ScoreWhy is Globant SA ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Healthy long term growth as Net Sales has grown by an annual rate of 27.74% and Operating profit at 23.74%
3
Negative results in Jun 25
- ROCE(HY) Lowest at 5.66%
- DEBT-EQUITY RATIO (HY) Highest at 17.09 %
- INTEREST(Q) At USD 10.97 MM has Grown at 13.97%
4
With ROE of 8.86%, it has a expensive valuation with a 2.17 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -68.73%, its profits have fallen by -8.8%
5
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -68.73% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Globant SA should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Globant SA for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Globant SA
-68.79%
-0.92
60.08%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
27.74%
EBIT Growth (5y)
23.74%
EBIT to Interest (avg)
10.69
Debt to EBITDA (avg)
0.10
Net Debt to Equity (avg)
0.09
Sales to Capital Employed (avg)
1.10
Tax Ratio
19.23%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
15.25%
ROE (avg)
9.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
2.17
EV to EBIT
18.06
EV to EBITDA
11.57
EV to Capital Employed
2.07
EV to Sales
1.89
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
11.47%
ROE (Latest)
8.86%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
OPERATING PROFIT(Q)
Highest at USD 104.76 MM
OPERATING PROFIT MARGIN(Q)
Highest at 17.06 %
NET PROFIT(Q)
Highest at USD 55.5 MM
-13What is not working for the Company
ROCE(HY)
Lowest at 5.66%
DEBT-EQUITY RATIO
(HY)
Highest at 17.09 %
INTEREST(Q)
At USD 10.97 MM has Grown at 13.97%
CASH AND EQV(HY)
Lowest at USD 294.4 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.6 times
EPS(Q)
Lowest at USD -0.05
Here's what is working for Globant SA
Operating Profit
Highest at USD 104.76 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 17.06 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at USD 55.5 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Depreciation
Highest at USD 41.02 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Globant SA
Interest
At USD 10.97 MM has Grown at 13.97%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 17.09 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
EPS
Lowest at USD -0.05
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Cash and Eqv
Lowest at USD 294.4 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 3.6 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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