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Globus Medical (GMED)
NYSE:GMED
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Globus Medical
(NYSE:GMED)
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Rating:82Outperform
Price Target:
$100.00
▲(5.69% 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 (GMED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.74B
Dividend YieldN/A
Average Volume (3M)1.68M
Price to Earnings (P/E)30.6
Beta (1Y)0.77
Revenue Growth11.75%
EPS Growth364.73%
CountryUS
Employees5,300
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.18
Shares Outstanding112,175,354
10 Day Avg. Volume1,610,796
30 Day Avg. Volume1,684,810
Financial Highlights & Ratios
PEG Ratio-3.60
Price to Book (P/B)2.69
Price to Sales (P/S)4.46
P/FCF Ratio27.70
Enterprise Value/Market Cap0.59
Enterprise Value/Revenue2.70
Enterprise Value/Gross Profit4.20
Enterprise Value/Ebitda10.42
Forecast
1Y Price Target
$104.10Price Target Upside10.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Globus Medical Business Overview & Revenue Model
Company DescriptionGlobus 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 MoneyGlobus 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 Key Performance Indicators (KPIs)
Globus Medical Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call for Globus Medical was predominantly positive, with significant revenue and earnings growth, successful integration of Nevro, and strong performances in the U.S. Spine and Trauma segments. Despite these successes, there were challenges in the Enabling Technologies segment, including a decline in revenue and slower capital sales. The company's ability to adapt to market conditions and its strong cash flow generation underscore a solid financial position.Q3-2025 Updates
Positive Updates
Record Sales and Earnings Growth
Globus Medical achieved sales of $769 million and non-GAAP diluted earnings per share of $1.18, representing growth of 22.9% and 42.6%, respectively, over the prior year quarter.
Strong Cash Flow Generation
The company delivered a record free cash flow of $213.9 million in the third quarter.
U.S. Spine Business Growth
The U.S. Spine business led with a growth of 9.6% as reported, marking 32 weeks of consecutive growth.
Successful Nevro Integration
The Nevro business, acquired earlier in the year, delivered $99.3 million in revenue and achieved a positive adjusted EBITDA margin of 16.2%.
International Growth
The International Spine business grew by 5.6% as reported, with notable performances in EMEA, Asia Pacific, and Latin America.
Trauma Segment Success
The Trauma business grew 17.2% in the third quarter, achieving the highest quarterly revenue since its inception.
Negative Updates
Decline in Enabling Technologies Revenue
Enabling Technologies revenue declined 27% compared to the prior year quarter, primarily due to lower sales of EGPS systems.
Challenges in Capital Sales
There was a slower pace of closing sales in Enabling Technologies, with a shift towards more flexible deal structures such as leases and rentals.
Company Guidance
During Globus Medical's third-quarter 2025 earnings call, the company announced impressive financial results, with sales reaching $769 million, reflecting a 22.9% increase over the prior year quarter, and non-GAAP diluted earnings per share of $1.18, representing a 42.6% growth. The company's free cash flow also hit a record $213.9 million for the third quarter. The base business generated $669.8 million in revenue, a 7% growth, while the Nevro acquisition contributed $99.3 million. Notably, the adjusted EBITDA margins for the base Globus business improved to 35.3%, up 435 basis points, and Nevro's adjusted EBITDA margin was positive at 16.2%. The U.S. Spine business led growth with a 9.6% increase. Despite a 27% decline in Enabling Technologies revenue, the company is optimistic about its pipeline and future capital sales strategies. Globus Medical revised its full-year financial guidance upwards, now projecting 2025 net sales between $2.86 billion and $2.9 billion and non-GAAP EPS between $3.75 and $3.85.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
Positive
94.62
Price Trends
83.47
Positive
71.40
Positive
66.88
Positive
Market Momentum
2.17
Negative
67.83
Neutral
71.40
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 94.62 is above the 20-day moving average (MA) of 88.47, above the 50-day MA of 83.47, and above the 200-day MA of 66.88, indicating a bullish trend. The MACD of 2.17 indicates Negative momentum. The RSI at 67.83 is Neutral, neither overbought nor oversold. The STOCH value of 71.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GMED.
Globus Medical Risk Analysis
Globus Medical disclosed 52 risk factors in its most recent earnings report. Globus Medical reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Globus Medical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $12.74B | 30.58 | 10.01% | ― | 11.75% | 364.73% | |
79 Outperform | $145.84B | 52.62 | 12.66% | ― | 21.62% | 54.80% | |
73 Outperform | $18.64B | 22.98 | 6.41% | 1.05% | 5.47% | -23.03% | |
70 Outperform | $140.43B | 48.26 | 14.04% | 0.95% | 10.95% | -18.32% | |
69 Neutral | $14.32B | 29.69 | 9.20% | 2.28% | 5.78% | 61.52% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $28.12B | -36.05 | ― | 3.30% | -0.76% | -55.03% |
* Healthcare Sector Average
GMED
Globus Medical
94.62
7.44
8.53%
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98.38
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3.98%
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Koninklijke Philips
29.43
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SNN
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45.63%
SYK
Stryker
367.21
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2.41%
ZBH
Zimmer Biomet Holdings
94.08
-10.38
-9.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.