Globus Medical logged a -2.09% change during today's afternoon session, and is now trading at a price of $53.37 per share.
Globus Medical shares moved -20.55% over the last 52 weeks, with a high of $81.78 and a low of $52.6. During this time, the stock lagged the S&P 500 index by -13.09%. As of January 2022, the company's 50-day average price is $67.98. Globus Medical, Inc., a medical device company, develops and markets healthcare solutions for patients with musculoskeletal disorders. The mid-cap Health Care company is based in Audubon, PA.
Operating Margins Consistently Higher Than the 15.02% Industry Average:
2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
---|---|---|---|---|
Revenue (MM) | $785 | $789 | $958 | $1,023 |
Revenue Growth | n/a | 0.47% | 21.43% | 6.76% |
Gross Margins | 77.08% | 72.44% | 75.03% | 74.22% |
Gross Margins Growth | n/a | -6.02% | 3.58% | -1.08% |
Operating Margins | 21.9% | 14.12% | 17.95% | 22.29% |
Operating Margins Growth | n/a | -35.53% | 27.12% | 24.18% |
Earnings Per Share | $1.55 | $1.03 | $1.47 | $1.9 |
EPS Growth | n/a | -33.55% | 42.72% | 29.25% |
Diluted Shares (MM) | 100 | 99 | 102 | 100 |
Free Cash Flow (MM) | $101 | $135 | $219 | $104 |
FCF Growth | n/a | 33.5% | 62.34% | -52.4% |
Capital Expenditures (MM) | $71 | $64 | $57 | $74 |
Globus Medical Is Overvalued:
Compared to the Health Care sector's average of 24.45, Globus Medical has a trailing twelve month P/E ratio of 30.32 and, according to its EPS guidance of 2.56, an expected P/E ratio of 20.85. Globus Medical's PEG ratio is 2.17 based on its 14.0% annual average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.
The market is giving Globus Medical a fair value in terms of its book value, since its P/B ratio of 4.211 is consistent with its sector average, which stands at 4.16. The company's shares are currently trading 113.31% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 1.51 * 18.43) = $25.02
Globus Medical Is the Subject of Mixed Market Indicators:
12 analysts are following Globus Medical and have set target prices ranging from $61.0 to $77.0 per share. On average, they have given the company a rating of hold. At the current price of $53.37, GMED is trading -20.54% away from its average analyst target price of $67.17 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 5% of the company's shares are tied to short positions. Institutions own 102% of Globus Medical's shares, while the insider ownership rate stands at 1%.