Globus Medical Profitability Analysis

GMED Stock  USD 53.06  1.44  2.79%   
Taking into consideration Globus Medical's profitability measurements, Globus Medical may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Globus Medical's ability to earn profits and add value for shareholders.
For Globus Medical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Globus Medical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Globus Medical utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Globus Medical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Globus Medical over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
For information on how to trade Globus Stock refer to our How to Trade Globus Stock guide.
Is Globus Medical's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Globus Medical. If investors know Globus will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Globus Medical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Globus Medical is measured differently than its book value, which is the value of Globus that is recorded on the company's balance sheet. Investors also form their own opinion of Globus Medical's value that differs from its market value or its book value, called intrinsic value, which is Globus Medical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Globus Medical's market value can be influenced by many factors that don't directly affect Globus Medical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Globus Medical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Globus Medical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Globus Medical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Globus Medical Current Liabilities vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Globus Medical's current stock value. Our valuation model uses many indicators to compare Globus Medical value to that of its competitors to determine the firm's financial worth.
Globus Medical is rated # 4 in price to book category among related companies. It is rated # 4 in current liabilities category among related companies creating about  47,743,072  of Current Liabilities per Price To Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Globus Medical by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Globus Medical's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Globus Medical's earnings, one of the primary drivers of an investment's value.

Globus Current Liabilities vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Globus Medical

P/B

 = 

MV Per Share

BV Per Share

 = 
1.73 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Current Liabilities is the company's short term debt. This usually includes obligations that are due within the next 12 months or within one fiscal year. Current liabilities are very important in analyzing a company's financial health as it requires the company to convert some of its current assets into cash.

Globus Medical

Current Liabilities

 = 

Payables

+

Accrued Debt

 = 
82.69 M
Current liabilities appear on the company's balance sheet and include all short term debt accounts, accounts and notes payable, accrued liabilities as well as current payments due on the long-term loans. One of the most useful applications of Current Liabilities is the current ratio which is defined as current assets divided by its current liabilities. High current ratios mean that current assets are more than sufficient to pay off current liabilities.

Globus Current Liabilities Comparison

Globus Medical is currently under evaluation in current liabilities category among related companies.

Globus Medical Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Globus Medical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Globus Medical will eventually generate negative long term returns. The profitability progress is the general direction of Globus Medical's change in net profit over the period of time. It can combine multiple indicators of Globus Medical, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Globus Medical, Inc., a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. Globus Medical, Inc. was incorporated in 2003 and is headquartered in Audubon, Pennsylvania. Globus Medical operates under Medical Devices classification in the United States and is traded on New York Stock Exchange. It employs 2400 people.

Globus Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Globus Medical. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Globus Medical position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Globus Medical's important profitability drivers and their relationship over time.

Globus Medical Profitability Trends

Globus Medical profitability trend refers to the progression of profit or loss within a business. An upward trend means that Globus Medical's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Globus Medical's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Use Globus Medical in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Globus Medical position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Globus Medical will appreciate offsetting losses from the drop in the long position's value.

Globus Medical Pair Trading

Globus Medical Pair Trading Analysis

The ability to find closely correlated positions to Globus Medical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Globus Medical when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Globus Medical - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Globus Medical to buy it.
The correlation of Globus Medical is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Globus Medical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Globus Medical moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Globus Medical can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Globus Medical position

In addition to having Globus Medical in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Globus Medical is a strong investment it is important to analyze Globus Medical's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Globus Medical's future performance. For an informed investment choice regarding Globus Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
For information on how to trade Globus Stock refer to our How to Trade Globus Stock guide.
Note that the Globus Medical information on this page should be used as a complementary analysis to other Globus Medical's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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When running Globus Medical's price analysis, check to measure Globus Medical's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Globus Medical is operating at the current time. Most of Globus Medical's value examination focuses on studying past and present price action to predict the probability of Globus Medical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Globus Medical's price. Additionally, you may evaluate how the addition of Globus Medical to your portfolios can decrease your overall portfolio volatility.
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To fully project Globus Medical's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Globus Medical at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Globus Medical's income statement, its balance sheet, and the statement of cash flows.
Potential Globus Medical investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Globus Medical investors may work on each financial statement separately, they are all related. The changes in Globus Medical's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Globus Medical's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.