GLOB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. GLOB has only an average score on both its financial health and profitability. GLOB scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

GLOB had positive earnings in the past year.
In the past year GLOB had a positive cash flow from operations.
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

The Return On Assets of GLOB (3.23%) is better than 61.36% of its industry peers.
GLOB's Return On Equity of 5.18% is in line compared to the rest of the industry. GLOB outperforms 57.95% of 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 67.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GLOB is significantly below the industry average of 29.06%.

		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

GLOB has a Profit Margin of 4.43%. This is in the better half of the industry: GLOB outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
Looking at the Operating Margin, with a value of 10.51%, GLOB is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Operating Margin of GLOB has declined.
GLOB has a Gross Margin (35.55%) which is in line with 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GLOB is destroying 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

An Altman-Z score of 2.89 indicates that GLOB is not a great score, but indicates only limited risk for bankruptcy at the moment.
GLOB has a Altman-Z score of 2.89. This is comparable to the rest of the industry: GLOB outperforms 52.27% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.18, GLOB is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that GLOB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, GLOB is in line with its industry, outperforming 57.95% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.23
Debt/FCF	2.18
Altman-Z	2.89

ROIC/WACC0.54

WACC13.66%

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 52.27% of the companies in the same industry.
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 has a Quick ratio of 1.71. This is comparable to the rest of the industry: GLOB outperforms 52.27% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.71
Quick Ratio	1.71

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WACC

Debt/Equity

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Altman-Z score

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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%.
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.
Looking at the last year, GLOB shows a small growth in Revenue. The Revenue has grown by 5.56% in the last year.
Measured over the past years, GLOB shows a very strong growth in Revenue. The Revenue has been growing by 29.66% on average per year.

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

GLOB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.46% yearly.
Based on estimates for the next years, GLOB will show a small growth in Revenue. The Revenue will grow by 4.53% on average per year.

EPS Next Y-3.44%

EPS Next 2Y0.15%

EPS Next 3Y2.6%

EPS Next 5Y4.46%

Revenue Next Year1.26%

Revenue Next 2Y1.49%

Revenue Next 3Y3.03%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.94, the valuation of GLOB can be described as very reasonable.
GLOB's Price/Earnings ratio is rather cheap when compared to the industry. GLOB is cheaper than 90.91% of the companies in the same industry.
GLOB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.32.
The Price/Forward Earnings ratio is 10.72, which indicates a very decent valuation of GLOB.
Based on the Price/Forward Earnings ratio, GLOB is valued cheaper than 88.64% of the companies in the same industry.
GLOB is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	10.94
Fwd PE	10.72

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 87.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GLOB is valued cheaply inside the industry as 85.23% of the companies are valued more expensively.