Quality Investor

Globus Medical, Inc.

Rank #164Op. Leverage

GMED · NYSE · Healthcare

Globus Medical, Inc. (GMED) — Rank #164 by gross profitability (GP/assets 0.36) · ROE 11.3% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0001237831 · all metrics point-in-time as of the filing date.

About

Globus Medical, Inc. develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally.

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The company offers spine products comprising traditional fusion implants, such as pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices; treatment options for motion preservation technologies consisting of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional solutions to treat vertebral compression fractures; and biologic solutions, such as allografts and synthetic alternatives. It also provides orthopedic trauma solutions, including limb reconstruction, fracture plating, intramedullary nailing, external fixation, and compression screw technologies; hip and knee arthroplasty solutions, including modular cement and cementless hip stems, acetabular cups, femoral heads, highly cross-linked liners, partial knee systems, cruciate retaining, posterior stabilized, and revision options; spinal cord stimulation services; and neuromonitoring services, which provide onsite and remote monitoring of the neurological systems. In addition, the company offers ExcelsiusGPS platform, a robotic guidance and navigation system for minimally invasive and open procedures; Surgimap, a surgical planning software platform; Excelsius3D, a platform combined with ExcelsiusGPS that provides an intraoperative and image-guided robotic navigation solution; ExcelsiusHub, which provides real-time patient array monitoring, tissue sparing drills, and registration flexibility; and ExcelsiusFlex, a total knee arthroplasty robotic solution. Further, it distributes human cells, tissues, and cellular and tissue-based products. The company sells its products through direct and distributor sales representatives; and independent sales agents. Globus Medical, Inc.

was incorporated in 2003 and is headquartered in Audubon, Pennsylvania.

Industry
Medical Devices
Sector
Healthcare
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

GMED-11.4% · -2.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$10.02B

P/E (annual)

19.0

P/S (annual)

3.4

P/B

2.1

P/OCF (annual)

13.3

Shareholder Yield

0.6%

Employees

6,000

Industry

Medical Devices

Exchange

NYSE

Signal Flags

3 green
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.36
Return on equity
11.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.15
Current ratio
4.62×
Net cash
$840.50M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.7%

Growth

2/2 pass
Revenue growth
16.7%
Piotroski F-Score
8 / 9
Share dilution
-0.6%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

5.8%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -0.6% — per-share value needs a total required return of 5.2% once share-count change is priced in.

vs. own 6-year median revenue growth: 19.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

1.6%

r = 10% (base)

5.8%

r = 12%

9.4%

Net debt / market cap: -8.2%

Base FCF: $588.8M3Y mean FCF: $386.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

23.4xCheap
23.4xmed 43.8x112.2x

P / S

Price / revenue per share

4.3xCheap
4.0xmed 7.0x8.5x

P / B

Price / book value per share

2.8xCheap
1.6xmed 4.0x5.5x

P / GP

Price / gross profit per share

6.4xCheap
6.2xmed 9.1x11.8x

P / FCF

Price / free cash flow per share

21.4xCheap
21.4xmed 41.3x58.1x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.36

Primary signal (Novy-Marx).

11th of 17 SIC 3841 peers

Return on equity

11.3%

Gross margin

67.4%

8th of 17 SIC 3841 peers

Revenue growth (YoY)

16.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

42.2%

Revenue CAGR (5Y)

30.1%

Earnings CAGR (3Y)

41.4%

FCF CAGR (3Y)

78.0%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.15

1st of 16 SIC 3841 peers (best = lowest)

Current ratio

4.62×

3rd of 17 SIC 3841 peers

Quick ratio

2.69×

Net cash

$840.50M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$588.77M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.09

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.7%

Stock-based comp intensity.

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Capital Return
Hypergrowth
Value
Op. Leverage