GMED Investors, You Need to Know These Facts Today.

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%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.