# Globus Medical (GMED.US)

Canonical: https://gigainvestors.com/s/GMED

Analysis as of: 2026-10-16T07:28:49.322Z. Financial observations: FY2009–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $78.84 per share; close as of 2026-10-15.

Estimated value: low $56.56 per share, central $77.24 per share, high $89.94 per share. Buy at or below the central value $77.24 per share. Valuation as of 2026-10-16T07:28:49.322Z; scenarios are not confidence intervals.

Expected annual return: 9.9% at the stated quote. About 9.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.34×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.25×

- FY2018: 0.24×

- FY2019: 0.22×

- FY2020: 0.14×

- FY2021: 0.18×

- FY2022: 0.22×

- FY2023: 0.08×

- FY2024: 0.07×

- FY2025: 0.16×

- LTM to Jun 2026: 0.21×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 9.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 14.7%

- ROIC, second-lowest year: 5.9%

- Typical minus recent gross margin: 9.6 pp

- Typical gross margin (annual median): 74.6%

- Recent gross margin (lower of latest and 3-year median): 65.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.2%

- ROIC including acquisitions, ten-year median: 13.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.5%

- FY2017: 22.4%

- FY2018: 19.3%

- FY2019: 14.6%

- FY2020: 9.8%

- FY2021: 12.7%

- FY2022: 14.8%

- FY2023: 3.9%

- FY2024: 5.9%

- FY2025: 15.7%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.30×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.4B

- Net income, five-year total: $1.1B

- Return on incremental invested capital: 32.6%

- Working capital / revenue, annual change: 2.8 pp

- Working capital / revenue, change between three-year averages: 24.9 pp

- Working capital / revenue, final three-year average: 58.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.09×

- FY2022: 1.00×

- FY2023: 1.54×

- FY2024: 2.35×

- FY2025: 1.21×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 22.4% vs 5.9%

- Per-share earnings: 1.10 to 1.07 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.6%

- Ordinary dilution, 5-year annual growth: 6.3%

- Market cap gain: $9.6B

- Cumulative retained earnings: $759M

- Diluted shares, 10-year annual growth: 3.6%

- Diluted shares, 5-year annual growth: 6.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -0.3%

- Per-share value change: -$0.02

- Per-share value, starting three-year median: $1.10

- Per-share value, ending three-year median: $1.07

- Buybacks concentrated in cheaper years (correlation): 0.70

- Average buyback yield: 2.1%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: $2.2B

- Cumulative net income, 10 years: $1.7B

- ROIC, first three-year median: 22.4%

- ROIC, last three-year median: 5.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.08

- FY2017: $1.10

- FY2018: $1.54

- FY2019: $1.52

- FY2020: $1.01

- FY2021: $1.44

- FY2022: $1.85

- FY2023: $1.07

- FY2024: $0.75

- FY2025: $3.92

### accounting: pass

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 6.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.40×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.48×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.3%

- FY2017: -4.8%

- FY2018: -1.9%

- FY2019: -1.1%

- FY2020: -5.7%

- FY2021: -6.5%

- FY2022: 0.6%

- FY2023: -2.4%

- FY2024: -8.0%

- FY2025: -4.1%

## Holders

- [Bill Ruane](https://gigainvestors.com/RC): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 6.1% a year for ten years · sales +7%

Story as of 2026-10-16T09:58:49.849Z; price observation 2026-10-15.

Price needs cash profits to grow 6.1% a year for ten years

- 2025-05-08: Globus Medical (NYSE:GMED) Reports Sales Below Analyst Estimates In Q1 Earnings, Stock Drops 17.1% ([finance.yahoo.com](https://finance.yahoo.com/news/globus-medical-nyse-gmed-reports-205607899.html))

- 2025-08-07: Globus Medical earnings beat by $0.10, revenue topped estimates ([investing.com](https://www.investing.com/news/earnings/globus-medical-earnings-beat-by-010-revenue-topped-estimates-4178668))

- 2025-11-07: GMED Q3 Deep Dive: U.S. Spine Momentum and Nevro Integration Drive Upbeat Results ([finance.yahoo.com](https://finance.yahoo.com/news/gmed-q3-deep-dive-u-142623417.html))

- 2026-01-08: Globus Medical Surges On Preliminary Q4 And FY25 Sales Results; Issues FY26 Guidance ([nasdaq.com](https://www.nasdaq.com/articles/globus-medical-surges-preliminary-q4-and-fy25-sales-results-issues-fy26-guidance))

- 2026-08-06: Globus Medical (NYSE:GMED) Beats Q2 CY2026 Sales Expectations ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/globus-medical-nyse-gmed-beats-215602734.html))

### Sales · FY2025–2026

sales +7%; source https://www.sec.gov/Archives/edgar/data/1237831/000162828026011209/gmed-20251231.htm; observed 2026-02-24.

