Globus Medical (GMED) AI Stock Analysis

• Market Cap: $8.36B
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.92
• Revenue Growth: 17.43%
• EPS Growth: 775.48%
• Country: US
• Employees: 5,300
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Devices
• EPS (TTM): 0.86
• Shares Outstanding: 112,620,210
• 10 Day Avg. Volume: 1,289,173
• 30 Day Avg. Volume: 1,536,146
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 3.03
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 10.86
• 1Y Price Target: $83.00
• Price Target Upside: 34.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: $69.00 ▲(12.18% Upside)

Globus Medical's strong financial performance and strategic corporate events are significant positives. However, technical analysis indicates mixed signals, and valuation metrics suggest moderate attractiveness. Earnings call insights and corporate events provide additional support for future growth, despite some challenges.

Positive Factors

Earnings

Q2 EPS was $0.86 well ahead of consensus as Nevro dilution was less than feared.

Product Innovation

Recently, GMED received FDA clearance for Excelsius XR, a head-mounted augmented reality navigation headset.

Revenue Performance

GMED delivered 3.6% year-over-year organic growth in Q2, which was in line with the pre-announcement and ahead of initial estimates and consensus.

Negative Factors

Competitive Concerns

The CEO transition raises questions about the stability and future direction of the company, especially with the competitive nature of the spine industry.

Guidance Challenges

The company faces a challenging setup due to increasingly difficult comparisons and the need to reset guidance, affecting its stock rating.

Tech Sales Performance

Enabling tech sales were up sequentially but missed Street by 7%.

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 and headquartered in Audubon, Pennsylvania, the company specializes in spinal implant technologies and instruments that improve patient outcomes. GMED's core product offerings include spinal fusion devices, minimally invasive surgical products, and advanced technologies for spinal surgery, addressing the needs of neurosurgeons and orthopedic surgeons worldwide.

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 impressive revenue growth, efficient cash flow management, and a solid balance sheet with low leverage. 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	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	1.68B	1.48B	1.02B	759.12M	718.88M	571.58M
EBITDA	731.64M	378.94M	346.58M	304.50M	250.28M	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	527.43M	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: 61.51
• 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 61.51 is above the 20-day moving average (MA) of 58.64, above the 50-day MA of 57.48, and below the 200-day MA of 71.95, indicating a neutral trend. The MACD of 1.49 indicates Negative momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of 60.33 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
STE	79 Outperform	$24.48B	37.67	9.73%	0.92%	2.47%	63.68%
SNN	78 Outperform	$16.24B	32.99	9.20%	2.01%	5.78%	61.52%
ZBH	74 Outperform	$21.30B	26.13	6.52%	0.90%	4.11%	-14.43%
GMED	70 Outperform	$8.36B	23.88	8.62%	―	17.43%	775.48%
LIVN	61 Neutral	$3.09B	30.62	-17.87%	―	8.57%	-1154.64%
OFIX	54 Neutral	$573.06M	―	-24.63%	―	4.84%	0.85%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%

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.