GLOBANT SA (GLOB) Stock Fundamental Analysis
NYSE:GLOB - New York Stock Exchange, Inc. - LU0974299876 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GLOB. GLOB was compared to 81 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GLOB had positive earnings in the past year.
In the past year GLOB had a positive cash flow from operations.
GLOB had positive earnings in each of the past 5 years.
Each year in the past 5 years GLOB had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.23%, GLOB is doing good in the industry, outperforming 65.43% of the companies in the same industry.
GLOB has a Return On Equity of 8.44%. This is in the better half of the industry: GLOB outperforms 60.49% of its industry peers.
With a decent Return On Invested Capital value of 7.98%, GLOB is doing good in the industry, outperforming 69.14% 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 21.85%.
| 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 has a better Profit Margin (6.86%) than 65.43% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
GLOB has a Operating Margin of 10.81%. This is in the better half of the industry: GLOB outperforms 67.90% of its industry peers.
In the last couple of years the Operating Margin of GLOB has declined.
GLOB has a Gross Margin (35.74%) which is in line with its industry peers.
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
GLOB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GLOB has more shares outstanding
The number of shares outstanding for GLOB has been increased compared to 5 years ago.
The debt/assets ratio for GLOB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.46 indicates that GLOB is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.46, GLOB perfoms like the industry average, outperforming 55.56% 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.
GLOB has a Debt to FCF ratio of 3.04. This is in the better half of the industry: GLOB outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that GLOB is not too dependend on debt financing.
GLOB has a Debt to Equity ratio of 0.19. This is in the better half of the industry: GLOB outperforms 61.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.58
WACC13.69%
2.3 Liquidity
GLOB has a Current 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 Current ratio of 1.54 is in line compared to the rest of the industry. GLOB outperforms 43.21% 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.
GLOB's Quick ratio of 1.54 is in line compared to the rest of the industry. GLOB outperforms 43.21% of its industry peers.
| 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
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 quite strong growth in Revenue. The Revenue will grow by 8.38% on average per year.
EPS Next Y-2.91%
EPS Next 2Y2.28%
EPS Next 3Y5.38%
EPS Next 5Y8.49%
Revenue Next Year2.23%
Revenue Next 2Y4.11%
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.
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 14.49, GLOB is valued correctly.
Based on the Price/Earnings ratio, GLOB is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.21. GLOB is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.78, which indicates a correct valuation of GLOB.
GLOB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GLOB is cheaper than 80.25% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. GLOB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 13.78 |
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 83.95% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GLOB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.18 | ||
| EV/EBITDA | 9.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y2.28%
EPS Next 3Y5.38%
5. Dividend
5.1 Amount
GLOB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.56
+1.72 (+1.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change-8.11%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap4.08B
Analysts76.43
Price Target152.68 (64.95%)
Short Float %7.1%
Short Ratio2.46
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)-17.6%
PT rev (3m)-32.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)-10.58%
EPS NY rev (3m)-16.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-6.25%
Revenue NY rev (3m)-7.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 13.78 | ||
| P/S | 1.69 | ||
| P/FCF | 30.18 | ||
| P/OCF | 16.39 | ||
| P/B | 2.08 | ||
| P/tB | 48.04 | ||
| EV/EBITDA | 9.99 |
EPS(TTM)6.39
EY6.9%
EPS(NY)6.72
Fwd EY7.26%
FCF(TTM)3.07
FCFY3.31%
OCF(TTM)5.65
OCFY6.1%
SpS54.84
BVpS44.58
TBVpS1.93
PEG (NY)N/A
PEG (5Y)0.63
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 | 3.46 |
F-Score5
WACC13.69%
ROIC/WACC0.58
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 Y-2.91%
EPS Next 2Y2.28%
EPS Next 3Y5.38%
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 2Y4.11%
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%