NYSE:GLOB

Stock Analysis Report

Executive Summary

Globant S.A. operates as a technology services company worldwide.

Rewards

Earnings are forecast to grow 31.33% per year

Earnings have grown 16.2% per year over the past 5 years

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



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

GLOBIndustryMarket
7 Day3.5%1.7%1.5%
30 Day6.9%7.7%1.4%
90 Day33.4%18.4%8.7%
1 Year80.8%80.8%43.9%42.3%22.7%20.1%
3 Year270.7%270.7%152.8%142.4%50.1%40.5%
5 Year795.0%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

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

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.1%

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

0

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

NamePositionTenureCompensationOwnership
Martín Migoya
Co-founder15.1yrsno data0.51% $23.8m
Guibert Andrés Englebienne
CTO & Director17.1yrsno data0.76% $35.5m
Martín Gonzalo Umaran
Chief of Staff & Director7.2yrsno data0.91% $42.8m
Néstor Augusto Nocetti
Co-Founder & Executive VP of Corporate Affairs7.6yrsno data0.92% $43.1m
Juan Urthiague
CFO & Investor Relations Officer1.3yrsno datano data
Yanina Conti
Chief Accounting Officer3.1yrsno datano data
Gustavo A. Barreiro
Chief Information Officer7.6yrsno data0.097% $4.5m
Sol Noello
General Counsel1.2yrsno datano data
Mercedes MacPherson
Chief Talent & Diversity Officer0.08yrsno datano data
Guillermo Marsicovetere
Chief Strategy Officer1.1yrsno datano 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

NamePositionTenureCompensationOwnership
Martín Migoya
Co-founder15.1yrsno data0.51% $23.8m
Guibert Andrés Englebienne
CTO & Director17.1yrsno data0.76% $35.5m
Martín Gonzalo Umaran
Chief of Staff & Director7.2yrsno data0.91% $42.8m
Philip Odeen
Independent Director8.1yrsno datano data
Martin Sorrell
Member of Board of Advisors0yrsno datano data
Reid Hoffman
Member of Board of Advisors0yrsno datano data
Mario Eduardo Vázquez
Independent Director7.7yrsUS$33.33kno data
Nicholas Beim
Member of Board of Advisors0yrsno datano data
Marcos Eduardo Galperín
Independent Director5.6yrsno datano data
Francisco Alvarez-Demalde
Independent Director13.1yrsno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLOBNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 2014
2G2DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2014
0RIXLSE (London Stock Exchange)YesCommon SharesGBUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:49
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.