Globus Medical logged a 0.3% change during today's morning session, and is now trading at a price of $54.62 per share.
Globus Medical returned losses of -23.9% last year, with its stock price reaching a high of $94.93 and a low of $51.87. Over the same period, the stock underperformed the S&P 500 index by -40.8%. AThe company's 50-day average price was $58.23. Globus Medical, Inc., a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. Based in Audubon, PA, the Mid-Cap Health Care company has 5,300 full time employees. Globus Medical has not offered a dividend during the last year.
Increasing Revenues but Narrowing Margins:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $785 | $789 | $958 | $1,023 | $1,568 | $2,519 |
| Operating Margins | 22% | 14% | 18% | 22% | 8% | 7% |
| Net Margins | 20% | 13% | 16% | 19% | 8% | 4% |
| Net Income (M) | $155 | $102 | $149 | $190 | $123 | $103 |
| Net Interest Expense (M) | $17 | $14 | $9 | $14 | $20 | -$4 |
| Depreciation & Amort. (M) | $53 | $46 | $51 | $51 | $94 | $135 |
| Diluted Shares (M) | 102 | 101 | 104 | 103 | 115 | 138 |
| Earnings Per Share | $1.52 | $1.01 | $1.44 | $1.85 | $1.07 | $0.75 |
| EPS Growth | n/a | -33.55% | 42.57% | 28.47% | -42.16% | -29.91% |
| Avg. Price | $47.69 | $51.71 | $71.93 | $67.23 | $47.03 | $54.48 |
| P/E Ratio | 30.38 | 49.72 | 48.6 | 35.57 | 43.15 | 71.68 |
| Free Cash Flow (M) | $101 | $135 | $219 | $104 | $165 | $405 |
| CAPEX (M) | $71 | $64 | $57 | $74 | $78 | $115 |
| Current Ratio | 6.17 | 6.8 | 6.17 | 6.18 | 4.88 | 2.54 |
Globus Medical has rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and an excellent current ratio of 2.54. However, the firm suffers from weak operating margins with a negative growth trend and declining EPS growth.
a Lower P/B Ratio Than Its Sector Average but Priced at a Premium:
Globus Medical has a trailing twelve month P/E ratio of 43.5, compared to an average of 22.94 for the Health Care sector. Based on its EPS guidance of $3.42, the company has a forward P/E ratio of 17.0. The 12.3% compound average growth rate of Globus Medical's historical and projected earnings per share yields a PEG ratio of 3.54. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Globus Medical in terms of its equity because its P/B ratio is 1.81 while the sector average is 3.19. The company's shares are currently trading 141.6% below their Graham number.
Globus Medical Has an Average Rating of Buy:
The 11 analysts following Globus Medical have set target prices ranging from $65.0 to $105.0 per share, for an average of $83.0 with a buy rating. The company is trading -34.2% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Globus Medical has an average amount of shares sold short because 4.5% of the company's shares are sold short. Institutions own 100.6% of the company's shares, and the insider ownership rate stands at 0.69%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $595,854,047.
