Don't overlook NYSE:GSL—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: May 9, 2024

Uncover the hidden value in GLOBAL SHIP LEASE INC-CL A (NYSE:GSL) as our stock screening tool recommends it as an undervalued choice. NYSE:GSL maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Evaluating Valuation: NYSE:GSL

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:GSL has earned a 8 for valuation:

The Price/Earnings ratio is 2.62, which indicates a rather cheap valuation of GSL.
Based on the Price/Earnings ratio, GSL is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.05, GSL is valued rather cheaply.
The Price/Forward Earnings ratio is 2.69, which indicates a rather cheap valuation of GSL.
96.55% of the companies in the same industry are more expensive than GSL, based on the Price/Forward Earnings ratio.
GSL is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.30, which is the current average of the S&P500 Index.
GSL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GSL is cheaper than 75.86% of the companies in the same industry.
86.21% of the companies in the same industry are more expensive than GSL, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of GSL may justify a higher PE ratio.

Profitability Assessment of NYSE:GSL

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:GSL has achieved a 9:

With a decent Return On Assets value of 13.58%, GSL is doing good in the industry, outperforming 79.31% of the companies in the same industry.
The Return On Equity of GSL (24.90%) is better than 86.21% of its industry peers.
With an excellent Return On Invested Capital value of 15.12%, GSL belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GSL is significantly above the industry average of 7.78%.
The 3 year average ROIC (13.60%) for GSL is below the current ROIC(15.12%), indicating increased profibility in the last year.
With a decent Profit Margin value of 43.71%, GSL is doing good in the industry, outperforming 79.31% of the companies in the same industry.
In the last couple of years the Profit Margin of GSL has grown nicely.
GSL has a better Operating Margin (53.65%) than 89.66% of its industry peers.
GSL's Operating Margin has improved in the last couple of years.
The Gross Margin of GSL (69.95%) is better than 82.76% of its industry peers.

Understanding NYSE:GSL's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:GSL has achieved a 5 out of 10:

Looking at the Altman-Z score, with a value of 1.68, GSL is in the better half of the industry, outperforming 62.07% 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.
The Debt to FCF ratio of GSL (3.50) is better than 82.76% of its industry peers.

A Closer Look at Growth for NYSE:GSL

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:GSL has earned a 4 for growth:

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
GSL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.84% yearly.

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.