Investors seeking growth at a reasonable cost should explore GLOBANT SA (NYSE:GLOB).

Discover GLOBANT SA (NYSE:GLOB), an undervalued growth gem identified by our stock screener. GLOB is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

How do we evaluate the Growth for GLOB?

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. GLOB boasts a 8 out of 10:

• The Earnings Per Share has grown by an nice 11.85% over the past year.
• The Earnings Per Share has been growing by 22.90% on average over the past years. This is a very strong growth
• The Revenue has grown by 15.26% in the past year. This is quite good.
• The Revenue has been growing by 29.66% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, GLOB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.65% on average per year.
• GLOB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.74% yearly.

What does the Valuation looks like for GLOB

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. GLOB was assigned a score of 5 for valuation:

• 72.84% 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 valuation a bit cheaper than the S&P500 average which is at 27.10.
• 74.07% of the companies in the same industry are more expensive than GLOB, based on the Price/Forward Earnings ratio.
• GLOB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.33.
• GLOB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GLOB is cheaper than 71.60% of the companies in the same industry.
• GLOB's earnings are expected to grow with 15.65% in the coming years. This may justify a more expensive valuation.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. GLOB has earned a 5 out of 10:

• An Altman-Z score of 3.67 indicates that GLOB is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.67, GLOB is doing good in the industry, outperforming 65.43% of the companies in the same industry.
• GLOB has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as GLOB would need 3.04 years to pay back of all of its debts.
• GLOB has a better Debt to FCF ratio (3.04) than 61.73% of its industry peers.
• 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 Debt to Equity ratio of 0.19. This is in the better half of the industry: GLOB outperforms 64.20% of its industry peers.

Profitability Examination for GLOB

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, GLOB has achieved a 5:

• With a decent Return On Assets value of 5.23%, GLOB is doing good in the industry, outperforming 71.60% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 8.44%, GLOB is in the better half of the industry, outperforming 61.73% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 7.98%, GLOB is in the better half of the industry, outperforming 71.60% of the companies in the same industry.
• The Profit Margin of GLOB (6.86%) is better than 67.90% of its industry peers.
• GLOB has a better Operating Margin (10.81%) than 71.60% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of GLOB contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.