GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GLOB - LU0974299876 - Common Stock
67.5 USD
-0.89 (-1.3%)
67.5 USD
0 (0%)
GLOB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. GLOB has only an average score on both its financial health and profitability. GLOB may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year GLOB was profitable.
GLOB had a positive operating cash flow in the past year.
In the past 5 years GLOB has always been profitable.
In the past 5 years GLOB always reported a positive cash flow from operatings.
1.2 Ratios
GLOB has a Return On Assets of 3.23%. This is in the better half of the industry: GLOB outperforms 61.36% of its industry peers.
GLOB has a Return On Equity of 5.18%. This is comparable to the rest of the industry: GLOB outperforms 57.95% of its industry peers.
The Return On Invested Capital of GLOB (7.36%) is better than 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
GLOB's Profit Margin of 4.43% is fine compared to the rest of the industry. GLOB outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
The Operating Margin of GLOB (10.51%) is better than 72.73% of its industry peers.
GLOB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 35.55%, GLOB is in line with its industry, outperforming 54.55% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GLOB is still 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 (2.88) which is in line with 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.
With a decent Debt to FCF ratio value of 2.18, GLOB is doing good in the industry, outperforming 68.18% of the companies in the same industry.
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 (0.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.01
WACC7.27%
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.
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
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
The Earnings Per Share is expected to grow by 4.46% on average over the next years.
GLOB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.53% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 10.70, the valuation of GLOB can be described as very reasonable.
Based on the Price/Earnings ratio, GLOB is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.19, GLOB is valued rather cheaply.
The Price/Forward Earnings ratio is 10.48, which indicates a very decent valuation of GLOB.
GLOB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GLOB is cheaper than 89.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. GLOB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 10.48 |
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 87.50% of the companies listed in the same industry.
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 | 12.09 | ||
| 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
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
67.5
-0.89 (-1.3%)
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 Cap2.97B
Revenue(TTM)2.48B
Net Income(TTM)109.86M
Analysts75
Price Target87.93 (30.27%)
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 | 10.7 | ||
| Fwd PE | 10.48 | ||
| P/S | 1.2 | ||
| P/FCF | 12.09 | ||
| P/OCF | 11.19 | ||
| P/B | 1.4 | ||
| P/tB | 26.88 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)6.31
EY9.35%
EPS(NY)6.44
Fwd EY9.54%
FCF(TTM)5.58
FCFY8.27%
OCF(TTM)6.03
OCFY8.94%
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.