GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GLOB - LU0974299876 - Common Stock
62.88 USD
+3.52 (+5.93%)
62.4623 USD
-0.42 (-0.66%)
GLOB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. GLOB has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on GLOB.
1. Profitability
1.1 Basic Checks
In the past year GLOB was profitable.
GLOB had a positive operating cash flow in the past year.
In the past 5 years GLOB has always been profitable.
GLOB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GLOB's Return On Assets of 3.23% is fine compared to the rest of the industry. GLOB outperforms 60.47% of its industry peers.
GLOB has a Return On Equity (5.18%) which is in line with its industry peers.
GLOB has a better Return On Invested Capital (7.36%) than 65.12% of its industry peers.
GLOB had an Average Return On Invested Capital over the past 3 years of 9.18%. This is significantly below the industry average of 29.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 5.18% | ||
| ROIC | 7.36% |
ROA(3y)5.94%
ROA(5y)5.42%
ROE(3y)9.16%
ROE(5y)8.2%
ROIC(3y)9.18%
ROIC(5y)8.71%
1.3 Margins
The Profit Margin of GLOB (4.43%) is better than 62.79% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
GLOB's Operating Margin of 10.51% is fine compared to the rest of the industry. GLOB outperforms 72.09% of its industry peers.
GLOB's Operating Margin has declined in the last couple of years.
The Gross Margin of GLOB (35.55%) 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 | 10.51% | ||
| PM (TTM) | 4.43% | ||
| 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.
The number of shares outstanding for GLOB has been increased compared to 1 year ago.
The number of shares outstanding for GLOB has been increased compared to 5 years ago.
GLOB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.77 indicates that GLOB is not a great score, but indicates only limited risk for bankruptcy at the moment.
GLOB has a Altman-Z score of 2.77. This is comparable to the rest of the industry: GLOB outperforms 55.81% of its industry peers.
GLOB has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as GLOB would need 2.18 years to pay back of all of its debts.
GLOB's Debt to FCF ratio of 2.18 is fine compared to the rest of the industry. GLOB outperforms 67.44% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that GLOB is not too dependend on debt financing.
GLOB's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. GLOB outperforms 59.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.02
WACC7.22%
2.3 Liquidity
A Current Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.71, GLOB is in line with its industry, outperforming 53.49% of the companies in the same industry.
GLOB has a Quick 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 Quick ratio (1.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.32% 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 small growth in Revenue. The Revenue has grown by 5.56% in the last year.
Measured over the past years, GLOB shows a very strong growth in Revenue. The Revenue has been growing by 29.66% on average per year.
EPS 1Y (TTM)0.32%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%-6.13%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%0.4%
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-2.99%
EPS Next 2Y0.2%
EPS Next 3Y2.8%
EPS Next 5Y8.49%
Revenue Next Year1.38%
Revenue Next 2Y1.87%
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
Based on the Price/Earnings ratio of 9.97, the valuation of GLOB can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of GLOB indicates a rather cheap valuation: GLOB is cheaper than 88.37% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, GLOB is valued rather cheaply.
A Price/Forward Earnings ratio of 9.76 indicates a reasonable valuation of GLOB.
GLOB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GLOB is cheaper than 90.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, GLOB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLOB is valued cheaper than 86.05% of the companies in the same industry.
83.72% of the companies in the same industry are more expensive than GLOB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.26 | ||
| EV/EBITDA | 7.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y0.2%
EPS Next 3Y2.8%
5. Dividend
5.1 Amount
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
62.88
+3.52 (+5.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change8.6%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap2.77B
Revenue(TTM)2.48B
Net Income(TTM)109.86M
Analysts76.43
Price Target89.16 (41.79%)
Short Float %15.77%
Short Ratio4.53
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)-11.34%
PT rev (3m)-18.69%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.76 | ||
| P/S | 1.12 | ||
| P/FCF | 11.26 | ||
| P/OCF | 10.42 | ||
| P/B | 1.31 | ||
| P/tB | 25.04 | ||
| EV/EBITDA | 7.33 |
EPS(TTM)6.31
EY10.03%
EPS(NY)6.45
Fwd EY10.25%
FCF(TTM)5.58
FCFY8.88%
OCF(TTM)6.03
OCFY9.59%
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.44
Graham Number82.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 5.18% | ||
| ROCE | 9.18% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.87% | ||
| ROICexgc | 32.24% | ||
| OM | 10.51% | ||
| PM (TTM) | 4.43% | ||
| GM | 35.55% | ||
| FCFM | 9.91% |
ROA(3y)5.94%
ROA(5y)5.42%
ROE(3y)9.16%
ROE(5y)8.2%
ROIC(3y)9.18%
ROIC(5y)8.71%
ROICexc(3y)11.64%
ROICexc(5y)13.28%
ROICexgc(3y)53.79%
ROICexgc(5y)N/A
ROCE(3y)11.45%
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-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.18 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 12.13% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.74% | ||
| Profit Quality | 223.92% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 2.77 |
F-Score4
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)0.32%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%-6.13%
EPS Next Y-2.99%
EPS Next 2Y0.2%
EPS Next 3Y2.8%
EPS Next 5Y8.49%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%0.4%
Revenue Next Year1.38%
Revenue Next 2Y1.87%
Revenue Next 3Y3.52%
Revenue Next 5Y6.29%
EBIT growth 1Y4.28%
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 7 / 10 to GLOBANT SA (GLOB). This can be considered as Undervalued.
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 9.97 and the Price/Book (PB) ratio is 1.31.