<div id="readability-page-1"><div><p>Did you know there are some financial metrics that can provide clues of a potential multi-bagger?  Firstly, we'd want to identify a growing <em>return</em> on capital employed (ROCE) and then alongside that, an ever-increasing <em>base</em> of capital employed.  Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine.    However, after briefly looking over the numbers, we don't think <strong>Globant</strong> (NYSE:GLOB) has the makings of a multi-bagger going forward, but let's have a look at why that may be.</p><p>AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.</p><h2> Return On Capital Employed (ROCE): What Is It? </h2><p> Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.  The formula for this calculation on Globant is: </p><p> <strong>Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)</strong> </p><p>0.069 = US$198m ÷ (US$3.3b - US$492m) <em>(Based on the trailing twelve months to September 2025)</em>.</p><p> Thus, <strong>Globant has an ROCE of 6.9%. </strong> In absolute terms, that's a low return and it also under-performs the IT industry average of 9.8%.  </p><p><span> Check out our latest analysis for Globant </span></p><figure><img height="632" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/245395381-roce-1-dark-2/1766838159460?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="666" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/245395381-roce-1-dark-2/1766838159460"/><figcaption>NYSE:GLOB Return on Capital Employed December 27th 2025</figcaption></figure><p> In the above chart we have measured Globant's prior ROCE against its prior performance, but the future is arguably more important.  If you're interested, you can view the analysts predictions in our <strong>free</strong> analyst report for Globant . </p><h2> What Can We Tell From Globant's ROCE Trend? </h2><p> When we looked at the ROCE trend at Globant, we didn't gain much confidence.   Around  five years ago the returns on capital were 9.0%, but since then they've fallen to 6.9%.    On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays.  It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line.   </p><h2> Our Take On Globant's ROCE </h2><p> In summary, Globant is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet.         Since the stock has declined 69% over the last  five years, investors may not be too optimistic on this trend improving either.    All in all, the inherent trends aren't typical of multi-baggers, so if that's what you're after, we think you might have more luck elsewhere.    </p><p> If you want to continue researching Globant, you might be interested to know about the <strong>1 warning sign</strong> that our analysis has discovered.    </p><p> While Globant may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this <strong>free</strong> list here. </p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

GLOB

<p>Globant's (NYSE:GLOB) Return on Capital Employed (ROCE) is 6.9%, below the IT industry average of 9.8%. Over the past five years, its ROCE has declined from 9.0% to 6.9%, despite increased capital investment. This trend, coupled with a 69% stock decline over five years, suggests Globant may not be a potential multi-bagger. Investors might find better opportunities elsewhere.</p>

Globant's (NYSE:GLOB) Returns On Capital Not Reflecting Well On The Business