GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - NYSE:GLOB - LU0974299876 - Common Stock
61.07 USD
-1.77 (-2.82%)
61.4 USD
+0.33 (+0.54%)
Overall GLOB gets a fundamental rating of 5 out of 10. We evaluated GLOB against 84 industry peers in the IT Services industry. GLOB has only an average score on both its financial health and profitability. GLOB is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year GLOB was profitable.
In the past year GLOB had a positive cash flow from operations.
GLOB had positive earnings in each of the past 5 years.
GLOB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GLOB has a Return On Assets (3.24%) which is in line with its industry peers.
With a Return On Equity value of 5.20%, GLOB perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
GLOB has a better Return On Invested Capital (7.36%) than 63.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GLOB is significantly below the industry average of 28.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 5.2% | ||
| ROIC | 7.36% |
ROA(3y)5.95%
ROA(5y)5.43%
ROE(3y)9.17%
ROE(5y)8.21%
ROIC(3y)9.19%
ROIC(5y)8.71%
1.3 Margins
Looking at the Profit Margin, with a value of 4.44%, GLOB is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
GLOB's Profit Margin has declined in the last couple of years.
GLOB has a Operating Margin of 10.52%. This is in the better half of the industry: GLOB outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of GLOB has declined.
GLOB has a Gross Margin (35.55%) 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 | 10.52% | ||
| PM (TTM) | 4.44% | ||
| GM | 35.55% |
OM growth 3Y-5.14%
OM growth 5Y-4.71%
PM growth 3Y-2.48%
PM growth 5Y-3.45%
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.
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
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.
The Altman-Z score of GLOB (2.77) is comparable to the rest of the industry.
The Debt to FCF ratio of GLOB is 2.18, which is a good value as it means it would take GLOB, 2.18 years of fcf income to pay off all of its debts.
GLOB has a better Debt to FCF ratio (2.18) than 69.05% of its industry peers.
GLOB has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GLOB (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.02
WACC7.21%
2.3 Liquidity
A Current Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.71, GLOB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
GLOB's Quick ratio of 1.71 is in line compared to the rest of the industry. GLOB outperforms 51.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
GLOB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.32%.
GLOB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.90% yearly.
GLOB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.26%.
GLOB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.66% yearly.
EPS 1Y (TTM)0.32%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%-6.13%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%0.4%
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.
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
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.
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
The Price/Earnings ratio is 9.68, which indicates a very decent valuation of GLOB.
GLOB's Price/Earnings ratio is rather cheap when compared to the industry. GLOB is cheaper than 89.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, GLOB is valued rather cheaply.
A Price/Forward Earnings ratio of 9.47 indicates a reasonable valuation of GLOB.
Based on the Price/Forward Earnings ratio, GLOB is valued cheaper than 90.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GLOB to the average of the S&P500 Index (34.59), we can say GLOB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 9.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLOB is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GLOB is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.94 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y0.2%
EPS Next 3Y2.8%
5. Dividend
5.1 Amount
GLOB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.07
-1.77 (-2.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change5.84%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap2.69B
Revenue(TTM)2.42B
Net Income(TTM)110.23M
Analysts76.43
Price Target91.17 (49.29%)
Short Float %17.57%
Short Ratio4.71
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)-9.35%
PT rev (3m)-30.43%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 9.47 | ||
| P/S | 1.08 | ||
| P/FCF | 10.94 | ||
| P/OCF | 10.11 | ||
| P/B | 1.27 | ||
| P/tB | 24.46 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)6.31
EY10.33%
EPS(NY)6.45
Fwd EY10.55%
FCF(TTM)5.58
FCFY9.14%
OCF(TTM)6.04
OCFY9.89%
SpS56.35
BVpS48.13
TBVpS2.5
PEG (NY)N/A
PEG (5Y)0.42
Graham Number82.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 5.2% | ||
| ROCE | 9.19% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.87% | ||
| ROICexgc | 32.3% | ||
| OM | 10.52% | ||
| PM (TTM) | 4.44% | ||
| GM | 35.55% | ||
| FCFM | 9.91% |
ROA(3y)5.95%
ROA(5y)5.43%
ROE(3y)9.17%
ROE(5y)8.21%
ROIC(3y)9.19%
ROIC(5y)8.71%
ROICexc(3y)11.65%
ROICexc(5y)13.28%
ROICexgc(3y)53.81%
ROICexgc(5y)N/A
ROCE(3y)11.47%
ROCE(5y)10.87%
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.27%
ROICexc growth 3Y-26.58%
ROICexc growth 5Y-11.89%
OM growth 3Y-5.14%
OM growth 5Y-4.71%
PM growth 3Y-2.48%
PM growth 5Y-3.45%
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 | 12.29% | ||
| Cap/Sales | 0.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.76% | ||
| Profit Quality | 223.18% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 2.77 |
F-Score4
WACC7.21%
ROIC/WACC1.02
Cap/Depr(3y)83.01%
Cap/Depr(5y)91.2%
Cap/Sales(3y)5.38%
Cap/Sales(5y)5.74%
Profit Quality(3y)90.22%
Profit Quality(5y)92.35%
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)15.26%
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 1Y4.39%
EBIT growth 3Y16.71%
EBIT growth 5Y23.55%
EBIT Next Year40.58%
EBIT Next 3Y14.73%
EBIT Next 5Y11.47%
FCF growth 1Y-29.69%
FCF growth 3Y10.01%
FCF growth 5Y23.13%
OCF growth 1Y-21.94%
OCF growth 3Y11.63%
OCF growth 5Y25.59%
GLOBANT SA / GLOB FAQ
What is the fundamental rating for GLOB stock?
ChartMill assigns a fundamental rating of 5 / 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 9.68 and the Price/Book (PB) ratio is 1.27.