GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - NYSE:GLOB - LU0974299876 - Common Stock
59.35 USD
+2.01 (+3.51%)
59.21 USD
-0.14 (-0.24%)
We assign a fundamental rating of 4 out of 10 to GLOB. GLOB was compared to 86 industry peers in the IT Services industry. There are concerns on the financial health of GLOB while its profitability can be described as average. GLOB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GLOB was profitable.
Each year in the past 5 years GLOB has been profitable.
GLOB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GLOB's Return On Assets of 3.25% is fine compared to the rest of the industry. GLOB outperforms 60.47% of its industry peers.
GLOB has a Return On Equity (5.20%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.34%, GLOB is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
GLOB had an Average Return On Invested Capital over the past 3 years of 9.19%. This is significantly below the industry average of 21.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 5.2% | ||
| ROIC | 7.34% |
ROA(3y)5.94%
ROA(5y)5.42%
ROE(3y)9.16%
ROE(5y)8.2%
ROIC(3y)9.19%
ROIC(5y)8.71%
1.3 Margins
GLOB has a better Profit Margin (4.44%) than 61.63% of its industry peers.
GLOB's Profit Margin has declined in the last couple of years.
GLOB's Operating Margin of 10.49% is fine compared to the rest of the industry. GLOB outperforms 70.93% of its industry peers.
GLOB's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 35.55%, GLOB perfoms like the industry average, outperforming 48.84% 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 | 10.49% | ||
| PM (TTM) | 4.44% | ||
| 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
GLOB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
GLOB has a worse debt/assets ratio than last year.
2.2 Solvency
GLOB has an Altman-Z score of 2.69. 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.
With a Altman-Z score value of 2.69, GLOB perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that GLOB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, GLOB is in line with its industry, outperforming 59.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.69 |
ROIC/WACC1.02
WACC7.17%
2.3 Liquidity
A Current Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.71, GLOB perfoms like the industry average, outperforming 52.33% of the companies in the same 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 in line with its industry peers.
| 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 4.40% 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.
GLOB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.66%.
GLOB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.66% yearly.
EPS 1Y (TTM)4.4%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%1.32%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%4.55%
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 8.49% yearly.
GLOB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.29% yearly.
EPS Next Y-2.92%
EPS Next 2Y0.51%
EPS Next 3Y3.05%
EPS Next 5Y8.49%
Revenue Next Year1.42%
Revenue Next 2Y2.03%
Revenue Next 3Y3.79%
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 9.26, the valuation of GLOB can be described as very reasonable.
Based on the Price/Earnings ratio, GLOB is valued cheaply inside the industry as 91.86% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.35. GLOB is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.15, the valuation of GLOB can be described as reasonable.
GLOB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GLOB is cheaper than 91.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. GLOB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLOB is valued cheaply inside the industry as 89.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y0.51%
EPS Next 3Y3.05%
5. Dividend
5.1 Amount
No dividends for GLOB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.35
+2.01 (+3.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change-0.3%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap2.61B
Analysts77.69
Price Target100.57 (69.45%)
Short Float %14.6%
Short Ratio3.64
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)-3.66%
PT rev (3m)-34.13%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.33%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 9.15 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.23 | ||
| P/tB | 23.63 | ||
| EV/EBITDA | 6.97 |
EPS(TTM)6.41
EY10.8%
EPS(NY)6.49
Fwd EY10.93%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 5.2% | ||
| ROCE | 9.16% | ||
| ROIC | 7.34% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 32.18% | ||
| OM | 10.49% | ||
| PM (TTM) | 4.44% | ||
| GM | 35.55% | ||
| FCFM | N/A |
ROA(3y)5.94%
ROA(5y)5.42%
ROE(3y)9.16%
ROE(5y)8.2%
ROIC(3y)9.19%
ROIC(5y)8.71%
ROICexc(3y)11.65%
ROICexc(5y)13.29%
ROICexgc(3y)54.61%
ROICexgc(5y)N/A
ROCE(3y)11.46%
ROCE(5y)10.86%
ROICexcg growth 3YN/A
ROICexcg 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-ScoreN/A
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 2.69 |
F-ScoreN/A
WACC7.17%
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)4.4%
EPS 3Y19.52%
EPS 5Y22.9%
EPS Q2Q%1.32%
EPS Next Y-2.92%
EPS Next 2Y0.51%
EPS Next 3Y3.05%
EPS Next 5Y8.49%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%4.55%
Revenue Next Year1.42%
Revenue Next 2Y2.03%
Revenue Next 3Y3.79%
Revenue Next 5Y6.29%
EBIT growth 1Y4.08%
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%