GLOBAL NET LEASE INC (GNL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GNL - US3793782018 - REIT
8.59 USD
+0.09 (+1.06%)
8.59 USD
0 (0%)
Taking everything into account, GNL scores 4 out of 10 in our fundamental rating. GNL was compared to 127 industry peers in the Diversified REITs industry. Both the profitability and the financial health of GNL get a neutral evaluation. Nothing too spectacular is happening here. GNL is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GNL has reported negative net income.
GNL had a positive operating cash flow in the past year.
GNL had negative earnings in each of the past 5 years.
Each year in the past 5 years GNL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GNL (-6.84%) is worse than 85.04% of its industry peers.
Looking at the Return On Equity, with a value of -19.15%, GNL is doing worse than 80.31% of the companies in the same industry.
GNL has a better Return On Invested Capital (3.52%) than 65.35% of its industry peers.
GNL had an Average Return On Invested Capital over the past 3 years of 2.23%. This is in line with the industry average of 3.06%.
The 3 year average ROIC (2.23%) for GNL is below the current ROIC(3.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.84% | ||
| ROE | -19.15% | ||
| ROIC | 3.52% |
ROA(3y)-1.92%
ROA(5y)-1.29%
ROE(3y)-5.97%
ROE(5y)-3.94%
ROIC(3y)2.23%
ROIC(5y)2.23%
1.3 Margins
GNL's Operating Margin of 36.03% is fine compared to the rest of the industry. GNL outperforms 76.38% of its industry peers.
GNL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 87.14%, GNL belongs to the top of the industry, outperforming 88.98% of the companies in the same industry.
In the last couple of years the Gross Margin of GNL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.03% | ||
| PM (TTM) | N/A | ||
| GM | 87.14% |
OM growth 3Y-2.29%
OM growth 5Y-1.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.27%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GNL is destroying value.
Compared to 1 year ago, GNL has about the same amount of shares outstanding.
The number of shares outstanding for GNL has been increased compared to 5 years ago.
Compared to 1 year ago, GNL has a worse debt to assets ratio.
2.2 Solvency
GNL has an Altman-Z score of -0.10. This is a bad value and indicates that GNL is not financially healthy and even has some risk of bankruptcy.
GNL has a worse Altman-Z score (-0.10) than 76.38% of its industry peers.
The Debt to FCF ratio of GNL is 14.31, which is on the high side as it means it would take GNL, 14.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.31, GNL belongs to the top of the industry, outperforming 84.25% of the companies in the same industry.
GNL has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GNL (1.70) is worse than 64.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 14.31 | ||
| Altman-Z | -0.1 |
ROIC/WACC0.54
WACC6.56%
2.3 Liquidity
GNL has a Current Ratio of 2.53. This indicates that GNL is financially healthy and has no problem in meeting its short term obligations.
GNL has a Current ratio of 2.53. This is amongst the best in the industry. GNL outperforms 88.19% of its industry peers.
A Quick Ratio of 2.53 indicates that GNL has no problem at all paying its short term obligations.
GNL has a Quick ratio of 2.53. This is amongst the best in the industry. GNL outperforms 88.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
GNL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -993.75%.
GNL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.94%.
Measured over the past years, GNL shows a very strong growth in Revenue. The Revenue has been growing by 21.33% on average per year.
EPS 1Y (TTM)-993.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3.03%
Revenue 1Y (TTM)-28.94%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-38.44%
3.2 Future
Based on estimates for the next years, GNL will show a very negative growth in Earnings Per Share. The EPS will decrease by -75.46% on average per year.
GNL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.34% yearly.
EPS Next Y-330.35%
EPS Next 2Y-12.85%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue Next Year-33.6%
Revenue Next 2Y-21.08%
Revenue Next 3Y-20.88%
Revenue Next 5Y-9.34%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GNL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year GNL is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GNL is valued cheaper than 85.83% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GNL is valued cheaply inside the industry as 91.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.32 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
A cheap valuation may be justified as GNL's earnings are expected to decrease with -75.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.85%
EPS Next 3Y-75.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.56%, GNL is a good candidate for dividend investing.
GNL's Dividend Yield is a higher than the industry average which is at 6.43.
GNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.56% |
5.2 History
The dividend of GNL decreases each year by -6.84%.
GNL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-6.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of GNL are negative and hence is the payout ratio. GNL will probably not be able to sustain this dividend level.