- FY2017: $636M 

- FY2018: $713M 

- FY2019: $785M 

- FY2020: $789M 

- FY2021: $958M 

- FY2022: $1.0B 

- FY2023: $1.6B 

- FY2024: $2.5B 

- FY2025: $2.9B 

- FY2026: $3.1B 

### Gross margin · FY2025

gross margin 67.4%; source https://www.sec.gov/Archives/edgar/data/1237831/000162828026011209/gmed-20251231.htm; observed 2026-02-24.

- FY2016: 76.1% 

- FY2017: 76.3% 

- FY2018: 77.6% 

- FY2019: 77.1% 

- FY2020: 72.4% 

- FY2021: 75.0% 

- FY2022: 74.2% 

- FY2023: 65.1% 

- FY2024: 58.9% 

- FY2025: 67.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical devices; annual sales are USD 2.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1237831/000162828026011209/gmed-20251231.htm (filed 2026-02-24); FY2025: revenue 2938900000; grossProfit 1981100000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GMED.US: Globus Medical, Inc. develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. 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.

### Why customers stay

Margins ranged from 58.9% to 67.4% during 2023–25; it earns 14.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 65.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 58.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1237831/000162828026011209/gmed-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 67.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.23462557056203673],[2017,0.22373511477494837],[2018,0.19333473699842227],[2019,0.145683710764718],[2020,0.09759409839762176],[2021,0.12659269669924206],[2022,0.14755936713879325],[2023,0.03854712632461342],[2024,0.0591960489282279],[2025,0.15674688137793832]]; median 0.14662153895175561. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 300.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 2138000; upkeep 38771000; owner earnings 104341000. Growth capex / owner earnings = 0.02049050708733863.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 9236000; upkeep 42067000; owner earnings 107348000. Growth capex / owner earnings = 0.08603793270484779.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 16068796.605902538; upkeep 43628203.39409746; owner earnings 154475796.60590255. Growth capex / owner earnings = 0.10402145163813026.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 16673995.172200337; upkeep 54076004.82779966; owner earnings 153867995.17220032. Growth capex / owner earnings = 0.10836558410694666.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 784000; upkeep 62874000; owner earnings 102285000. Growth capex / owner earnings = 0.007664857994818399.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 56898000; owner earnings 162160000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 5795000; upkeep 68252000; owner earnings 190169000. Growth capex / owner earnings = 0.030472895161671988.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 78274000; owner earnings 189332000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 115429000; owner earnings 241579000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1237831/000162828026011209/gmed-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 164679000; owner earnings 650063000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1237831/000162828026011209/gmed-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 300451000 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GMED.US SharesStats.PercentInsiders = 0.613 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.1% yearly over ten years; actual growth was 16.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.07494363749139268. Price 78.84; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.0165782614021026 → FY2025 4.743046637870651. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $22.13 per share

