GLOBANT SA (GLOB) Stock Fundamental Analysis
NYSE:GLOB - LU0974299876 - Common Stock
69.93 USD
+2.45 (+3.63%)
69.81 USD
-0.12 (-0.17%)
Taking everything into account, GLOB scores 4 out of 10 in our fundamental rating. GLOB was compared to 83 industry peers in the IT Services industry. GLOB has a medium profitability rating, but doesn't score so well on its financial health evaluation. GLOB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GLOB had positive earnings in the past year.
In the past 5 years GLOB has always been profitable.
GLOB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GLOB has a Return On Assets of 3.25%. This is in the better half of the industry: GLOB outperforms 61.45% of its industry peers.
GLOB has a Return On Equity (5.20%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 7.34%, GLOB is doing good in the industry, outperforming 66.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GLOB is significantly below the industry average of 22.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 5.2% | ||
| ROIC | 7.34% |
ROA(3y)5.94%
ROA(5y)5.42%
ROE(3y)9.16%
ROE(5y)8.2%
ROIC(3y)9.19%
ROIC(5y)8.71%
1.3 Margins
GLOB has a Profit Margin of 4.44%. This is in the better half of the industry: GLOB outperforms 62.65% of its industry peers.
GLOB's Profit Margin has declined in the last couple of years.
GLOB has a Operating Margin of 10.49%. This is in the better half of the industry: GLOB outperforms 71.08% of its industry peers.
GLOB's Operating Margin has declined in the last couple of years.
GLOB has a Gross Margin of 35.55%. This is comparable to the rest of the industry: GLOB outperforms 49.40% of its industry peers.
In the last couple of years the Gross Margin of GLOB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.49% | ||
| PM (TTM) | 4.44% | ||
| 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) just above the Cost of Capital (WACC), GLOB is creating some value.
The number of shares outstanding for GLOB has been increased compared to 1 year ago.
Compared to 5 years ago, GLOB has more shares outstanding
The debt/assets ratio for GLOB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.91 indicates that GLOB is not a great score, but indicates only limited risk for bankruptcy at the moment.
GLOB's Altman-Z score of 2.91 is in line compared to the rest of the industry. GLOB outperforms 50.60% of its industry peers.
GLOB has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.23, GLOB is in line with its industry, outperforming 57.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.91 |
ROIC/WACC1.02
WACC7.21%
2.3 Liquidity
A Current Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.71, GLOB is in line with its industry, outperforming 51.81% of the companies in the same industry.
A Quick Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
GLOB has a Quick ratio (1.71) which 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
The Earnings Per Share has been growing slightly by 4.40% over the past year.
The Earnings Per Share has been growing by 22.90% on average over the past years. This is a very strong growth
The Revenue has grown by 8.66% in the past year. This is quite good.
The Revenue has been growing by 29.66% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)4.4%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%1.32%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%4.55%
3.2 Future
The Earnings Per Share is expected to grow by 8.49% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.38% on average over the next years. This is quite good.
EPS Next Y-2.91%
EPS Next 2Y0.92%
EPS Next 3Y3.66%
EPS Next 5Y8.49%
Revenue Next Year1.78%
Revenue Next 2Y2.96%
Revenue Next 3Y4.57%
Revenue Next 5Y8.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.91 indicates a reasonable valuation of GLOB.
90.36% of the companies in the same industry are more expensive than GLOB, based on the Price/Earnings ratio.
GLOB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 10.69, the valuation of GLOB can be described as reasonable.
GLOB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GLOB is cheaper than 89.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GLOB to the average of the S&P500 Index (22.81), we can say GLOB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 10.69 |
4.2 Price Multiples
86.75% of the companies in the same industry are more expensive than GLOB, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y0.92%
EPS Next 3Y3.66%
5. Dividend
5.1 Amount
GLOB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
69.93
+2.45 (+3.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.69%
Inst Owner Change-1.99%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap3.08B
Analysts77.78
Price Target109.66 (56.81%)
Short Float %8.78%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-16.32%
PT rev (3m)-40.82%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)-15.72%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-10.57%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-9.97%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-6.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 10.69 | ||
| P/S | 1.24 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.45 | ||
| P/tB | 27.84 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)6.41
EY9.17%
EPS(NY)6.54
Fwd EY9.35%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 5.2% | ||
| ROCE | 9.16% | ||
| ROIC | 7.34% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 32.18% | ||
| OM | 10.49% | ||
| PM (TTM) | 4.44% | ||
| GM | 35.55% | ||
| FCFM | N/A |
ROA(3y)5.94%
ROA(5y)5.42%
ROE(3y)9.16%
ROE(5y)8.2%
ROIC(3y)9.19%
ROIC(5y)8.71%
ROICexc(3y)11.65%
ROICexc(5y)13.29%
ROICexgc(3y)54.61%
ROICexgc(5y)N/A
ROCE(3y)11.46%
ROCE(5y)10.86%
ROICexcg growth 3YN/A
ROICexcg 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-ScoreN/A
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 2.91 |
F-ScoreN/A
WACC7.21%
ROIC/WACC1.02
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)4.4%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%1.32%
EPS Next Y-2.91%
EPS Next 2Y0.92%
EPS Next 3Y3.66%
EPS Next 5Y8.49%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%4.55%
Revenue Next Year1.78%
Revenue Next 2Y2.96%
Revenue Next 3Y4.57%
Revenue Next 5Y8.38%
EBIT growth 1Y4.08%
EBIT growth 3Y16.58%
EBIT growth 5Y23.47%
EBIT Next Year38.49%
EBIT Next 3Y17.35%
EBIT Next 5Y13.35%
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%