Globus Medical Inc Stock Upgraded (GMED)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Globus Medical (NYSE: GMED) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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Highlights from the ratings report include:
  • GMED's revenue growth has slightly outpaced the industry average of 8.7%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GMED has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.76, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Equipment & Supplies industry average. The net income increased by 6.3% when compared to the same quarter one year prior, going from $19.89 million to $21.14 million.
  • The gross profit margin for GLOBUS MEDICAL INC is currently very high, coming in at 82.48%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.50% is above that of the industry average.
  • Net operating cash flow has significantly increased by 59.94% to $29.23 million when compared to the same quarter last year. In addition, GLOBUS MEDICAL INC has also vastly surpassed the industry average cash flow growth rate of -22.24%.

Globus Medical, Inc., a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. Globus Medical has a market cap of $1.49 billion and is part of the health care sector and health services industry. Shares are up 10.3% year to date as of the close of trading on Wednesday.

You can view the full Globus Medical Ratings Report or get investment ideas from our investment research center.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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