GLOBAL NET LEASE INC (GNL) Stock Fundamental Analysis
USA - NYSE:GNL - US3793782018 - REIT
8.05 USD
-0.09 (-1.11%)
8.05 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to GNL. GNL was compared to 130 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 has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years GNL always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -6.63%, GNL is not doing good in the industry: 85.38% of the companies in the same industry are doing better.
The Return On Equity of GNL (-18.04%) is worse than 82.31% of its industry peers.
GNL's Return On Invested Capital of 3.60% is fine compared to the rest of the industry. GNL outperforms 66.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GNL is in line with the industry average of 3.05%.
The 3 year average ROIC (2.23%) for GNL is below the current ROIC(3.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.63% | ||
| ROE | -18.04% | ||
| ROIC | 3.6% |
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 has a Operating Margin of 34.08%. This is in the better half of the industry: GNL outperforms 72.31% of its industry peers.
GNL's Operating Margin has been stable in the last couple of years.
The Gross Margin of GNL (85.44%) is better than 86.15% 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 | 34.08% | ||
| PM (TTM) | N/A | ||
| GM | 85.44% |
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.
GNL has more shares outstanding than it did 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 -0.05. This is a bad value and indicates that GNL is not financially healthy and even has some risk of bankruptcy.
GNL's Altman-Z score of -0.05 is on the low side compared to the rest of the industry. GNL is outperformed by 76.15% of its industry peers.
GNL has a debt to FCF ratio of 14.75. This is a negative value and a sign of low solvency as GNL would need 14.75 years to pay back of all of its debts.
GNL has a Debt to FCF ratio of 14.75. This is amongst the best in the industry. GNL outperforms 83.85% of its industry peers.
GNL has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
GNL has a Debt to Equity ratio of 1.62. This is in the lower half of the industry: GNL underperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 14.75 | ||
| Altman-Z | -0.05 |
ROIC/WACC0.53
WACC6.81%
2.3 Liquidity
A Current Ratio of 2.33 indicates that GNL has no problem at all paying its short term obligations.
GNL's Current ratio of 2.33 is amongst the best of the industry. GNL outperforms 85.38% of its industry peers.
GNL has a Quick Ratio of 2.33. This indicates that GNL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.33, GNL belongs to the top of the industry, outperforming 85.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
GNL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -269.41%.
The Revenue for GNL has decreased by -11.07% in the past year. This is quite bad
The Revenue has been growing by 21.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-269.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-148.48%
Revenue 1Y (TTM)-11.07%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-38.56%
3.2 Future
The Earnings Per Share is expected to decrease by -75.46% on average over the next years. This is quite bad
The Revenue is expected to decrease by -8.79% on average over the next years.
EPS Next Y-298.15%
EPS Next 2Y-22.79%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue Next Year-33.13%
Revenue Next 2Y-21.36%
Revenue Next 3Y-20.88%
Revenue Next 5Y-8.79%
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
GNL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNL indicates a rather cheap valuation: GNL is cheaper than 93.85% of the companies listed in the same industry.
93.08% of the companies in the same industry are more expensive than GNL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.83 | ||
| EV/EBITDA | 8.85 |
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
With a Yearly Dividend Yield of 9.12%, GNL is a good candidate for dividend investing.
GNL's Dividend Yield is rather good when compared to the industry average which is at 6.66. GNL pays more dividend than 85.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, GNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.12% |
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
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-84.2%
EPS Next 2Y-22.79%
EPS Next 3Y-75.46%
8.05
-0.09 (-1.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners68.17%
Inst Owner Change5.05%
Ins Owners1.28%
Ins Owner Change0.15%
Market Cap1.78B
Analysts73.33
Price Target9.54 (18.51%)
Short Float %4.05%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.12% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.84%
DP-84.2%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-369.86%
Min EPS beat(2)-633.09%
Max EPS beat(2)-106.62%
EPS beat(4)1
Avg EPS beat(4)-204.84%
Min EPS beat(4)-633.09%
Max EPS beat(4)24.56%
EPS beat(8)5
Avg EPS beat(8)263.81%
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)-20.56%
Min Revenue beat(2)-30.3%
Max Revenue beat(2)-10.83%
Revenue beat(4)1
Avg Revenue beat(4)-10.67%
Min Revenue beat(4)-30.3%
Max Revenue beat(4)1.51%
Revenue beat(8)3
Avg Revenue beat(8)10.15%
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)-1.5%
PT rev (3m)-1.5%
EPS NQ rev (1m)7.41%
EPS NQ rev (3m)12.28%
EPS NY rev (1m)-50.28%
EPS NY rev (3m)-98.54%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.72 | ||
| P/FCF | 8.83 | ||
| P/OCF | 7.17 | ||
| P/B | 0.97 | ||
| P/tB | 1 | ||
| EV/EBITDA | 8.85 |
EPS(TTM)-1.44
EYN/A
EPS(NY)-0.35
Fwd EYN/A
FCF(TTM)0.91
FCFY11.32%
OCF(TTM)1.12
OCFY13.95%
SpS2.96
BVpS8.29
TBVpS8.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.63% | ||
| ROE | -18.04% | ||
| ROCE | 4.56% | ||
| ROIC | 3.6% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 3.82% | ||
| OM | 34.08% | ||
| PM (TTM) | N/A | ||
| GM | 85.44% | ||
| FCFM | 30.84% |
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 | 1.62 | ||
| Debt/FCF | 14.75 | ||
| Debt/EBITDA | 5.68 | ||
| Cap/Depr | 15.57% | ||
| Cap/Sales | 7.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z | -0.05 |
F-Score7
WACC6.81%
ROIC/WACC0.53
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)-269.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-148.48%
EPS Next Y-298.15%
EPS Next 2Y-22.79%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.07%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-38.56%
Revenue Next Year-33.13%
Revenue Next 2Y-21.36%
Revenue Next 3Y-20.88%
Revenue Next 5Y-8.79%
EBIT growth 1Y10.37%
EBIT growth 3Y24.28%
EBIT growth 5Y19.98%
EBIT Next Year138.34%
EBIT Next 3Y26.31%
EBIT Next 5Y18.26%
FCF growth 1Y371.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y54.78%
OCF growth 3Y15.87%
OCF growth 5Y15.45%