Recent News
On July 25, 2025 Globant announced a multi-year collaboration with OpenAI to deliver secure, enterprise-scale AI solutions; on July 24, 2025 Gartner highlighted Globant’s conversational AI on the corporate site as a case example; on July 7, 2025 Globant announced a generative-AI Commercial Insights Agent for Suntory Global Spirits. On September 2, 2025 Globant joined Unity’s Service Partner Program to expand real-time 3D offerings to enterprise sectors.
Technical Analysis
ADX / DI+ / DI-: ADX at 34.13 indicates a strong directional trend; DI+ at 17.88 shows a peak-and-reversal and DI- at 38.52 shows a dip-and-reversal, both consistent with a bearish directional setup that supports immediate downside pressure versus the current fair-valued posture.
MACD: MACD sits at -4.99 with a peak-and-reversal and trades below its signal line (-4.86), confirming bearish momentum that weighs on near-term price discovery and strengthens the directional bias implied by ADX/DI readings.
MRO (Momentum/Regression Oscillator): MRO at -39.63 registers negative, indicating price sits below modeled target and therefore contains potential for mean reversion upward; however the accompanying peak-and-reversal reading signals that momentum recently weakened, so any reversion may arrive only after momentum stabilizes.
RSI: RSI at 34.17 with a peak-and-reversal indicates the oscillator remains low and falling, reinforcing short-term selling pressure while leaving room before classic oversold thresholds that could permit a bounce if momentum shifts.
Price vs Averages and Bands: Price closed at $62.35, below the 12-day EMA $67.20 (decreasing) and the 20-day average $66.91, and trades below the 1x Bollinger lower band ($64.62) after crossing below that band—behavior consistent with an oversold-to-weak-momentum environment rather than a validated reversal. Price also sits well below the 50-day ($80.60) and 200-day ($140.65) averages, underscoring longer-term underperformance versus prior levels.
Volatility & Volume: 42-day beta of 2.44 and a 52-week beta of 1.57 indicate elevated short-term volatility; on the most recent session, volume ~1.57M exceeded the 10-day average ~1.35M, pointing to conviction behind recent moves rather than light speculative trading.
Fundamental Analysis
Profitability: EBIT margin stands at 1.06%, materially below the industry peer mean of 15.20% and industry peer median of 17.03%. Quarter-over-quarter EBIT margin contracted roughly -86.69% and year-over-year declined about -88.96%, signaling acute margin compression versus the prior period despite healthy gross margin (35.44%). Operating margin measures 1.71% with QoQ change of -78.47% and YoY change of -82.15%, reinforcing rapid deterioration in operating profitability.
Revenue & Efficiency: Total revenue reached $614,180,000 with YoY revenue growth of 0.51% but revenue growth QoQ showed a decline of approximately -110.35%. Asset turnover sits at 18.50% versus an industry peer mean of 24.10%, and asset turnover fell QoQ by about -2.98% and YoY by -16.65%, indicating weaker revenue generation per asset relative to typical peers.
Cash Flow & Capital Allocation: Operating cash flow totaled $21,878,000 while free cash flow registered -$2,857,000; free cash flow contracted -50.00% and declined YoY by -113.21%. Cash balance equals $167,431,000 and cash plus short-term investments $184,132,000, producing a cash conversion ratio of 155.36%, but negative free cash flow together with net debt of $261,858,000 and debt-to-EBITDA near 82.49x highlight stretched leverage metrics relative to earnings power.
Liquidity & Working Capital: Current ratio measures 1.71 (171.24%), slightly above the industry peer mean of 1.6755 (167.55%), and net working capital sits at $395,320,000. Days sales outstanding at 94.31 days suggests extended receivables collection relative to many services peers.
Valuation Markers: Forward EPS equals $1.85 with a forward P/E of 60.63. Analyst price targets show a mean of $35.41 with a high of $111.63 and a low of $31.49, leaving a wide range relative to the $62.35 close; interpret the mean target as materially below current price.
Summary Valuation: The current valuation as determined by WMDST registers as fair-valued given the mix of long-term growth assets and proprietary platforms, offset by rapidly compressed margins, negative free cash flow, and elevated leverage measures that temper upside expectations.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-13 |
| NEXT REPORT DATE: | 2025-11-12 |
| CASH FLOW | Begin Period Cash Flow | — |
| Operating Cash Flow | $ 21.9 M | |
| Capital Expenditures | $ -24.73 M | |
| Change In Working Capital | $ -32.28 M | |
| Dividends Paid | — | |
| Cash Flow Delta | — | |
| End Period Cash Flow | — | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 614.2 M | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | $ 396.5 M | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 603.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 217.6 M | |
| EBITDA | $ 6.5 M | |
| EBIT | $ 6.5 M | |
| Operating Income | $ 10.5 M | |
| Interest Income | $ 978.0 K | |
| Interest Expense | $ 11.0 M | |
| Net Interest Income | $ -10.23 M | |
| Income Before Tax | $ -4.47 M | |
| Tax Provision | $ -742.00 K | |
| Tax Rate | 16.614 % | |
| Net Income | $ -2.38 M | |
| Net Income From Continuing Operations | $ -3.72 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ 1.85 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.4 B | |
