GLOBANT SA (NYSE:GLOB) – A Strong Growth Stock at a Reasonable Price

GLOBANT SA (NYSE:GLOB) was identified as an affordable growth stock by our stock screener. The company shows strong growth potential while maintaining reasonable valuation metrics, making it an interesting candidate for investors seeking growth at a sensible price. Below, we examine why GLOB fits these criteria.

Growth Prospects

GLOBANT has demonstrated solid growth, with a Growth Rating of 7/10. Key highlights include:

• Revenue Growth: The company has increased revenue by 29.66% annually over the past several years, with an 11.90% rise in the most recent year.
• Earnings Expansion: Earnings per share (EPS) have grown at 22.90% per year historically, with a 6.68% increase in the last year.
• Future Expectations: Analysts project continued growth, with EPS expected to rise by 12.65% annually and revenue by 11.74% in the coming years.

Valuation

GLOBANT’s Valuation Rating of 5/10 suggests it is reasonably priced compared to peers:

• P/E Ratio: At 15.30, the stock trades below the industry average of 33.95 and the S&P 500’s 26.19.
• Forward P/E: The forward P/E of 12.31 is cheaper than 81.71% of its IT services peers.
• Enterprise Value/EBITDA: The ratio is favorable, indicating a discount to most competitors.

Profitability & Financial Health

While growth and valuation stand out, profitability and financial health are solid but not exceptional:

• Profitability Rating (5/10): Margins are decent, with a 6.86% net profit margin, outperforming 67% of industry peers. However, margins have seen recent declines.
• Health Rating (5/10): The company maintains a manageable debt-to-equity ratio of 0.19, better than 63% of competitors. Liquidity metrics are in line with industry averages.

For a deeper look, review the full fundamental analysis of GLOBANT.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.