Globant
Market Cap
US$4.7b
Last Updated
2020/02/17 00:49 UTC
Data Sources
Company Financials +
Executive Summary
Globant S.A. operates as a technology services company worldwide.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with excellent balance sheet.
Similar Companies
Share Price & News
How has Globant's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GLOB's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.5%
GLOB
1.7%
US Software
1.5%
US Market
1 Year Return
80.8%
GLOB
42.3%
US Software
20.1%
US Market
Return vs Industry: GLOB exceeded the US Software industry which returned 42.2% over the past year.
Return vs Market: GLOB exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| GLOB | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.5% | 1.7% | 1.5% |
| 30 Day | 6.9% | 7.7% | 1.4% |
| 90 Day | 33.4% | 18.4% | 8.7% |
| 1 Year | 80.8%80.8% | 43.9%42.3% | 22.7%20.1% |
| 3 Year | 270.7%270.7% | 152.8%142.4% | 50.1%40.5% |
| 5 Year | 795.0%795.0% | 224.7%201.5% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Globant's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Does Globant S.A. (NYSE:GLOB) Have A Volatile Share Price?1 month ago | Simply Wall St
Should We Worry About Globant S.A.'s (NYSE:GLOB) P/E Ratio?1 month ago | Simply Wall St
Should You Be Concerned About Globant S.A.'s (NYSE:GLOB) Earnings Growth?Valuation
Is Globant undervalued compared to its fair value and its price relative to the market?
89.34x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GLOB ($127.98) is trading above our estimate of fair value ($53.72)
Significantly Below Fair Value: GLOB is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GLOB is poor value based on its PE Ratio (89.3x) compared to the Software industry average (52.1x).
PE vs Market: GLOB is poor value based on its PE Ratio (89.3x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: GLOB is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: GLOB is overvalued based on its PB Ratio (11.4x) compared to the US Software industry average (6x).
Next Steps
Future Growth
How is Globant forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
31.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GLOB's forecast earnings growth (31.3% per year) is above the savings rate (1.7%).
Earnings vs Market: GLOB's earnings (31.3% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GLOB's revenue (18.5% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: GLOB's revenue (18.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GLOB's Return on Equity is forecast to be high in 3 years time (20.4%)
Next Steps
Past Performance
How has Globant performed over the past 5 years?
16.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GLOB has high quality earnings.
Growing Profit Margin: GLOB's current net profit margins (8.5%) are lower than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: GLOB's earnings have grown by 16.2% per year over the past 5 years.
Accelerating Growth: GLOB's earnings growth over the past year (0.7%) is below its 5-year average (16.2% per year).
Earnings vs Industry: GLOB earnings growth over the past year (0.7%) underperformed the Software industry 17.1%.
Return on Equity
High ROE: GLOB's Return on Equity (12.6%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Globant's financial position?
Financial Position Analysis
Short Term Liabilities: GLOB's short term assets ($246.4M) exceed its short term liabilities ($149.2M).
Long Term Liabilities: GLOB's short term assets ($246.4M) exceed its long term liabilities ($73.3M).
Debt to Equity History and Analysis
Debt Level: GLOB's debt to equity ratio (13.7%) is considered satisfactory.
Reducing Debt: GLOB's debt to equity ratio has increased from 3% to 13.7% over the past 5 years.
Debt Coverage: GLOB's debt is well covered by operating cash flow (119%).
Interest Coverage: GLOB's interest payments on its debt are well covered by EBIT (17.4x coverage).
Balance Sheet
Inventory Level: GLOB has a low level of unsold assets or inventory.
Debt Coverage by Assets: GLOB's debt is covered by short term assets (assets are 4.4x debt).
Next Steps
Dividend
What is Globant's current dividend yield, its reliability and sustainability?
0.10%
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate GLOB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate GLOB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GLOB's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GLOB's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GLOB's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.1yrs
Average management tenure
CEO
Martín Migoya (51yo)
15.1yrs
Tenure
Mr. Martín Migoya has been the Chairman and Chief Executive Officer of Globant S.A. since 2005 and serves as its President. He is a Co-founder of Globant S.A. Mr. Migoya co-founded Sistemas Globales S.A. i ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-founder | 15.1yrs | no data | 0.51% $23.8m | |
| CTO & Director | 17.1yrs | no data | 0.76% $35.5m | |
| Chief of Staff & Director | 7.2yrs | no data | 0.91% $42.8m | |
| Co-Founder & Executive VP of Corporate Affairs | 7.6yrs | no data | 0.92% $43.1m | |
| CFO & Investor Relations Officer | 1.3yrs | no data | no data | |
| Chief Accounting Officer | 3.1yrs | no data | no data | |
| Chief Information Officer | 7.6yrs | no data | 0.097% $4.5m | |
| General Counsel | 1.2yrs | no data | no data | |
| Chief Talent & Diversity Officer | 0.08yrs | no data | no data | |
| Chief Strategy Officer | 1.1yrs | no data | no data |
5.1yrs
Average Tenure
51yo
Average Age
Experienced Management: GLOB's management team is seasoned and experienced (5.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-founder | 15.1yrs | no data | 0.51% $23.8m | |
| CTO & Director | 17.1yrs | no data | 0.76% $35.5m | |
| Chief of Staff & Director | 7.2yrs | no data | 0.91% $42.8m | |
| Independent Director | 8.1yrs | no data | no data | |
| Member of Board of Advisors | 0yrs | no data | no data | |
| Member of Board of Advisors | 0yrs | no data | no data | |
| Independent Director | 7.7yrs | US$33.33k | no data | |
| Member of Board of Advisors | 0yrs | no data | no data | |
| Independent Director | 5.6yrs | no data | no data | |
| Independent Director | 13.1yrs | no data | no data |
8.1yrs
Average Tenure
52yo
Average Age
Experienced Board: GLOB's board of directors are considered experienced (8.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.
Top Shareholders
Company Information
Globant S.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Globant S.A.
- Ticker: GLOB
- Exchange: NYSE
- Founded: 2003
- Industry: Application Software
- Sector: Software
- Market Cap: US$4.690b
- Shares outstanding: 36.64m
- Website: https://www.globant.com
Number of Employees
Location
- Globant S.A.
- 37A Avenue J.F. Kennedy
- Luxembourg City
- 1855
- Luxembourg
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GLOB | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jul 2014 |
| 2G2 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jul 2014 |
| 0RIX | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jul 2014 |
Biography
Globant S.A. operates as a technology services company 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, consultancy, fast prototyping, app evolution, platform integration, and hardware integration 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, content management system, e-learning, video content production, digital marketing, 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, product security and compliance vulnerability management, application monitoring, 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:49 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.