GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - NYSE:GLOB - LU0974299876 - Common Stock
62.64 USD
+2.86 (+4.78%)
62.0213 USD
-0.62 (-0.99%)
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. There are concerns on the financial health of GLOB while its profitability can be described as average. GLOB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GLOB had positive earnings in the past year.
In the past 5 years GLOB has always been profitable.
Each year in the past 5 years GLOB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.25%, GLOB is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
With a Return On Equity value of 5.20%, GLOB perfoms like the industry average, outperforming 57.65% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.34%, GLOB is doing good in the industry, outperforming 65.88% of the companies in the same industry.
GLOB had an Average Return On Invested Capital over the past 3 years of 9.19%. This is significantly below the industry average of 21.61%.
| 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
Looking at the Profit Margin, with a value of 4.44%, GLOB is in the better half of the industry, outperforming 62.35% of the companies in the same industry.
GLOB's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 10.49%, GLOB is doing good in the industry, outperforming 71.76% of the companies in the same industry.
In the last couple of years the Operating Margin of GLOB has declined.
GLOB has a Gross Margin of 35.55%. This is comparable to the rest of the industry: GLOB outperforms 48.24% of its industry peers.
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.
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 2.70. 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 (2.70) 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.
Looking at the Debt to Equity ratio, with a value of 0.23, GLOB is in line with its industry, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.7 |
ROIC/WACC1.02
WACC7.22%
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.
A Quick Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
GLOB's Quick ratio of 1.71 is in line compared 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
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%.
GLOB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.66% yearly.
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
With a Price/Earnings ratio of 9.77, the valuation of GLOB can be described as very reasonable.
92.94% of the companies in the same industry are more expensive than GLOB, based on the Price/Earnings ratio.
GLOB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
The Price/Forward Earnings ratio is 9.74, which indicates a very decent valuation of GLOB.
Based on the Price/Forward Earnings ratio, GLOB is valued cheaper than 90.59% of the companies in the same industry.
GLOB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
89.41% of the companies in the same industry are more expensive than GLOB, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y0.1%
EPS Next 3Y2.71%
5. Dividend
5.1 Amount
GLOB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
62.64
+2.86 (+4.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change-0.47%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap2.76B
Revenue(TTM)2.48B
Net Income(TTM)110.27M
Analysts77.69
Price Target100.57 (60.55%)
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)-3.4%
PT rev (3m)-23.26%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 9.74 | ||
| P/S | 1.11 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.3 | ||
| P/tB | 24.94 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)6.41
EY10.23%
EPS(NY)6.43
Fwd EY10.27%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.43
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 | 2.7 |
F-ScoreN/A
WACC7.22%
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 9.77 and the Price/Book (PB) ratio is 1.3.