GLOBAL NET LEASE INC (GNL) Stock Fundamental Analysis
NYSE:GNL - New York Stock Exchange, Inc. - US3793782018 - REIT - Currency: USD
GNL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. GNL has an average financial health and profitability rating. GNL is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GNL had negative earnings in the past year.
In the past year GNL had a positive cash flow from operations.
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
GNL has a Return On Assets of -5.90%. This is amonst the worse of the industry: GNL underperforms 87.69% of its industry peers.
The Return On Equity of GNL (-17.84%) is worse than 86.15% of its industry peers.
With a decent Return On Invested Capital value of 3.20%, GNL is doing good in the industry, outperforming 61.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GNL is in line with the industry average of 3.16%.
The last Return On Invested Capital (3.20%) for GNL is above the 3 year average (2.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.9% | ||
| ROE | -17.84% | ||
| ROIC | 3.2% |
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
With a decent Operating Margin value of 31.54%, GNL is doing good in the industry, outperforming 68.46% of the companies in the same industry.
In the last couple of years the Operating Margin of GNL has remained more or less at the same level.
The Gross Margin of GNL (83.78%) is better than 85.38% of its industry peers.
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 | 31.54% | ||
| PM (TTM) | N/A | ||
| GM | 83.78% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GNL is destroying value.
GNL has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for GNL has been increased compared to 5 years ago.
The debt/assets ratio for GNL is higher compared to a year ago.
2.2 Solvency
GNL has an Altman-Z score of -0.04. This is a bad value and indicates that GNL is not financially healthy and even has some risk of bankruptcy.
GNL has a Altman-Z score of -0.04. This is in the lower half of the industry: GNL underperforms 77.69% of its industry peers.
GNL has a debt to FCF ratio of 14.76. This is a negative value and a sign of low solvency as GNL would need 14.76 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.76, GNL belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
A Debt/Equity ratio of 1.69 is on the high side and indicates that GNL has dependencies on debt financing.
The Debt to Equity ratio of GNL (1.69) is worse than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 14.76 | ||
| Altman-Z | -0.04 |
ROIC/WACC0.47
WACC6.86%
2.3 Liquidity
GNL has a Current Ratio of 2.39. This indicates that GNL is financially healthy and has no problem in meeting its short term obligations.
GNL has a Current ratio of 2.39. This is amongst the best in the industry. GNL outperforms 84.62% of its industry peers.
GNL has a Quick Ratio of 2.39. This indicates that GNL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.39, GNL belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 |
3. Growth
3.1 Past
GNL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -203.26%.
GNL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.69%.
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)-203.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-480%
Revenue 1Y (TTM)16.69%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-35.73%
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 -75.46% yearly.
The Revenue is expected to decrease by -12.31% on average over the next years. This is quite bad
EPS Next Y-164.94%
EPS Next 2Y-22.79%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue Next Year-32.18%
Revenue Next 2Y-21.01%
Revenue Next 3Y-20.88%
Revenue Next 5Y-12.31%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for GNL. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for GNL. No positive earnings are expected for the next year.
| 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 cheaply inside the industry as 93.08% of the companies are valued more expensively.
GNL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GNL is cheaper than 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.43 | ||
| EV/EBITDA | 8.26 |
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-22.79%
EPS Next 3Y-75.46%
5. Dividend
5.1 Amount
GNL has a Yearly Dividend Yield of 10.00%, which is a nice return.
GNL's Dividend Yield is rather good when compared to the industry average which is at 6.44. GNL pays more dividend than 88.46% of the companies in the same industry.
GNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10% |
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.
GNL's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-87.32%
EPS Next 2Y-22.79%
EPS Next 3Y-75.46%
7.29
-0.14 (-1.88%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners66.93%
Inst Owner Change-0.01%
Ins Owners1.28%
Ins Owner Change2.38%
Market Cap1.63B
Analysts70
Price Target9.69 (32.92%)
Short Float %3.83%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.84%
DP-87.32%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-304.26%
Min EPS beat(2)-633.09%
Max EPS beat(2)24.56%
EPS beat(4)2
Avg EPS beat(4)-105.14%
Min EPS beat(4)-633.09%
Max EPS beat(4)292.2%
EPS beat(8)6
Avg EPS beat(8)537.17%
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)-14.39%
Min Revenue beat(2)-30.3%
Max Revenue beat(2)1.51%
Revenue beat(4)1
Avg Revenue beat(4)-8.64%
Min Revenue beat(4)-30.3%
Max Revenue beat(4)1.51%
Revenue beat(8)3
Avg Revenue beat(8)11.37%
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)-1.72%
EPS NQ rev (1m)-2.23%
EPS NQ rev (3m)28.12%
EPS NY rev (1m)-32.12%
EPS NY rev (3m)-40.31%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-15.53%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-19.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.22 | ||
| P/FCF | 7.43 | ||
| P/OCF | 6.11 | ||
| P/B | 0.85 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 8.26 |
EPS(TTM)-0.95
EYN/A
EPS(NY)-0.35
Fwd EYN/A
FCF(TTM)0.98
FCFY13.46%
OCF(TTM)1.19
OCFY16.37%
SpS3.28
BVpS8.58
TBVpS8.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.9% | ||
| ROE | -17.84% | ||
| ROCE | 4.05% | ||
| ROIC | 3.2% | ||
| ROICexc | 3.29% | ||
| ROICexgc | 3.35% | ||
| OM | 31.54% | ||
| PM (TTM) | N/A | ||
| GM | 83.78% | ||
| FCFM | 29.95% |
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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 14.76 | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 13.78% | ||
| Cap/Sales | 6.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 | ||
| Altman-Z | -0.04 |
F-Score7
WACC6.86%
ROIC/WACC0.47
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)-203.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-480%
EPS Next Y-164.94%
EPS Next 2Y-22.79%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue 1Y (TTM)16.69%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-35.73%
Revenue Next Year-32.18%
Revenue Next 2Y-21.01%
Revenue Next 3Y-20.88%
Revenue Next 5Y-12.31%
EBIT growth 1Y38.3%
EBIT growth 3Y24.28%
EBIT growth 5Y19.98%
EBIT Next Year142.95%
EBIT Next 3Y26.31%
EBIT Next 5Y11.31%
FCF growth 1Y580.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y45.6%
OCF growth 3Y15.87%
OCF growth 5Y15.45%