GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GLOB - LU0974299876 - Common Stock
69.48 USD
+1.14 (+1.67%)
69.48 USD
0 (0%)
Taking everything into account, GLOB scores 4 out of 10 in our fundamental rating. GLOB was compared to 85 industry peers in the IT Services industry. Both the profitability and the financial health of GLOB get a neutral evaluation. Nothing too spectacular is happening here. GLOB is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
GLOB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GLOB has a Return On Assets of 3.23%. This is comparable to the rest of the industry: GLOB outperforms 60.00% of its industry peers.
GLOB has a Return On Equity (5.18%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.36%, GLOB is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GLOB is significantly below the industry average of 29.59%.
| 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
The Profit Margin of GLOB (4.43%) is better than 61.18% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
GLOB has a Operating Margin of 10.51%. This is in the better half of the industry: GLOB outperforms 71.76% of its industry peers.
GLOB's Operating Margin has declined in the last couple of years.
GLOB has a Gross Margin of 35.55%. This is comparable to the rest of the industry: GLOB outperforms 52.94% of its industry peers.
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
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
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 2.88 indicates that GLOB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.88, GLOB is in line with its industry, outperforming 52.94% of the companies in the same industry.
GLOB has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as GLOB would need 2.18 years to pay back of all of its debts.
GLOB has a Debt to FCF ratio of 2.18. This is in the better half of the industry: GLOB outperforms 68.24% 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.
GLOB has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: GLOB outperforms 56.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.02
WACC7.22%
2.3 Liquidity
A Current Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
GLOB has a Current ratio (1.71) which is in line with its industry peers.
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's Quick ratio of 1.71 is in line compared to the rest of the industry. GLOB outperforms 52.94% 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%.
The Earnings Per Share has been growing by 22.90% on average over the past years. This is a very strong growth
GLOB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.56%.
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
Based on estimates for the next years, GLOB will show a small growth in Earnings Per Share. The EPS will grow by 4.46% on average per year.
The Revenue is expected to grow by 4.53% on average over the next years.
EPS Next Y-3.44%
EPS Next 2Y0.11%
EPS Next 3Y2.54%
EPS Next 5Y4.46%
Revenue Next Year1.26%
Revenue Next 2Y1.59%
Revenue Next 3Y3.09%
Revenue Next 5Y4.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.01 indicates a reasonable valuation of GLOB.
Compared to the rest of the industry, the Price/Earnings ratio of GLOB indicates a rather cheap valuation: GLOB is cheaper than 89.41% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GLOB to the average of the S&P500 Index (26.26), we can say GLOB is valued rather cheaply.
GLOB is valuated reasonably with a Price/Forward Earnings ratio of 10.80.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GLOB indicates a rather cheap valuation: GLOB is cheaper than 88.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GLOB to the average of the S&P500 Index (23.68), we can say GLOB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
85.88% of the companies in the same industry are more expensive than GLOB, based on the Enterprise Value to EBITDA ratio.
85.88% of the companies in the same industry are more expensive than GLOB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.44 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y0.11%
EPS Next 3Y2.54%
5. Dividend
5.1 Amount
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
69.48
+1.14 (+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 Cap3.06B
Revenue(TTM)2.48B
Net Income(TTM)109.86M
Analysts75
Price Target87.93 (26.55%)
Short Float %16.98%
Short Ratio5.47
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)-3.55%
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)-0.54%
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 | 11.01 | ||
| Fwd PE | 10.8 | ||
| P/S | 1.23 | ||
| P/FCF | 12.44 | ||
| P/OCF | 11.52 | ||
| P/B | 1.44 | ||
| P/tB | 27.66 | ||
| EV/EBITDA | 7.9 |
EPS(TTM)6.31
EY9.08%
EPS(NY)6.43
Fwd EY9.26%
FCF(TTM)5.58
FCFY8.04%
OCF(TTM)6.03
OCFY8.68%
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.48
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 | 2.88 |
F-Score4
WACC7.22%
ROIC/WACC1.02
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 2Y0.11%
EPS Next 3Y2.54%
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 2Y1.59%
Revenue Next 3Y3.09%
Revenue Next 5Y4.53%
EBIT growth 1Y4.28%
EBIT growth 3Y16.58%
EBIT growth 5Y23.47%
EBIT Next Year39.42%
EBIT Next 3Y14.18%
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 4 / 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 11.01 and the Price/Book (PB) ratio is 1.44.