GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - NYSE:GLOB - LU0974299876 - Common Stock
60.2 USD
+1.33 (+2.26%)
60.4 USD
+0.2 (+0.33%)
Taking everything into account, GLOB scores 4 out of 10 in our fundamental rating. GLOB was compared to 85 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GLOB was profitable.
Each year in the past 5 years GLOB has been profitable.
In the past 5 years GLOB always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.25%, GLOB is doing good in the industry, outperforming 61.18% of the companies in the same industry.
GLOB has a Return On Equity (5.20%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.34%, GLOB is in the better half of the industry, outperforming 64.71% 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 27.96%.
| 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's Profit Margin of 4.44% is fine compared to the rest of the industry. GLOB outperforms 61.18% 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 71.76% of its industry peers.
In the last couple of years the Operating Margin of GLOB has declined.
The Gross Margin of GLOB (35.55%) is comparable to the rest of the industry.
GLOB's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, GLOB has more shares outstanding
Compared to 5 years ago, GLOB has more shares outstanding
GLOB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.68 indicates that GLOB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GLOB (2.68) 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's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. GLOB outperforms 58.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.68 |
ROIC/WACC1.02
WACC7.21%
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.
Looking at the Current ratio, with a value of 1.71, GLOB is in line with its industry, outperforming 51.76% 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 of 1.71. This is comparable to the rest of the industry: GLOB outperforms 52.94% of its industry peers.
| 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.
GLOB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.90% yearly.
GLOB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.66%.
Measured over the past years, GLOB shows a very strong growth in Revenue. The Revenue has been growing by 29.66% on average per year.
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.
GLOB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.29% yearly.
EPS Next Y-3.02%
EPS Next 2Y0.1%
EPS Next 3Y2.71%
EPS Next 5Y8.49%
Revenue Next Year1.38%
Revenue Next 2Y1.83%
Revenue Next 3Y3.52%
Revenue Next 5Y6.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GLOB is valuated reasonably with a Price/Earnings ratio of 9.39.
Based on the Price/Earnings ratio, GLOB is valued cheaper than 90.59% 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 26.13.
Based on the Price/Forward Earnings ratio of 9.36, the valuation of GLOB can be described as reasonable.
90.59% of the companies in the same industry are more expensive than GLOB, based on the Price/Forward Earnings ratio.
GLOB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLOB is valued cheaper than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y0.1%
EPS Next 3Y2.71%
5. Dividend
5.1 Amount
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
60.2
+1.33 (+2.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change4.92%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap2.65B
Revenue(TTM)2.48B
Net Income(TTM)110.27M
Analysts77.69
Price Target91.17 (51.45%)
Short Float %17.57%
Short Ratio4.71
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)-12.43%
PT rev (3m)-30.43%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 9.36 | ||
| P/S | 1.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.25 | ||
| P/tB | 23.97 | ||
| EV/EBITDA | 6.92 |
EPS(TTM)6.41
EY10.65%
EPS(NY)6.43
Fwd EY10.69%
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
Graham Number83.32
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 2.68 |
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-3.02%
EPS Next 2Y0.1%
EPS Next 3Y2.71%
EPS Next 5Y8.49%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%4.55%
Revenue Next Year1.38%
Revenue Next 2Y1.83%
Revenue Next 3Y3.52%
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%
GLOBANT SA / GLOB FAQ
What is the fundamental rating for GLOB stock?
ChartMill assigns a fundamental rating of 4 / 10 to GLOB.
What is the valuation status for GLOB stock?
ChartMill assigns a valuation rating of 5 / 10 to GLOBANT SA (GLOB). This can be considered as Fairly Valued.
How profitable is GLOBANT SA (GLOB) stock?
GLOBANT SA (GLOB) has a profitability rating of 4 / 10.
What are the PE and PB ratios of GLOBANT SA (GLOB) stock?
The Price/Earnings (PE) ratio for GLOBANT SA (GLOB) is 9.39 and the Price/Book (PB) ratio is 1.25.