Globant SA Return On Equity vs. Revenue
| GLOB Stock | USD 229.25 6.56 2.95% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.09165826 | Current Value 0.13 | Quarterly Volatility 0.08437452 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.42 | 0.3631 |
|
|
For Globant SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Globant SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Globant SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Globant SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Globant SA over time as well as its relative position and ranking within its peers.
Globant |
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Globant SA. If investors know Globant will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Globant SA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.024 | Earnings Share 3.85 | Revenue Per Share 53.121 | Quarterly Revenue Growth 0.181 | Return On Assets 0.0609 |
The market value of Globant SA is measured differently than its book value, which is the value of Globant that is recorded on the company's balance sheet. Investors also form their own opinion of Globant SA's value that differs from its market value or its book value, called intrinsic value, which is Globant SA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Globant SA's market value can be influenced by many factors that don't directly affect Globant SA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Globant SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Globant SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Globant SA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Globant SA Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Globant SA's current stock value. Our valuation model uses many indicators to compare Globant SA value to that of its competitors to determine the firm's financial worth. Globant SA is rated # 3 in return on equity category among its peers. It is rated # 2 in revenue category among its peers totaling about 21,809,979,178 of Revenue per Return On Equity. At present, Globant SA's Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Globant SA's earnings, one of the primary drivers of an investment's value.Globant Revenue vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Globant SA |
| = | 0.0961 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Globant SA |
| = | 2.1 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Globant Revenue vs Competition
Globant SA is rated # 2 in revenue category among its peers. Market size based on revenue of Information Technology industry is currently estimated at about 251.96 Billion. Globant SA maintains roughly 2.1 Billion in revenue contributing less than 1% to equities under Information Technology industry.
Globant SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Globant SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Globant SA will eventually generate negative long term returns. The profitability progress is the general direction of Globant SA's change in net profit over the period of time. It can combine multiple indicators of Globant SA, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -42 M | -39.9 M | |
| Operating Income | 199 M | 208.9 M | |
| Income Before Tax | 198 M | 207.9 M | |
| Total Other Income Expense Net | -943 K | -895.9 K | |
| Net Income | 158.5 M | 166.5 M | |
| Income Tax Expense | 39.5 M | 41.5 M | |
| Net Income From Continuing Ops | 158.5 M | 166.4 M | |
| Net Income Applicable To Common Shares | 171.2 M | 179.8 M | |
| Interest Income | 4.9 M | 5.1 M | |
| Net Interest Income | -9.8 M | -10.3 M | |
| Change To Netincome | 76.1 M | 79.9 M | |
| Net Income Per Share | 3.72 | 3.91 | |
| Income Quality | 1.98 | 2.08 | |
| Net Income Per E B T | 0.80 | 0.84 |
Globant Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Globant SA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Globant SA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Globant SA's important profitability drivers and their relationship over time.
Use Globant SA in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Globant SA position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Globant SA will appreciate offsetting losses from the drop in the long position's value.Globant SA Pair Trading
Globant SA Pair Trading Analysis
The ability to find closely correlated positions to Globant SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Globant SA when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Globant SA - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Globant SA to buy it.
The correlation of Globant SA is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Globant SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Globant SA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Globant SA can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Globant SA position
In addition to having Globant SA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Giant Impact Thematic Idea Now
Giant Impact
An experimental equal-weighted decomposition of large high potential stocks based on Macroaxis scoring framework. The Giant Impact theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Giant Impact Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Risk vs Return Analysis. For information on how to trade Globant Stock refer to our How to Trade Globant Stock guide.You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
To fully project Globant SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Globant SA at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Globant SA's income statement, its balance sheet, and the statement of cash flows.