Globus Medical (GMED) AI Stock Analysis

• Market Cap: $8.47B
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.97
• 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: 1,171,515
• 30 Day Avg. Volume: 1,393,503
• 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: 0.94
• Enterprise Value/Revenue: 3.03
• Enterprise Value/Gross Profit: 4.82
• Enterprise Value/Ebitda: 12.84
• 1Y Price Target: $79.90
• Price Target Upside: 27.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: $66.00 ▲(5.18% Upside)

Globus Medical's strong financial performance and positive earnings call sentiment are the primary drivers of its solid stock score. The company's robust revenue growth, strategic acquisitions, and innovation initiatives position it well for future growth. While technical indicators and valuation are neutral, they do not detract significantly from the overall positive outlook.

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: Positive
• Last Price: 62.75
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 62.75 is above the 20-day moving average (MA) of 60.15, above the 50-day MA of 59.37, and below the 200-day MA of 66.73, indicating a neutral trend. The MACD of 1.24 indicates Negative momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 79.45 is Neutral, 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	―	$8.47B	24.22	8.62%	―	17.43%	775.48%
BSX	―	$149.82B	54.78	―	―	21.62%	54.80%
SYK	―	$145.96B	50.52	14.25%	0.89%	11.36%	-15.66%
ZBH	―	$20.04B	24.63	6.52%	0.95%	4.11%	-14.43%
SNN	―	$15.50B	32.32	9.20%	2.06%	5.78%	61.52%
PHG	―	$25.86B	―	―	3.25%	-0.76%	-55.03%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Globus Medical Corporate Events

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.

Globus Medical Reports Strong Q2 2025 Growth

Globus Medical, Inc. is a prominent player in the musculoskeletal solutions sector, focusing on innovative technologies in spine, orthopedic trauma, joint reconstruction, biomaterials, and enabling technologies. The company recently reported its financial results for the second quarter of 2025, showcasing significant growth and strategic advancements.