GLOBANT SA (GLOB) Stock Fundamental Analysis
NYSE:GLOB - New York Stock Exchange, Inc. - LU0974299876 - Common Stock
GLOB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 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 is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
GLOB had positive earnings in the past year.
In the past 5 years GLOB has always been profitable.
GLOB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GLOB has a better Return On Assets (5.85%) than 73.42% of its industry peers.
GLOB's Return On Equity of 8.97% is fine compared to the rest of the industry. GLOB outperforms 64.56% of its industry peers.
The Return On Invested Capital of GLOB (9.24%) is better than 74.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GLOB is in line with the industry average of 9.86%.
| 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
GLOB has a Profit Margin of 7.20%. This is in the better half of the industry: GLOB outperforms 70.89% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
GLOB's Operating Margin of 11.03% is fine compared to the rest of the industry. GLOB outperforms 72.15% of its industry peers.
In the last couple of years the Operating Margin of GLOB has declined.
GLOB has a Gross Margin (35.79%) which is in line with its industry peers.
GLOB's Gross Margin has declined in the last couple of years.
| 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
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.
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 6.97. This indicates that GLOB is financially healthy and has little risk of bankruptcy at the moment.
GLOB has a Altman-Z score of 6.97. This is amongst the best in the industry. GLOB outperforms 84.81% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that GLOB is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.05, GLOB is doing good in the industry, outperforming 79.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.97 |
ROIC/WACC1.28
WACC7.21%
2.3 Liquidity
GLOB has a Current 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.
Looking at the Current ratio, with a value of 1.36, GLOB is doing worse than 60.76% of the companies in the same industry.
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 40.51% 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.
GLOB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.96% yearly.
GLOB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.35%.
The Revenue has been growing by 32.04% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 16.53% on average over the next years. This is quite good.
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 Year15.44%
Revenue Next 2Y14.81%
Revenue Next 3Y15.52%
Revenue Next 5Y16.29%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 32.77.
GLOB's Price/Earnings ratio is in line with the industry average.
GLOB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 27.52, GLOB can be considered very expensive at the moment.
GLOB's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GLOB to the average of the S&P500 Index (24.44), we can say GLOB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.77 | ||
| Fwd PE | 27.52 |
4.2 Price Multiples
GLOB's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GLOB's earnings are expected to grow with 15.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.4
PEG (5Y)1.22
EPS Next 2Y14.23%
EPS Next 3Y15.81%
5. Dividend
5.1 Amount
GLOB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GLOBANT SA
NYSE:GLOB (1/22/2025, 2:57:05 PM)
206.095
-4.47 (-2.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99.82%
Inst Owner Change0%
Ins Owners2.25%
Ins Owner ChangeN/A
Market Cap8.88B
Analysts77.86
Price Target241.55 (17.2%)
Short Float %5.48%
Short Ratio5.37
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)-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)3.13%
PT rev (3m)5.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)0%
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)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.77 | ||
| Fwd PE | 27.52 | ||
| P/S | 3.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.7 | ||
| P/tB | 25.81 | ||
| EV/EBITDA | 22.9 |
EPS(TTM)6.29
EY3.05%
EPS(NY)7.49
Fwd EY3.63%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS54.63
BVpS43.86
TBVpS7.99
PEG (NY)2.4
PEG (5Y)1.22
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 | 6.97 |
F-ScoreN/A
WACC7.21%
ROIC/WACC1.28
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 Year15.44%
Revenue Next 2Y14.81%
Revenue Next 3Y15.52%
Revenue Next 5Y16.29%
EBIT growth 1Y9.59%
EBIT growth 3Y34.95%
EBIT growth 5Y26.38%
EBIT Next Year66.65%
EBIT Next 3Y29.55%
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%