NYSE:GSL stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Aug 6, 2024

Our stock screening tool has identified GLOBAL SHIP LEASE INC-CL A (NYSE:GSL) as an undervalued gem with strong fundamentals. NYSE:GSL boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Valuation Assessment of 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 9 out of 10:

The Price/Earnings ratio is 2.55, which indicates a rather cheap valuation of GSL.
82.76% of the companies in the same industry are more expensive than GSL, based on the Price/Earnings ratio.
GSL is valuated cheaply when we compare the Price/Earnings ratio to 28.44, which is the current average of the S&P500 Index.
GSL is valuated cheaply with a Price/Forward Earnings ratio of 2.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GSL indicates a rather cheap valuation: GSL is cheaper than 86.21% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.90. GSL is valued rather cheaply when compared to this.
75.86% of the companies in the same industry are more expensive than GSL, based on the Enterprise Value to EBITDA ratio.
82.76% of the companies in the same industry are more expensive than GSL, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of GSL may justify a higher PE ratio.

Profitability Analysis for NYSE:GSL

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:GSL, the assigned 9 is a significant indicator of profitability:

GSL's Return On Assets of 14.33% is fine compared to the rest of the industry. GSL outperforms 79.31% of its industry peers.
With an excellent Return On Equity value of 24.82%, GSL belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
GSL's Return On Invested Capital of 15.44% is amongst the best of the industry. GSL outperforms 96.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GSL is significantly above the industry average of 7.52%.
The 3 year average ROIC (13.60%) for GSL is below the current ROIC(15.44%), indicating increased profibility in the last year.
With a decent Profit Margin value of 44.92%, GSL is doing good in the industry, outperforming 75.86% of the companies in the same industry.
GSL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 53.81%, GSL belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
In the last couple of years the Operating Margin of GSL has grown nicely.
GSL's Gross Margin of 70.12% is amongst the best of the industry. GSL outperforms 82.76% of its industry peers.

Evaluating Health: NYSE:GSL

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:GSL has earned a 6 out of 10:

Looking at the Altman-Z score, with a value of 1.85, 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.
GSL's Debt to FCF ratio of 3.21 is fine compared to the rest of the industry. GSL outperforms 79.31% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that GSL is not too dependend on debt financing.

Deciphering NYSE:GSL's Growth Rating

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 12.37%, which is quite good.
GSL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 71.19% yearly.
GSL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.84% yearly.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.