GLOBAL NET LEASE INC (GNL) Stock Fundamental Analysis
NYSE:GNL - New York Stock Exchange, Inc. - US3793782018 - REIT - Currency: USD
Overall GNL gets a fundamental rating of 3 out of 10. We evaluated GNL against 129 industry peers in the Diversified REITs industry. While GNL is still in line with the averages on profitability rating, there are concerns on its financial health. GNL is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GNL was profitable.
In the past year GNL had a positive cash flow from operations.
In the past 5 years GNL always reported negative net income.
In the past 5 years GNL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.53%, GNL is doing worse than 76.74% of the companies in the same industry.
The Return On Equity of GNL (-8.05%) is worse than 74.42% of its industry peers.
The Return On Invested Capital of GNL (2.85%) is comparable to the rest of the industry.
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 3.18%.
The 3 year average ROIC (2.23%) for GNL is below the current ROIC(2.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.53% | ||
| ROE | -8.05% | ||
| ROIC | 2.85% |
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
Looking at the Operating Margin, with a value of 30.55%, GNL is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
GNL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 82.30%, GNL belongs to the top of the industry, outperforming 82.95% 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 | 30.55% | ||
| PM (TTM) | N/A | ||
| GM | 82.3% |
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.
GNL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, GNL has more shares outstanding
GNL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.06, we must say that GNL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.06, GNL is doing worse than 75.97% of the companies in the same industry.
GNL has a debt to FCF ratio of 17.80. This is a negative value and a sign of low solvency as GNL would need 17.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.80, GNL is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
GNL has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.07, GNL is not doing good in the industry: 72.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 17.8 | ||
| Altman-Z | 0.06 |
ROIC/WACC0.42
WACC6.79%
2.3 Liquidity
A Current Ratio of 1.91 indicates that GNL should not have too much problems paying its short term obligations.
GNL has a Current ratio of 1.91. This is in the better half of the industry: GNL outperforms 75.19% of its industry peers.
GNL has a Quick Ratio of 1.91. This is a normal value and indicates that GNL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.91, GNL is in the better half of the industry, outperforming 75.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
GNL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.19%.
GNL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.83% yearly.
The Revenue has grown by 56.30% in the past year. This is a very strong growth!
The Revenue has been growing by 21.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-81.19%
EPS 3YN/A
EPS 5Y-13.83%
EPS Q2Q%9.68%
Revenue 1Y (TTM)56.3%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-3.68%
3.2 Future
GNL is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -101.16% yearly.
GNL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.07% yearly.
EPS Next Y-328.58%
EPS Next 2Y-101.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.3%
Revenue Next 2Y-3.37%
Revenue Next 3Y-2.82%
Revenue Next 5Y-0.07%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 is valuated quite expensively with a Price/Earnings ratio of 42.89.
The rest of the industry has a similar Price/Earnings ratio as GNL.
Compared to an average S&P500 Price/Earnings ratio of 29.35, GNL is valued a bit more expensive.
The Forward Price/Earnings Ratio is negative for GNL. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.89 | ||
| Fwd PE | N/A |
4.2 Price Multiples
82.17% of the companies in the same industry are more expensive than GNL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GNL is valued cheaply inside the industry as 93.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.41 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
A cheap valuation may be justified as GNL's earnings are expected to decrease with -101.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-101.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.56%, GNL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 19.09, GNL pays a better dividend. On top of this GNL pays more dividend than 96.90% of the companies listed in the same industry.
GNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.56% |
5.2 History
The dividend of GNL decreases each year by -6.84%.
GNL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-6.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GNL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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-179.67%
EPS Next 2Y-101.16%
EPS Next 3YN/A
8.15
+0.04 (+0.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners65.91%
Inst Owner Change6.09%
Ins Owners1.17%
Ins Owner Change8.97%
Market Cap1.88B
Analysts69.09
Price Target9.59 (17.67%)
Short Float %3.45%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.56% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.84%
DP-179.67%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)158.2%
Min EPS beat(2)-104.21%
Max EPS beat(2)420.6%
EPS beat(4)3
Avg EPS beat(4)157.61%
Min EPS beat(4)-104.21%
Max EPS beat(4)420.6%
EPS beat(8)6
Avg EPS beat(8)641.18%
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)1
Avg Revenue beat(2)-0.78%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)1.51%
Revenue beat(4)1
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)1.51%
Revenue beat(8)3
Avg Revenue beat(8)14.98%
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%
PT rev (3m)-2.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.61%
EPS NY rev (3m)-352.63%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.23%
Revenue NY rev (3m)-5.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.89 | ||
| Fwd PE | N/A | ||
| P/S | 2.34 | ||
| P/FCF | 7.41 | ||
| P/OCF | 6.28 | ||
| P/B | 0.86 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 10.47 |
EPS(TTM)0.19
EY2.33%
EPS(NY)-0.43
Fwd EYN/A
FCF(TTM)1.1
FCFY13.5%
OCF(TTM)1.3
OCFY15.92%
SpS3.49
BVpS9.48
TBVpS9.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.53% | ||
| ROE | -8.05% | ||
| ROCE | 3.61% | ||
| ROIC | 2.85% | ||
| ROICexc | 2.92% | ||
| ROICexgc | 2.99% | ||
| OM | 30.55% | ||
| PM (TTM) | N/A | ||
| GM | 82.3% | ||
| FCFM | 31.53% |
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%
ROICexcg growth 3Y5.4%
ROICexcg 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 | 2.07 | ||
| Debt/FCF | 17.8 | ||
| Debt/EBITDA | 7.58 | ||
| Cap/Depr | 13.04% | ||
| Cap/Sales | 5.67% | ||
| Interest Coverage | 0.99 | ||
| Cash Conversion | 50.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | 0.06 |
F-Score7
WACC6.79%
ROIC/WACC0.42
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)-81.19%
EPS 3YN/A
EPS 5Y-13.83%
EPS Q2Q%9.68%
EPS Next Y-328.58%
EPS Next 2Y-101.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)56.3%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-3.68%
Revenue Next Year-6.3%
Revenue Next 2Y-3.37%
Revenue Next 3Y-2.82%
Revenue Next 5Y-0.07%
EBIT growth 1Y76.62%
EBIT growth 3Y24.28%
EBIT growth 5Y19.98%
EBIT Next Year230.33%
EBIT Next 3Y49.33%
EBIT Next 5Y28.27%
FCF growth 1Y774.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y108.34%
OCF growth 3Y15.87%
OCF growth 5Y15.45%