The Dividend Rate of GNL has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-79.07%
EPS Next 2Y-12.85%
EPS Next 3Y-75.46%
8.59
+0.09 (+1.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners72.42%
Inst Owner Change2.23%
Ins Owners1.26%
Ins Owner Change-6.75%
Market Cap1.88B
Revenue(TTM)577.45M
Net Income(TTM)-325.74M
Analysts73.33
Price Target9.61 (11.87%)
Short Float %3.93%
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.56% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.84%
DP-79.07%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-193.42%
Min EPS beat(2)-280.21%
Max EPS beat(2)-106.62%
EPS beat(4)1
Avg EPS beat(4)-248.84%
Min EPS beat(4)-633.09%
Max EPS beat(4)24.56%
EPS beat(8)4
Avg EPS beat(8)67.77%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-7.61%
Min Revenue beat(2)-10.83%
Max Revenue beat(2)-4.4%
Revenue beat(4)1
Avg Revenue beat(4)-11%
Min Revenue beat(4)-30.3%
Max Revenue beat(4)1.51%
Revenue beat(8)2
Avg Revenue beat(8)7.02%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.64%
PT rev (3m)0.64%
EPS NQ rev (1m)37.5%
EPS NQ rev (3m)44.44%
EPS NY rev (1m)-8.09%
EPS NY rev (3m)-8.09%
Revenue NQ rev (1m)-6.16%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.26 | ||
| P/FCF | 9.32 | ||
| P/OCF | 7.81 | ||
| P/B | 1.11 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)-1.43
EYN/A
EPS(NY)-0.29
Fwd EYN/A
FCF(TTM)0.92
FCFY10.73%
OCF(TTM)1.1
OCFY12.81%
SpS2.63
BVpS7.76
TBVpS7.55
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.84% | ||
| ROE | -19.15% | ||
| ROCE | 4.46% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.65% | ||
| ROICexgc | 3.75% | ||
| OM | 36.03% | ||
| PM (TTM) | N/A | ||
| GM | 87.14% | ||
| FCFM | 34.99% |
ROA(3y)-1.92%
ROA(5y)-1.29%
ROE(3y)-5.97%
ROE(5y)-3.94%
ROIC(3y)2.23%
ROIC(5y)2.23%
ROICexc(3y)2.28%
ROICexc(5y)2.29%
ROICexgc(3y)2.35%
ROICexgc(5y)2.35%
ROCE(3y)2.83%
ROCE(5y)2.83%
ROICexgc growth 3Y5.4%
ROICexgc growth 5Y4.88%
ROICexc growth 3Y5.19%
ROICexc growth 5Y4.76%
OM growth 3Y-2.29%
OM growth 5Y-1.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.27%
GM growth 5Y0.6%
F-Score7
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 14.31 | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 15.09% | ||
| Cap/Sales | 6.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | -0.1 |
F-Score7
WACC6.56%
ROIC/WACC0.54
Cap/Depr(3y)45.36%
Cap/Depr(5y)154.62%
Cap/Sales(3y)19.24%
Cap/Sales(5y)64.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-993.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3.03%
EPS Next Y-330.35%
EPS Next 2Y-12.85%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-28.94%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-38.44%
Revenue Next Year-33.6%
Revenue Next 2Y-21.08%
Revenue Next 3Y-20.88%
Revenue Next 5Y-9.34%
EBIT growth 1Y-10.18%
EBIT growth 3Y24.28%
EBIT growth 5Y19.98%
EBIT Next Year129.89%
EBIT Next 3Y26.31%
EBIT Next 5Y17.34%
FCF growth 1Y1856.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y118.9%
OCF growth 3Y15.87%
OCF growth 5Y15.45%
GLOBAL NET LEASE INC / GNL FAQ
Can you provide the ChartMill fundamental rating for GLOBAL NET LEASE INC?
ChartMill assigns a fundamental rating of 4 / 10 to GNL.
Can you provide the valuation status for GLOBAL NET LEASE INC?
ChartMill assigns a valuation rating of 2 / 10 to GLOBAL NET LEASE INC (GNL). This can be considered as Overvalued.
Can you provide the profitability details for GLOBAL NET LEASE INC?
GLOBAL NET LEASE INC (GNL) has a profitability rating of 4 / 10.
What is the earnings growth outlook for GLOBAL NET LEASE INC?
The Earnings per Share (EPS) of GLOBAL NET LEASE INC (GNL) is expected to decline by -330.35% in the next year.
How sustainable is the dividend of GLOBAL NET LEASE INC (GNL) stock?
The dividend rating of GLOBAL NET LEASE INC (GNL) is 5 / 10 and the dividend payout ratio is -79.07%.