GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GLOB - LU0974299876 - Common Stock
68.92 USD
+0.18 (+0.26%)
68.92 USD
0 (0%)
Overall GLOB gets a fundamental rating of 4 out of 10. We evaluated GLOB against 85 industry peers in the IT Services industry. GLOB has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on GLOB.
1. Profitability
1.1 Basic Checks
GLOB had positive earnings in the past year.
GLOB had a positive operating cash flow in the past year.
GLOB had positive earnings in each of the past 5 years.
In the past 5 years GLOB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.23%, GLOB is in line with its industry, outperforming 60.00% of the companies in the same industry.
GLOB has a Return On Equity (5.18%) which is in line with its industry peers.
The Return On Invested Capital of GLOB (7.36%) is better than 65.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GLOB is significantly below the industry average of 29.59%.
| 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
With a decent Profit Margin value of 4.43%, GLOB is doing good in the industry, outperforming 61.18% of the companies in the same industry.
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 has a Gross Margin of 35.55%. This is comparable 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.
GLOB has more shares outstanding than it did 5 years ago.
GLOB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.89 indicates that GLOB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GLOB (2.89) is comparable to the rest of the industry.
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 Debt to FCF ratio of 2.18. This is in the better half of the industry: GLOB outperforms 68.24% 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.
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 | 2.89 |
ROIC/WACC1.02
WACC7.22%
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's Current ratio of 1.71 is in line compared to the rest of the industry. GLOB outperforms 54.12% of its industry peers.
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's Quick ratio of 1.71 is in line compared to the rest of the industry. GLOB outperforms 54.12% of its industry peers.
| 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%.
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.
The Revenue has been growing by 29.66% on average over the past years. This is a very strong growth!
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 2Y0.11%
EPS Next 3Y2.54%
EPS Next 5Y4.46%
Revenue Next Year1.26%
Revenue Next 2Y1.59%
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 10.92.
Compared to the rest of the industry, the Price/Earnings ratio of GLOB indicates a rather cheap valuation: GLOB is cheaper than 89.41% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GLOB to the average of the S&P500 Index (26.59), we can say GLOB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.71, the valuation of GLOB can be described as reasonable.
Based on the Price/Forward Earnings ratio, GLOB is valued cheaper than 85.88% 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 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLOB is valued cheaply inside the industry as 84.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GLOB is valued cheaper than 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.34 | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y0.11%
EPS Next 3Y2.54%
5. Dividend
5.1 Amount
GLOB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.92
+0.18 (+0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners106.56%
Inst Owner Change8.5%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap3.04B
Revenue(TTM)2.48B
Net Income(TTM)109.86M
Analysts75
Price Target87.93 (27.58%)
Short Float %15.48%
Short Ratio4.65
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)-3.55%
PT rev (3m)-15.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 10.71 | ||
| P/S | 1.22 | ||
| P/FCF | 12.34 | ||
| P/OCF | 11.42 | ||
| P/B | 1.43 | ||
| P/tB | 27.44 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)6.31
EY9.16%
EPS(NY)6.43
Fwd EY9.34%
FCF(TTM)5.58
FCFY8.1%
OCF(TTM)6.03
OCFY8.75%
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.48
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 | 2.89 |
F-Score4
WACC7.22%
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-3.44%
EPS Next 2Y0.11%
EPS Next 3Y2.54%
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 2Y1.59%
Revenue Next 3Y3.09%
Revenue Next 5Y4.53%
EBIT growth 1Y4.28%
EBIT growth 3Y16.58%
EBIT growth 5Y23.47%
EBIT Next Year39.42%
EBIT Next 3Y14.18%
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 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 10.92 and the Price/Book (PB) ratio is 1.43.