GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GLOB - LU0974299876 - Common Stock
68.2 USD
+0.72 (+1.07%)
68.2 USD
0 (0%)
Overall GLOB gets a fundamental rating of 5 out of 10. We evaluated GLOB against 88 industry peers in the IT Services industry. GLOB has an average financial health and profitability rating. GLOB may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- GLOB had positive earnings in the past year.
- GLOB had a positive operating cash flow in the past year.
- Each year in the past 5 years GLOB has been profitable.
- In the past 5 years GLOB always reported a positive cash flow from operatings.
1.2 Ratios
- GLOB has a Return On Assets of 3.23%. This is in the better half of the industry: GLOB outperforms 61.36% of its industry peers.
- GLOB has a Return On Equity (5.18%) which is in line with its industry peers.
- GLOB has a Return On Invested Capital of 7.36%. This is in the better half of the industry: GLOB outperforms 67.05% of its industry peers.
- GLOB had an Average Return On Invested Capital over the past 3 years of 9.18%. This is significantly below the industry average of 29.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 5.18% | ||
| ROIC | 7.36% |
ROA(3y)5.94%
ROA(5y)5.42%
ROE(3y)9.16%
ROE(5y)8.2%
ROIC(3y)9.18%
ROIC(5y)8.71%
1.3 Margins
- GLOB's Profit Margin of 4.43% is fine compared to the rest of the industry. GLOB outperforms 62.50% of its industry peers.
- In the last couple of years the Profit Margin of GLOB has declined.
- GLOB's Operating Margin of 10.51% is fine compared to the rest of the industry. GLOB outperforms 72.73% of its industry peers.
- GLOB's Operating Margin has declined in the last couple of years.
- GLOB has a Gross Margin (35.55%) which is comparable to the rest of the industry.
- GLOB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.51% | ||
| PM (TTM) | 4.43% | ||
| GM | 35.55% |
OM growth 3Y-5.24%
OM growth 5Y-4.77%
PM growth 3Y-2.53%
PM growth 5Y-3.48%
GM growth 3Y-2.16%
GM growth 5Y-1.51%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GLOB is destroying value.
- Compared to 1 year ago, GLOB has more shares outstanding
- The number of shares outstanding for GLOB has been increased compared to 5 years ago.
- The debt/assets ratio for GLOB is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.88 indicates that GLOB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- GLOB's Altman-Z score of 2.88 is in line compared to the rest of the industry. GLOB outperforms 52.27% of its industry peers.
- The Debt to FCF ratio of GLOB is 2.18, which is a good value as it means it would take GLOB, 2.18 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.18, GLOB is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- A Debt/Equity ratio of 0.23 indicates that GLOB is not too dependend on debt financing.
- The Debt to Equity ratio of GLOB (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.54
WACC13.65%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
- GLOB has a Current ratio of 1.71. This is comparable to the rest of the industry: GLOB outperforms 52.27% of its industry peers.
- A Quick Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
- The Quick ratio of GLOB (1.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
- GLOB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.32%.
- Measured over the past years, GLOB shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.90% on average per year.
- The Revenue has been growing slightly by 5.56% in the past year.
- Measured over the past years, GLOB shows a very strong growth in Revenue. The Revenue has been growing by 29.66% on average per year.
EPS 1Y (TTM)0.32%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%-6.13%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%0.4%
3.2 Future
- GLOB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.46% yearly.
- Based on estimates for the next years, GLOB will show a small growth in Revenue. The Revenue will grow by 4.53% on average per year.
EPS Next Y-3.44%
EPS Next 2Y0.15%
EPS Next 3Y2.6%
EPS Next 5Y4.46%
Revenue Next Year1.26%
Revenue Next 2Y1.49%
Revenue Next 3Y3.03%
Revenue Next 5Y4.53%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.81 indicates a reasonable valuation of GLOB.
- Based on the Price/Earnings ratio, GLOB is valued cheaply inside the industry as 88.64% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.38. GLOB is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 10.59, the valuation of GLOB can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, GLOB is valued cheaper than 89.77% of the companies in the same industry.
- GLOB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GLOB is valued cheaper than 87.50% of the companies in the same industry.
