NYSE:GSL: good value for what you're paying.

Last update: Apr 16, 2024

Our stock screener has spotted GLOBAL SHIP LEASE INC-CL A (NYSE:GSL) as an undervalued stock with solid fundamentals. NYSE:GSL shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Valuation Metrics for NYSE:GSL

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:GSL has achieved a 8 out of 10:

With a Price/Earnings ratio of 2.37, the valuation of GSL can be described as very cheap.
Based on the Price/Earnings ratio, GSL is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.05, GSL is valued rather cheaply.
With a Price/Forward Earnings ratio of 2.43, the valuation of GSL can be described as very cheap.
GSL's Price/Forward Earnings ratio is rather cheap when compared to the industry. GSL is cheaper than 93.33% of the companies in the same industry.
GSL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.53.
GSL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GSL is cheaper than 83.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GSL is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
The excellent profitability rating of GSL may justify a higher PE ratio.

Profitability Analysis for NYSE:GSL

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:GSL was assigned a score of 9 for profitability:

With an excellent Return On Assets value of 13.58%, GSL belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
GSL has a better Return On Equity (24.90%) than 86.67% of its industry peers.
GSL has a better Return On Invested Capital (15.12%) than 96.67% of its industry peers.
GSL had an Average Return On Invested Capital over the past 3 years of 13.60%. This is significantly above the industry average of 6.95%.
The 3 year average ROIC (13.60%) for GSL is below the current ROIC(15.12%), indicating increased profibility in the last year.
GSL has a Profit Margin of 43.71%. This is amongst the best in the industry. GSL outperforms 86.67% of its industry peers.
GSL's Profit Margin has improved in the last couple of years.
GSL has a better Operating Margin (53.65%) than 90.00% of its industry peers.
In the last couple of years the Operating Margin of GSL has grown nicely.
The Gross Margin of GSL (69.95%) is better than 83.33% of its industry peers.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:GSL was assigned a score of 5 for health:

Looking at the Altman-Z score, with a value of 1.64, GSL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
GSL has a debt to FCF ratio of 3.50. This is a good value and a sign of high solvency as GSL would need 3.50 years to pay back of all of its debts.
GSL has a Debt to FCF ratio of 3.50. This is amongst the best in the industry. GSL outperforms 83.33% of its industry peers.

What does the Growth looks like for NYSE:GSL

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:GSL scores a 4 out of 10:

GSL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.06%, which is quite good.
The Earnings Per Share has been growing by 71.19% on average over the past years. This is a very strong growth
Measured over the past years, GSL shows a very strong growth in Revenue. The Revenue has been growing by 33.84% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of GSL

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.