Education
About Us
Working with TipRanks
Follow Us
Globus Medical (GMED)
NYSE:GMED
Top Page
Globus Medical
(NYSE:GMED)
68Neutral
Positive Factors
Acquisition Impact
The acquisition of Nevro Corp. is expected to be earnings accretive in year two of operation.
Market Positioning
GMED is seen as well-positioned in a challenging market due to its US-centric business, reasonable valuation, strong fundamentals, and momentum from recent hiring and product launches.
Operational Efficiency
Progress on improving margins is highlighted, with opportunities to in-source manufacturing and achieve synergies across operations and vendors, aiming for gross margins in the mid-70s.
Negative Factors
Financial Performance
GMED fell short of expectations, delivering revenue of ~$598.1M and adj. EPS of $0.68 relative to Street estimates of $625.9M and $0.74.
Sales Performance
GMED revenue of $598m missed an already lowered Street consensus by $29m or 5% on a host of issues, most notably softer robot sales.
Stock Buyback
GMED exhausted its share repurchase authorization and is likely to build cash back up before instituting another one, leaving shares to wither.
Globus Medical (GMED) vs. S&P 500 (SPY)
Market Cap
$7.88B
Dividend YieldN/A
Average Volume (3M)1.61M
Price to Earnings (P/E)43.2
Beta (1Y)0.90
Revenue Growth32.26%
EPS Growth112.87%
CountryUS
Employees5,300
SectorHealthcare
Sector Strength38
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.68
Shares Outstanding112,949,280
10 Day Avg. Volume2,580,583
30 Day Avg. Volume1,609,135
Financial Highlights & Ratios
PEG Ratio6.21
Price to Book (P/B)1.83
Price to Sales (P/S)0.00
P/FCF Ratio18.65
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit5.24
Enterprise Value/Ebitda3.62
Forecast
1Y Price Target
$87.38Price Target Upside42.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Globus Medical Business Overview & Revenue Model
Company DescriptionGlobus Medical (GMED) is a leading medical device company that specializes in the design, development, and commercialization of healthcare solutions for musculoskeletal disorders. The company operates in the orthopedic sector, providing innovative products and services that improve patient care. Its core offerings include a comprehensive portfolio of spinal products, trauma solutions, and orthopedic implants, which are used by healthcare professionals worldwide to enhance surgical outcomes and patient recovery.
How the Company Makes MoneyGlobus Medical generates revenue primarily through the sale of its diverse range of medical devices and solutions to hospitals, surgery centers, and healthcare providers. The company's key revenue streams come from its spinal implant products, which include a variety of implants and instruments designed for minimally invasive surgery, as well as its trauma and orthopedic product lines. Additionally, Globus Medical invests in research and development to continuously innovate and expand its product offerings. Strategic partnerships with healthcare providers and distributors also play a significant role in expanding the company's market reach and driving sales. Globus Medical's ability to maintain strong relationships with its clients and provide high-quality, reliable products is crucial to its financial success.
Globus Medical Financial Statement Overview
Summary
Globus Medical has shown strong revenue growth and solid cash flow generation. The company maintains a conservative financial structure with low leverage, reducing financial risk. Despite some pressure on profitability margins, the strong equity base and improving cash flow provide a solid foundation for future growth.Income Statement
Globus Medical has demonstrated strong revenue growth, increasing from $789 million in 2020 to $2.52 billion in 2024. The gross profit margin is consistently high, reflecting efficient cost management. However, net profit margins have decreased due to higher operating expenses, suggesting potential areas for cost optimization.85
Very Positive
Balance Sheet
The balance sheet is robust with a significant increase in stockholders' equity, reaching $4.18 billion in 2024. The debt-to-equity ratio is low, indicating low financial leverage, which mitigates risk. However, a decrease in ROE from prior years indicates reduced profitability relative to equity.80
Positive
Cash Flow
Operating cash flow has improved significantly, enhancing liquidity. Free cash flow has grown robustly, supporting investment in capital expenditures. However, the free cash flow to net income ratio shows room for improvement, suggesting that cash generation relative to profits could be optimized.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.52B | 1.57B | 1.02B | 958.10M | 789.04M | Gross Profit |
| 1.48B | 1.02B | 759.12M | 718.88M | 571.58M | EBIT |
| 165.99M | 133.14M | 227.95M | 171.95M | 111.43M | EBITDA |
| 378.94M | 346.58M | 304.50M | 250.28M | 178.35M | Net Income Common Stockholders |
| 102.98M | 122.87M | 190.17M | 149.19M | 102.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 890.06M | 517.79M | 446.06M | 443.45M | 426.74M | Total Assets |
| 5.25B | 5.09B | 2.08B | 1.96B | 1.68B | Total Debt |
| 537.19M | 520.40M | 6.01M | 5.05M | 4.80M | Net Debt |
| -247.25M | 53.11M | -144.46M | -188.02M | -234.60M | Total Liabilities |
| 1.07B | 1.09B | 229.75M | 215.88M | 173.19M | Stockholders Equity |
| 4.18B | 4.00B | 1.85B | 1.74B | 1.51B |
| Cash Flow | Free Cash Flow | |||
| 405.21M | 165.22M | 104.42M | 219.38M | 135.13M | Operating Cash Flow |
| 520.64M | 243.50M | 178.47M | 276.27M | 198.79M | Investing Cash Flow |
| -176.05M | 302.97M | -110.36M | -375.94M | -117.32M | Financing Cash Flow |
| -27.70M | -231.82M | -109.96M | 54.15M | -38.66M |
Globus Medical Technical Analysis
Negative
61.25
Price Trends
70.72
Negative
78.27
Negative
76.61
Negative
Market Momentum
-3.69
Positive
38.30
Neutral
24.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMED, the sentiment is Negative. The current price of 61.25 is below the 20-day moving average (MA) of 67.60, below the 50-day MA of 70.72, and below the 200-day MA of 76.61, indicating a bearish trend. The MACD of -3.69 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 24.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GMED.
