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. There are concerns on the financial health of GNL while its profitability can be described as average. GNL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GNL was profitable.
GNL had a positive operating cash flow in the past year.
GNL had negative earnings in 4 of the past 5 years.
GNL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GNL has a Return On Assets of -2.97%. This is amonst the worse of the industry: GNL underperforms 81.89% of its industry peers.
With a Return On Equity value of -9.60%, GNL is not doing good in the industry: 80.31% of the companies in the same industry are doing better.
GNL has a Return On Invested Capital (2.59%) which is in line with its industry peers.
GNL had an Average Return On Invested Capital over the past 3 years of 2.10%. This is in line with the industry average of 3.12%.
The 3 year average ROIC (2.10%) for GNL is below the current ROIC(2.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.97% | ||
| ROE | -9.6% | ||
| ROIC | 2.59% |
ROA(3y)-1.24%
ROA(5y)-0.6%
ROE(3y)-3.7%
ROE(5y)-1.93%
ROIC(3y)2.1%
ROIC(5y)2.09%
1.3 Margins
The Operating Margin of GNL (28.94%) is better than 62.99% of its industry peers.
In the last couple of years the Operating Margin of GNL has declined.
GNL's Gross Margin of 82.36% is amongst the best of the industry. GNL outperforms 81.89% of its industry peers.
GNL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.94% | ||
| PM (TTM) | N/A | ||
| GM | 82.36% |
OM growth 3Y-3.74%
OM growth 5Y-3.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.83%
GM growth 5Y0.38%
2. Health
2.1 Basic Checks
GNL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GNL has more 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
Based on the Altman-Z score of 0.03, we must say that GNL is in the distress zone and has some risk of bankruptcy.
GNL's Altman-Z score of 0.03 is on the low side compared to the rest of the industry. GNL is outperformed by 78.74% of its industry peers.
GNL has a debt to FCF ratio of 26.86. This is a negative value and a sign of low solvency as GNL would need 26.86 years to pay back of all of its debts.
GNL has a better Debt to FCF ratio (26.86) than 69.29% of its industry peers.
A Debt/Equity ratio of 2.09 is on the high side and indicates that GNL has dependencies on debt financing.
GNL's Debt to Equity ratio of 2.09 is on the low side compared to the rest of the industry. GNL is outperformed by 77.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 26.86 | ||
| Altman-Z | 0.03 |
ROIC/WACC0.51
WACC5.1%
2.3 Liquidity
A Current Ratio of 1.48 indicates that GNL should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.48, GNL is doing good in the industry, outperforming 61.42% of the companies in the same industry.
GNL has a Quick Ratio of 1.48. This is a normal value and indicates that GNL is financially healthy and should not expect problems in meeting its short term obligations.
GNL has a better Quick ratio (1.48) than 63.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
GNL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -85.59%.
GNL shows a strong growth in Revenue. In the last year, the Revenue has grown by 102.04%.
Measured over the past years, GNL shows a quite strong growth in Revenue. The Revenue has been growing by 12.79% on average per year.
EPS 1Y (TTM)-85.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-191.67%
Revenue 1Y (TTM)102.04%
Revenue growth 3Y15.99%
Revenue growth 5Y12.79%
Sales Q2Q%66.34%
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 -33.33% on average per year.
GNL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.63% yearly.
EPS Next Y-178.5%
EPS Next 2Y-55.4%
EPS Next 3Y-33.33%
EPS Next 5YN/A
Revenue Next Year58.59%
Revenue Next 2Y23.74%
Revenue Next 3Y15.39%
Revenue Next 5Y8.63%
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
A Price/Earnings ratio of 45.22 indicates a quite expensive valuation of GNL.
Compared to the rest of the industry, the Price/Earnings ratio of GNL is on the same level as its industry peers.
GNL is valuated expensively when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for GNL. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.22 | ||
| Fwd PE | N/A |
4.2 Price Multiples
81.89% 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 92.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.42 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
A cheap valuation may be justified as GNL's earnings are expected to decrease with -33.33% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-55.4%
EPS Next 3Y-33.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.30%, GNL is a good candidate for dividend investing.
