Globant S.A.
Globant S.A. Fundamental Analysis
Globant S.A. (GLOB) shows moderate financial fundamentals with a PE ratio of 20.39, profit margin of 4.01%, and ROE of 4.80%. The company generates $2.5B in annual revenue with strong year-over-year growth of 15.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GLOB's fundamental strength across five key dimensions:
Efficiency Score
WeakGLOB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGLOB trades at attractive valuation levels.
Growth Score
ModerateGLOB shows steady but slowing expansion.
Financial Health Score
ExcellentGLOB maintains a strong and stable balance sheet.
Profitability Score
WeakGLOB struggles to sustain strong margins.
Key Financial Metrics
Is GLOB Expensive or Cheap?
P/E Ratio
GLOB trades at 20.39 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GLOB's PEG of -1.70 indicates potential undervaluation.
Price to Book
The market values Globant S.A. at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.23 times EBITDA. This is generally considered low.
How Well Does GLOB Make Money?
Net Profit Margin
For every $100 in sales, Globant S.A. keeps $4.01 as profit after all expenses.
Operating Margin
Core operations generate 7.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.80 in profit for every $100 of shareholder equity.
ROA
Globant S.A. generates $2.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Globant S.A. produces operating cash flow of $252.22M, showing steady but balanced cash generation.
Free Cash Flow
Globant S.A. produces free cash flow of $228.48M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.19 in free cash annually.
FCF Yield
GLOB converts 11.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How GLOB Stacks Against Its Sector Peers
| Metric | GLOB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.39 | 35.19 | Better (Cheaper) |
| ROE | 4.80% | 1155.00% | Weak |
| Net Margin | 4.01% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.22 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.93 | 4.71 | Neutral |
| ROA | 2.98% | -314918.00% (disorted) | Weak |
GLOB outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Globant S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
200.88%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
151.97%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
156.25%
Industry Style: Growth, Innovation, High Beta
High Growth