GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - NYSE:GLOB - LU0974299876 - Common Stock
56.11 USD
-2.39 (-4.09%)
56.4799 USD
+0.37 (+0.66%)
We assign a fundamental rating of 4 out of 10 to GLOB. GLOB was compared to 85 industry peers in the IT Services industry. GLOB has a medium profitability rating, but doesn't score so well on its financial health evaluation. GLOB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GLOB had positive earnings in the past year.
GLOB had positive earnings in each of the past 5 years.
In the past 5 years GLOB always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.25%, GLOB perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.20%, GLOB is in line with its industry, outperforming 57.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.34%, GLOB is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GLOB is significantly below the industry average of 21.77%.
| 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
GLOB's Profit Margin of 4.44% is fine compared to the rest of the industry. GLOB outperforms 61.18% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
GLOB has a better Operating Margin (10.49%) than 70.59% of its industry peers.
GLOB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 35.55%, GLOB is in line with its industry, outperforming 48.24% of the companies in the same industry.
GLOB's Gross Margin has declined in the last couple of years.
| 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
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
Compared to 5 years ago, GLOB has more shares outstanding
The debt/assets ratio for GLOB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.67 indicates that GLOB is not a great score, but indicates only limited risk for bankruptcy at the moment.
GLOB has a Altman-Z score (2.67) which is in line with 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 58.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.67 |
ROIC/WACC0.55
WACC13.25%
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 51.76% 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 4.40% 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 8.66% in the past year. This is quite good.
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.
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 2Y0.92%
EPS Next 3Y3.66%
EPS Next 5Y8.49%
Revenue Next Year1.78%
Revenue Next 2Y2.96%
Revenue Next 3Y4.57%
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 8.75, the valuation of GLOB can be described as reasonable.
Based on the Price/Earnings ratio, GLOB is valued cheaply inside the industry as 91.76% of the companies are valued more expensively.
GLOB is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
GLOB is valuated reasonably with a Price/Forward Earnings ratio of 8.58.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GLOB indicates a rather cheap valuation: GLOB is cheaper than 94.12% of the companies listed 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 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
88.24% 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 | 6.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y0.92%
EPS Next 3Y3.66%
5. Dividend
5.1 Amount
GLOB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
56.11
-2.39 (-4.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.69%
Inst Owner Change-1.99%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap2.47B
Analysts77.78
Price Target104.39 (86.05%)
Short Float %12.62%
Short Ratio3.61
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)-20.34%
PT rev (3m)-43.66%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-16.01%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-10.57%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-10.19%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-6.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8.58 | ||
| P/S | 1 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.17 | ||
| P/tB | 22.34 | ||
| EV/EBITDA | 6.88 |
EPS(TTM)6.41
EY11.42%
EPS(NY)6.54
Fwd EY11.65%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.38
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%
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-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 | 2.67 |
F-ScoreN/A
WACC13.25%
ROIC/WACC0.55
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-2.91%
EPS Next 2Y0.92%
EPS Next 3Y3.66%
EPS Next 5Y8.49%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%4.55%
Revenue Next Year1.78%
Revenue Next 2Y2.96%
Revenue Next 3Y4.57%
Revenue Next 5Y8.38%
EBIT growth 1Y4.08%
EBIT growth 3Y16.58%
EBIT growth 5Y23.47%
EBIT Next Year38.49%
EBIT Next 3Y17.35%
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%