GLOBGlobant S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.3×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 5% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GLOB?
Globant S.A. earns 6.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.9 points below what the capital costs: growth destroys value
- Operating margin
- 7.0%
Operating margin · Information Technology Services median 8.0% · fiscal year to FY2025
- Cash conversion
- 2.35×
Cash conversion · 1.37× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.93%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 10% |
| FY2021 | 11% |
| FY2022 | 12% |
| FY2023 | 9.5% |
| FY2024 | 9.3% |
| FY2025 | 7.0% |
Details›
- Gross marginfiscal year to FY2025
- 35%
- Operating marginfiscal year to FY2025
- 7.0%
- Net marginfiscal year to FY2025
- 4.2%
- Free cash flow margin
- 11%
- Revenue, trailing twelve months
- $2.45B
- Free cash flow, trailing twelve months
- $282M
- Net income, trailing twelve months
- $103M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Information Technology Services
Ranks #9 of 31 by RyuScore