Globus Medical Risk Analysis
Globus Medical disclosed 52 risk factors in its most recent earnings report. Globus Medical reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Globus Medical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.62B | 30.46 | 7.82% | 2.50% | 4.58% | 55.99% | |
76 Outperform | $24.72B | 39.82 | 9.45% | 0.90% | -0.17% | -17.34% | |
70 Outperform | $19.18B | 21.44 | 7.31% | 0.99% | 3.30% | -2.39% | |
68 Neutral | $7.88B | 43.25 | 4.63% | ― | 32.26% | 112.87% | |
63 Neutral | $2.42B | 30.62 | -19.69% | ― | 7.97% | -592.40% | |
52 Neutral | $5.15B | 3.05 | -44.13% | 2.84% | 16.42% | -0.48% | |
47 Neutral | $475.66M | ― | -27.82% | ― | 5.85% | -8.92% |
* Healthcare Sector Average
Performance Comparison
GMED
Globus Medical
61.25
-5.01
-7.56%
OFIX
Orthofix
12.14
-2.96
-19.60%
SNN
Smith & Nephew Snats
28.88
3.50
13.79%
STE
Steris
251.59
21.13
9.17%
ZBH
Zimmer Biomet Holdings
96.95
-21.05
-17.84%
LIVN
LivaNova
44.40
-16.88
-27.55%
Globus Medical Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -15.47%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance, with strong cash flow, debt repayment, and new product launches being significant positives. However, flat sales, a substantial decline in enabling technology sales, and supply chain disruptions presented notable challenges. The acquisition of Nevro offers future growth opportunities, but the current quarter's results indicate areas needing improvement.Q1-2025 Updates
Positive Updates
Strong Cash Flow and Debt Repayment
Globus Medical achieved a record free cash flow of $141 million in Q1, increasing 493% versus the prior year. The company returned to debt-free status by paying off nearly $900 million in debt inherited from the NuVasive merger.
New Product Launches
In Q1, Globus Medical launched two new products: the Cohere ALIF spacer and the Reline eGPS fixation system, which are expected to drive market penetration and improve patient outcomes.
U.S. Spine Business Growth
U.S. Spine grew 2% in Q1, driven by high retention rates, strong product offerings, and increased cross-selling and implant pull-through from robotic procedures.
Nevro Acquisition
The company completed the acquisition of Nevro for $250 million, expanding its reach into a $3 billion market space and enhancing its technology portfolio.
Negative Updates
Flat Revenue and Negative Growth
Globus Medical experienced a slight decline in sales with negative 0.8% growth versus prior year on a constant currency basis, primarily due to softer enabling technology sales and supply chain disruptions.
Decline in Enabling Technology Sales
Sales for the quarter were $22 million, a decrease of 31% against a record prior year comp, attributed to extended timelines to close deals amidst market uncertainty.
Supply Chain Disruptions
Temporary integration-related supply chain disruptions affected the core spine and trauma segments, impacting revenue by approximately $20 million.
Lower International Revenue
International revenue was down 7.7% as reported, impacted by the timing of distributor orders, supply chain disruptions, and lower robotic sales.
Company Guidance
During Globus Medical's Q1 2025 earnings call, the company reported a slight decline in revenue of 0.8% on a constant currency basis, with sales totaling $598 million. Non-GAAP EPS increased by 9% to $0.68, despite a higher diluted share count and the absence of a $0.06 one-time gain from the previous year. Free cash flow reached a record $141 million, marking a 493% increase from the prior year. The company successfully returned to debt-free status by repaying the remaining $900 million debt from the NuVasive merger and announced a $250 million acquisition of Nevro. U.S. Spine revenue grew by 2%, while the enabling technology segment saw a 31% decline to $22 million. Despite Q1 challenges, including supply chain disruptions and elongated sales cycles, Globus Medical remains optimistic about improved performance in Q2 and reaffirmed its annual sales guidance of $2.8 to $2.9 billion, albeit with a slight reduction in EPS guidance to $3.00-$3.30 due to Nevro-related costs.Globus Medical Corporate Events
Stock Buyback
Globus Medical Announces $500M Share Buyback Program
Positive
May 15, 2025
On May 15, 2025, Globus Medical announced a $500 million share repurchase program authorized by its Board of Directors, reflecting confidence in the company’s intrinsic value and commitment to long-term shareholder value. The program, aimed at addressing recent share price volatility, will be funded through cash reserves and executed based on market conditions and strategic priorities, with no set time limit.
The most recent analyst rating on (GMED) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Globus Medical stock, see the GMED Stock Forecast page.
Spark’s Take on GMED Stock
According to Spark, TipRanks’ AI Analyst, GMED is a Neutral.
Globus Medical’s overall stock score reflects a balance of strong financial performance and cash flow with technical weakness and high valuation concerns. The acquisition of Nevro is a promising strategic move, but current operational challenges and a premium valuation suggest a cautious approach in the near term.
To see Spark’s full report on GMED stock, click here.
M&A TransactionsBusiness Operations and Strategy
Globus Medical Completes Acquisition of Nevro Corp.
Positive
Apr 3, 2025
On April 3, 2025, Globus Medical completed its acquisition of Nevro Corp., a global medical device company specializing in chronic pain solutions. This strategic acquisition, which positions Globus to expand its presence in the musculoskeletal market, unlocks a $2 billion market opportunity and aims to enhance the company’s product portfolio in the neuromodulation space.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.