GLOBANT SA (GLOB) Stock Fundamental Analysis
NYSE:GLOB - New York Stock Exchange, Inc. - LU0974299876 - Common Stock - Currency: USD
Overall GLOB gets a fundamental rating of 5 out of 10. We evaluated GLOB against 81 industry peers in the IT Services industry. GLOB has an average financial health and profitability rating. 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.
GLOB had a positive operating cash flow in the past year.
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 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.
GLOB's Return On Invested Capital of 7.98% is fine compared to the rest of the industry. GLOB outperforms 69.14% of its industry peers.
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
The Profit Margin of GLOB (6.86%) is better than 65.43% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
With a decent Operating Margin value of 10.81%, GLOB is doing good in the industry, outperforming 67.90% of the companies in the same industry.
GLOB's Operating Margin has declined in the last couple of years.
GLOB has a Gross Margin (35.74%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GLOB is destroying value.
Compared to 1 year ago, GLOB has more shares outstanding
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 3.47. This indicates that GLOB is financially healthy and has little risk of bankruptcy at the moment.
GLOB's Altman-Z score of 3.47 is in line compared to the rest of the industry. GLOB outperforms 58.02% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.04, GLOB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that GLOB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, GLOB is in the better half of the industry, outperforming 61.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 3.47 |
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 has a Quick ratio (1.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
GLOB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.68%.
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 11.90% 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!
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.
The Revenue is expected to grow by 8.38% on average over the next years. This is quite good.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.22, the valuation of GLOB can be described as correct.
77.78% 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 27.15.
A Price/Forward Earnings ratio of 13.52 indicates a correct valuation of GLOB.
GLOB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GLOB is cheaper than 76.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GLOB to the average of the S&P500 Index (21.60), we can say GLOB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 13.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLOB is valued cheaper than 83.95% of the companies in the same industry.
GLOB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.62 | ||
| EV/EBITDA | 10.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.62
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 |
90.84
-0.29 (-0.32%)
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 Cap4.00B
Analysts76.43
Price Target152.68 (68.08%)
Short Float %8.33%
Short Ratio2.96
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 | 14.22 | ||
| Fwd PE | 13.52 | ||
| P/S | 1.66 | ||
| P/FCF | 29.62 | ||
| P/OCF | 16.09 | ||
| P/B | 2.04 | ||
| P/tB | 47.14 | ||
| EV/EBITDA | 10.02 |
EPS(TTM)6.39
EY7.03%
EPS(NY)6.72
Fwd EY7.39%
FCF(TTM)3.07
FCFY3.38%
OCF(TTM)5.65
OCFY6.22%
SpS54.84
BVpS44.58
TBVpS1.93
PEG (NY)N/A
PEG (5Y)0.62
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 | 3.47 |
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%