GLOBAL SHIP LEASE INC-CL A (GSL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GSL - MHY271836006 - Common Stock
37.51 USD
+0.31 (+0.83%)
37.51 USD
0 (0%)
GSL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 35 industry peers in the Marine Transportation industry. GSL has an excellent profitability rating, but there are some minor concerns on its financial health. GSL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. GSL also has an excellent dividend rating. With these ratings, GSL could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
- GSL had positive earnings in the past year.
- GSL had a positive operating cash flow in the past year.
- GSL had positive earnings in each of the past 5 years.
- In the past 5 years GSL always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 14.49%, GSL belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 23.31%, GSL belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 13.05%, GSL belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for GSL is significantly above the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.49% | ||
| ROE | 23.31% | ||
| ROIC | 13.05% |
ROA(3y)13.85%
ROA(5y)10.53%
ROE(3y)25.91%
ROE(5y)21.75%
ROIC(3y)14.87%
ROIC(5y)12.54%
1.3 Margins
- GSL's Profit Margin of 51.80% is amongst the best of the industry. GSL outperforms 88.57% of its industry peers.
- GSL's Profit Margin has improved in the last couple of years.
- The Operating Margin of GSL (52.77%) is better than 94.29% of its industry peers.
- GSL's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 70.07%, GSL belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
- GSL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.77% | ||
| PM (TTM) | 51.8% | ||
| GM | 70.07% |
OM growth 3Y1.31%
OM growth 5Y4.52%
PM growth 3Y9.93%
PM growth 5Y48.32%
GM growth 3Y0.88%
GM growth 5Y2.09%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GSL is creating some value.
- Compared to 1 year ago, GSL has more 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 2.21. 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.
- GSL has a Altman-Z score of 2.21. This is in the better half of the industry: GSL outperforms 71.43% of its industry peers.
- GSL has a debt to FCF ratio of 4.73. This is a neutral value as GSL would need 4.73 years to pay back of all of its debts.
- GSL's Debt to FCF ratio of 4.73 is fine compared to the rest of the industry. GSL outperforms 74.29% of its industry peers.
- GSL has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- GSL has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.41
WACC9.26%
2.3 Liquidity
- A Current Ratio of 2.01 indicates that GSL has no problem at all paying its short term obligations.
- GSL's Current ratio of 2.01 is in line compared to the rest of the industry. GSL outperforms 60.00% of its industry peers.
- GSL has a Quick Ratio of 1.94. 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 Quick ratio (1.94) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.64% over the past year.
- GSL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.56% yearly.
- The Revenue has been growing slightly by 5.37% in the past year.
- GSL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.19% yearly.
EPS 1Y (TTM)5.64%
EPS 3Y29.78%
EPS 5Y45.56%
EPS Q2Q%6.94%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y16.65%
Revenue growth 5Y22.19%
Sales Q2Q%10.69%
3.2 Future
- The Earnings Per Share is expected to decrease by -3.03% on average over the next years.
- GSL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.19% yearly.
EPS Next Y2.57%
EPS Next 2Y1.55%
EPS Next 3Y-3.03%
EPS Next 5YN/A
Revenue Next Year6.82%
Revenue Next 2Y2.7%
Revenue Next 3Y-2.19%
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
- With a Price/Earnings ratio of 3.58, the valuation of GSL can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of GSL indicates a rather cheap valuation: GSL is cheaper than 85.71% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of GSL to the average of the S&P500 Index (28.60), we can say GSL is valued rather cheaply.
- GSL is valuated cheaply with a Price/Forward Earnings ratio of 3.64.
- Based on the Price/Forward Earnings ratio, GSL is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
- GSL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.58 | ||
| Fwd PE | 3.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GSL indicates a somewhat cheap valuation: GSL is cheaper than 80.00% of the companies listed in the same industry.
- GSL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GSL is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.33 | ||
| EV/EBITDA | 3.31 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of GSL may justify a higher PE ratio.
- A cheap valuation may be justified as GSL's earnings are expected to decrease with -3.03% in the coming years.
PEG (NY)1.39
PEG (5Y)0.08
EPS Next 2Y1.55%
EPS Next 3Y-3.03%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.89%, GSL is a good candidate for dividend investing.
- GSL's Dividend Yield is rather good when compared to the industry average which is at 5.57. GSL pays more dividend than 82.86% of the companies in the same industry.
- GSL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.89% |
5.2 History
- The dividend of GSL is nicely growing with an annual growth rate of 53.55%!
- 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)53.55%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 19.92% of the earnings are spent on dividend by GSL. This is a low number and sustainable payout ratio.
DP19.92%
EPS Next 2Y1.55%
EPS Next 3Y-3.03%
GLOBAL SHIP LEASE INC-CL A / GSL FAQ
Can you provide the ChartMill fundamental rating for GLOBAL SHIP LEASE INC-CL A?
ChartMill assigns a fundamental rating of 7 / 10 to GSL.
What is the valuation status of GLOBAL SHIP LEASE INC-CL A (GSL) stock?
ChartMill assigns a valuation rating of 8 / 10 to GLOBAL SHIP LEASE INC-CL A (GSL). This can be considered as Undervalued.
Can you provide the profitability details for GLOBAL SHIP LEASE INC-CL A?
GLOBAL SHIP LEASE INC-CL A (GSL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for GSL stock?
The Price/Earnings (PE) ratio for GLOBAL SHIP LEASE INC-CL A (GSL) is 3.58 and the Price/Book (PB) ratio is 0.82.
Can you provide the expected EPS growth for GSL stock?
The Earnings per Share (EPS) of GLOBAL SHIP LEASE INC-CL A (GSL) is expected to grow by 2.57% in the next year.