GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - NYSE:GLOB - LU0974299876 - Common Stock
60.23 USD
+0.78 (+1.31%)
60.675 USD
+0.45 (+0.74%)
We assign a fundamental rating of 4 out of 10 to GLOB. GLOB was compared to 87 industry peers in the IT Services industry. While GLOB is still in line with the averages on profitability rating, there are concerns on its financial health. GLOB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GLOB had positive earnings 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
GLOB's Return On Assets of 3.25% is fine compared to the rest of the industry. GLOB outperforms 60.92% of its industry peers.
GLOB has a Return On Equity of 5.20%. This is comparable to the rest of the industry: GLOB outperforms 57.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.34%, GLOB is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GLOB is significantly below the industry average of 21.42%.
| 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
With a decent Profit Margin value of 4.44%, GLOB is doing good in the industry, outperforming 62.07% of the companies in the same industry.
In the last couple of years the Profit Margin of GLOB has declined.
Looking at the Operating Margin, with a value of 10.49%, GLOB is in the better half of the industry, outperforming 71.26% of the companies in the same industry.
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.
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
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
GLOB has an Altman-Z score of 2.71. This is not the best score and indicates that GLOB is in the grey zone with still only limited risk for bankruptcy at the moment.
GLOB has a Altman-Z score (2.71) which is comparable to the rest of the industry.
GLOB has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
GLOB has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.71 |
ROIC/WACC1.02
WACC7.18%
2.3 Liquidity
GLOB has a Current Ratio of 1.71. This is a normal value and indicates that GLOB is financially healthy and should not expect problems in meeting its short term obligations.
GLOB has a Current ratio (1.71) which is comparable to the rest of the industry.
GLOB has a Quick Ratio of 1.71. This is a normal value and indicates that GLOB is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.71, GLOB perfoms like the industry average, outperforming 52.87% of the companies in the same 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 4.40%.
The Earnings Per Share has been growing by 22.90% on average over the past years. This is a very strong growth
GLOB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.66%.
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
Based on estimates for the next years, GLOB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.49% on average per year.
Based on estimates for the next years, GLOB will show a small growth in Revenue. The Revenue will grow by 6.29% on average per year.
EPS Next Y-2.92%
EPS Next 2Y0.51%
EPS Next 3Y3.05%
EPS Next 5Y8.49%
Revenue Next Year1.42%
Revenue Next 2Y2.03%
Revenue Next 3Y3.79%
Revenue Next 5Y6.29%
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 9.40 indicates a reasonable valuation of GLOB.
GLOB's Price/Earnings ratio is rather cheap when compared to the industry. GLOB is cheaper than 93.10% of the companies in the same industry.
GLOB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
With a Price/Forward Earnings ratio of 9.29, the valuation of GLOB can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GLOB is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GLOB to the average of the S&P500 Index (23.32), we can say GLOB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GLOB indicates a rather cheap valuation: GLOB is cheaper than 89.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y0.51%
EPS Next 3Y3.05%
5. Dividend
5.1 Amount
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
60.23
+0.78 (+1.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change0%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap2.65B
Analysts77.69
Price Target100.57 (66.98%)
Short Float %14.6%
Short Ratio3.64
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)-8.29%
PT rev (3m)-34.13%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 9.29 | ||
| P/S | 1.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.25 | ||
| P/tB | 23.98 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)6.41
EY10.64%
EPS(NY)6.49
Fwd EY10.77%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.41
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 | 2.71 |
F-ScoreN/A
WACC7.18%
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-2.92%
EPS Next 2Y0.51%
EPS Next 3Y3.05%
EPS Next 5Y8.49%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%4.55%
Revenue Next Year1.42%
Revenue Next 2Y2.03%
Revenue Next 3Y3.79%
Revenue Next 5Y6.29%
EBIT growth 1Y4.08%
EBIT growth 3Y16.58%
EBIT growth 5Y23.47%
EBIT Next Year40.58%
EBIT Next 3Y14.73%
EBIT Next 5Y11.47%
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%