GLOBAL NET LEASE INC (GNL)
US3793782018 - REIT
We assign a fundamental rating of 4 out of 10 to GNL. GNL was compared to 130 industry peers in the Diversified REITs industry. GNL has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, GNL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
GNL had positive earnings in the past year.
In the past year GNL had a positive cash flow from operations.
GNL had negative earnings in 4 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 worse Return On Assets (-2.97%) than 82.81% of its industry peers.
Looking at the Return On Equity, with a value of -9.60%, GNL is doing worse than 81.25% of the companies in the same industry.
The Return On Invested Capital of GNL (2.59%) is comparable to the rest of the industry.
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 3.08%.
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
With a decent Operating Margin value of 28.94%, GNL is doing good in the industry, outperforming 64.06% of the companies in the same industry.
In the last couple of years the Operating Margin of GNL has declined.
GNL has a better Gross Margin (82.36%) than 82.03% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GNL is destroying value.
The number of shares outstanding for GNL has been increased compared to 1 year ago.
The number of shares outstanding for GNL has been increased compared to 5 years ago.
GNL has a worse debt/assets ratio than last year.
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.
The Altman-Z score of GNL (0.03) is worse than 78.13% of its industry peers.
The Debt to FCF ratio of GNL is 26.86, which is on the high side as it means it would take GNL, 26.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GNL (26.86) is better than 68.75% of its industry peers.
GNL has a Debt/Equity ratio of 2.09. This is a high value indicating a heavy dependency on external financing.
GNL has a worse Debt to Equity ratio (2.09) than 77.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 26.86 | ||
| Altman-Z | 0.03 |
ROIC/WACC0.51
WACC5.11%
2.3 Liquidity
A Current Ratio of 1.48 indicates that GNL should not have too much problems paying its short term obligations.
The Current ratio of GNL (1.48) is better than 61.72% of its industry peers.
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 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The earnings per share for GNL have decreased strongly by -85.59% in the last year.
GNL shows a strong growth in Revenue. In the last year, the Revenue has grown by 102.04%.
GNL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.79% yearly.
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 -32.57% on average per year.
GNL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.26% yearly.
EPS Next Y-118.5%
EPS Next 2Y-90%
EPS Next 3Y-32.57%
EPS Next 5YN/A
Revenue Next Year58.9%
Revenue Next 2Y23.92%
Revenue Next 3Y14.26%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 45.38, which means the current valuation is very expensive for GNL.
The rest of the industry has a similar Price/Earnings ratio as GNL.
The average S&P500 Price/Earnings ratio is at 27.54. GNL is valued rather expensively when compared to this.
GNL is valuated quite expensively with a Price/Forward Earnings ratio of 718.81.
GNL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of GNL to the average of the S&P500 Index (23.99), we can say GNL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.38 | ||
| Fwd PE | 718.81 |
4.2 Price Multiples
GNL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GNL is cheaper than 82.81% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GNL indicates a rather cheap valuation: GNL is cheaper than 92.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.45 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
GNL's earnings are expected to decrease with -32.57% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-90%
EPS Next 3Y-32.57%
5. Dividend
5.1 Amount
GNL has a Yearly Dividend Yield of 15.67%, which is a nice return.
Compared to an average industry Dividend Yield of 16.05, GNL pays a better dividend. On top of this GNL pays more dividend than 97.66% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.67% |
5.2 History
The dividend of GNL decreases each year by -8.69%.
GNL has been paying a dividend for at least 10 years, so it has 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-90%
EPS Next 3Y-32.57%
GLOBAL NET LEASE INC
NYSE:GNL (12/24/2024, 8:17:26 PM)
Premarket: 7.26 0 (0%)7.26
+0.08 (+1.11%)
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 Change-2.26%
Ins Owners0.75%
Ins Owner Change5.7%
Market Cap1.67B
Analysts68.33
Price Target9.79 (34.85%)
Short Float %3.34%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.67% |
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)-3.03%
PT rev (3m)-3.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)-48%
EPS NY rev (3m)-48%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-4.22%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.38 | ||
| Fwd PE | 718.81 | ||
| P/S | 2.06 | ||
| P/FCF | 9.45 | ||
| P/OCF | 5.97 | ||
| P/B | 0.74 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 10.5 |
EPS(TTM)0.16
EY2.2%
EPS(NY)0.01
Fwd EY0.14%
FCF(TTM)0.77
FCFY10.58%
OCF(TTM)1.22
OCFY16.75%
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
WACC5.11%
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-118.5%
EPS Next 2Y-90%
EPS Next 3Y-32.57%
EPS Next 5YN/A
Revenue 1Y (TTM)102.04%
Revenue growth 3Y15.99%
Revenue growth 5Y12.79%
Sales Q2Q%66.34%
Revenue Next Year58.9%
Revenue Next 2Y23.92%
Revenue Next 3Y14.26%
Revenue Next 5YN/A
EBIT growth 1Y106.62%
EBIT growth 3Y11.65%
EBIT growth 5Y8.49%
EBIT Next Year2498.74%
EBIT Next 3Y193.2%
EBIT Next 5YN/A
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%