GLOBANT SA (GLOB)
LU0974299876 - Common Stock
We assign a fundamental rating of 4 out of 10 to GLOB. GLOB was compared to 83 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. GLOB shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
GLOB had positive earnings 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
The Return On Assets of GLOB (5.85%) is better than 74.07% of its industry peers.
GLOB has a better Return On Equity (8.97%) than 65.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.24%, GLOB is in the better half of the industry, outperforming 75.31% of the companies in the same industry.
GLOB had an Average Return On Invested Capital over the past 3 years of 9.29%. This is in line with the industry average of 9.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 8.97% | ||
| ROIC | 9.24% |
ROA(3y)5.89%
ROA(5y)5.94%
ROE(3y)8.8%
ROE(5y)8.97%
ROIC(3y)9.29%
ROIC(5y)9.64%
1.3 Margins
The Profit Margin of GLOB (7.20%) is better than 70.37% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
GLOB has a better Operating Margin (11.03%) than 72.84% of its industry peers.
GLOB's Operating Margin has declined in the last couple of years.
GLOB has a Gross Margin of 35.79%. This is comparable to the rest of the industry: GLOB outperforms 55.56% of its industry peers.
In the last couple of years the Gross Margin of GLOB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.03% | ||
| PM (TTM) | 7.2% | ||
| GM | 35.79% |
OM growth 3Y-1.54%
OM growth 5Y-4.29%
PM growth 3Y4.35%
PM growth 5Y-5.24%
GM growth 3Y-1.19%
GM growth 5Y-1.57%
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
The debt/assets ratio for GLOB is higher compared to a year ago.
2.2 Solvency
GLOB has an Altman-Z score of 7.25. This indicates that GLOB is financially healthy and has little risk of bankruptcy at the moment.
GLOB has a better Altman-Z score (7.25) than 86.42% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that GLOB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.05, GLOB is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.25 |
ROIC/WACC1.27
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.36 indicates that GLOB should not have too much problems paying its short term obligations.
The Current ratio of GLOB (1.36) is worse than 60.49% of its industry peers.
GLOB has a Quick Ratio of 1.36. This is a normal value and indicates that GLOB is financially healthy and should not expect problems in meeting its short term obligations.
GLOB's Quick ratio of 1.36 is in line compared to the rest of the industry. GLOB outperforms 40.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
GLOB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.95%, which is quite good.
Measured over the past years, GLOB shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.96% on average per year.
The Revenue has grown by 17.35% in the past year. This is quite good.
Measured over the past years, GLOB shows a very strong growth in Revenue. The Revenue has been growing by 32.04% on average per year.
EPS 1Y (TTM)13.95%
EPS 3Y32.82%
EPS 5Y26.96%
EPS Q2Q%10.14%
Revenue 1Y (TTM)17.35%
Revenue growth 3Y37.06%
Revenue growth 5Y32.04%
Sales Q2Q%12.72%
3.2 Future
GLOB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.53% yearly.
The Revenue is expected to grow by 16.29% on average over the next years. This is quite good.
EPS Next Y13.63%
EPS Next 2Y14.23%
EPS Next 3Y15.81%
EPS Next 5Y16.53%
Revenue Next Year15.4%
Revenue Next 2Y14.89%
Revenue Next 3Y15.61%
Revenue Next 5Y16.29%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
GLOB is valuated quite expensively with a Price/Earnings ratio of 35.21.
GLOB's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. GLOB is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.57, which means the current valuation is very expensive for GLOB.
The rest of the industry has a similar Price/Forward Earnings ratio as GLOB.
When comparing the Price/Forward Earnings ratio of GLOB to the average of the S&P500 Index (23.73), we can say GLOB is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.21 | ||
| Fwd PE | 29.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GLOB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GLOB does not grow enough to justify the current Price/Earnings ratio.
GLOB's earnings are expected to grow with 15.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.58
PEG (5Y)1.31
EPS Next 2Y14.23%
EPS Next 3Y15.81%
5. Dividend
5.1 Amount
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GLOBANT SA
NYSE:GLOB (12/20/2024, 8:14:56 PM)
After market: 221.49 0 (0%)221.49
-1.79 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99.82%
Inst Owner Change6.12%
Ins Owners2.25%
Ins Owner ChangeN/A
Market Cap9.54B
Analysts78.62
Price Target234.21 (5.74%)
Short Float %5.82%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-1.33%
Min EPS beat(2)-1.67%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-1.39%
Min EPS beat(4)-1.8%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-1.25%
EPS beat(12)2
Avg EPS beat(12)-0.67%
EPS beat(16)6
Avg EPS beat(16)0.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-1.74%
Revenue beat(8)0
Avg Revenue beat(8)-1.85%
Revenue beat(12)1
Avg Revenue beat(12)-1.26%
Revenue beat(16)5
Avg Revenue beat(16)-0.21%
PT rev (1m)0%
PT rev (3m)2.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.21 | ||
| Fwd PE | 29.57 | ||
| P/S | 4.05 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.05 | ||
| P/tB | 27.73 | ||
| EV/EBITDA | 24.08 |
EPS(TTM)6.29
EY2.84%
EPS(NY)7.49
Fwd EY3.38%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS54.63
BVpS43.86
TBVpS7.99
PEG (NY)2.58
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 8.97% | ||
| ROCE | 11.73% | ||
| ROIC | 9.24% | ||
| ROICexc | 10.24% | ||
| ROICexgc | 45.46% | ||
| OM | 11.03% | ||
| PM (TTM) | 7.2% | ||
| GM | 35.79% | ||
| FCFM | N/A |
ROA(3y)5.89%
ROA(5y)5.94%
ROE(3y)8.8%
ROE(5y)8.97%
ROIC(3y)9.29%
ROIC(5y)9.64%
ROICexc(3y)15.72%
ROICexc(5y)14.54%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.8%
ROCE(5y)12.23%
ROICexcg growth 3Y33.95%
ROICexcg growth 5Y7.87%
ROICexc growth 3Y4.03%
ROICexc growth 5Y-13.46%
OM growth 3Y-1.54%
OM growth 5Y-4.29%
PM growth 3Y4.35%
PM growth 5Y-5.24%
GM growth 3Y-1.19%
GM growth 5Y-1.57%
F-ScoreN/A
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 7.25 |
F-ScoreN/A
WACC7.29%
ROIC/WACC1.27
Cap/Depr(3y)91.88%
Cap/Depr(5y)93.68%
Cap/Sales(3y)5.8%
Cap/Sales(5y)5.76%
Profit Quality(3y)98.34%
Profit Quality(5y)93.79%
High Growth Momentum
Growth
EPS 1Y (TTM)13.95%
EPS 3Y32.82%
EPS 5Y26.96%
EPS Q2Q%10.14%
EPS Next Y13.63%
EPS Next 2Y14.23%
EPS Next 3Y15.81%
EPS Next 5Y16.53%
Revenue 1Y (TTM)17.35%
Revenue growth 3Y37.06%
Revenue growth 5Y32.04%
Sales Q2Q%12.72%
Revenue Next Year15.4%
Revenue Next 2Y14.89%
Revenue Next 3Y15.61%
Revenue Next 5Y16.29%
EBIT growth 1Y9.59%
EBIT growth 3Y34.95%
EBIT growth 5Y26.38%
EBIT Next Year66.1%
EBIT Next 3Y30.12%
EBIT Next 5Y22.93%
FCF growth 1Y87.78%
FCF growth 3Y60.47%
FCF growth 5Y38.01%
OCF growth 1Y61.28%
OCF growth 3Y47.18%
OCF growth 5Y36.51%