GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GLOB - LU0974299876 - Common Stock
68.39 USD
-0.79 (-1.14%)
68.39 USD
0 (0%)
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 an average financial health and profitability rating. GLOB scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year GLOB was profitable.
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's Return On Assets of 3.23% is fine compared to the rest of the industry. GLOB outperforms 61.36% of its industry peers.
GLOB has a Return On Equity of 5.18%. This is comparable to the rest of the industry: GLOB outperforms 57.95% of its industry peers.
The Return On Invested Capital of GLOB (7.36%) is better 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 28.99%.
| 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 62.50% 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 72.73% of its industry peers.
In the last couple of years the Operating Margin of GLOB has declined.
GLOB's Gross Margin of 35.55% is in line compared to the rest of the industry. GLOB outperforms 54.55% of its industry peers.
GLOB's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GLOB is creating some value.
GLOB has more shares outstanding than it did 1 year ago.
GLOB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GLOB has a worse debt to assets ratio.
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.
GLOB has a Altman-Z score of 2.88. This is comparable to the rest of the industry: GLOB outperforms 53.41% of its industry peers.
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 has a better Debt to FCF ratio (2.18) than 68.18% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that GLOB is not too dependend on debt financing.
GLOB has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: GLOB outperforms 57.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.01
WACC7.27%
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.
GLOB has a Current ratio (1.71) which is in line with its industry peers.
A Quick Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.71, GLOB is in line with its industry, outperforming 52.27% of the companies in the same industry.
| 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.
GLOB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.56%.
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 2Y1.55%
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 10.84 indicates a reasonable valuation of GLOB.
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.
The average S&P500 Price/Earnings ratio is at 27.19. GLOB is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.62, which indicates a very decent valuation of GLOB.
89.77% of the companies in the same industry are more expensive than GLOB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GLOB to the average of the S&P500 Index (23.92), we can say GLOB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
87.50% of the companies in the same industry are more expensive than GLOB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GLOB indicates a rather cheap valuation: GLOB is cheaper than 86.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.25 | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.47
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% |
68.39
-0.79 (-1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners107.31%
Inst Owner Change-0.06%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap3.01B
Revenue(TTM)2.48B
Net Income(TTM)109.86M
Analysts75
Price Target87.93 (28.57%)
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)0%
PT rev (3m)-12.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 10.62 | ||
| P/S | 1.21 | ||
| P/FCF | 12.25 | ||
| P/OCF | 11.34 | ||
| P/B | 1.42 | ||
| P/tB | 27.23 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)6.31
EY9.23%
EPS(NY)6.44
Fwd EY9.42%
FCF(TTM)5.58
FCFY8.17%
OCF(TTM)6.03
OCFY8.82%
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.47
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
WACC7.27%
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.