Globus Medical Inc. Class A Common Stock (GMED)

FairStock Score: 66/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital, carry little debt, and sell at a sensible price. Globus Medical has some of those marks: at the close on 2026-10-13, its $76.32 price gives a FairStock P/E of 19.52, a P/B of 2.15, and a trailing FCF yield of 7.3%. The balance sheet is conservative—D/E of 0.02—and FairStock's Piotroski score is a perfect 9/9, with an Altman Z-Score of 9.57, suggesting financial strength. But returns are only moderate: ROE 11.81% and ROCE 8.74%. The growth story is uneven. FairStock's Lynch category is FAST GROWER, based on filed annual results showing profit growth of 39.4% a year and revenue growth of 30.1% over five years. Yet in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $789.6M and net income was $151.6M, versus $745.3M and $202.8M in fiscal Q2 2025; sales grew about 5.9% while profit fell about 25%. For fiscal 2025, revenue was $2.9B and net income $537.9M, up sharply from fiscal 2024's $2.5B and $103.0M, so comparisons are noisy. The spinal-device niche may create switching costs and surgeon relationships, but the figures alone do not prove a wide moat. Valuation is the rub. The FairStock Graham Number is $55.90, leaving a negative margin of safety of 36.53% at the recent price; EV/EBITDA is 10.33 and the FairStock score is 66/100. I would want evidence that the latest profit decline is temporary and that revenue can reaccelerate before calling this a bargain.

In plain English: Globus Medical makes medical devices, mainly implants and tools for spine and other bone and joint problems. The business looks financially strong, with little debt and good cash flow, but its latest quarterly profit fell compared with a year earlier and sales grew only modestly. At the recent price, the stock looks full based on older value measures, though not extreme on earnings and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer