GLOBANT SA (GLOB)
LU0974299876 - Common Stock
We assign a fundamental rating of 4 out of 10 to GLOB. GLOB was compared to 84 industry peers in the IT Services industry. GLOB has an average financial health and profitability rating. GLOB is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
GLOB had positive earnings in the past year.
Each year in the past 5 years GLOB has been profitable.
GLOB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GLOB (5.85%) is better than 73.17% of its industry peers.
Looking at the Return On Equity, with a value of 8.97%, GLOB is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
GLOB's Return On Invested Capital of 9.24% is fine compared to the rest of the industry. GLOB outperforms 75.61% of its industry peers.
GLOB had an Average Return On Invested Capital over the past 3 years of 9.29%. This is in line with the industry average of 9.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 8.97% | ||
| ROIC | 9.24% |
ROA(3y)5.89%
ROA(5y)5.94%
ROE(3y)8.8%
ROE(5y)8.97%
ROIC(3y)9.29%
ROIC(5y)9.64%
1.3 Margins
GLOB has a Profit Margin of 7.20%. This is in the better half of the industry: GLOB outperforms 69.51% of its industry peers.
GLOB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.03%, GLOB is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
In the last couple of years the Operating Margin of GLOB has declined.
The Gross Margin of GLOB (35.79%) 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 | 11.03% | ||
| PM (TTM) | 7.2% | ||
| GM | 35.79% |
OM growth 3Y-1.54%
OM growth 5Y-4.29%
PM growth 3Y4.35%
PM growth 5Y-5.24%
GM growth 3Y-1.19%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GLOB 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.
The debt/assets ratio for GLOB is higher compared to a year ago.
2.2 Solvency
GLOB has an Altman-Z score of 7.10. This indicates that GLOB is financially healthy and has little risk of bankruptcy at the moment.
GLOB's Altman-Z score of 7.10 is amongst the best of the industry. GLOB outperforms 81.71% of its industry peers.
GLOB has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.05, GLOB is doing good in the industry, outperforming 76.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.1 |
ROIC/WACC1.28
WACC7.22%
2.3 Liquidity
GLOB has a Current Ratio of 1.36. 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 1.36, GLOB is in line with its industry, outperforming 40.24% of the companies in the same industry.
GLOB has a Quick Ratio of 1.36. 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 Quick ratio of 1.36 is in line compared to the rest of the industry. GLOB outperforms 41.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.95% 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 26.96% on average per year.
The Revenue has grown by 17.35% in the past year. This is quite good.
Measured over the past years, GLOB shows a very strong growth in Revenue. The Revenue has been growing by 32.04% on average per year.
EPS 1Y (TTM)13.95%
EPS 3Y32.82%
EPS 5Y26.96%
EPS Q2Q%10.14%
Revenue 1Y (TTM)17.35%
Revenue growth 3Y37.06%
Revenue growth 5Y32.04%
Sales Q2Q%12.73%
3.2 Future
Based on estimates for the next years, GLOB will show a very strong growth in Earnings Per Share. The EPS will grow by 20.03% on average per year.
GLOB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.70% yearly.
EPS Next Y13.77%
EPS Next 2Y14.74%
EPS Next 3Y16.61%
EPS Next 5Y20.03%
Revenue Next Year15.35%
Revenue Next 2Y15.3%
Revenue Next 3Y16.09%
Revenue Next 5Y18.7%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.40, the valuation of GLOB can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GLOB is on the same level as its industry peers.
GLOB is valuated rather expensively when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
GLOB is valuated quite expensively with a Price/Forward Earnings ratio of 29.47.
GLOB's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of GLOB to the average of the S&P500 Index (23.82), we can say GLOB is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.4 | ||
| Fwd PE | 29.47 |
4.2 Price Multiples
GLOB's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GLOB does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as GLOB's earnings are expected to grow with 16.61% in the coming years.
PEG (NY)2.57
PEG (5Y)1.31
EPS Next 2Y14.74%
EPS Next 3Y16.61%
5. Dividend
5.1 Amount
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GLOBANT SA
NYSE:GLOB (11/21/2024, 8:04:01 PM)
After market: 222.69 0 (0%)222.69
+6.99 (+3.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.4 | ||
| Fwd PE | 29.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.57
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 8.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.03% | ||
| PM (TTM) | 7.2% | ||
| GM | 35.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.95%
EPS 3Y32.82%
EPS 5Y
EPS Q2Q%
EPS Next Y13.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.35%
Revenue growth 3Y37.06%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y