- 2016-11: $21.64 per share

- 2016-12: $24.81 per share

- 2017-01: $26.36 per share

- 2017-02: $27.81 per share

- 2017-03: $29.62 per share

- 2017-04: $30.33 per share

- 2017-05: $30.75 per share

- 2017-06: $33.15 per share

- 2017-07: $30.75 per share

- 2017-08: $30.23 per share

- 2017-09: $29.72 per share

- 2017-10: $31.87 per share

- 2017-11: $38.01 per share

- 2017-12: $41.10 per share

- 2018-01: $46.04 per share

- 2018-02: $47.64 per share

- 2018-03: $49.82 per share

- 2018-04: $51.19 per share

- 2018-05: $55.55 per share

- 2018-06: $50.46 per share

- 2018-07: $51.48 per share

- 2018-08: $53.27 per share

- 2018-09: $56.76 per share

- 2018-10: $52.85 per share

- 2018-11: $48.29 per share

- 2018-12: $43.28 per share

- 2019-01: $45.05 per share

- 2019-02: $48.69 per share

- 2019-03: $49.41 per share

- 2019-04: $45.09 per share

- 2019-05: $39.30 per share

- 2019-06: $42.30 per share

- 2019-07: $45.58 per share

- 2019-08: $51.07 per share

- 2019-09: $51.12 per share

- 2019-10: $52.37 per share

- 2019-11: $55.95 per share

- 2019-12: $58.88 per share

- 2020-01: $52.28 per share

- 2020-02: $45.23 per share

- 2020-03: $42.53 per share

- 2020-04: $47.46 per share

- 2020-05: $54.65 per share

- 2020-06: $47.71 per share

- 2020-07: $48.18 per share

- 2020-08: $56.52 per share

- 2020-09: $49.52 per share

- 2020-10: $52.12 per share

- 2020-11: $60.08 per share

- 2020-12: $65.22 per share

- 2021-01: $61.69 per share

- 2021-02: $62.50 per share

- 2021-03: $61.67 per share

- 2021-04: $71.77 per share

- 2021-05: $72.06 per share

- 2021-06: $77.53 per share

- 2021-07: $83.17 per share

- 2021-08: $81.60 per share

- 2021-09: $76.62 per share

- 2021-10: $77.17 per share

- 2021-11: $62.62 per share

- 2021-12: $72.20 per share

- 2022-01: $66.73 per share

- 2022-02: $70.32 per share

- 2022-03: $73.78 per share

- 2022-04: $66.22 per share

- 2022-05: $66.60 per share

- 2022-06: $56.14 per share

- 2022-07: $58.69 per share

- 2022-08: $59.19 per share

- 2022-09: $59.57 per share

- 2022-10: $67.00 per share

- 2022-11: $73.89 per share

- 2022-12: $74.27 per share

- 2023-01: $75.50 per share

- 2023-02: $58.34 per share

- 2023-03: $56.64 per share

- 2023-04: $58.14 per share

- 2023-05: $54.13 per share

- 2023-06: $59.54 per share

- 2023-07: $60.27 per share

- 2023-08: $54.10 per share

- 2023-09: $49.65 per share

- 2023-10: $45.71 per share

- 2023-11: $44.92 per share

- 2023-12: $53.29 per share

- 2024-01: $52.79 per share

- 2024-02: $53.99 per share

- 2024-03: $53.64 per share

- 2024-04: $49.79 per share

- 2024-05: $67.11 per share

- 2024-06: $68.49 per share

- 2024-07: $71.96 per share

- 2024-08: $72.70 per share

- 2024-09: $71.54 per share

- 2024-10: $73.54 per share

- 2024-11: $85.61 per share

- 2024-12: $82.71 per share

- 2025-01: $92.72 per share

- 2025-02: $80.32 per share

- 2025-03: $73.20 per share

- 2025-04: $71.77 per share

- 2025-05: $59.18 per share

- 2025-06: $59.02 per share

- 2025-07: $52.63 per share

- 2025-08: $61.27 per share

- 2025-09: $57.27 per share

- 2025-10: $60.39 per share

- 2025-11: $91.04 per share

- 2025-12: $87.31 per share

- 2026-01: $90.68 per share

- 2026-02: $95.46 per share

- 2026-03: $86.16 per share

- 2026-04: $90.18 per share

- 2026-05: $81.88 per share

- 2026-06: $79.01 per share

- 2026-07: $78.79 per share

- 2026-08: $81.37 per share

- 2026-09: $74.90 per share

- 2026-10: $78.84 per share

## Annual estimated value (USD per share)

- FY2016: low $14.72 per share, central $16.35 per share, high $18.52 per share

- FY2017: low $16.42 per share, central $18.18 per share, high $20.51 per share

- FY2018: low $17.44 per share, central $19.40 per share, high $22.02 per share

- FY2019: low $22.27 per share, central $30.56 per share, high $35.40 per share

- FY2020: low $21.40 per share, central $25.81 per share, high $29.45 per share

- FY2021: low $25.02 per share, central $33.47 per share, high $38.57 per share

- FY2022: low $29.15 per share, central $39.59 per share, high $45.77 per share

- FY2023: low $31.37 per share, central $37.45 per share, high $42.96 per share

- FY2024: low $34.92 per share, central $42.82 per share, high $49.00 per share

- FY2025: low $51.79 per share, central $70.72 per share, high $82.35 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1237831/000162828026011209/gmed-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.