GLOBANT SA (GLOB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GLOB - LU0974299876 - Common Stock
61.66 USD
-1.22 (-1.94%)
62 USD
+0.34 (+0.55%)
Overall GLOB gets a fundamental rating of 5 out of 10. We evaluated GLOB against 86 industry peers in the IT Services industry. GLOB has an average financial health and profitability rating. GLOB is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
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
Looking at the Return On Assets, with a value of 3.23%, GLOB is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
GLOB has a Return On Equity of 5.18%. This is comparable to the rest of the industry: GLOB outperforms 58.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.36%, GLOB is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GLOB is significantly below the industry average of 29.74%.
| 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
The Profit Margin of GLOB (4.43%) is better than 62.79% of its industry peers.
In the last couple of years the Profit Margin of GLOB has declined.
Looking at the Operating Margin, with a value of 10.51%, GLOB is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
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 53.49% of the companies in the same industry.
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
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.
The number of shares outstanding for GLOB has been increased compared to 5 years ago.
GLOB has a worse debt/assets ratio than last year.
2.2 Solvency
GLOB has an Altman-Z score of 2.74. 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's Altman-Z score of 2.74 is in line compared to the rest of the industry. GLOB outperforms 54.65% of 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.
GLOB has a Debt to FCF ratio of 2.18. This is in the better half of the industry: GLOB outperforms 67.44% 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.
With a Debt to Equity ratio value of 0.23, GLOB perfoms like the industry average, outperforming 59.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.02
WACC7.19%
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 has a Current ratio (1.71) which is in line with its industry peers.
A Quick Ratio of 1.71 indicates that GLOB should not have too much problems paying its short term obligations.
The Quick ratio of GLOB (1.71) is comparable to the rest of the 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
GLOB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.56%.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.49% yearly.
The Revenue is expected to grow by 6.29% on average over the next years.
EPS Next Y-2.99%
EPS Next 2Y0.2%
EPS Next 3Y2.8%
EPS Next 5Y8.49%
Revenue Next Year1.38%
Revenue Next 2Y1.87%
Revenue Next 3Y3.52%
Revenue Next 5Y6.29%
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
A Price/Earnings ratio of 9.77 indicates a reasonable valuation of GLOB.
Based on the Price/Earnings ratio, GLOB is valued cheaper than 89.53% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.65. GLOB is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.57, which indicates a very decent valuation of GLOB.
Based on the Price/Forward Earnings ratio, GLOB is valued cheaply inside the industry as 90.70% of the companies are valued more expensively.
GLOB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 9.57 |
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 86.05% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GLOB is valued cheaper than 83.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.04 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y0.2%
EPS Next 3Y2.8%
5. Dividend
5.1 Amount
GLOB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.66
-1.22 (-1.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.53%
Inst Owner Change8.5%
Ins Owners2.2%
Ins Owner ChangeN/A
Market Cap2.72B
Revenue(TTM)2.48B
Net Income(TTM)109.86M
Analysts76.43
Price Target89.16 (44.6%)
Short Float %15.77%
Short Ratio4.53
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)-11.34%
PT rev (3m)-18.69%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 9.57 | ||
| P/S | 1.09 | ||
| P/FCF | 11.04 | ||
| P/OCF | 10.22 | ||
| P/B | 1.28 | ||
| P/tB | 24.55 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)6.31
EY10.23%
EPS(NY)6.45
Fwd EY10.45%
FCF(TTM)5.58
FCFY9.06%
OCF(TTM)6.03
OCFY9.78%
SpS56.35
BVpS48.13
TBVpS2.51
PEG (NY)N/A
PEG (5Y)0.43
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 | 2.74 |
F-Score4
WACC7.19%
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-2.99%
EPS Next 2Y0.2%
EPS Next 3Y2.8%
EPS Next 5Y8.49%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y23.03%
Revenue growth 5Y29.66%
Sales Q2Q%0.4%
Revenue Next Year1.38%
Revenue Next 2Y1.87%
Revenue Next 3Y3.52%
Revenue Next 5Y6.29%
EBIT growth 1Y4.28%
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%
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 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 5 / 10.
What are the PE and PB ratios of GLOBANT SA (GLOB) stock?
The Price/Earnings (PE) ratio for GLOBANT SA (GLOB) is 9.77 and the Price/Book (PB) ratio is 1.28.