Globus Medical Inc

Health Care
Medical/Dental Instruments
www.globusmedical.com

Earnings Score
Moat Score

Market Cap $11.28B
PE 123
Debt $NaN
Cash $622.77M
EV $NaN
FCF $293.77M

Earnings

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Sales & Net Margins

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Earnings	$91.51M
EBIT	$130.71M
ROE	2%
ROA	3%
FCF	$293.77M
Equity	$4.07B
Growth Stability	73%
PE	123.27
PEG	-18.76
PB	2.77
P/FCF	38.4
P/S	4.55
Price/Cash	0.06
Net Margins	4%
Gross Margins	58%
Op. Margins	5%
Earnings CAGR	0%
Sales Growth YoY	63%
Sales Growth QoQ	-1%
Sales CAGR	14%
FCF CAGR	7%
Equity CAGR	19%
Earnings Stability	0
Earnings Growth YoY	5K%

Earnings Growth QoQ	63%
Earnings CAGR 5Y	-7%
Sales CAGR 5Y	24%
FCF CAGR 5Y	7%
Equity CAGR 5Y	28%
Earnings CAGR 3Y	43%
Sales CAGR 3Y	43%
FCF CAGR 3Y	5%
Equity CAGR 3Y	50%
Market Cap	$11.28B
Revenue	$2.48B
Assets	$5.09B
Cash	$622.77M
Shares Outstanding	135.39M
Earnings Score	6%
Moat Score	41%
Working Capital	1.24B
Current Ratio	2.51
Gross Profit	$1.44B
Shares Growth 3y	13%
Equity Growth QoQ	2%
Equity Growth YoY	-3%

Assets & ROA

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Stockholders Equity & ROE

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Globus Medical Inc is a medical device company that develops and provides healthcare products and solutions to hospitals, physicians, and surgical centers. The firm's products are organized into two categories: musculoskeletal solutions, which include medical devices and instruments used mostly for spinal and orthopedic procedures, and enabling technologies, which include advanced computer systems developed for enhancing surgical capabilities. The vast majority of the company's revenue is generated from musculoskeletal solutions products, and more than half of the revenue is earned in the United States.

SEC Filings

Direct access to Globus Medical Inc (GMED) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Globus Medical Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Globus Medical Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 0%

Stability 0%

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Globus Medical Inc Discounted Cash Flow

Fully customizable DCF calculator online for Globus Medical Inc.

Years

Calculation mode

= $4.7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$294M	$314M	$335M	$358M	$382M	$408M	$435M	$465M	$496M	$530M	$566M	$5.7B
DCF		$285M	$277M	$269M	$261M	$253M	$246M	$239M	$232M	$225M	$218M	$2.2B
Value	$4.7B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	19%	21%	19%	17%	22%	20%	13%	16%	19%	8%	4%
ROA	-	21%	17%	15%	13%	12%	7%	9%	12%	3%	3%
ROE	-	16%	13%	11%	13%	11%	7%	9%	10%	3%	2%

Bad Net Margins (4.11%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	2.53	-
Debt over Equity	-	-	-	-	-	-	-	-	-	0.1	-
Growth Stability	-	-	-	100%	100%	100%	73%	100%	100%	83%	73%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (73%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	15%	4%	13%	12%	10%	0%	21%	7%	53%	24%
Earnings YoY growth	-	22%	-7%	3%	46%	-1%	-34%	46%	27%	-35%	-7%
Equity YoY growth	-	22%	16%	16%	22%	18%	7%	16%	6%	117%	28%
FCF YoY growth	-	31%	84%	-17%	13%	-17%	33%	62%	-52%	58%	7%