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Globant

NYSE:GLOB
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GLOB
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Globant S.A., a technology services company, provides services related to application development, testing, infrastructure management, and application maintenance worldwide. The last earnings update was 33 days ago. More info.


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  • Globant has significant price volatility in the past 3 months.
GLOB Share Price and Events
7 Day Returns
0.8%
NYSE:GLOB
3.1%
US Software
2.4%
US Market
1 Year Returns
32.2%
NYSE:GLOB
22.2%
US Software
1.9%
US Market
GLOB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Globant (GLOB) 0.8% 0.1% 28.5% 32.2% 131.1% -
US Software 3.1% 4.3% 18.3% 22.2% 107.3% 134.4%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • GLOB outperformed the Software industry which returned 22.2% over the past year.
  • GLOB outperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
GLOB
Industry
5yr Volatility vs Market

Value

 Is Globant undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Globant to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Globant.

NYSE:GLOB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GLOB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.139 (1 + (1- 26.01%) (0%))
1.093
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.093 * 5.96%)
9.25%

Discounted Cash Flow Calculation for NYSE:GLOB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Globant is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GLOB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.25%)
2019 48.50 Analyst x2 44.40
2020 67.50 Analyst x2 56.56
2021 67.00 Analyst x1 51.39
2022 76.00 Analyst x1 53.36
2023 90.00 Analyst x1 57.84
2024 97.16 Est @ 7.95% 57.16
2025 103.36 Est @ 6.39% 55.66
2026 108.83 Est @ 5.29% 53.64
2027 113.75 Est @ 4.52% 51.32
2028 118.28 Est @ 3.98% 48.85
Present value of next 10 years cash flows $530.18
NYSE:GLOB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $118.28 × (1 + 2.73%) ÷ (9.25% – 2.73%)
$1,865.02
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,865.02 ÷ (1 + 9.25%)10
$770.31
NYSE:GLOB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $530.18 + $770.31
$1,300.49
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,300.49 / 36.25
$35.88
NYSE:GLOB Discount to Share Price
Calculation Result
Value per share (USD) From above. $35.88
Current discount Discount to share price of $70.88
= -1 x ($70.88 - $35.88) / $35.88
-97.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Globant is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Globant's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Globant's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GLOB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.45
NYSE:GLOB Share Price ** NYSE (2019-03-18) in USD $70.88
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 52.96x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Globant.

NYSE:GLOB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GLOB Share Price ÷ EPS (both in USD)

= 70.88 ÷ 1.45

49.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Globant is good value based on earnings compared to the US Software industry average.
  • Globant is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Globant's expected growth come at a high price?
Raw Data
NYSE:GLOB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 49.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
23.4%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.54x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:GLOB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 49.03x ÷ 23.4%

2.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Globant is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Globant's assets?
Raw Data
NYSE:GLOB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $9.39
NYSE:GLOB Share Price * NYSE (2019-03-18) in USD $70.88
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.71x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NYSE:GLOB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GLOB Share Price ÷ Book Value per Share (both in USD)

= 70.88 ÷ 9.39

7.55x

* Primary Listing of Globant.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Globant is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess Globant's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Globant has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Globant expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Globant expected to grow at an attractive rate?
  • Globant's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Globant's earnings growth is expected to exceed the United States of America market average.
  • Globant's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GLOB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GLOB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 23.4%
NYSE:GLOB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 16.3%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GLOB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GLOB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,290 1
2022-12-31 1,118 1
2021-12-31 923 122 2
2020-12-31 771 109 81 8
2019-12-31 640 99 64 10
NYSE:GLOB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 522 52
2018-09-30 498 52
2018-06-30 473 66 44
2018-03-31 444 45 32
2017-12-31 413 43 31
2017-09-30 385 28
2017-06-30 358 18 30
2017-03-31 338 37
2016-12-31 323 31 36
2016-09-30 307 35
2016-06-30 292 33
2016-03-31 273 32

