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Interested In Globant S.A. (NYSE:GLOB)? Here's What Its Recent Performance Looks Like

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Simply Wall St
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After looking at Globant S.A.'s (NYSE:GLOB) latest earnings announcement (30 June 2019), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways.

See our latest analysis for Globant

How GLOB fared against its long-term earnings performance and its industry

GLOB's trailing twelve-month earnings (from 30 June 2019) of US$53m has jumped 19% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 18%, indicating the rate at which GLOB is growing has accelerated. What's the driver of this growth? Let's take a look at whether it is solely owing to industry tailwinds, or if Globant has experienced some company-specific growth.

NYSE:GLOB Income Statement, November 4th 2019
NYSE:GLOB Income Statement, November 4th 2019

In terms of returns from investment, Globant has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 9.9% exceeds the US Software industry of 6.6%, indicating Globant has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Globant’s debt level, has declined over the past 3 years from 19% to 18%.

What does this mean?

Globant's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Globant gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Globant to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for GLOB’s future growth? Take a look at our free research report of analyst consensus for GLOB’s outlook.

  2. Financial Health: Are GLOB’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.