GLOBANT SA (GLOB) Stock Fundamental Analysis
NYSE:GLOB - New York Stock Exchange, Inc. - LU0974299876 - Common Stock - Currency: USD
Taking everything into account, GLOB scores 5 out of 10 in our fundamental rating. GLOB was compared to 82 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GLOB was profitable.
GLOB had a positive operating cash flow 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
The Return On Assets of GLOB (5.23%) is better than 66.27% of its industry peers.
With a decent Return On Equity value of 8.44%, GLOB is doing good in the industry, outperforming 60.24% of the companies in the same industry.
GLOB has a better Return On Invested Capital (7.98%) than 68.67% of its industry peers.
GLOB had an Average Return On Invested Capital over the past 3 years of 9.19%. This is significantly below the industry average of 22.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 8.44% | ||
| ROIC | 7.98% |
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's Profit Margin of 6.86% is fine compared to the rest of the industry. GLOB outperforms 66.27% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
GLOB has a Operating Margin of 10.81%. This is in the better half of the industry: GLOB outperforms 68.67% of its industry peers.
GLOB's Operating Margin has declined in the last couple of years.
GLOB's Gross Margin of 35.74% is in line compared to the rest of the industry. GLOB outperforms 53.01% of its industry peers.
In the last couple of years the Gross Margin of GLOB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.81% | ||
| PM (TTM) | 6.86% | ||
| GM | 35.74% |
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
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 3.22 indicates that GLOB is not in any danger for bankruptcy at the moment.
The Altman-Z score of GLOB (3.22) is comparable to the rest of the industry.
GLOB has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as GLOB would need 3.04 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.04, GLOB is doing good in the industry, outperforming 66.27% of the companies in the same industry.
GLOB has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
GLOB has a Debt to Equity ratio of 0.19. This is in the better half of the industry: GLOB outperforms 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.59
WACC13.58%
2.3 Liquidity
A Current Ratio of 1.54 indicates that GLOB should not have too much problems paying its short term obligations.
GLOB has a Current ratio of 1.54. This is comparable to the rest of the industry: GLOB outperforms 43.37% of its industry peers.
GLOB has a Quick Ratio of 1.54. This is a normal value and indicates that GLOB is financially healthy and should not expect problems in meeting its short term obligations.
GLOB's Quick ratio of 1.54 is in line compared to the rest of the industry. GLOB outperforms 43.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.68% over the past year.
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 grown by 11.90% 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)6.68%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%-1.96%
Revenue 1Y (TTM)11.9%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%7.01%
3.2 Future
GLOB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.49% yearly.
Based on estimates for the next years, GLOB will show a quite strong growth in Revenue. The Revenue will grow by 8.38% on average per year.
EPS Next Y-2.91%
EPS Next 2Y2.34%
EPS Next 3Y5.54%
EPS Next 5Y8.49%
Revenue Next Year2.23%
Revenue Next 2Y4.05%
Revenue Next 3Y5.99%
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 12.49 indicates a correct valuation of GLOB.
Based on the Price/Earnings ratio, GLOB is valued cheaply inside the industry as 85.54% of the companies are valued more expensively.
GLOB is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.87 indicates a reasonable valuation of GLOB.
Based on the Price/Forward Earnings ratio, GLOB is valued cheaply inside the industry as 81.93% of the companies are valued more expensively.
GLOB is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLOB is valued cheaply inside the industry as 84.34% of the companies are valued more expensively.
GLOB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.01 | ||
| EV/EBITDA | 8.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y2.34%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.79
-4.47 (-5.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change-3.54%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap3.51B
Analysts77.04
Price Target131.05 (64.24%)
Short Float %7.98%
Short Ratio2.55
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)-1.44%
Min EPS beat(2)-1.67%
Max EPS beat(2)-1.21%
EPS beat(4)0
Avg EPS beat(4)-1.42%
Min EPS beat(4)-1.8%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-1.34%
EPS beat(12)1
Avg EPS beat(12)-1.03%
EPS beat(16)5
Avg EPS beat(16)-0.14%
Revenue beat(2)0
Avg Revenue beat(2)-2.11%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-1.99%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)-1.83%
Revenue beat(8)0
Avg Revenue beat(8)-1.9%
Revenue beat(12)0
Avg Revenue beat(12)-1.75%
Revenue beat(16)4
Avg Revenue beat(16)-0.51%
PT rev (1m)-14.17%
PT rev (3m)-33.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.13%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-11.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 11.87 | ||
| P/S | 1.45 | ||
| P/FCF | 26.01 | ||
| P/OCF | 14.13 | ||
| P/B | 1.79 | ||
| P/tB | 41.41 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)6.39
EY8.01%
EPS(NY)6.72
Fwd EY8.43%
FCF(TTM)3.07
FCFY3.84%
OCF(TTM)5.65
OCFY7.08%
SpS54.84
BVpS44.58
TBVpS1.93
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 8.44% | ||
| ROCE | 9.95% | ||
| ROIC | 7.98% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 35.75% | ||
| OM | 10.81% | ||
| PM (TTM) | 6.86% | ||
| GM | 35.74% | ||
| FCFM | 5.59% |
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-Score5
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 3.04 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 69.82% | ||
| Cap/Sales | 4.7% | ||
| Interest Coverage | 13.64 | ||
| Cash Conversion | 58.68% | ||
| Profit Quality | 81.52% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 3.22 |
F-Score5
WACC13.58%
ROIC/WACC0.59
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)6.68%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%-1.96%
EPS Next Y-2.91%
EPS Next 2Y2.34%
EPS Next 3Y5.54%
EPS Next 5Y8.49%
Revenue 1Y (TTM)11.9%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%7.01%
Revenue Next Year2.23%
Revenue Next 2Y4.05%
Revenue Next 3Y5.99%
Revenue Next 5Y8.38%
EBIT growth 1Y9.32%
EBIT growth 3Y16.58%
EBIT growth 5Y23.47%
EBIT Next Year37.82%
EBIT Next 3Y19.02%
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%