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Globant's earnings are expected to grow significantly at over 20% yearly.
  • Globant's revenue is expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GLOB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Globant Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GLOB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 2.20 2.61 1.97 4.00
2019-12-31 1.70 1.75 1.63 4.00
NYSE:GLOB Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.45
2018-09-30 1.45
2018-06-30 1.25
2018-03-31 0.91
2017-12-31 0.87
2017-09-30 0.82
2017-06-30 0.87
2017-03-31 1.07
2016-12-31 1.04
2016-09-30 1.01
2016-06-30 0.98
2016-03-31 0.94

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Globant is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Globant's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Globant has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Globant performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Globant's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Globant's year on year earnings growth rate has been positive over the past 5 years.
  • Globant's 1-year earnings growth exceeds its 5-year average (69.2% vs 18.9%)
  • Globant's earnings growth has exceeded the US Software industry average in the past year (69.2% vs 32.7%).
Earnings and Revenue History
Globant's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Globant Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GLOB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 522.31 51.68 129.67
2018-09-30 497.61 51.71 120.41
2018-06-30 472.71 44.14 113.51
2018-03-31 444.41 31.84 110.61
2017-12-31 413.44 30.54 104.67
2017-09-30 385.26 28.47 92.53
2017-06-30 357.94 30.00 88.97
2017-03-31 338.27 36.80 80.19
2016-12-31 322.86 35.88 76.36
2016-09-30 307.17 34.75 68.27
2016-06-30 291.93 33.44 60.57
2016-03-31 272.61 32.09 64.00
2015-12-31 253.80 31.65 66.69
2015-09-30 237.35 31.45 59.54
2015-06-30 222.19 31.01 55.94
2015-03-31 210.99 29.33 51.12
2014-12-31 199.61 25.20 48.85
2014-09-30 190.72 13.35 49.06
2014-06-30 179.13 15.18 47.86
2014-03-31 167.10 14.88 47.38
2013-12-31 158.32 13.90 46.36
2013-09-30 148.07 19.31 48.40
2013-06-30 143.68 11.39 40.28
2013-03-31 134.76 3.22 40.66
2012-12-31 128.85 -1.74 42.21

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Globant has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Globant used its assets more efficiently than the US Software industry average last year based on Return on Assets.
  • Globant has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Globant's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Globant has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Globant's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Globant's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Globant is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Globant's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Globant's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Globant has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Globant Company Filings, last reported 2 months ago.

NYSE:GLOB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 337.92 0.00 87.57
2018-09-30 321.97 0.00 79.77
2018-06-30 299.69 6.03 57.66
2018-03-31 281.49 6.01 45.84
2017-12-31 263.36 6.01 61.55
2017-09-30 248.75 10.58 45.01
2017-06-30 232.93 10.28 37.18
2017-03-31 220.83 0.16 42.12
2016-12-31 208.56 0.22 60.79
2016-09-30 197.19 0.28 55.41
2016-06-30 183.52 0.34 56.64
2016-03-31 169.10 0.46 70.10
2015-12-31 160.19 0.55 58.16
2015-09-30 156.23 0.78 73.48
2015-06-30 146.91 0.94 63.75
2015-03-31 136.29 1.09 69.88
2014-12-31 127.48 1.29 60.09
2014-09-30 115.22 3.79 56.92
2014-06-30 69.44 10.94 22.15
2014-03-31 63.45 11.19 24.68
2013-12-31 59.87 11.80 26.69
2013-09-30
2013-06-30 51.91 9.55 13.88
2013-03-31 42.94 11.78 8.60
2012-12-31 42.94 11.78 8.60
  • Globant has no debt.
  • Globant has no debt compared to 5 years ago when it was 19.7%.
  • Globant has no debt, it does not need to be covered by operating cash flow.
  • Globant has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Globant's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Globant has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Globant's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Globant dividends. Estimated to be 0.16% next year.
If you bought $2,000 of Globant shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Globant's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Globant's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GLOB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GLOB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.00 1.00
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Globant has not reported any payouts.
  • Unable to verify if Globant's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Globant's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Globant has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Globant's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Globant's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Globant afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Globant has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Globant's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Martín Migoya
COMPENSATION $0
AGE 50
TENURE AS CEO 14.2 years
CEO Bio

