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Global-E Online Ltd. (GLBE)
:GLBE
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Global-e Online
(NASDAQ:GLBE)
65Neutral
Positive Factors
Growth Potential
Global-e is trading in-line with peers despite demonstrating faster growth, indicating potential undervaluation.
Stock Rating Upgrade
The stock rating for Global-E Online Ltd. has been upgraded from equal-weight to overweight, indicating a more favorable outlook.
Trade Policy
The company is expected to benefit from the current trade policy environment, which could positively impact its growth.
Negative Factors
Consumer Spending Concerns
The market is overly concerned by potential slowing US consumer spending, which represents a small portion of Global-e's GMV and focuses on high-end consumers.
Global-e Online (GLBE) vs. S&P 500 (SPY)
Market Cap
$6.05B
Dividend YieldN/A
Average Volume (3M)2.18M
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth32.08%
EPS Growth44.46%
CountryUS
Employees1,084
SectorConsumer Cyclical
Sector Strength51
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.45
Shares Outstanding169,435,300
10 Day Avg. Volume1,431,932
30 Day Avg. Volume2,182,591
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)11.03
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$60.55Price Target Upside69.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Global-e Online Business Overview & Revenue Model
Company DescriptionGlobal-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. Its platform enables international shoppers to buy online and merchants to sell from, and to, worldwide. Global-E Online Ltd. was incorporated in 2013 and is headquartered in Petah Tikva, Israel.
How the Company Makes MoneyGlobal-e Online generates revenue primarily through a combination of service fees and transaction-based fees. The company charges merchants a service fee for access to its platform's capabilities, which include localization features, payment processing, and logistics solutions. Additionally, Global-e earns a percentage of each transaction processed through its platform, aligning its growth with that of its clients. Strategic partnerships with major e-commerce platforms and logistics providers further bolster its revenue, enabling seamless integration and expanded service offerings for its clients. The company's ability to enhance conversion rates and customer satisfaction for international shoppers contributes significantly to its financial success.
Global-e Online Financial Statement Overview
Summary
Global-e Online shows strong revenue growth and improving margins, though profitability remains a challenge. A solid balance sheet supports stability with minimal leverage. Robust cash flow performance offsets net losses, suggesting the company is well-positioned for future growth if profitability improves.Income Statement
Global-e Online has demonstrated robust revenue growth with a 32.1% increase from 2023 to 2024, signaling strong demand and business expansion. Gross profit margin improved to 45.1%, indicating efficient cost management. However, the company remains unprofitable with a negative net profit margin of -10.0%. Despite EBITDA turning positive, EBIT remains negative, pointing to ongoing operational challenges.72
Positive
Balance Sheet
The company maintains a solid equity base with an equity ratio of 70.7%, reflecting financial stability. However, the debt-to-equity ratio is low at 0.03, suggesting limited leverage use. Return on equity is negative due to net losses, highlighting profitability concerns despite a strong capital structure.65
Positive
Cash Flow
Impressive free cash flow growth of 57.0% indicates effective cash management and operational efficiency. The operating cash flow to net income ratio is strong at -2.24, demonstrating robust cash generation relative to accounting losses. Free cash flow covers net income, emphasizing cash flow resilience despite net losses.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 752.76M | 569.95M | 409.05M | 245.27M | 136.38M | Gross Profit |
| 339.43M | 233.60M | 158.18M | 91.43M | 43.47M | EBIT |
| -67.93M | -137.06M | -189.32M | -65.66M | 8.41M | EBITDA |
| 101.61M | 47.77M | -159.91M | -65.33M | 8.65M | Net Income Common Stockholders |
| -75.55M | -133.81M | -195.41M | -74.93M | 3.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 474.44M | 317.42M | 228.20M | 509.07M | 91.97M | Total Assets |
| 1.26B | 1.20B | 1.16B | 846.13M | 347.31M | Total Debt |
| 24.86M | 23.32M | 19.82M | 21.32M | 4.43M | Net Debt |
| -225.92M | -176.76M | -145.21M | -427.30M | -64.21M | Total Liabilities |
| 370.05M | 300.38M | 234.48M | 150.38M | 205.81M | Stockholders Equity |
| 893.43M | 901.98M | 928.12M | 695.75M | 141.50M |
| Cash Flow | Free Cash Flow | |||
| 167.06M | 106.48M | 73.13M | 12.87M | 28.89M | Operating Cash Flow |
| 169.39M | 108.22M | 81.48M | 15.75M | 29.35M | Investing Cash Flow |
| -108.96M | -55.04M | -330.10M | -40.49M | -24.05M | Financing Cash Flow |
| 3.28M | 1.99M | 1.24M | 398.61M | 59.36M |
Global-e Online Technical Analysis
Negative
35.68
Price Trends
48.10
Negative
49.35
Negative
42.43
Negative
Market Momentum
-2.99
Negative
31.59
Neutral
24.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLBE, the sentiment is Negative. The current price of 35.68 is below the 20-day moving average (MA) of 37.57, below the 50-day MA of 48.10, and below the 200-day MA of 42.43, indicating a bearish trend. The MACD of -2.99 indicates Negative momentum. The RSI at 31.59 is Neutral, neither overbought nor oversold. The STOCH value of 24.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLBE.
