Globus Medical (GMED) AI Stock Analysis

• Market Cap: $13.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 27.0
• 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: 133,839,170
• 10 Day Avg. Volume: 3,245,321
• 30 Day Avg. Volume: 1,850,056
• 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: 0.57
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 10.42
• 1Y Price Target: $92.22
• Price Target Upside: 10.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 3.21
• Revenue Forecast (FY): $2.86B

• Rating: 82 Outperform
• Price Target: $100.00 ▲(19.88% 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

Revenue Growth

The significant revenue growth reflects strong demand for Globus Medical's products, indicating effective market strategies and expanding market share.

Strong Cash Flow

Robust cash flow generation enhances financial flexibility, supports reinvestment in R&D, and underpins long-term growth prospects.

Successful Acquisition Integration

Successful integration of Nevro indicates effective management and strategic expansion, contributing to diversified revenue streams.

Negative Factors

Decline in Enabling Technologies

The decline in Enabling Technologies revenue suggests challenges in product adoption or competitive pressures, potentially impacting future growth.

Challenges in Capital Sales

Challenges in capital sales may indicate market resistance or pricing issues, affecting revenue consistency and requiring strategic adjustments.

Gross Margin Pressure

Decreasing gross margins suggest rising costs or pricing pressures, which could strain profitability if not managed effectively.

Globus Medical Business Overview & Revenue Model

Company Description

Globus Medical (GMED) is a leading medical device company focused on developing innovative solutions for the treatment of spinal disorders. Founded in 2003, the company specializes in providing a wide range of products, including spinal implants, surgical instruments, and biologics. GMED operates primarily within the orthopedic and neurosurgical sectors, aiming to enhance patient outcomes through advanced technology and minimally invasive surgical techniques.

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 demonstrates 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	2.77B	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: Positive
• Last Price: 83.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMED, the sentiment is Positive. The current price of 83.42 is above the 20-day moving average (MA) of 70.88, above the 50-day MA of 63.25, and above the 200-day MA of 65.38, indicating a bullish trend. The MACD of 6.69 indicates Negative momentum. The RSI at 77.99 is Negative, neither overbought nor oversold. The STOCH value of 87.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$13.20B	27.03	10.01%	―	11.75%	364.73%
BSX	79 Outperform	$152.23B	54.43	12.66%	―	21.62%	54.80%
SYK	70 Outperform	$137.72B	47.29	14.04%	0.93%	10.95%	-18.32%
SNN	69 Neutral	$13.86B	28.81	9.20%	2.31%	5.78%	61.52%
ZBH	65 Neutral	$17.82B	22.25	6.41%	1.08%	5.47%	-23.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PHG	50 Neutral	$27.30B	―	―	3.17%	-0.76%	-55.03%

Globus Medical Corporate Events

Globus Medical’s Earnings Call Highlights Robust Growth

Globus Medical’s recent earnings call painted a predominantly positive picture, highlighting significant revenue and earnings growth. The successful integration of Nevro and strong performances in the U.S. Spine and Trauma segments were key contributors to this success. However, the company faced challenges in the Enabling Technologies segment, with a decline in revenue and slower capital sales. Despite these hurdles, Globus Medical’s ability to adapt to market conditions and its robust cash flow generation underscore a solid financial position.

Globus Medical’s Strong Q3 2025 Performance and Growth

Globus Medical, Inc. is a prominent global company specializing in musculoskeletal solutions, focusing on spine, orthopedic trauma, joint reconstruction, biomaterials, and enabling technologies. The company is dedicated to addressing unmet clinical needs and advancing patient care through innovation and education.

Globus Medical’s Earnings Call Highlights Robust Growth and Strategic Advances

Globus Medical’s recent earnings call painted a picture of robust growth and strategic advancement, despite some challenges. The company reported strong revenue growth and record earnings per share (EPS), driven by successful acquisitions and innovative product launches. While the U.S. market showed significant promise, international markets and enabling technologies faced hurdles. Overall, the sentiment was optimistic, with positives outweighing the challenges.