GLOBAL SHIP LEASE INC-CL A (GSL) Stock Fundamental Analysis
NYSE:GSL - New York Stock Exchange, Inc. - MHY271836006 - Common Stock - Currency: USD
Taking everything into account, GSL scores 7 out of 10 in our fundamental rating. GSL was compared to 29 industry peers in the Marine Transportation industry. GSL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on GSL. Finally GSL also has an excellent dividend rating. These ratings could make GSL a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year GSL was profitable.
In the past year GSL had a positive cash flow from operations.
GSL had positive earnings in each of the past 5 years.
GSL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.23%, GSL belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.96%, GSL belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
GSL has a Return On Invested Capital of 15.18%. This is amongst the best in the industry. GSL outperforms 89.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GSL is significantly above the industry average of 8.54%.
The 3 year average ROIC (13.60%) for GSL is below the current ROIC(15.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.23% | ||
| ROE | 22.96% | ||
| ROIC | 15.18% |
ROA(3y)11.74%
ROA(5y)7.89%
ROE(3y)25.71%
ROE(5y)17.91%
ROIC(3y)13.6%
ROIC(5y)11.15%
1.3 Margins
Looking at the Profit Margin, with a value of 45.03%, GSL is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
GSL's Profit Margin has improved in the last couple of years.
GSL has a Operating Margin of 53.82%. This is amongst the best in the industry. GSL outperforms 96.43% of its industry peers.
GSL's Operating Margin has improved in the last couple of years.
GSL has a better Gross Margin (70.17%) than 78.57% of its industry peers.
GSL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.82% | ||
| PM (TTM) | 45.03% | ||
| GM | 70.17% |
OM growth 3Y10.16%
OM growth 5Y6.51%
PM growth 3Y48.7%
PM growth 5YN/A
GM growth 3Y5.43%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
GSL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GSL has less shares outstanding
The number of shares outstanding for GSL has been increased compared to 5 years ago.
The debt/assets ratio for GSL has been reduced compared to a year ago.
2.2 Solvency
GSL has an Altman-Z score of 1.98. This is not the best score and indicates that GSL is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.98, GSL is doing good in the industry, outperforming 64.29% of the companies in the same industry.
The Debt to FCF ratio of GSL is 1.79, which is an excellent value as it means it would take GSL, only 1.79 years of fcf income to pay off all of its debts.
GSL has a Debt to FCF ratio of 1.79. This is amongst the best in the industry. GSL outperforms 82.14% of its industry peers.
GSL has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.38, GSL is doing good in the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.8
WACC8.44%
2.3 Liquidity
GSL has a Current Ratio of 1.64. This is a normal value and indicates that GSL is financially healthy and should not expect problems in meeting its short term obligations.
GSL has a Current ratio of 1.64. This is comparable to the rest of the industry: GSL outperforms 42.86% of its industry peers.
A Quick Ratio of 1.58 indicates that GSL should not have too much problems paying its short term obligations.
The Quick ratio of GSL (1.58) is comparable to the rest of the industry.
GSL does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
GSL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.40%, which is quite good.
The Earnings Per Share has been growing by 71.19% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 7.05% in the past year.
Measured over the past years, GSL shows a very strong growth in Revenue. The Revenue has been growing by 33.84% on average per year.
EPS 1Y (TTM)14.4%
EPS 3Y71.19%
EPS 5YN/A
EPS Q2Q%5.15%
Revenue 1Y (TTM)7.05%
Revenue growth 3Y33.63%
Revenue growth 5Y33.84%
Sales Q2Q%-0.27%
3.2 Future
GSL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.17% yearly.
GSL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.16% yearly.
EPS Next Y8.55%
EPS Next 2Y3.69%
EPS Next 3Y-4.17%
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y1.88%
Revenue Next 3Y-4.16%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 2.28 indicates a rather cheap valuation of GSL.
Based on the Price/Earnings ratio, GSL is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
GSL is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 2.33 indicates a rather cheap valuation of GSL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GSL indicates a rather cheap valuation: GSL is cheaper than 96.43% of the companies listed in the same industry.
GSL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.28 | ||
| Fwd PE | 2.33 |
4.2 Price Multiples
GSL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GSL is cheaper than 75.00% of the companies in the same industry.
89.29% of the companies in the same industry are more expensive than GSL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.11 | ||
| EV/EBITDA | 2.47 |
4.3 Compensation for Growth
GSL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of GSL may justify a higher PE ratio.
GSL's earnings are expected to decrease with -4.17% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y3.69%
EPS Next 3Y-4.17%
5. Dividend
5.1 Amount
GSL has a Yearly Dividend Yield of 7.80%, which is a nice return.
GSL's Dividend Yield is a higher than the industry average which is at 13.73.
