Why NYSE:GSL provides a good dividend, while having solid fundamentals.

Last update: May 2, 2024

Unearth the potential of GLOBAL SHIP LEASE INC-CL A (NYSE:GSL) as a dividend stock recommended by our stock screening tool. NYSE:GSL maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

How We Gauge Dividend for NYSE:GSL

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:GSL scores a 7 out of 10:

GSL has a Yearly Dividend Yield of 6.68%, which is a nice return.
GSL's Dividend Yield is rather good when compared to the industry average which is at 4.90. GSL pays more dividend than 82.76% of the companies in the same industry.
GSL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
On average, the dividend of GSL grows each year by 36.74%, which is quite nice.
GSL has been paying a dividend for over 5 years, so it has already some track record.
GSL pays out 21.29% of its income as dividend. This is a sustainable payout ratio.

How do we evaluate the Health for NYSE:GSL?

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:GSL scores a 5 out of 10:

Looking at the Altman-Z score, with a value of 1.67, GSL is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
The Debt to FCF ratio of GSL is 3.50, which is a good value as it means it would take GSL, 3.50 years of fcf income to pay off all of its debts.
GSL has a better Debt to FCF ratio (3.50) than 82.76% of its industry peers.

How do we evaluate the Profitability 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:

The Return On Assets of GSL (13.58%) is better than 86.21% of its industry peers.
GSL's Return On Equity of 24.90% is amongst the best of the industry. GSL outperforms 86.21% of its industry peers.
GSL's Return On Invested Capital of 15.12% is amongst the best of the industry. GSL outperforms 93.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GSL is significantly above the industry average of 7.90%.
The 3 year average ROIC (13.60%) for GSL is below the current ROIC(15.12%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 43.71%, GSL belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
GSL's Profit Margin has improved in the last couple of years.
GSL's Operating Margin of 53.65% is amongst the best of the industry. GSL outperforms 89.66% of its industry peers.
GSL's Operating Margin has improved in the last couple of years.
GSL has a Gross Margin of 69.95%. This is amongst the best in the industry. GSL outperforms 82.76% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of GSL for a complete fundamental analysis.

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.