We are initiating coverage of Globus Medical, the number-two player in the $11 billion spine medical device market. The firm boasts roughly a 20% share and doubled its market position through a 2023 merger with fellow spine player NuVasive.
Globus’ sizable and growing share of the steady and mature spine market coupled with cost efficiencies that lead to an attractive margin profile should create durable free cash flow that can be routed into growth opportunities.
With clinical evidence that lags other orthopedic areas, reimbursement or payer pressure may eventually hamper spine procedural volume.
Metric | GMED | JNJ |
|---|---|---|
Price/Earnings (Normalized) | 15.33 | 26.33 |
Price/Book Value | 2.09 | 8.28 |
Price/Sales | 3.29 | 6.90 |
Price/Cash Flow | 10.26 | 31.86 |
Metric | GMED | JNJ |
|---|---|---|
Quick Ratio | 2.44 | 0.65 |
Current Ratio | 4.30 | 1.02 |
Interest Coverage | — | 18.14 |
Metric | GMED | JNJ |
|---|---|---|
Return on Assets (Normalized) | 12.68% | 13.13% |
Return on Equity (Normalized) | 14.63% | 31.88% |
Return on Invested Capital (Normalized) | 13.87% | 20.08% |
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United States