of expectations, delivering revenue of ~$598.1M and adj. EPS of $0.68 relative to Street estimates of $625.9M and $0.74.

Sales performance

The top-line shortfall was due to factors like softer sales of wound care products, slower neuromonitoring reimbursement, supply chain integration dynamics, and longer sales cycles in Enabling Tech.

Share repurchase

GMED exhausted its share repurchase authorization and is likely to build cash back up before instituting another one, leaving shares to wither.

Globus Medical Business Overview & Revenue Model

Company Description

Globus Medical, Inc. is a leading medical device company that develops, manufactures, and markets healthcare solutions primarily focused on musculoskeletal disorders. The company operates in the orthopedics sector, offering a comprehensive portfolio of products that include innovative spinal implants, trauma products, and biologics. Globus Medical is known for its commitment to providing innovative and effective solutions that improve the quality of life for patients with musculoskeletal conditions.

How the Company Makes Money

Globus Medical generates revenue through the sale of its diverse range of medical devices and products, with a significant portion coming from its spinal implant offerings. These products are sold to hospitals, surgical centers, and healthcare providers, both domestically and internationally. The company also earns money through the development and commercialization of advanced surgical techniques and technologies that enhance surgical procedures. Strategic partnerships with healthcare providers and ongoing research and development efforts further contribute to its revenue streams by expanding its product offerings and market reach.

Globus Medical Financial Statement Overview

Summary

Globus Medical's financial performance is strong, characterized by rapid revenue growth and solid cash flow generation. The company maintains a conservative financial structure with low leverage, reducing financial risk. While profitability margins face pressure, the company's strong equity base and cash flow generation provide a solid foundation for future growth.

Income Statement

Globus Medical has demonstrated strong revenue growth, increasing from $789 million in 2020 to $2.52 billion in 2024. The gross profit margin is consistently high, reflecting efficient cost management. However, net profit margins have decreased due to higher operating expenses, suggesting potential areas for cost optimization.

Balance Sheet

The balance sheet is robust with a significant increase in stockholders' equity, reaching $4.18 billion in 2024. The debt-to-equity ratio is low, indicating low financial leverage, which mitigates risk. However, a decrease in ROE from prior years indicates reduced profitability relative to equity.

Cash Flow

Operating cash flow has improved significantly, enhancing liquidity. Free cash flow has grown robustly, supporting investment in capital expenditures. However, the free cash flow to net income ratio shows room for improvement, suggesting that cash generation relative to profits could be optimized.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.51B	2.52B	1.57B	1.02B	958.10M	789.04M
	Gross Profit
1.43B	1.48B	1.02B	759.12M	718.88M	571.58M
	EBIT
269.50M	165.99M	133.14M	227.95M	171.95M	111.43M
	EBITDA
486.48M	378.94M	346.58M	304.50M	250.28M	178.35M
	Net Income Common Stockholders
185.56M	102.98M	122.87M	190.17M	149.19M	102.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
461.27M	890.06M	517.79M	446.06M	443.45M	426.74M
	Total Assets
4.71B	5.25B	5.09B	2.08B	1.96B	1.68B
	Total Debt
92.31M	537.19M	520.40M	6.01M	5.05M	4.80M
	Net Debt
-368.95M	-247.25M	53.11M	-144.46M	-188.02M	-234.60M
	Total Liabilities
623.08M	1.07B	1.09B	229.75M	215.88M	173.19M
	Stockholders Equity
4.09B	4.18B	4.00B	1.85B	1.74B	1.51B
Cash Flow		Free Cash Flow
517.59M	405.21M	165.22M	104.42M	219.38M	135.13M
	Operating Cash Flow
645.55M	520.64M	243.50M	178.47M	276.27M	198.79M
	Investing Cash Flow
1.92M	-176.05M	302.97M	-110.36M	-375.94M	-117.32M
	Financing Cash Flow
-547.37M	-27.70M	-231.82M	-109.96M	54.15M	-38.66M

Globus Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 57.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 57.37 is below the 20-day moving average (MA) of 59.38, below the 50-day MA of 64.73, and below the 200-day MA of 75.41, indicating a bearish trend. The MACD of -1.55 indicates Negative momentum. The RSI at 34.08 is Neutral, neither overbought nor oversold. The STOCH value of 10.26 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	80 Outperform	$12.58B	30.28	7.82%	3.23%	4.58%	55.99%
STE	80 Outperform	$23.24B	37.23	9.46%	0.96%	0.32%	64.36%
ZBH	70 Outperform	$17.92B	20.07	7.31%	1.06%	3.30%	-2.39%
GMED	68 Neutral	$7.87B	42.91	4.63%	―	32.26%	112.87%
LIVN	66 Neutral	$2.46B	30.62	-19.69%	―	7.97%	-592.40%
Sector *	54 Neutral	$5.24B	3.26	-44.35%	6.48%	16.78%	-0.10%
OFIX	49 Neutral	$405.52M	―	-27.82%	―	5.85%	-8.92%

Globus Medical Corporate Events

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.

Globus Medical Completes Acquisition of Nevro Corp.

On April 3, 2025, Globus Medical completed its acquisition of Nevro Corp., a global medical device company specializing in chronic pain solutions. This strategic acquisition, which positions Globus to expand its presence in the musculoskeletal market, unlocks a $2 billion market opportunity and aims to enhance the company’s product portfolio in the neuromodulation space.