GLOBANT SA (GLOB) Stock Fundamental Analysis
NYSE:GLOB - New York Stock Exchange, Inc. - LU0974299876 - Common Stock - Currency: USD
GLOB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. GLOB has only an average score on both its financial health and profitability. 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
With a decent Return On Assets value of 5.23%, GLOB is doing good in the industry, outperforming 65.85% of the companies in the same industry.
GLOB has a Return On Equity of 8.44%. This is comparable to the rest of the industry: GLOB outperforms 59.76% of its industry peers.
The Return On Invested Capital of GLOB (7.98%) is better than 68.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GLOB is significantly below the industry average of 21.64%.
| 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 65.85% of its industry peers.
GLOB's Profit Margin has declined in the last couple of years.
GLOB has a better Operating Margin (10.81%) than 68.29% of its industry peers.
In the last couple of years the Operating Margin of GLOB has declined.
The Gross Margin of GLOB (35.74%) is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GLOB is still creating some value.
GLOB has more shares outstanding than it did 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
GLOB has an Altman-Z score of 3.73. This indicates that GLOB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.73, GLOB is doing good in the industry, outperforming 60.98% of the companies in the same industry.
The Debt to FCF ratio of GLOB is 3.04, which is a good value as it means it would take GLOB, 3.04 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GLOB (3.04) is better than 65.85% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that GLOB is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.19, GLOB is doing good in the industry, outperforming 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 3.73 |
ROIC/WACC1.07
WACC7.46%
2.3 Liquidity
A Current Ratio of 1.54 indicates that GLOB should not have too much problems paying its short term obligations.
GLOB's Current ratio of 1.54 is in line compared to the rest of the industry. GLOB outperforms 43.90% 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.
The Quick ratio of GLOB (1.54) is comparable to the rest of the industry.
| 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.
GLOB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.90% yearly.
Looking at the last year, GLOB shows a quite strong growth in Revenue. The Revenue has grown by 11.90% in the last year.
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
The Earnings Per Share is expected to grow by 8.49% on average over the next years. This is quite good.
GLOB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.38% yearly.
EPS Next Y8.57%
EPS Next 2Y11.21%
EPS Next 3Y12.67%
EPS Next 5Y8.49%
Revenue Next Year2.23%
Revenue Next 2Y4.15%
Revenue Next 3Y6.14%
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
With a Price/Earnings ratio of 16.16, GLOB is valued correctly.
Based on the Price/Earnings ratio, GLOB is valued a bit cheaper than the industry average as 74.39% of the companies are valued more expensively.
GLOB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
With a Price/Forward Earnings ratio of 13.01, GLOB is valued correctly.
Based on the Price/Forward Earnings ratio, GLOB is valued a bit cheaper than the industry average as 79.27% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, GLOB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLOB is valued a bit cheaper than the industry average as 74.39% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GLOB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.67 | ||
| EV/EBITDA | 11.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GLOB's earnings are expected to grow with 12.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
PEG (5Y)0.71
EPS Next 2Y11.21%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
103.28
+3.06 (+3.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners108.65%
Inst Owner Change-8.11%
Ins Owners2.25%
Ins Owner ChangeN/A
Market Cap4.55B
Analysts76.43
Price Target150.97 (46.18%)
Short Float %7%
Short Ratio2.43
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)-22.92%
PT rev (3m)-38.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-6.95%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-6.46%
Revenue NY rev (3m)-10.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 13.01 | ||
| P/S | 1.88 | ||
| P/FCF | 33.67 | ||
| P/OCF | 18.29 | ||
| P/B | 2.32 | ||
| P/tB | 53.6 | ||
| EV/EBITDA | 11.29 |
EPS(TTM)6.39
EY6.19%
EPS(NY)7.94
Fwd EY7.69%
FCF(TTM)3.07
FCFY2.97%
OCF(TTM)5.65
OCFY5.47%
SpS54.84
BVpS44.58
TBVpS1.93
PEG (NY)1.89
PEG (5Y)0.71
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 | 3.73 |
F-Score5
WACC7.46%
ROIC/WACC1.07
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 Y8.57%
EPS Next 2Y11.21%
EPS Next 3Y12.67%
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 2Y4.15%
Revenue Next 3Y6.14%
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%