Globant (NYSE:GLOB) - Share price, News & Analysis

GLOB fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

GLOB Stock Overview

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

Rewards

Earnings are forecast to grow 36.24% per year

Earnings grew by 77% over the past year

Risk Analysis

Shareholders have been diluted in the past year

Globant Competitors

Accenture

NYSE:ACN

US$179.5b

Cognizant Technology Solutions

NasdaqGS:CTSH

US$37.4b

EPAM Systems

NYSE:EPAM

US$18.0b

Endava

NYSE:DAVA

US$5.3b

Price History & Performance

Summary of all time highs, changes and price drops for Globant
Historical stock prices
Current Share Price	US$190.92
52 Week High	US$354.62
52 Week Low	US$159.56
Beta	1.51
1 Month Change	-12.14%
3 Month Change	-24.16%
1 Year Change	-12.14%
3 Year Change	113.41%
5 Year Change	378.98%
Change since IPO	1,597.07%

Shareholder Returns

	GLOB	US IT	US Market
7D	7.9%	2.8%	-0.5%
1Y	-12.1%	-27.5%	-12.3%

Return vs Industry: GLOB exceeded the US IT industry which returned -28.1% over the past year.

Return vs Market: GLOB matched the US Market which returned -12.9% over the past year.

Price Volatility

Is GLOB's price volatile compared to industry and market?
GLOB volatility
GLOB Average Weekly Movement	9.2%
IT Industry Average Movement	10.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: GLOB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: GLOB's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	24,504	Martin Migoya	https://www.globant.com

Globant S.A. operates as a technology services company worldwide. It offers e-commerce, new distribution capabilities, augmented revenue management, hyper connected operation, and conversational user experience services through reinvention studios; digital lending, commercial effectiveness, finance, sustainability, regulation analytic, transformation and post-merger integration, and payment and open banking services; and game and graphic engineering, UI and UX design, game as a service, DevOps, and online services, as well as high tech tools. The company also provides smart farming, image diagnosis, healthcare interoperability, genomics data processing, telemedicine and medical device, research and development, and precision medicine services; media and entertainment, and travel and hospitality services; cloud transformation advice, building cloud environment, moving workloads to the cloud, cloud support and operation, chaos engineering, and site reliability engineering services; and data strategies, insights, data platforms, MLOps, and data as a product services.

Globant Fundamentals Summary

How do Globant's earnings and revenue compare to its market cap?
GLOB fundamental statistics
Market Cap	US$7.98b
Earnings (TTM)	US$111.02m
Revenue (TTM)	US$1.43b

71.8x

P/E Ratio

5.6x

P/S Ratio

Is GLOB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GLOB income statement (TTM)
Revenue	US$1.43b
Cost of Revenue	US$883.40m
Gross Profit	US$544.89m
Other Expenses	US$433.87m
Earnings	US$111.02m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.66
Gross Margin	38.15%
Net Profit Margin	7.77%
Debt/Equity Ratio	0.8%

How did GLOB perform over the long term?

See historical performance and comparison

Valuation

Is Globant undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

71.84x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: GLOB ($190.92) is trading above our estimate of fair value ($76.57)

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 (71.8x) compared to the US IT industry average (27.4x).

PE vs Market: GLOB is poor value based on its PE Ratio (71.8x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: GLOB is poor value based on its PEG Ratio (2x)

Price to Book Ratio

PB vs Industry: GLOB is overvalued based on its PB Ratio (5.9x) compared to the US IT industry average (3.1x).

Future Growth

How is Globant forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

36.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLOB's forecast earnings growth (36.2% per year) is above the savings rate (1.9%).

Earnings vs Market: GLOB's earnings (36.2% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GLOB's revenue (21.3% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: GLOB's revenue (21.3% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GLOB's Return on Equity is forecast to be low in 3 years time (14.9%).

Past Performance

How has Globant performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

21.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GLOB has high quality earnings.

Growing Profit Margin: GLOB's current net profit margins (7.8%) are higher than last year (7%).

Past Earnings Growth Analysis

Earnings Trend: GLOB's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: GLOB's earnings growth over the past year (77%) exceeds its 5-year average (21.9% per year).

Earnings vs Industry: GLOB earnings growth over the past year (77%) exceeded the IT industry 21.4%.

Return on Equity

High ROE: GLOB's Return on Equity (8.3%) is considered low.

Financial Health

How is Globant's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GLOB's short term assets ($793.0M) exceed its short term liabilities ($344.8M).

Long Term Liabilities: GLOB's short term assets ($793.0M) exceed its long term liabilities ($168.6M).

Debt to Equity History and Analysis

Debt Level: GLOB has more cash than its total debt.

Reducing Debt: GLOB had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: GLOB's debt is well covered by operating cash flow (1574.5%).

Interest Coverage: GLOB's interest payments on its debt are well covered by EBIT (16x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.056%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate GLOB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GLOB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GLOB has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure

CEO

Martin Migoya (53 yo)

19.33yrs

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. in 2003. Mr. Migoya co-founded Sistemas Global...

Leadership Team

Experienced Management: GLOB's management team is seasoned and experienced (5.3 years average tenure).

Board Members

Experienced Board: GLOB's board of directors are considered experienced (4.1 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 4.7%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31