Mr. Martín Migoya has been the Chairman and Chief Executive Officer of Globant S.A. since 2005 and serves as its President. Mr. Migoya co-founded Sistemas Globales S.A. in 2003 and has been its Chief Executive Officer since 2005. Prior to cofounding Globant, he worked as a trainee and technology project coordinator at Repsol-YPF, a consultant at Origin BV Holland and a business development director at Tallion. Mr. Migoya is frequently invited to lecture at various conventions and at universities like MIT and Harvard, and has been a judge at the Endeavor Entrepreneurs panel and at La Red Innova. Mr. Migoya was selected as an Endeavor Entrepreneur in 2005 and won a Konex Award as one of the most innovative entrepreneurs of 2008. He was selected as an Argentine Creative Individual of 2009 ( Círculo de Creativos de la Argentina ) and received the Security Award as one of the most distinguished Argentine businessmen of 2009. He also received in 2009 the America Economía Magazine’s “Excellence Award”, which is given to entrepreneurs and executives that contribute to the growth of Latin American businesses. In 2011, Latin Trade recognized Mr. Migoya as Emerging CEO of the Year. In 2013, Mr. Migoya received the “Entrepreneur of the Year Award” from Ernst & Young. He is a member of the Young President’s Organization and a board member of Endeavor Argentina. Mr. Migoya holds a degree in electronic engineering from Universidad Nacional de La Plata (UNLP) and a master’s degree in business administration, from the Universidad del Centro de Estudios Macroeconómicos de Argentina.

CEO Compensation
  • Insufficient data for Martín to compare compensation growth.
  • Martín's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Globant management team in years:

6.7
Average Tenure
50
Average Age
  • The average tenure for the Globant management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Martín Migoya

TITLE
Chairman
AGE
50
TENURE
14.2 yrs

Guibert Englebienne

TITLE
CTO & Director
AGE
52
TENURE
16.2 yrs

Martín Umaran

TITLE
Chief of Staff & Director
AGE
50
TENURE
6.2 yrs

Néstor Nocetti

TITLE
Co-Founder & Executive VP of Corporate Affairs
TENURE
6.7 yrs

Juan Urthiague

TITLE
CFO & Investor Relations Officer
TENURE
0.4 yrs

Guillermo Marsicovetere

TITLE
COO & Chief Strategy Officer
TENURE
6.7 yrs

Yanina Conti

TITLE
Chief Accounting Officer
TENURE
2.2 yrs

Gustavo Barreiro

TITLE
Chief Information Officer
TENURE
6.7 yrs

Sol Noello

TITLE
General Counsel

Guillermo Willi

TITLE
Chief People Officer
TENURE
7.5 yrs
Board of Directors Tenure

Average tenure and age of the Globant board of directors in years:

7.2
Average Tenure
51
Average Age
  • The tenure for the Globant board of directors is about average.
Board of Directors

Martín Migoya

TITLE
Chairman
AGE
50
TENURE
14.2 yrs

Guibert Englebienne

TITLE
CTO & Director
AGE
52
TENURE
16.2 yrs

Martín Umaran

TITLE
Chief of Staff & Director
AGE
50
TENURE
6.3 yrs

Mario Vázquez

TITLE
Independent Director
COMPENSATION
$33K
AGE
82
TENURE
6.8 yrs

Francisco Alvarez-Demalde

TITLE
Independent Director
AGE
39
TENURE
12.2 yrs

Phil Odeen

TITLE
Independent Director
AGE
82
TENURE
7.2 yrs

Marcos Galperín

TITLE
Independent Director
AGE
47
TENURE
4.7 yrs

Martin Sorrell

TITLE
Member of Board of Advisors
AGE
73

Reid Hoffman

TITLE
Member of Board of Advisors
AGE
51

Nick Beim

TITLE
Member of Board of Advisors
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
26. Jun 18 Sell WPP plc Company 25. Jun 18 25. Jun 18 -6,687,548 $50.44 $-337,319,921
X
Management checks
We assess Globant's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Globant has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How To Take Advantage Of Globant S.A. (NYSE:GLOB) In A Bear Market

High quality companies, such as Globant S.A., are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … Globant S.A., a technology services company, provides services related to application development, testing, infrastructure management, and application maintenance worldwide … the company provides employment to 8.38k people

