NYSE:GSL is an undervalued gem with solid fundamentals.

Our stock screening tool has pinpointed GLOBAL SHIP LEASE INC-CL A (NYSE:GSL) as an undervalued stock option. NYSE:GSL retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

ChartMill's Evaluation of Valuation

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 9 out of 10:

• A Price/Earnings ratio of 2.76 indicates a rather cheap valuation of GSL.
• Compared to the rest of the industry, the Price/Earnings ratio of GSL indicates a rather cheap valuation: GSL is cheaper than 82.76% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 29.19, GSL is valued rather cheaply.
• Based on the Price/Forward Earnings ratio of 2.94, the valuation of GSL can be described as very cheap.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of GSL indicates a rather cheap valuation: GSL is cheaper than 100.00% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of GSL to the average of the S&P500 Index (20.63), we can say GSL is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, GSL is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, GSL is valued cheaper than 86.21% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• GSL has an outstanding profitability rating, which may justify a higher PE ratio.

Assessing 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:

• GSL has a better Return On Assets (14.33%) than 79.31% of its industry peers.
• The Return On Equity of GSL (24.82%) is better than 86.21% of its industry peers.
• GSL has a better Return On Invested Capital (15.44%) than 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 7.76%.
• The 3 year average ROIC (13.60%) for GSL is below the current ROIC(15.44%), indicating increased profibility in the last year.
• GSL has a Profit Margin of 44.92%. This is in the better half of the industry: GSL outperforms 75.86% of its industry peers.
• In the last couple of years the Profit Margin of GSL has grown nicely.
• GSL has a Operating Margin of 53.81%. This is amongst the best in the industry. GSL outperforms 89.66% of its industry peers.
• GSL's Operating Margin has improved in the last couple of years.
• The Gross Margin of GSL (70.12%) is better than 82.76% of its industry peers.

ChartMill's Evaluation of Health

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 6 out of 10:

• Looking at the Altman-Z score, with a value of 1.88, GSL is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
• The Debt to FCF ratio of GSL is 3.21, which is a good value as it means it would take GSL, 3.21 years of fcf income to pay off all of its debts.
• GSL has a better Debt to FCF ratio (3.21) than 79.31% of its industry peers.
• A Debt/Equity ratio of 0.46 indicates that GSL is not too dependend on debt financing.

Evaluating Growth: 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:

• The Earnings Per Share has grown by an nice 11.19% over the past year.
• 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.

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

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.