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1. Company Snapshot

1.a. Company Description

Globus Medical, Inc., a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally.It offers spine products, such as traditional fusion implants comprising pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative, deformity, tumors, and trauma conditions; treatment options for motion preservation technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional pain management solutions to treat vertebral compression fractures; and regenerative biologic products comprising of allografts and synthetic alternatives.The company also offers products for the treatment of orthopedic trauma, including fracture plates, compression screws, intramedullary nails, and external fixation systems; and hip and knee joint solutions, including modular hip stems and acetabular cups, as well as posterior stabilizing and cruciate retaining knee arthroplasty implants.


In addition, it distributes human cell, tissue, and cellular and tissue-based products.Globus Medical, Inc.was incorporated in 2003 and is headquartered in Audubon, Pennsylvania.

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1.b. Last Insights on GMED

Globus Medical's recent performance was driven by strong Q3 earnings, with the company reporting $1.18 per share, surpassing the Zacks Consensus Estimate of $0.79 per share. The company's robust results were fueled by 7% organic growth and successful integration of acquisitions. Additionally, Globus Medical raised its full-year adjusted earnings guidance to $3.80 per share, showcasing its growth momentum. The company's musculoskeletal solutions segment saw increased demand, contributing to its revenue beat.

1.c. Company Highlights

2. Globus Medical Surpasses Expectations with Stellar Q3 Earnings

Globus Medical reported a strong third quarter with revenues reaching $769 million, a 22.9% increase on an as-reported basis and 22.3% on a constant currency basis. Non-GAAP diluted earnings per share came in at $1.18, significantly beating estimates of $0.79 and growing 42.6% over the prior year quarter. The company's base business delivered revenue of $669.8 million, growing 7% as reported and 7.1% day-adjusted versus the prior year quarter. The acquisition of Nevro contributed $99.3 million to the revenue during the quarter.

Publication Date: Nov -11

📋 Highlights
  • Revenue Surge:: Q3 revenue hit $769M, up 22.9% YoY, driven by 7% base business growth and $99.3M from acquired Nevro.
  • Earnings Growth:: Non-GAAP EPS soared to $1.18 (+42.6% YoY), with GAAP EPS at $0.88 and non-GAAP net income at $159.4M (+39.8% YoY).
  • Free Cash Flow Record:: Generated $213.9M free cash flow, exceeding 50% of 2024’s annual total, with EBITDA margin at 32.8%.
  • Guidance Raised:: Full-year sales now projected at $2.86B–$2.9B and non-GAAP EPS at $3.75–$3.85, reflecting accelerated growth.
  • U.S. Spine Momentum:: Domestic Spine sales accelerated to 10% YoY growth (from 7% in Q2), with 32-weeks consecutive sales expansion.

Segment Performance

The U.S. Core Spine business demonstrated robust growth, accelerating to 10% growth in Q3 from 7% day-adjusted growth in Q2. Keith Pfeil attributed this to a healthy market, new product launches, and aggressive competitive reps. The enabling technology business is seeing a shift towards more flexible deal structures, which will impact revenue recognition, but the pipeline remains strong.

Margins and Expenses

Consolidated adjusted EBITDA margin stood at 32.8%, and the company generated $249.7 million of operating cash flow and $213.9 million of free cash flow during the quarter. Research and development expenses were $38.1 million or 4.9% of sales, while SG&A expenses were $313.6 million or 40.8% of sales. Excluding one-time net charges, consolidated SG&A expenses were $285.3 million or 37.1% of sales.

Outlook and Guidance

The company has revised its full-year net sales guidance to $2.86 billion to $2.9 billion and fully diluted non-GAAP earnings per share guidance to between $3.75 and $3.85. For 2026, the spine market is expected to remain strong, with international business growth projected to return to 10-15%. The trauma business is also expected to grow with the legacy portfolio and operational capabilities in place.

Valuation

With a P/E Ratio of 27.41 and EV/EBITDA of 17.76, the stock appears to be priced for significant growth expectations. Analysts estimate next year's revenue growth at 7.8%. The company's ability to sustain its EBITDA margin and drive free cash flow will be crucial in meeting these expectations. The current Free Cash Flow Yield of 4.99% is attractive, indicating a potential undervaluation.

