Quality Investor

Globus Medical, Inc.

Rank #159Op. LeverageWatchlistCompare with other stocks

GMED · NYSE · Healthcare

Globus Medical, Inc. (GMED) — Rank #159 by gross profitability (GP/assets 0.36) · ROE 11.3% · Piotroski F-Score 8 / 9.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

6,000

Industry

Medical Devices

Exchange

NYSE

12/12

Flags passed

GMED passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

No warning flags · GP/assets 42nd percentile of 20 SIC 3841 peers

Gross profitability (GP / assets)

0.36

Primary signal (Novy-Marx).

42nd pctl of 20 SIC 3841 peers

Return on equity

11.3%

Gross margin

67.4%

63rd pctl of 20 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%

Cash Flow Health

Is the cash real?

No warning flags · FCF 9% above net income

Free cash flow

$588.77M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

9.5%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.7%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $840.50M, F-Score 8/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.15

1st of 19 SIC 3841 peers (best = lowest)

Current ratio

4.62×

89th pctl of 20 SIC 3841 peers

Quick ratio

2.69×

Net cash

$840.50M

Cash & equivalents minus total debt.

Piotroski F-Score

8 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

2.3 / 5

Fair
Share count trend(net buybacks)
-0.6%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory
-6.2%1/5 Weak

Lifecycle Phase History

20202025
Capital Return
Hypergrowth
Value
Op. Leverage

Price History

GMED-8.1% · -1.7% CAGRSPY+82.9% · +12.8% CAGR