Looking At Globant S.A. (NYSE:GLOB) From All Angles
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Globant S.A. (NYSE:GLOB), it is a financially-sound company with a great history and an optimistic growth outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Globant here.
Flawless balance sheet with solid track record
In the previous year, GLOB has ramped up its bottom line by 82%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, GLOB also outperformed its industry, which delivered a growth of 16%. This is an notable feat for the company.
GLOB’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that GLOB manages its cash and cost levels well, which is an important determinant of the company’s health. GLOB currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For Globant, there are three pertinent factors you should further examine:
Valuation: What is GLOB worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GLOB is currently mispriced by the market.
Dividend Income vs Capital Gains: Does GLOB return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from GLOB as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GLOB? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