3. NewsRoom

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Fisher Asset Management LLC Has $17 Million Stock Position in Globus Medical, Inc. $GMED

Dec -04

Source: defenseworld.net

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GMED or PEN: Which Is the Better Value Stock Right Now?

Dec -03

Source: zacks.com

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American Century Companies Inc. Increases Stock Holdings in Globus Medical, Inc. $GMED

Dec -03

Source: defenseworld.net

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5 Momentum Stocks to Buy for December After a Mixed November

Dec -01

Source: zacks.com

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5 Stocks With Strong Sales Growth to Bet on Amid Volatile Markets

Nov -25

Source: zacks.com

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This Medical Products Stock Hits Buy Point As Health Care Names Rally

Nov -24

Source: investors.com

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Should You Buy Globus Medical (GMED) After Golden Cross?

Nov -24

Source: zacks.com

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5 Top Stocks Driven by Strong Relative Price Strength Now

Nov -17

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.15%)

6. Segments

Musculoskeletal Solutions

Expected Growth: 12.0%

Globus Medical's Musculoskeletal Solutions segment growth is driven by increasing demand for minimally invasive spine procedures, expansion into emerging markets, and strategic product launches. Additionally, the company's focus on innovation, strong sales force, and growing presence in the orthopedic market contribute to its 12.0% growth.

Enabling Technologies

Expected Growth: 14.0%

Globus Medical's Enabling Technologies segment growth of 14.0% is driven by increasing adoption of robotic navigation systems, expansion into new markets, and strategic partnerships. Additionally, advancements in artificial intelligence and machine learning are enhancing the accuracy and efficiency of spinal procedures, further fueling growth.

7. Detailed Products

Spine Products

Globus Medical's spine products include a comprehensive portfolio of innovative implants, instruments, and biologics for the treatment of various spinal disorders and deformities.

Orthopedic Trauma Products

Globus Medical's orthopedic trauma products offer a range of implants and instruments for the treatment of fractures, osteotomies, and bone defects.

Joint Reconstruction Products

Globus Medical's joint reconstruction products include a range of implants and instruments for total joint replacement, partial joint replacement, and osteotomies.

Robotics and Navigation

Globus Medical's robotics and navigation products provide surgeons with advanced visualization and navigation tools for spinal and orthopedic procedures.

Biologics

Globus Medical's biologics products include a range of allografts, demineralized bone matrices, and synthetic bone graft substitutes.

8. Globus Medical, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Globus Medical, Inc. operates in the medical device industry, where substitutes are limited. However, the company faces competition from alternative treatments and procedures, which could impact its market share.

Bargaining Power Of Customers

Globus Medical, Inc. sells its products to hospitals and medical professionals, who have limited bargaining power due to the specialized nature of the products.

Bargaining Power Of Suppliers

Globus Medical, Inc. relies on a network of suppliers for raw materials and components. While the company has some bargaining power, suppliers also have some leverage due to the specialized nature of the products.

Threat Of New Entrants

The medical device industry has high barriers to entry, including regulatory hurdles and significant research and development investments. This limits the threat of new entrants to Globus Medical, Inc.'s market.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share. Globus Medical, Inc. faces intense competition from companies such as Medtronic, Stryker, and Johnson & Johnson.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.70%
Debt Cost 5.21%
Equity Weight 90.30%
Equity Cost 9.50%
WACC 9.09%
Leverage 10.74%

11. Quality Control: Globus Medical, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Globus Medical

A-Score: 4.4/10

Value: 3.8

Growth: 6.3

Quality: 7.5

Yield: 0.0

Momentum: 2.5

Volatility: 6.0

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TransMedics

A-Score: 3.7/10

Value: 0.8

Growth: 9.0

Quality: 6.8

Yield: 0.0

Momentum: 3.5

Volatility: 2.3

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Integer

A-Score: 3.5/10

Value: 5.1

Growth: 5.1

Quality: 4.3

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

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Align Technology

A-Score: 3.3/10

Value: 3.6

Growth: 5.3

Quality: 7.5

Yield: 0.0

Momentum: 1.0

Volatility: 2.7

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Tandem Diabetes Care

A-Score: 2.7/10

Value: 7.8

Growth: 3.6

Quality: 2.2

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

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Bruker

A-Score: 2.5/10

Value: 2.3

Growth: 5.2

Quality: 3.4

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

91.1$

Current Price

91.1$

Potential

-0.00%

Expected Cash-Flows