Globant SA (GLOB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Broadridge Financial Solutions, Inc.

Nu Holdings Ltd.

Cognizant Technology Solutions Corp.

Amdocs Ltd.

EPAM Systems, Inc.

Block, Inc.

Cloudflare, Inc.

Juniper Networks, Inc.

CDW Corp.

SS&C Technologies Holdings, Inc.

Globant SA

Why is Globant SA ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 27.74% and Operating profit at 23.74%

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%

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 -69.22%, its profits have fallen by -8.8%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -69.22% returns

Real-Time Research Report

Verdict Report

How 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

-66.36%

-0.93

60.02%

S&P 500

13.68%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.54%

EBIT Growth (5y)

23.54%

EBIT to Interest (avg)

10.69

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

1.08

Tax Ratio

19.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.25%

ROE (avg)

9.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.89

EV to EBIT

8.38

EV to EBITDA

5.19

EV to Capital Employed

0.90

EV to Sales

0.87

PEG Ratio

Dividend Yield

ROCE (Latest)

10.70%

ROE (Latest)

8.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

OPERATING PROFIT(Q)

Highest at USD 106.92 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.33 %

-13What is not working for the Company

INTEREST(HY)

At USD 20.98 MM has Grown at 58.12%

ROCE(HY)

Lowest at 4.91%

DEBT-EQUITY RATIO (HY)

Highest at 14.13 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.48 times

RAW MATERIAL COST(Y)

Grown by 6.73% (YoY

CASH AND EQV(HY)

Lowest at USD 341.2 MM

Here's what is working for Globant SA

Operating Profit

Highest at USD 106.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 17.33 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Here's what is not working for Globant SA

Interest

At USD 20.98 MM has Grown at 58.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 14.13 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 3.48 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Cash and Eqv

Lowest at USD 341.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 6.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales