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%)
Overall GLOB gets a fundamental rating of 5 out of 10. We evaluated GLOB 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.
Each year in the past 5 years GLOB had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.23%, GLOB is doing good in the industry, outperforming 61.36% of the companies in the same industry.
The Return On Equity of GLOB (5.18%) is comparable to the rest of the industry.
GLOB has a Return On Invested Capital of 7.36%. This is in the better half of the industry: GLOB outperforms 67.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 4.43%, GLOB is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
GLOB's Profit Margin has declined in the last couple of years.
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.
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 54.55% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GLOB is creating some value.
The number of shares outstanding for GLOB has been increased compared to 1 year ago.
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 2.90 indicates that GLOB is not a great score, but indicates only limited risk for bankruptcy at the moment.
GLOB has a Altman-Z score (2.90) which is comparable to the rest of the 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.
The Debt to FCF ratio of GLOB (2.18) is better than 69.32% 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.
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 | 2.9 |
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.
The Current ratio of GLOB (1.71) is comparable to the rest of the industry.
A Quick Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.71, GLOB perfoms like the industry average, 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
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
GLOB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.46% yearly.
The Revenue is expected to grow by 4.53% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.84, the valuation of GLOB can be described as very reasonable.
Based on the Price/Earnings ratio, GLOB is valued cheaply inside the industry as 89.77% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.19. GLOB is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.62, the valuation of GLOB can be described as reasonable.
Based on the Price/Forward Earnings ratio, GLOB is valued cheaply inside the industry as 89.77% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.88. GLOB is valued rather cheaply when compared to this.
| 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.
GLOB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GLOB is cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.25 | ||
| EV/EBITDA | 7.99 |
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
No dividends for GLOB!.
| 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 Change0%
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)-1.37%
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 | 7.99 |
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 | 2.9 |
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.