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GLOBANT SA (GLOB) Stock Fundamental Analysis

NYSE:GLOB - New York Stock Exchange, Inc. - LU0974299876 - Common Stock - Currency: USD

151.72  -58.45 (-27.81%)

After market: 154.99 +3.27 (+2.16%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to GLOB. GLOB was compared to 82 industry peers in the IT Services industry. GLOB has only an average score on both its financial health and profitability. GLOB is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year GLOB was profitable.
GLOB had positive earnings in 4 of the past 5 years.
GLOB had a positive operating cash flow in 4 of the past 5 years.
GLOB Yearly Net Income VS EBIT VS OCF VS FCFGLOB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

1.2 Ratios

GLOB has a better Return On Assets (5.85%) than 73.08% of its industry peers.
With a decent Return On Equity value of 8.97%, GLOB is doing good in the industry, outperforming 62.82% of the companies in the same industry.
GLOB has a Return On Invested Capital of 9.24%. This is in the better half of the industry: GLOB outperforms 74.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GLOB is in line with the industry average of 10.13%.
Industry RankSector 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%
GLOB Yearly ROA, ROE, ROICGLOB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

GLOB has a better Profit Margin (7.20%) than 69.23% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
GLOB has a better Operating Margin (11.03%) than 71.79% of its industry peers.
GLOB's Operating Margin has declined in the last couple of years.
The Gross Margin of GLOB (35.79%) is comparable to the rest of the industry.
GLOB's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
GLOB Yearly Profit, Operating, Gross MarginsGLOB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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5

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.
There is no outstanding debt for GLOB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
GLOB Yearly Shares OutstandingGLOB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
GLOB Yearly Total Debt VS Total AssetsGLOB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

An Altman-Z score of 6.96 indicates that GLOB is not in any danger for bankruptcy at the moment.
The Altman-Z score of GLOB (6.96) is better than 80.77% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that GLOB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.05, GLOB belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Altman-Z 6.96
ROIC/WACC1.29
WACC7.18%
GLOB Yearly LT Debt VS Equity VS FCFGLOB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

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.
GLOB has a Current ratio of 1.36. This is in the lower half of the industry: GLOB underperforms 60.26% of its industry peers.
A Quick Ratio of 1.36 indicates that GLOB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.36, GLOB perfoms like the industry average, outperforming 41.03% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.36
GLOB Yearly Current Assets VS Current LiabilitesGLOB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.85% 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.
EPS 1Y (TTM)11.85%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%8.02%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.64%

3.2 Future

GLOB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.65% yearly.
Based on estimates for the next years, GLOB will show a quite strong growth in Revenue. The Revenue will grow by 16.37% on average per year.
EPS Next Y16.68%
EPS Next 2Y17.44%
EPS Next 3Y18.62%
EPS Next 5Y17.65%
Revenue Next Year13.63%
Revenue Next 2Y15.08%
Revenue Next 3Y17.44%
Revenue Next 5Y16.37%

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.
GLOB Yearly Revenue VS EstimatesGLOB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B
GLOB Yearly EPS VS EstimatesGLOB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 23.63, the valuation of GLOB can be described as rather expensive.
GLOB's Price/Earnings ratio is in line with the industry average.
GLOB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 20.25, GLOB is valued on the expensive side.
GLOB's Price/Forward Earnings ratio is in line with the industry average.
GLOB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 23.63
Fwd PE 20.25
GLOB Price Earnings VS Forward Price EarningsGLOB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as GLOB.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 22.86
GLOB Per share dataGLOB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GLOB's earnings are expected to grow with 18.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)1.03
EPS Next 2Y17.44%
EPS Next 3Y18.62%

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0

5. Dividend

5.1 Amount

GLOB does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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GLOBANT SA

NYSE:GLOB (2/21/2025, 8:23:55 PM)

After market: 154.99 +3.27 (+2.16%)

151.72

-58.45 (-27.81%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-15 2025-05-15/amc
Inst Owners99.82%
Inst Owner Change3.76%
Ins Owners2.25%
Ins Owner ChangeN/A
Market Cap6.54B
Analysts77.14
Price Target244.95 (61.45%)
Short Float %4.74%
Short Ratio4.68
Dividend
Industry RankSector 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)-1.33%
Min EPS beat(2)-1.67%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-1.39%
Min EPS beat(4)-1.8%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-1.25%
EPS beat(12)2
Avg EPS beat(12)-0.67%
EPS beat(16)6
Avg EPS beat(16)0.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-1.74%
Revenue beat(8)0
Avg Revenue beat(8)-1.85%
Revenue beat(12)1
Avg Revenue beat(12)-1.26%
Revenue beat(16)5
Avg Revenue beat(16)-0.21%
PT rev (1m)0.7%
PT rev (3m)5.68%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)1.67%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 23.63
Fwd PE 20.25
P/S 2.78
P/FCF N/A
P/OCF N/A
P/B 3.46
P/tB 19
EV/EBITDA 22.86
EPS(TTM)6.42
EY4.23%
EPS(NY)7.49
Fwd EY4.94%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS54.63
BVpS43.86
TBVpS7.99
PEG (NY)1.42
PEG (5Y)1.03
Profitability
Industry RankSector Rank
ROA 5.85%
ROE 8.97%
ROCE 11.73%
ROIC 9.24%
ROICexc 10.24%
ROICexgc 45.46%
OM 11.03%
PM (TTM) 7.2%
GM 35.79%
FCFM N/A
ROA(3y)5.89%
ROA(5y)5.94%
ROE(3y)8.8%
ROE(5y)8.97%
ROIC(3y)9.29%
ROIC(5y)9.64%
ROICexc(3y)15.72%
ROICexc(5y)14.54%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.8%
ROCE(5y)12.23%
ROICexcg growth 3Y33.95%
ROICexcg growth 5Y7.87%
ROICexc growth 3Y4.03%
ROICexc growth 5Y-13.46%
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%
F-ScoreN/A
Asset Turnover0.81
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Debt/EBITDA 0.23
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1.36
Altman-Z 6.96
F-ScoreN/A
WACC7.18%
ROIC/WACC1.29
Cap/Depr(3y)91.88%
Cap/Depr(5y)93.68%
Cap/Sales(3y)5.8%
Cap/Sales(5y)5.76%
Profit Quality(3y)98.34%
Profit Quality(5y)93.79%
High Growth Momentum
Growth
EPS 1Y (TTM)11.85%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%8.02%
EPS Next Y16.68%
EPS Next 2Y17.44%
EPS Next 3Y18.62%
EPS Next 5Y17.65%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.64%
Revenue Next Year13.63%
Revenue Next 2Y15.08%
Revenue Next 3Y17.44%
Revenue Next 5Y16.37%
EBIT growth 1Y9.59%
EBIT growth 3Y34.95%
EBIT growth 5Y26.38%
EBIT Next Year67.81%
EBIT Next 3Y29.53%
EBIT Next 5Y22.93%
FCF growth 1Y87.78%
FCF growth 3Y60.47%
FCF growth 5Y38.01%
OCF growth 1Y61.28%
OCF growth 3Y47.18%
OCF growth 5Y36.51%