Simply Wall St -

Globant S.A. (NYSE:GLOB) Has Attractive Fundamentals

(NYSE:GLOB) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of GLOB, it

Simply Wall St -

When Should You Buy Globant S.A. (NYSE:GLOB)?

led the NYSE gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price

Simply Wall St -

Should We Be Delighted With Globant S.A.'s (NYSE:GLOB) ROE Of 16%?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Globant has a return on equity of 16% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Read This Before You Buy Globant S.A. (NYSE:GLOB) Because Of Its P/E Ratio

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Globant has a price to earnings ratio of 42.21, based on the last twelve months. … How Do I Calculate A Price To Earnings Ratio

Simply Wall St -

Why Globant SA (NYSE:GLOB) Is A Buy When Markets Go Down

High quality companies, such as Globant SA, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … See our latest analysis for Globant. … Globant S.A., a technology services company, provides services related to application development, testing, infrastructure management, and application maintenance worldwide

Simply Wall St -

Should You Think About Buying Globant SA (NYSE:GLOB) Now?

saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $65.33 and falling to the lows of $47.06. … A question to answer is whether Globant's current trading price of $50.79 reflective of the actual value of the? … Let’s take a look at Globant’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Does Globant SA's (NYSE:GLOB) November Stock Price Reflect Its Future Growth?

Globant SA (NYSE:GLOB) closed yesterday at $53.42, which left some investors asking whether the high earnings potential can still be justified at this price. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … Globant's extremely high growth potential in the near future is attracting investors

Simply Wall St -

Where Globant SA (NYSE:GLOB) Stands In Terms Of Earnings Growth Against Its Industry

After looking at Globant SA's (NYSE:GLOB) latest earnings announcement (30 June 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. … Did GLOB's recent earnings growth beat the long-term trend and the industry.

Simply Wall St -

These Fundamentals Make Globant SA (NYSE:GLOB) Truly Worth Looking At

Attractive stocks have exceptional fundamentals. … In the case of Globant SA (NYSE:GLOB), there's … track record

Simply Wall St -

Company Info

Description

Globant S.A., a technology services company, provides services related to application development, testing, infrastructure management, and application maintenance worldwide. The company offers machine learning, pattern recognition, natural language understanding, future of organizations, customer insight, behavioral change, product innovation, design thinking, product management discovery and delivery, and product coaching services. It also provides process appraisal, automated, process evolution, delivery management, agile consultancy, management consulting, user experience, visual and service, industrial design, mobile engineering, fast prototyping, and mobile and product strategy services. In addition, the company offers game engineering and experience, digital platform, virtual and augmented reality, graphics engineering, 3D and 2D art, e-Sports, data architecture, data science, distributed platform, data integration, data visualization, and blockchain services. Further, it provides Internet of things experience and consultancy, platform, hardware integration, content management system, e-learning, video content production, OTT, and Cloud Ops Studio services. Additionally, the company offers functional testing, load and performance testing, mobile testing, test automation, large scale Web applications, hybrid and cross-compiled development, accessibility, API management, micro, complex architecture, software archaeology, IT service management, and software evolution services, as well as services over platforms. It serves medium- to large-sized companies operating in media and entertainment, professional services, technology and telecommunications, travel and hospitality, banks, financial services and insurance, and consumer, and retail and manufacturing industries. The company was formerly known as IT Outsourcing S.L. and changed its name to Globant S.A. in December 2012. Globant S.A. was founded in 2003 and is based in Luxembourg City, Luxembourg.

Details
Name: Globant S.A.
GLOB
Exchange: NYSE
Founded: 2003
$2,569,053,255
36,245,108
Website: http://www.globant.com
Address: Globant S.A.
37A Avenue J.F. Kennedy,
Luxembourg City,
1855,
Luxembourg
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GLOB Common Shares New York Stock Exchange US USD 18. Jul 2014
DB 2G2 Common Shares Deutsche Boerse AG DE EUR 18. Jul 2014
LSE 0RIX Common Shares London Stock Exchange GB USD 18. Jul 2014
BDL GLOB Common Shares Bourse de Luxembourg LU USD 18. Jul 2014
Number of employees
Current staff
Staff numbers
8,384
Globant employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 00:36
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/07
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.