GLOBANT SA (GLOB)
LU0974299876 - Common Stock
Taking everything into account, GLOB scores 5 out of 10 in our fundamental rating. GLOB was compared to 86 industry peers in the IT Services industry. Both the profitability and the financial health of GLOB get a neutral evaluation. Nothing too spectacular is happening here. GLOB shows excellent growth, but is valued quite expensive already. With these ratings, GLOB could be worth investigating further for growth investing!.
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.
GLOB had positive earnings in each of the past 5 years.
GLOB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.80%, GLOB is doing good in the industry, outperforming 72.62% of the companies in the same industry.
GLOB has a Return On Equity of 9.17%. This is in the better half of the industry: GLOB outperforms 65.48% of its industry peers.
GLOB has a better Return On Invested Capital (9.15%) than 73.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GLOB is below the industry average of 13.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 9.17% | ||
| ROIC | 9.15% |
ROA(3y)5.89%
ROA(5y)5.94%
ROE(3y)8.8%
ROE(5y)8.97%
ROIC(3y)9.29%
ROIC(5y)9.64%
1.3 Margins
Looking at the Profit Margin, with a value of 7.56%, GLOB is in the better half of the industry, outperforming 72.62% of the companies in the same industry.
In the last couple of years the Profit Margin of GLOB has declined.
The Operating Margin of GLOB (11.40%) is better than 72.62% of its industry peers.
GLOB's Operating Margin has declined in the last couple of years.
GLOB has a Gross Margin (36.06%) which is in line with its industry peers.
GLOB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.4% | ||
| PM (TTM) | 7.56% | ||
| GM | 36.06% |
OM growth 3Y-1.54%
OM growth 5Y-4.29%
PM growth 3Y4.35%
PM growth 5Y-5.24%
GM growth 3Y-1.19%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GLOB is still creating some value.
The number of shares outstanding for GLOB has been increased compared to 1 year ago.
GLOB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GLOB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.11 indicates that GLOB is not in any danger for bankruptcy at the moment.
GLOB has a better Altman-Z score (6.11) than 82.14% of its industry peers.
The Debt to FCF ratio of GLOB is 1.45, which is an excellent value as it means it would take GLOB, only 1.45 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GLOB (1.45) is better than 75.00% of its industry peers.
GLOB has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GLOB (0.04) is better than 77.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | 6.11 |
ROIC/WACC1.24
WACC7.36%
2.3 Liquidity
A Current Ratio of 1.36 indicates that GLOB should not have too much problems paying its short term obligations.
The Current ratio of GLOB (1.36) is comparable to the rest of the industry.
A Quick Ratio of 1.36 indicates that GLOB should not have too much problems paying its short term obligations.
GLOB has a Quick ratio (1.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
GLOB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.99%, which is quite good.
Measured over the past years, GLOB shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.96% on average per year.
Looking at the last year, GLOB shows a quite strong growth in Revenue. The Revenue has grown by 17.73% in the last year.
The Revenue has been growing by 32.04% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)12.99%
EPS 3Y32.82%
EPS 5Y26.96%
EPS growth Q2Q15.71%
Revenue 1Y (TTM)17.73%
Revenue growth 3Y37.06%
Revenue growth 5Y32.04%
Revenue growth Q2Q18.34%
3.2 Future
The Earnings Per Share is expected to grow by 22.26% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.48% on average over the next years. This is quite good.
EPS Next Y16.18%
EPS Next 2Y18.15%
EPS Next 3Y19.51%
EPS Next 5Y22.26%
Revenue Next Year16.61%
Revenue Next 2Y17.21%
Revenue Next 3Y18.52%
Revenue Next 5Y19.48%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
GLOB is valuated quite expensively with a Price/Earnings ratio of 31.29.
GLOB's Price/Earnings is on the same level as the industry average.
GLOB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
GLOB is valuated quite expensively with a Price/Forward Earnings ratio of 26.93.
The rest of the industry has a similar Price/Forward Earnings ratio as GLOB.
GLOB is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.29 | ||
| Fwd PE | 26.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GLOB.
GLOB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.36 | ||
| EV/EBITDA | 20.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GLOB does not grow enough to justify the current Price/Earnings ratio.
GLOB's earnings are expected to grow with 19.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.93
PEG (5Y)1.16
EPS Next 2Y18.15%
EPS Next 3Y19.51%
5. Dividend
5.1 Amount
GLOB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GLOBANT SA
NYSE:GLOB (5/2/2024, 7:04:01 PM)
After market: 179.58 0 (0%)179.58
+1.65 (+0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.29 | ||
| Fwd PE | 26.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.93
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 9.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.4% | ||
| PM (TTM) | 7.56% | ||
| GM | 36.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.99%
EPS 3Y32.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.73%
Revenue growth 3Y37.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y