| Intangible Assets | $ 2.0 B | |
| Net Tangible Assets | $ 110.6 M | |
| Total Current Assets | $ 950.2 M | |
| Cash and Short-Term Investments | $ 184.1 M | |
| Cash | $ 167.4 M | |
| Net Receivables | $ 636.4 M | |
| Inventory | — | |
| Long-Term Investments | $ 6.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 113.3 M | |
| Short-Term Debt | $ 20.2 M | |
| Total Current Liabilities | $ 554.9 M | |
| Net Debt | $ 261.9 M | |
| Total Debt | $ 536.7 M | |
| Total Liabilities | $ 1.2 B | |
| EQUITY | ||
| Total Equity | $ 2.1 B | |
| Retained Earnings | $ 891.1 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | — | |
| Shares Outstanding | — | |
| Revenue Per-Share | — | |
| VALUATION | Market Capitalization | — |
| Enterprise Value | — | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.602 | |
| Asset To Liability | 2.812 | |
| Debt To Capital | 0.202 | |
| Debt To Assets | 0.158 | |
| Debt To Assets QoQ | 27.323 % | |
| Debt To Assets YoY | 229.379 % | |
| Debt To Assets IPRWA | high: 0.613 mean: 0.248 GLOB: 0.158 median: 0.129 low: 0.006 |
|
| Debt To Equity | 0.253 | |
| Debt To Equity QoQ | 29.084 % | |
| Debt To Equity YoY | 258.527 % | |
| Debt To Equity IPRWA | high: 5.382 mean: 0.856 median: 0.267 GLOB: 0.253 low: -3.312 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | — | |
| Price To Book QoQ | — | |
| Price To Book YoY | — | |
| Price To Book IPRWA | — | |
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | — | |
| Price To Sales QoQ | — | |
| Price To Sales YoY | — | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | 60.632 | |
| Forward PE/G | — | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -171.018 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.185 | |
| Asset Turnover Ratio QoQ | -2.983 % | |
| Asset Turnover Ratio YoY | -16.645 % | |
| Asset Turnover Ratio IPRWA | high: 0.453 median: 0.288 mean: 0.241 GLOB: 0.185 low: 0.038 |
|
| Receivables Turnover | 0.968 | |
| Receivables Turnover Ratio QoQ | -11.222 % | |
| Receivables Turnover Ratio YoY | -6.109 % | |
| Receivables Turnover Ratio IPRWA | high: 3.883 mean: 1.538 median: 1.387 GLOB: 0.968 low: 0.415 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 94.313 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.554 | |
| CapEx To Revenue | -0.04 | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.5 B | |
| Net Invested Capital | $ 2.5 B | |
| Invested Capital | $ 2.5 B | |
| Net Tangible Assets | $ 110.6 M | |
| Net Working Capital | $ 395.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.332 | |
| Current Ratio | 1.712 | |
| Current Ratio QoQ | 9.488 % | |
| Current Ratio YoY | 10.591 % | |
| Current Ratio IPRWA | high: 3.358 GLOB: 1.712 mean: 1.676 median: 1.461 low: 0.767 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 82.486 | |
| Cost Of Debt | 1.949 % | |
| Interest Coverage Ratio | 0.593 | |
| Interest Coverage Ratio QoQ | -88.257 % | |
| Interest Coverage Ratio YoY | -93.443 % | |
| Interest Coverage Ratio IPRWA | high: 46.876 median: 27.929 mean: 25.792 GLOB: 0.593 low: -47.909 |
|
| Operating Cash Flow Ratio | 0.005 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 25.014 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.821 % | |
| Revenue Growth | 0.506 % | |
| Revenue Growth QoQ | -110.354 % | |
| Revenue Growth YoY | -82.363 % | |
| Revenue Growth IPRWA | high: 15.386 % median: 6.414 % mean: 4.378 % GLOB: 0.506 % low: -11.52 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 35.436 % | |
| Gross Margin QoQ | 1.553 % | |
| Gross Margin YoY | -0.656 % | |
| Gross Margin IPRWA | high: 68.47 % GLOB: 35.436 % median: 32.867 % mean: 31.301 % low: 3.216 % |
|
| EBIT Margin | 1.059 % | |
| EBIT Margin QoQ | -86.688 % | |
| EBIT Margin YoY | -88.962 % | |
| EBIT Margin IPRWA | high: 40.753 % median: 17.028 % mean: 15.202 % GLOB: 1.059 % low: -4.292 % |
|
| Return On Sales (ROS) | 1.713 % | |
| Return On Sales QoQ | -78.466 % | |
| Return On Sales YoY | -82.145 % | |
| Return On Sales IPRWA | high: 19.395 % median: 16.291 % mean: 14.664 % GLOB: 1.713 % low: -5.114 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -2.86 M | |
| Free Cash Flow Yield | — | |
| Free Cash Flow Yield QoQ | — | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | -50.0 % | |
| Free Cash Growth QoQ | -52.884 % | |
| Free Cash Growth YoY | -113.206 % | |
| Free Cash Growth IPRWA | high: 428.407 % median: 31.04 % mean: 13.131 % GLOB: -50.0 % low: -467.291 % |
|
| Free Cash To Net Income | 1.199 | |
| Cash Flow Margin | 0.464 % | |
| Cash Flow To Earnings | -1.197 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | -0.072 % | |
| Return On Assets QoQ | -107.531 % | |
| Return On Assets YoY | -104.928 % | |
| Return On Assets IPRWA | high: 8.172 % median: 3.214 % mean: 2.568 % GLOB: -0.072 % low: -6.078 % |
|
| Return On Capital Employed (ROCE) | 0.229 % | |
| Return On Equity (ROE) | -0.001 | |
| Return On Equity QoQ | -107.497 % | |
| Return On Equity YoY | -105.154 % | |
| Return On Equity IPRWA | high: 0.157 median: 0.072 mean: 0.056 GLOB: -0.001 low: -0.139 |
|
| DuPont ROE | -0.114 % | |
| Return On Invested Capital (ROIC) | 0.213 % | |
| Return On Invested Capital QoQ | -86.908 % | |
| Return On Invested Capital YoY | -100.28 % | |
| Return On Invested Capital IPRWA | high: 7.923 % median: 4.451 % mean: 4.416 % GLOB: 0.213 % low: -7.46 % |
|