Globus Medical, Inc. (NYSE:GMED): A Fundamentally Attractive Investment
Globus Medical, Inc. (NYSE:GMED) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of GMED, it is a company with great financial health as well as a a strong history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Globus Medical here.
Flawless balance sheet with proven track record
GMED delivered a bottom-line expansion of 34% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did GMED outperformed its past performance, its growth also exceeded the Medical Equipment industry expansion, which generated a 12% earnings growth. This paints a buoyant picture for the company. GMED’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that GMED has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Investors should not worry about GMED’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$3.9b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
Next Steps:
For Globus Medical, I’ve compiled three important factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for GMED’s future growth? Take a look at our free research report of analyst consensus for GMED’s outlook.
Valuation: What is GMED worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GMED is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GMED? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
