GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GLOB - LU0974299876 - Common Stock
65.37 USD
-1.11 (-1.67%)
65.37 USD
0 (0%)
Taking everything into account, GLOB scores 5 out of 10 in our fundamental rating. GLOB was compared to 88 industry peers in the IT Services industry. GLOB has only an average score on both its financial health and profitability. GLOB may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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
GLOB has a Return On Assets of 3.23%. This is in the better half of the industry: GLOB outperforms 61.36% 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 67.05% 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 29.60%.
| 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
With a decent Profit Margin value of 4.43%, GLOB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
GLOB's Profit Margin has declined in the last couple of years.
GLOB's Operating Margin of 10.51% is fine compared to the rest of the industry. GLOB outperforms 72.73% 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
GLOB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GLOB has more shares outstanding
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
GLOB has an Altman-Z score of 2.82. This is not the best score and indicates that GLOB is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of GLOB (2.82) 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's Debt to FCF ratio of 2.18 is fine compared to the rest of the industry. GLOB outperforms 69.32% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that GLOB is not too dependend on debt financing.
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 | 2.82 |
ROIC/WACC1.01
WACC7.25%
2.3 Liquidity
GLOB has a Current 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.
Looking at the Current ratio, with a value of 1.71, GLOB is in line with its industry, outperforming 54.55% 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 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.
GLOB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.90% yearly.
The Revenue has been growing slightly by 5.56% in the past year.
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)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 4.46% on average over the next years.
The Revenue is expected to grow by 4.53% on average over the next years.
EPS Next Y-3.44%
EPS Next 2Y0.15%
EPS Next 3Y2.6%
EPS Next 5Y4.46%
Revenue Next Year1.26%
Revenue Next 2Y1.55%
Revenue Next 3Y3.09%
Revenue Next 5Y4.53%
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
Based on the Price/Earnings ratio of 10.36, the valuation of GLOB can be described as reasonable.
Based on the Price/Earnings ratio, GLOB is valued cheaper than 89.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, GLOB is valued rather cheaply.
GLOB is valuated reasonably with a Price/Forward Earnings ratio of 10.15.
GLOB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GLOB is cheaper than 89.77% of the companies 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 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GLOB indicates a rather cheap valuation: GLOB is cheaper than 85.23% of the companies listed in the same industry.
GLOB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GLOB is cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.71 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y0.15%
EPS Next 3Y2.6%
5. Dividend
5.1 Amount
GLOB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
65.37
-1.11 (-1.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners106.56%
Inst Owner Change8.5%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap2.88B
Revenue(TTM)2.48B
Net Income(TTM)109.86M
Analysts75
Price Target87.93 (34.51%)
Short Float %14.56%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-1.37%
PT rev (3m)-15.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 10.15 | ||
| P/S | 1.16 | ||
| P/FCF | 11.71 | ||
| P/OCF | 10.84 | ||
| P/B | 1.36 | ||
| P/tB | 26.03 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)6.31
EY9.65%
EPS(NY)6.44
Fwd EY9.85%
FCF(TTM)5.58
FCFY8.54%
OCF(TTM)6.03
OCFY9.23%
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.45
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 | 2.82 |
F-Score4
WACC7.25%
ROIC/WACC1.01
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-3.44%
EPS Next 2Y0.15%
EPS Next 3Y2.6%
EPS Next 5Y4.46%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%0.4%
Revenue Next Year1.26%
Revenue Next 2Y1.55%
Revenue Next 3Y3.09%
Revenue Next 5Y4.53%
EBIT growth 1Y4.28%
EBIT growth 3Y16.58%
EBIT growth 5Y23.47%
EBIT Next Year37.81%
EBIT Next 3Y13.69%
EBIT Next 5Y9.47%
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 5 / 10 to GLOB.
What is the valuation status of GLOBANT SA (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 5 / 10.
Can you provide the financial health for GLOB stock?
The financial health rating of GLOBANT SA (GLOB) is 4 / 10.