- 86.36% of the companies in the same industry are more expensive than GLOB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.21 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y0.15%
EPS Next 3Y2.6%
5. Dividend
5.1 Amount
- No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
68.2
+0.72 (+1.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-13 2025-11-13/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners107.31%
Inst Owner Change-0.08%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap3.00B
Revenue(TTM)2.48B
Net Income(TTM)109.86M
Analysts75
Price Target87.58 (28.42%)
Short Float %14.56%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.06%
Min EPS beat(2)-7.05%
Max EPS beat(2)-1.07%
EPS beat(4)0
Avg EPS beat(4)-2.75%
Min EPS beat(4)-7.05%
Max EPS beat(4)-1.07%
EPS beat(8)0
Avg EPS beat(8)-2.02%
EPS beat(12)0
Avg EPS beat(12)-1.71%
EPS beat(16)3
Avg EPS beat(16)-0.89%
Revenue beat(2)0
Avg Revenue beat(2)-2.65%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.12%
Revenue beat(12)0
Avg Revenue beat(12)-1.99%
Revenue beat(16)2
Avg Revenue beat(16)-1.26%
PT rev (1m)-0.4%
PT rev (3m)-12.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 10.59 | ||
| P/S | 1.21 | ||
| P/FCF | 12.21 | ||
| P/OCF | 11.31 | ||
| P/B | 1.42 | ||
| P/tB | 27.15 | ||
| EV/EBITDA | 7.89 |
EPS(TTM)6.31
EY9.25%
EPS(NY)6.44
Fwd EY9.44%
FCF(TTM)5.58
FCFY8.19%
OCF(TTM)6.03
OCFY8.85%
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.47
Graham Number82.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 5.18% | ||
| ROCE | 9.18% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.87% | ||
| ROICexgc | 32.24% | ||
| OM | 10.51% | ||
| PM (TTM) | 4.43% | ||
| GM | 35.55% | ||
| FCFM | 9.91% |
ROA(3y)5.94%
ROA(5y)5.42%
ROE(3y)9.16%
ROE(5y)8.2%
ROIC(3y)9.18%
ROIC(5y)8.71%
ROICexc(3y)11.64%
ROICexc(5y)13.28%
ROICexgc(3y)53.79%
ROICexgc(5y)N/A
ROCE(3y)11.45%
ROCE(5y)10.86%
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.21%
ROICexc growth 3Y-26.66%
ROICexc growth 5Y-11.95%
OM growth 3Y-5.24%
OM growth 5Y-4.77%
PM growth 3Y-2.53%
PM growth 5Y-3.48%
GM growth 3Y-2.16%
GM growth 5Y-1.51%
F-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.18 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 12.13% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.74% | ||
| Profit Quality | 223.92% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 2.88 |
F-Score4
WACC13.65%
ROIC/WACC0.54
Cap/Depr(3y)82.94%
Cap/Depr(5y)91.15%
Cap/Sales(3y)5.37%
Cap/Sales(5y)5.73%
Profit Quality(3y)90.34%
Profit Quality(5y)92.43%
High Growth Momentum
Growth
EPS 1Y (TTM)0.32%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%-6.13%
EPS Next Y-3.44%
EPS Next 2Y0.15%
EPS Next 3Y2.6%
EPS Next 5Y4.46%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%0.4%
Revenue Next Year1.26%
Revenue Next 2Y1.49%
Revenue Next 3Y3.03%
Revenue Next 5Y4.53%
EBIT growth 1Y4.28%
EBIT growth 3Y16.58%
EBIT growth 5Y23.47%
EBIT Next Year37.81%
EBIT Next 3Y13.69%
EBIT Next 5Y9.47%
FCF growth 1Y-29.53%
FCF growth 3Y10.04%
FCF growth 5Y23.15%
OCF growth 1Y-21.91%
OCF growth 3Y11.59%
OCF growth 5Y25.56%
GLOBANT SA / GLOB FAQ
What is the fundamental rating for GLOB stock?
ChartMill assigns a fundamental rating of 5 / 10 to GLOB.
What is the valuation status of GLOBANT SA (GLOB) stock?
ChartMill assigns a valuation rating of 7 / 10 to GLOBANT SA (GLOB). This can be considered as Undervalued.
How profitable is GLOBANT SA (GLOB) stock?
GLOBANT SA (GLOB) has a profitability rating of 5 / 10.
Can you provide the financial health for GLOB stock?
The financial health rating of GLOBANT SA (GLOB) is 4 / 10.