GLOBAL NET LEASE INC (GNL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GNL - US3793782018 - REIT
8.89 USD
+0.1 (+1.14%)
8.89 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to GNL. GNL was compared to 127 industry peers in the Diversified REITs industry. GNL has only an average score on both its financial health and profitability. GNL has a expensive valuation and it also scores bad on growth.
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.
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
GNL has a worse Return On Assets (-6.84%) than 84.25% of its industry peers.
GNL has a worse Return On Equity (-19.15%) than 79.53% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.52%, GNL is in the better half of the industry, outperforming 65.35% of the companies in the same 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 3.06%.
The last Return On Invested Capital (3.52%) for GNL is above the 3 year average (2.23%), which is a sign of increasing profitability.
| 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 has a Operating Margin of 36.03%. This is in the better half of the industry: GNL outperforms 76.38% of its industry peers.
In the last couple of years the Operating Margin of GNL has remained more or less at the same level.
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.
GNL's Gross Margin has been stable in the last couple of years.
| 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
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 about the same amount of shares outstanding.
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 -0.09. This is a bad value and indicates that GNL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.09, GNL is doing worse than 76.38% of the companies in the same industry.
GNL has a debt to FCF ratio of 14.31. This is a negative value and a sign of low solvency as GNL would need 14.31 years to pay back of all of its debts.
GNL has a Debt to FCF ratio of 14.31. This is amongst the best in the industry. GNL outperforms 84.25% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that GNL has dependencies on debt financing.
GNL's Debt to Equity ratio of 1.70 is on the low side compared to the rest of the industry. GNL is outperformed by 64.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 14.31 | ||
| Altman-Z | -0.09 |
ROIC/WACC0.54
WACC6.55%
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 88.98% of its industry peers.
GNL has a Quick Ratio of 2.53. This indicates that GNL is financially healthy and has no problem in meeting its short term obligations.
GNL has a Quick ratio of 2.53. This is amongst the best in the industry. GNL outperforms 88.98% 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%.
The Revenue has been growing by 21.33% on average over the past years. This is a very strong growth!
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
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 -9.34% on average over the next years.
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
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.
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 86.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GNL is valued cheaper than 90.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.65 | ||
| EV/EBITDA | 9.95 |
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 8.84%, GNL is a good candidate for dividend investing.
GNL's Dividend Yield is rather good when compared to the industry average which is at 6.83. GNL pays more dividend than 85.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, GNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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
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-79.07%
EPS Next 2Y-12.85%
EPS Next 3Y-75.46%
8.89
+0.1 (+1.14%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners72.35%
Inst Owner Change0%
Ins Owners1.26%
Ins Owner Change-7.27%
Market Cap1.95B
Revenue(TTM)577.45M
Net Income(TTM)-325.74M
Analysts73.33
Price Target9.61 (8.1%)
Short Float %3.93%
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.84%
DP-79.07%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0%
EPS NY rev (3m)-8.09%
Revenue NQ rev (1m)-6.16%
Revenue NQ rev (3m)-5.48%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.38 | ||
| P/FCF | 9.65 | ||
| P/OCF | 8.08 | ||
| P/B | 1.15 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 9.95 |
EPS(TTM)-1.43
EYN/A
EPS(NY)-0.29
Fwd EYN/A
FCF(TTM)0.92
FCFY10.37%
OCF(TTM)1.1
OCFY12.38%
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 | -0.09 |
F-Score7
WACC6.55%
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.
What is the valuation status of GLOBAL NET LEASE INC (GNL) stock?
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.
How financially healthy is GLOBAL NET LEASE INC?
The financial health rating of GLOBAL NET LEASE INC (GNL) is 5 / 10.