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%)
We assign a fundamental rating of 5 out of 10 to GLOB. GLOB was compared to 88 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on GLOB.
1. Profitability
1.1 Basic Checks
In the past year GLOB was profitable.
GLOB had a positive operating cash flow 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
Looking at the Return On Assets, with a value of 3.23%, GLOB is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
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.
With a decent Return On Invested Capital value of 7.36%, GLOB is doing good in the industry, outperforming 67.05% 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 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
GLOB has a better Profit Margin (4.43%) than 62.50% of its industry peers.
GLOB's Profit Margin has declined in the last couple of years.
GLOB's Operating Margin of 10.51% is fine compared to the rest 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
GLOB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GLOB has more shares outstanding
GLOB has more shares outstanding than it did 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 2.88. This is not the best score and indicates that GLOB is in the grey zone with still 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.
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.
The Debt to Equity ratio of GLOB (0.23) is comparable to the rest of the industry.
| 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.
GLOB's Quick ratio of 1.71 is in line compared 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 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.32% 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.
Looking at the last year, GLOB shows a small growth in Revenue. The Revenue has grown by 5.56% in the last year.
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
The Earnings Per Share is expected to grow by 4.46% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
GLOB is valuated reasonably with a Price/Earnings ratio of 10.84.
Based on the Price/Earnings ratio, GLOB is valued 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.
With a Price/Forward Earnings ratio of 10.62, the valuation of GLOB can be described as very reasonable.
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
GLOB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GLOB is cheaper than 87.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GLOB is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
| 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.