Globus Medical Inc (GMED) stock analysis
Close on Nov 13, 2026Market cap $9.69BP/E 17.7Yield –
StockData Score
Prices as of Nov 13, 2026How the score works
Solid21 of 30 checks passed
Globus Medical passes 21 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 6/6
- Growth
- 4/6
- Past performance
- 5/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 44.7% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $72.14 is below our fair value estimate of $130.42.
Return on capital over 10%
Return on invested capital was 13.1%, above the 10% that usually covers the cost of capital.
No debt
Globus Medical has no borrowings on its latest balance sheet.
What to watch
Return on equity under 15%
Return on equity was 12.1% over the last twelve months and averaged 7.8% over five years; we look for 15% on both.
Earnings growth not accelerating
Net income grew 31.6% over the last twelve months, against a 5-year average of 39.4% a year.
Guidance lowered
Globus Medical lowered its full-year 2026 revenue outlook on Nov 5, 2026.
No dividend
Globus Medical has not paid a dividend in the last twelve months.
Valuation6/6
P/E below its 5-year median
Globus Medical's P/E of 17.7 is below its own 5-year median of 39.6.
P/E below the industry
Globus Medical's P/E of 17.7 is below the Surgical, Medical, and Dental Instruments and Supplies median of 26.8.
EV/EBITDA below its 5-year median
Globus Medical's EV/EBITDA of 9.6 is below its 5-year median of 19.4.
P/B below the industry
Globus Medical's price-to-book of 2.02 is below the Surgical, Medical, and Dental Instruments and Supplies median of 3.38.
Trading below fair value
The share price of $72.14 is below our fair value estimate of $130.42.
Margin of safety over 20%
The price is 44.7% below fair value, more than the 20% cushion we look for.
Growth4/6
Revenue growing 10%+ a year
Revenue grew 42.2% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 28.4% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 31.6% over the last twelve months, against a 5-year average of 39.4% a year.
Growing faster than the industry
Revenue grew 13.4% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 10.6%.
Guidance lowered
Globus Medical lowered its full-year 2026 revenue outlook on Nov 5, 2026.
Gross margin improving
Gross margin was 69.1% over the last twelve months, against 65.3% a year earlier.
Past performance5/6
Return on equity under 15%
Return on equity was 12.1% over the last twelve months and averaged 7.8% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 13.1%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Globus Medical's return on equity of 12.1% is above the Surgical, Medical, and Dental Instruments and Supplies median of -30.1%.
Earnings grew over 5 years
Net income grew 39.4% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 17.8% over the last twelve months, against a 5-year average of 12.9%.
Net margin above the industry
Globus Medical's net margin of 17.8% is above the Surgical, Medical, and Dental Instruments and Supplies median of -12.9%.
Financial health6/6
No debt
Globus Medical has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 4.30 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 9.66; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Globus Medical has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$130.42
The share price is 45% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 33.2× | 39.6× | 26.8× | $135.03 | 47% |
| EV/EBITDA | 17.9× | 19.4× | 16.4× | $131.68 | 41% |
| P/B | 3.0× | 2.7× | 3.4× | $107.60 | 12% |
| Earnings powerleft out, too far from the others | 10.0% cost of equity | – | – | $28.89 | – |
| Fair value | $130.42 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 39.6
- Surgical, Medical, and Dental Instruments and Supplies median 26.8
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $142.69M
- Value traded per 1% price move
- $71.29M
Downside
Medium risk
- Typical loss in a bad month
- 16.9%
- Volatility (annualized)
- 38%
- Sharpe ratio, 1 year
- -0.51
- Beta to the S&P 500 (5Y)
- 0.97
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +16.7% | +42.2% | +30.1% | +18.4% | |
| Gross profit | +33.5% | +37.7% | +28.2% | +17.0% | |
| Operating income | +189.1% | +28.2% | +33.9% | +10.8% | |
| Net income | +422.3% | +41.4% | +39.4% | +16.9% | |
| EPS, diluted | +422.7% | +28.4% | +31.2% | +12.9% | |
| Free cash flow | +45.3% | +78.0% | +34.2% | +23.2% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 13.5% | 7.0% | 12.3% | |
| Return on assets | 11.8% | 6.4% | 10.2% | |
| Current ratio | 6.43 | 6.80 | 4.26 | |
| Inventory turnover | 1.2× | 1.0× | 1.4× | |
| Capex to revenue | 7.3% | 8.1% | 5.6% | |
| Diluted shares | 96M | 101M | 137M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Globus Medical generated $1.97B from operations and spent $1.25B on capital expenditure, dividends and share buybacks. 39% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 18.3% | 0.56× | 1.21× | 12.3% |
| FY2024 | 4.1% | 0.49× | 1.26× | 2.5% |
| FY2023 | 7.8% | 0.44× | 1.23× | 4.2% |
| FY2022 | 18.6% | 0.51× | 1.12× | 10.6% |
| FY2021 | 15.6% | 0.53× | 1.12× | 9.2% |
| FY2020 | 13.0% | 0.49× | 1.10× | 7.0% |
| FY2019 | 19.8% | 0.55× | 1.09× | 12.0% |
| FY2018 | 21.9% | 0.60× | 1.10× | 14.5% |
| FY2017 | 16.9% | 0.63× | 1.11× | 11.9% |
| FY2016 | 18.5% | 0.64× | 1.14× | 13.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$537.87M
- Cash generatingOperating cash flow above zero$753.45M
- Return on assets improvedROA up on the prior year2.0% → 10.2%
- Earnings backed by cashOperating cash flow above net income$753.45M vs $537.87M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose2.54 → 4.26
- No dilutionShare count did not rise138M → 137M
- Gross margin improvedGross margin up on the prior year58.90% → 67.41%
- More efficientAsset turnover rose0.50 → 0.56
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