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GLOBANT SA (GLOB) Stock Fundamental Analysis

NYSE:GLOB - New York Stock Exchange, Inc. - LU0974299876 - Common Stock - Currency: USD

103.23  -3.3 (-3.1%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to GLOB. 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make GLOB a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year GLOB was profitable.
In the past year GLOB had a positive cash flow from operations.
In the past 5 years GLOB has always been profitable.
In the past 5 years GLOB always reported a positive cash flow from operatings.
GLOB Yearly Net Income VS EBIT VS OCF VS FCFGLOB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

1.2 Ratios

GLOB has a better Return On Assets (5.23%) than 67.07% of its industry peers.
With a Return On Equity value of 8.44%, GLOB perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
GLOB has a better Return On Invested Capital (7.98%) than 69.51% 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 22.63%.
Industry RankSector 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%
GLOB Yearly ROA, ROE, ROICGLOB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 6.86%, GLOB is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
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.
GLOB's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
GLOB Yearly Profit, Operating, Gross MarginsGLOB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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5

2. Health

2.1 Basic Checks

GLOB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
GLOB has a worse debt/assets ratio than last year.
GLOB Yearly Shares OutstandingGLOB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
GLOB Yearly Total Debt VS Total AssetsGLOB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

GLOB has an Altman-Z score of 3.81. This indicates that GLOB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GLOB (3.81) is better than 60.98% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.04, GLOB is doing good in the industry, outperforming 62.20% 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 better Debt to Equity ratio (0.19) than 62.20% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 3.04
Altman-Z 3.81
ROIC/WACC1.07
WACC7.46%
GLOB Yearly LT Debt VS Equity VS FCFGLOB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 1.54 indicates that GLOB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.54, GLOB perfoms like the industry average, outperforming 47.56% of the companies in the same industry.
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 47.56% of its industry peers.
Industry RankSector Rank
Current Ratio 1.54
Quick Ratio 1.54
GLOB Yearly Current Assets VS Current LiabilitesGLOB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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7

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.
Looking at the last year, GLOB shows a quite strong growth in Revenue. The Revenue has grown by 15.26% in the last year.
GLOB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.66% yearly.
EPS 1Y (TTM)6.68%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%-1.96%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%7.01%

3.2 Future

The Earnings Per Share is expected to grow by 12.65% 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 11.74% yearly.
EPS Next Y8.57%
EPS Next 2Y11.21%
EPS Next 3Y12.67%
EPS Next 5Y12.65%
Revenue Next Year9.04%
Revenue Next 2Y10.54%
Revenue Next 3Y11.68%
Revenue Next 5Y11.74%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
GLOB Yearly Revenue VS EstimatesGLOB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B
GLOB Yearly EPS VS EstimatesGLOB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

GLOB is valuated correctly with a Price/Earnings ratio of 16.15.
GLOB's Price/Earnings ratio is a bit cheaper when compared to the industry. GLOB is cheaper than 70.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. GLOB is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.00, the valuation of GLOB can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GLOB indicates a somewhat cheap valuation: GLOB is cheaper than 79.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. GLOB is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 16.15
Fwd PE 13
GLOB Price Earnings VS Forward Price EarningsGLOB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GLOB is valued a bit cheaper than 74.39% of the companies in the same industry.
GLOB's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 33.66
EV/EBITDA 11.62
GLOB Per share dataGLOB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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%

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0

5. Dividend

5.1 Amount

GLOB does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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GLOBANT SA

NYSE:GLOB (5/21/2025, 2:04:34 PM)

103.23

-3.3 (-3.1%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-15 2025-05-15/amc
Earnings (Next)08-13 2025-08-13/amc
Inst Owners108.65%
Inst Owner Change-8.07%
Ins Owners2.25%
Ins Owner ChangeN/A
Market Cap4.55B
Analysts77.24
Price Target185.29 (79.49%)
Short Float %5.79%
Short Ratio2.74
Dividend
Industry RankSector 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)-17.21%
PT rev (3m)-23.83%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-4.52%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-6.95%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-4.1%
Valuation
Industry RankSector Rank
PE 16.15
Fwd PE 13
P/S 1.88
P/FCF 33.66
P/OCF 18.28
P/B 2.32
P/tB 53.57
EV/EBITDA 11.62
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 RankSector 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 RankSector 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 3.81
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 5Y12.65%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%7.01%
Revenue Next Year9.04%
Revenue Next 2Y10.54%
Revenue Next 3Y11.68%
Revenue Next 5Y11.74%
EBIT growth 1Y9.32%
EBIT growth 3Y16.58%
EBIT growth 5Y23.47%
EBIT Next Year54.37%
EBIT Next 3Y25.89%
EBIT Next 5Y17.8%
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%