GLOBNEUTRAL

Return on Equity (ROE)

5.2%

Higher than 47% of Technology sector peers

Updated 22h ago

Sector Performance

47th percentile

GLOB

5.2%

Sector Median

6.5%

Sector Avg

-1.6%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity — a 5.2% ROE means Globant earned $0.052 for every dollar of equity over the past year.

This is below the technology sector median of 6.5%, placing Globant at the 47th percentile among its peers, meaning it trails slightly more than half of similar companies. Year-over-year change is not available, but quarter-over-quarter ROE rose by 6.1%, from 4.9% to 5.2% — the only two historical values provided. The combination of a below‑median ROE with a recent uptick suggests a modest improvement from a weak position, limiting both the upside opportunity and the downside risk. This metric does not contradict the overall NEUTRAL verdict, as the below‑median level aligns with caution while the positive quarterly trend prevents a bearish tilt.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about GLOB?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does GLOB's Return on Equity (ROE) compare to its sector?

GLOB's Return on Equity (ROE) of 5.2% compares to a Technology sector median of 6.5%, placing it in the 47th percentile.

Who are GLOB's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), TEAM (-19.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.