GNL's Dividend Yield is rather good when compared to the industry average which is at 18.71. GNL pays more dividend than 97.64% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, GNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.3% |
5.2 History
The dividend of GNL decreases each year by -8.69%.
GNL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.69%
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.
GNL's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-153.17%
EPS Next 2Y-55.4%
EPS Next 3Y-33.33%
GLOBAL NET LEASE INC
NYSE:GNL (2/5/2025, 11:35:04 AM)
7.235
+0.08 (+1.05%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners63.52%
Inst Owner Change0.03%
Ins Owners0.75%
Ins Owner Change9.58%
Market Cap1.67B
Analysts70
Price Target9.59 (32.55%)
Short Float %4.33%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.3% |
Yearly Dividend1.39
Dividend Growth(5Y)-8.69%
DP-153.17%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)93.99%
Min EPS beat(2)-104.21%
Max EPS beat(2)292.2%
EPS beat(4)3
Avg EPS beat(4)384.39%
Min EPS beat(4)-104.21%
Max EPS beat(4)1327.72%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-2.88%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-2.68%
Revenue beat(4)1
Avg Revenue beat(4)25.05%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)107.41%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-1.05%
PT rev (3m)-5.05%
EPS NQ rev (1m)25%
EPS NQ rev (3m)19.23%
EPS NY rev (1m)-324.32%
EPS NY rev (3m)-528%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-4.8%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.22 | ||
| Fwd PE | N/A | ||
| P/S | 2.05 | ||
| P/FCF | 9.42 | ||
| P/OCF | 5.95 | ||
| P/B | 0.73 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)0.16
EY2.21%
EPS(NY)-0.42
Fwd EYN/A
FCF(TTM)0.77
FCFY10.62%
OCF(TTM)1.22
OCFY16.81%
SpS3.52
BVpS9.85
TBVpS9.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.97% | ||
| ROE | -9.6% | ||
| ROCE | 3.27% | ||
| ROIC | 2.59% | ||
| ROICexc | 2.63% | ||
| ROICexgc | 2.7% | ||
| OM | 28.94% | ||
| PM (TTM) | N/A | ||
| GM | 82.36% | ||
| FCFM | 21.8% |
ROA(3y)-1.24%
ROA(5y)-0.6%
ROE(3y)-3.7%
ROE(5y)-1.93%
ROIC(3y)2.1%
ROIC(5y)2.09%
ROICexc(3y)2.15%
ROICexc(5y)2.17%
ROICexgc(3y)2.2%
ROICexgc(5y)2.22%
ROCE(3y)2.66%
ROCE(5y)2.65%
ROICexcg growth 3Y-12.2%
ROICexcg growth 5Y-9.3%
ROICexc growth 3Y-12.35%
ROICexc growth 5Y-9.42%
OM growth 3Y-3.74%
OM growth 5Y-3.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.83%
GM growth 5Y0.38%
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 26.86 | ||
| Debt/EBITDA | 7.92 | ||
| Cap/Depr | 28.25% | ||
| Cap/Sales | 12.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 0.03 |
F-Score6
WACC5.1%
ROIC/WACC0.51
Cap/Depr(3y)140.2%
Cap/Depr(5y)244.09%
Cap/Sales(3y)58.7%
Cap/Sales(5y)101.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-85.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-191.67%
EPS Next Y-178.5%
EPS Next 2Y-55.4%
EPS Next 3Y-33.33%
EPS Next 5YN/A
Revenue 1Y (TTM)102.04%
Revenue growth 3Y15.99%
Revenue growth 5Y12.79%
Sales Q2Q%66.34%
Revenue Next Year58.59%
Revenue Next 2Y23.74%
Revenue Next 3Y15.39%
Revenue Next 5Y8.63%
EBIT growth 1Y106.62%
EBIT growth 3Y11.65%
EBIT growth 5Y8.49%
EBIT Next Year2502.85%
EBIT Next 3Y190.22%
EBIT Next 5Y89.6%
FCF growth 1Y601.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.54%
OCF growth 3Y-6.68%
OCF growth 5Y-0.12%