Compared to an average S&P500 Dividend Yield of 2.27, GSL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.8% |
5.2 History
On average, the dividend of GSL grows each year by 36.74%, which is quite nice.
GSL has been paying a dividend for over 5 years, so it has already some track record.
GSL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)36.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
20.47% of the earnings are spent on dividend by GSL. This is a low number and sustainable payout ratio.
DP20.47%
EPS Next 2Y3.69%
EPS Next 3Y-4.17%
22.66
-0.41 (-1.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners55.63%
Inst Owner Change-6.14%
Ins Owners1.14%
Ins Owner ChangeN/A
Market Cap803.07M
Analysts77.5
Price Target31.62 (39.54%)
Short Float %2.04%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.8% |
Yearly Dividend1.76
Dividend Growth(5Y)36.74%
DP20.47%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.41%
Min EPS beat(2)0.5%
Max EPS beat(2)6.33%
EPS beat(4)4
Avg EPS beat(4)5.57%
Min EPS beat(4)0.5%
Max EPS beat(4)10.56%
EPS beat(8)7
Avg EPS beat(8)7.31%
EPS beat(12)10
Avg EPS beat(12)10.73%
EPS beat(16)12
Avg EPS beat(16)11.24%
Revenue beat(2)1
Avg Revenue beat(2)-0.11%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)0.9%
Revenue beat(4)3
Avg Revenue beat(4)2.13%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)5.79%
Revenue beat(8)7
Avg Revenue beat(8)4.11%
Revenue beat(12)11
Avg Revenue beat(12)6.39%
Revenue beat(16)15
Avg Revenue beat(16)7.35%
PT rev (1m)0%
PT rev (3m)-2.11%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-3.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.28 | ||
| Fwd PE | 2.33 | ||
| P/S | 1.14 | ||
| P/FCF | 2.11 | ||
| P/OCF | 2.03 | ||
| P/B | 0.58 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 2.47 |
EPS(TTM)9.93
EY43.82%
EPS(NY)9.71
Fwd EY42.84%
FCF(TTM)10.72
FCFY47.32%
OCF(TTM)11.18
OCFY49.36%
SpS19.96
BVpS39.15
TBVpS39.15
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.23% | ||
| ROE | 22.96% | ||
| ROCE | 19.21% | ||
| ROIC | 15.18% | ||
| ROICexc | 17.74% | ||
| ROICexgc | 17.74% | ||
| OM | 53.82% | ||
| PM (TTM) | 45.03% | ||
| GM | 70.17% | ||
| FCFM | 53.71% |
ROA(3y)11.74%
ROA(5y)7.89%
ROE(3y)25.71%
ROE(5y)17.91%
ROIC(3y)13.6%
ROIC(5y)11.15%
ROICexc(3y)14.58%
ROICexc(5y)12.03%
ROICexgc(3y)14.58%
ROICexgc(5y)12.03%
ROCE(3y)17.21%
ROCE(5y)14.11%
ROICexcg growth 3Y25.65%
ROICexcg growth 5Y28.89%
ROICexc growth 3Y25.65%
ROICexc growth 5Y29.02%
OM growth 3Y10.16%
OM growth 5Y6.51%
PM growth 3Y48.7%
PM growth 5YN/A
GM growth 3Y5.43%
GM growth 5Y0.67%
F-Score8
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.79 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 16.67% | ||
| Cap/Sales | 2.31% | ||
| Interest Coverage | 6.32 | ||
| Cash Conversion | 82.76% | ||
| Profit Quality | 119.29% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 1.98 |
F-Score8
WACC8.44%
ROIC/WACC1.8
Cap/Depr(3y)307.64%
Cap/Depr(5y)233.7%
Cap/Sales(3y)42.19%
Cap/Sales(5y)33.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.4%
EPS 3Y71.19%
EPS 5YN/A
EPS Q2Q%5.15%
EPS Next Y8.55%
EPS Next 2Y3.69%
EPS Next 3Y-4.17%
EPS Next 5YN/A
Revenue 1Y (TTM)7.05%
Revenue growth 3Y33.63%
Revenue growth 5Y33.84%
Sales Q2Q%-0.27%
Revenue Next Year7.04%
Revenue Next 2Y1.88%
Revenue Next 3Y-4.16%
Revenue Next 5YN/A
EBIT growth 1Y8.05%
EBIT growth 3Y47.21%
EBIT growth 5Y42.55%
EBIT Next Year27.78%
EBIT Next 3Y1.9%
EBIT Next 5YN/A
FCF growth 1Y-0.05%
FCF growth 3Y44.27%
FCF growth 5Y45.17%
OCF growth 1Y-6.18%
OCF growth 3Y53.15%
OCF growth 5Y51.04%