Globus Medical (GMED) AI Stock Analysis

• Market Cap: $7.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 42.7
• Beta (1Y): 0.93
• Revenue Growth: 32.26%
• EPS Growth: 112.87%
• Country: US
• Employees: 5,300
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Devices
• EPS (TTM): 0.68
• Shares Outstanding: 112,949,280
• 10 Day Avg. Volume: 1,548,419
• 30 Day Avg. Volume: 1,257,024
• 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: 0.95
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 5.11
• Enterprise Value/Ebitda: 3.71
• 1Y Price Target: $87.08
• Price Target Upside: 52.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 74 Outperform
• Price Target: $68.00 ▲(19.05%Upside)

Globus Medical's strong financial performance and positive corporate events are significant strengths, supporting a solid overall score. However, high valuation concerns and mixed technical indicators temper the outlook. The earnings call highlighted both challenges and opportunities, contributing to a balanced view.

Positive Factors

Acquisitions

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

Market Position

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.

Operational Improvements

Progress on improving margins is highlighted, with opportunities to in-source manufacturing and achieve synergies across operations and vendors, aiming for gross margins in the mid-70s.

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 Challenges

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.

Stock Pressure

Stock likely under pressure on sales/EBITDA/EPS misses.

Globus Medical Business Overview & Revenue Model

Company Description

Globus Medical (GMED) is a leading medical device company specializing in the design, development, and commercialization of healthcare solutions, primarily in the musculoskeletal sector. The company's core products include a wide range of innovative and technologically advanced devices for spinal surgery, trauma, and orthopedic applications. Globus Medical is recognized for its commitment to improving patient care through high-quality, state-of-the-art products that address a variety of clinical needs.

How the Company Makes Money

Globus Medical generates revenue through the sale of its medical devices and solutions, primarily focusing on spinal implants, robotics, and imaging systems. The company earns income by selling these products to hospitals, surgical centers, and healthcare providers globally. Key revenue streams include sales from innovative devices such as spinal implants, minimally invasive surgery products, and enabling technologies like robotics and imaging. Additionally, Globus Medical benefits from strategic partnerships and collaborations that enhance its product offerings and market reach. The company's focus on research and development ensures a steady pipeline of new products, helping to sustain and grow its financial performance.

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
EBITDA	486.48M	378.94M	346.58M	304.50M	250.28M	178.35M
Net Income	185.56M	102.98M	122.87M	190.17M	149.19M	102.28M
Balance Sheet
Total Assets	4.71B	5.25B	5.09B	2.08B	1.96B	1.68B
Cash, Cash Equivalents and Short-Term Investments	461.27M	890.06M	517.79M	446.06M	443.45M	426.74M
Total Debt	92.31M	537.19M	520.40M	6.01M	5.05M	4.80M
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: 57.12
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 57.12 is below the 20-day moving average (MA) of 58.36, below the 50-day MA of 60.68, and below the 200-day MA of 74.51, indicating a bearish trend. The MACD of -0.95 indicates Negative momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of 32.87 is Neutral, 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	$13.26B	32.07	7.86%	3.05%	5.16%	56.79%
GMED	74 Outperform	$7.73B	42.73	4.63%	―	32.26%	112.87%
ZBH	73 Outperform	$18.56B	20.78	7.31%	1.02%	3.30%	-2.39%
STE	71 Outperform	$22.43B	35.94	9.46%	1.00%	0.32%	64.36%
LIVN	61 Neutral	$2.42B	30.62	-19.69%	―	7.97%	-592.40%
OFIX	49 Neutral	$432.95M	―	-27.82%	―	5.85%	-8.92%
Sector *	46 Neutral	C$201.94M	-3.14	-23.14%	2.74%	21.17%	-0.61%

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.