Global-e Online Risk Analysis
Global-e Online disclosed 1 risk factors in its most recent earnings report. Global-e Online reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Global-e Online Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $103.83B | 54.33 | 51.50% | ― | 43.56% | 91.72% | |
73 Outperform | $2.04T | 34.45 | 24.29% | ― | 10.99% | 91.61% | |
65 Neutral | $6.05B | ― | -8.42% | ― | 32.08% | 44.46% | |
63 Neutral | $5.00B | 19.69 | -39.97% | ― | 2.18% | 5.77% | |
61 Neutral | $9.26B | 71.54 | -46.79% | ― | 12.74% | 327.43% | |
59 Neutral | $12.24B | 11.04 | -1.00% | 3.78% | 1.30% | -19.54% | |
57 Neutral | $461.38M | ― | -91.78% | ― | 7.61% | 59.62% |
* Consumer Cyclical Sector Average
Performance Comparison
GLBE
Global-e Online
35.65
-0.65
-1.79%
AMZN
Amazon
190.26
9.29
5.13%
MELI
Mercadolibre
1,950.87
421.92
27.60%
WIX
Wix
163.38
25.97
18.90%
ETSY
Etsy
47.18
-18.72
-28.41%
BIGC
BigCommerce Holdings
5.76
-1.09
-15.91%
Global-e Online Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -42.36% | Next Earnings Date: May 26, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial growth, profitability milestones, and strategic expansions. However, challenges such as the impact of the Ted Baker bankruptcy and tariff-related pressures were also noted. Despite these challenges, the company's strong cash flow, profitability, and strategic expansions contribute to an overall positive outlook.Highlights
Record-Breaking Year for Global-E
Global-E reported a record $1.71 billion in GMV for Q4 2024, up 44% year-on-year, with record revenues of $263 million, up 42% year-on-year. The full year GMV was close to $4.86 billion and revenues were almost $753 million, more than six times the GMV and five and a half times the revenue from 2020.
Achievement of Profitability Milestones
For the first time, Global-E achieved a quarterly Adjusted EBITDA margin above 20% at 21.7% and reached GAAP profitability in Q4 2024. 2025 is expected to be GAAP profitable for the full year, with an anticipated Adjusted EBITDA margin of 20%.
Strong Cash Flow and Financial Position
Global-E generated nearly $130 million in operational cash flows in Q4 2024 and reported a cash and cash equivalents balance of nearly $474 million by the year's end.
Expansion of Global Footprint and Market Offerings
The company expanded its market presence from 9 outbound markets in 2020 to 39 in 2024, and added new verticals including consumer electronics with notable clients like Logitech.
Lowlights
Impact of Ted Baker Bankruptcy
Ted Baker's bankruptcy negatively impacted Global-E's 2024 NDR and GDR rates and contributed to a decrease in the service fee revenue growth rate.
Tariff Challenges
Rising cross-border tariffs imposed by the U.S. and trading partners are expected to lower take rates in 2025 as merchants shift to multi-local strategies.
Potential Impact of De Minimis Exemption Changes
The potential suspension of the U.S. de minimis exemption for duty-free goods could increase costs for merchants and affect consumer demand, although it may also drive more merchants to Global-E's platform.
Company Guidance
During the Global-E earnings call, the company reported record-breaking financial results for the fiscal year 2024, driven by a strong fourth quarter. The guidance provided for 2025 anticipates continued growth with GMV expected to range between $6.19 billion and $6.49 billion, representing over 31% growth at the midpoint. Revenues are projected to be between $917 million and $967 million, marking a 25% increase at the midpoint, although a lower take rate is anticipated due to the adoption of multi-local strategies by merchants in response to rising tariffs. The company also expects to achieve GAAP profitability for the first time in 2025, with Adjusted EBITDA anticipated to grow by over 34% to a range between $179 million and $199 million, achieving the long-term target of a 20% Adjusted EBITDA margin. This growth is attributed to new merchant acquisitions, robust consumer demand, and the strategic expansion into new verticals and markets.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.