Globant SA (GLOB) AI Stock Analysis

• Market Cap: $3.44B
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.38
• Revenue Growth: 8.66%
• EPS Growth: -35.78%
• Country: US
• Employees: 31,280
• Sector: Technology
• Sector Strength: 89
• Industry: Information Technology Services
• EPS (TTM): 1.53
• Shares Outstanding: 44,045,560
• 10 Day Avg. Volume: 1,955,274
• 30 Day Avg. Volume: 1,425,620
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 5.02
• Enterprise Value/Ebitda: 15.12
• 1Y Price Target: $100.00
• Price Target Upside: 50.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 64 Neutral
• Price Target: $71.00 ▲(6.83% Upside)

Globant SA's overall stock score reflects strong financial performance and strategic growth initiatives, but is weighed down by technical indicators showing bearish trends and macroeconomic challenges impacting earnings. The valuation is moderate, with no dividend yield to attract income investors.

Positive Factors

AI-driven growth

Management announced it executed a business optimization plan focused on AI capabilities and a shift toward a subscription-based model, noting it has already seen traction with clients.

Pipeline growth

Pipeline growth accelerated to 25% year-over-year, reaching an all-time high, with the majority of the sequential build attributed to traction with the new AI pricing model.

Value investment

Shares expected to open at a P/E multiple of ~11x our FY26 EPS estimate, believed to be attractive for value investors.

Negative Factors

Client spending

Clients across multiple verticals delayed projects and moderated spending levels because of the uncertain global trade environment.

Demand weakness

Globant SA posted results below expectations due to a broad-based slowdown in demand.

Revenue guidance

Fiscal 2025 guidance was revised downward for the second straight quarter to at least 1.2% revenue growth to $2,445 million as one professional services customer and a few in technology are ramping up slower than expected.

Globant SA Business Overview & Revenue Model

Company Description

Globant SA (GLOB) is a technology services company that specializes in software development, IT services, and digital transformation. Founded in 2003 and headquartered in Luxembourg, Globant operates across various sectors, including finance, healthcare, travel, and entertainment. The company focuses on providing a range of services such as application development, cloud computing, artificial intelligence, and user experience design, catering to both large enterprises and innovative startups.

How the Company Makes Money

Globant generates revenue primarily through its consulting and professional services. The company employs a model that combines project-based work with long-term service contracts, enabling it to deliver tailored technology solutions to its clients. Key revenue streams include custom software development, system integration, and IT outsourcing services. Additionally, Globant has established partnerships with major technology companies, such as Google, IBM, and Salesforce, which not only enhance its service offerings but also contribute to its earnings through collaborative projects and joint initiatives. The company's focus on emerging technologies and digital transformation services positions it well in a growing market, helping to drive consistent revenue growth.

Globant SA Financial Statement Overview

Summary

Globant SA demonstrates strong financial performance with robust revenue growth, stable profitability, and effective cash flow management. However, the increase in total debt and slight decline in net profit margin require monitoring.

Income Statement

Globant SA has demonstrated strong revenue growth with a TTM increase from the previous year, supported by a consistent gross profit margin around 36%. The net profit margin slightly declined in the latest TTM due to reduced net income, but remains healthy. EBIT and EBITDA margins exhibit stability, reflecting efficient operations and cost management.

Balance Sheet

The company's balance sheet is robust with a favorable equity ratio and controlled debt levels, as indicated by a moderate debt-to-equity ratio. Stockholders' equity has grown, enhancing financial stability. However, the increasing total debt over recent periods may require monitoring to prevent leverage from becoming excessive.

Cash Flow

Operating cash flow is strong, consistently covering net income, indicating effective cash conversion. Free cash flow has grown steadily, which is a positive sign for sustainability and potential reinvestment or return to shareholders. The free cash flow to net income ratio is healthy, though there is room for improvement in managing capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.42B	2.10B	1.78B	1.30B	814.14M
Gross Profit	863.37M	755.76M	669.39M	494.99M	304.33M
EBITDA	405.14M	361.54M	317.25M	218.08M	135.43M
Net Income	165.73M	158.54M	148.89M	96.06M	54.22M
Balance Sheet
Total Assets	3.17B	2.74B	2.19B	1.89B	1.29B
Cash, Cash Equivalents and Short-Term Investments	156.09M	324.76M	347.39M	462.44M	299.80M
Total Debt	410.16M	277.84M	138.84M	146.72M	113.57M
Total Liabilities	1.13B	948.74M	636.34M	581.92M	408.83M
Stockholders Equity	1.96B	1.73B	1.51B	1.31B	879.94M
Cash Flow
Free Cash Flow	220.99M	191.72M	102.09M	101.34M	46.41M
Operating Cash Flow	248.73M	318.52M	197.52M	178.97M	99.87M
Investing Cash Flow	-403.90M	-350.36M	-269.30M	-272.88M	-124.02M
Financing Cash Flow	-5.81M	44.53M	-65.68M	243.99M	241.55M

Globant SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLOB, the sentiment is Negative. The current price of 66.46 is below the 20-day moving average (MA) of 82.60, below the 50-day MA of 88.01, and below the 200-day MA of 150.73, indicating a bearish trend. The MACD of -4.55 indicates Positive momentum. The RSI at 27.51 is Positive, neither overbought nor oversold. The STOCH value of 40.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLOB.

Globant SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLB	77 Outperform	$6.95B	26.65	10.49%	1.81%	6.94%	24.05%
IT	77 Outperform	$18.41B	14.68	116.13%	―	5.89%	54.53%
INFY	75 Outperform	$68.71B	21.16	30.46%	3.07%	4.52%	-0.22%
CTSH	74 Outperform	$33.88B	14.09	16.69%	1.74%	6.34%	12.16%
EXLS	72 Outperform	$6.92B	29.31	24.70%	―	15.15%	34.33%
GLOB	64 Neutral	$3.44B	26.36	5.66%	―	8.66%	-35.78%
Sector *	61 Neutral	€6.51B	18.05	3.81%	2.09%	2.46%	-30.42%