NYSE:GSL appears to be flying under the radar despite its strong fundamentals.

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.

How do we evaluate the Valuation for 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:

• With a Price/Earnings ratio of 3.17, the valuation of GSL can be described as very cheap.
• Based on the Price/Earnings ratio, GSL is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of GSL to the average of the S&P500 Index (28.06), we can say GSL is valued rather cheaply.
• GSL is valuated cheaply with a Price/Forward Earnings ratio of 3.38.
• Based on the Price/Forward Earnings ratio, GSL is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
• GSL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.05.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GSL indicates a somewhat cheap valuation: GSL is cheaper than 75.86% of the companies listed in the same industry.
• GSL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GSL is cheaper than 82.76% of the companies in the same industry.
• GSL has an outstanding profitability rating, which may justify a higher PE ratio.

A Closer Look at Profitability for 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:

• The Return On Assets of GSL (14.33%) is better than 79.31% of its industry peers.
• GSL has a better Return On Equity (24.82%) than 86.21% of its industry peers.
• GSL has a Return On Invested Capital of 15.44%. This is amongst the best in the industry. GSL outperforms 93.10% 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 8.01%.
• The 3 year average ROIC (13.60%) for GSL is below the current ROIC(15.44%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 44.92%, GSL is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
• GSL's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 53.81%, GSL belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
• GSL's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 70.12%, GSL belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.

Evaluating Health: NYSE:GSL

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:GSL, the assigned 5 for health provides valuable insights:

• Looking at the Altman-Z score, with a value of 1.97, GSL is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
• GSL has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as GSL would need 3.21 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.21, GSL is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
• GSL has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.

A Closer Look at Growth for NYSE:GSL

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:GSL boasts a 4 out of 10:

• GSL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.19%, which is quite good.
• Measured over the past years, GSL shows a very strong growth in Earnings Per Share. The EPS has been growing by 71.19% on average per year.
• The Revenue has been growing by 33.84% on average over the past years. This is a very strong growth!

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

Our latest full fundamental report of GSL contains the most current fundamental analsysis.

Disclaimer

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.