GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - NYSE:GLOB - LU0974299876 - Common Stock
60.44 USD
+1.56 (+2.65%)
60.44 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. GLOB has an average financial health and profitability rating. GLOB is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year GLOB was profitable.
In the past year GLOB had a positive cash flow from operations.
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
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 of 5.18%. This is comparable to the rest of the industry: GLOB outperforms 57.65% of its industry peers.
GLOB has a Return On Invested Capital of 7.36%. This is in the better half of the industry: GLOB outperforms 63.53% 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 30.25%.
| 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's Profit Margin of 4.43% is fine compared to the rest of the industry. GLOB outperforms 62.35% 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.
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 52.94% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GLOB is still 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
Compared to 1 year ago, GLOB has a worse debt to assets ratio.
2.2 Solvency
GLOB has an Altman-Z score of 2.68. 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 2.68. This is comparable to the rest of the industry: GLOB outperforms 52.94% 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.
GLOB has a better Debt to FCF ratio (2.18) than 67.06% 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 58.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.68 |
ROIC/WACC1.02
WACC7.21%
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 comparable to the rest of the 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 (1.71) which is comparable to the rest of the 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.
The Revenue has been growing slightly by 5.56% in the past 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
Based on estimates for the next years, GLOB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.49% on average per year.
Based on estimates for the next years, GLOB will show a small growth in Revenue. The Revenue will grow by 6.29% on average per year.
EPS Next Y-2.99%
EPS Next 2Y0.2%
EPS Next 3Y2.8%
EPS Next 5Y8.49%
Revenue Next Year1.38%
Revenue Next 2Y1.87%
Revenue Next 3Y3.52%
Revenue Next 5Y6.29%
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
With a Price/Earnings ratio of 9.58, the valuation of GLOB can be described as very reasonable.
Based on the Price/Earnings ratio, GLOB is valued cheaply inside the industry as 89.41% of the companies are valued more expensively.
GLOB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.51.
GLOB is valuated reasonably with a Price/Forward Earnings ratio of 9.38.
GLOB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GLOB is cheaper than 90.59% of the companies in the same industry.
GLOB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 9.38 |
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 85.88% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GLOB is valued cheaply inside the industry as 87.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.82 | ||
| EV/EBITDA | 6.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y0.2%
EPS Next 3Y2.8%
5. Dividend
5.1 Amount
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
60.44
+1.56 (+2.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change8.6%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap2.66B
Revenue(TTM)2.48B
Net Income(TTM)109.86M
Analysts76.43
Price Target89.16 (47.52%)
Short Float %15.77%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-9.35%
PT rev (3m)-27.99%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 9.38 | ||
| P/S | 1.07 | ||
| P/FCF | 10.82 | ||
| P/OCF | 10.02 | ||
| P/B | 1.26 | ||
| P/tB | 24.06 | ||
| EV/EBITDA | 6.92 |
EPS(TTM)6.31
EY10.44%
EPS(NY)6.45
Fwd EY10.66%
FCF(TTM)5.58
FCFY9.24%
OCF(TTM)6.03
OCFY9.98%
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.42
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 | 2.68 |
F-Score4
WACC7.21%
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-2.99%
EPS Next 2Y0.2%
EPS Next 3Y2.8%
EPS Next 5Y8.49%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%0.4%
Revenue Next Year1.38%
Revenue Next 2Y1.87%
Revenue Next 3Y3.52%
Revenue Next 5Y6.29%
EBIT growth 1Y4.28%
EBIT growth 3Y16.58%
EBIT growth 5Y23.47%
EBIT Next Year40.58%
EBIT Next 3Y14.73%
EBIT Next 5Y11.47%
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 9.58 and the Price/Book (PB) ratio is 1.26.