GLOBAL SHIP LEASE INC-CL A (GSL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GSL - MHY271836006 - Common Stock
36.29 USD
0 (0%)
36.29 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to GSL. GSL was compared to 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 is valued quite cheap, while showing a decent growth score. This is a good 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.
- Each year in the past 5 years GSL has been profitable.
- Each year in the past 5 years GSL had a positive operating cash flow.
1.2 Ratios
- GSL's Return On Assets of 14.49% is amongst the best of the industry. GSL outperforms 91.43% of its industry peers.
- With an excellent Return On Equity value of 23.31%, GSL belongs to the best 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 has a better Profit Margin (51.80%) than 88.57% of its industry peers.
- In the last couple of years the Profit Margin of GSL has grown nicely.
- GSL's Operating Margin of 52.77% is amongst the best of the industry. GSL outperforms 94.29% of its industry peers.
- GSL's Operating Margin has improved in the last couple of years.
- GSL has a Gross Margin of 70.07%. This is amongst the best in the industry. GSL outperforms 82.86% of its industry peers.
- In the last couple of years the Gross Margin of GSL has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GSL is still creating some value.
- The number of shares outstanding for GSL has been increased compared to 1 year ago.
- The number of shares outstanding for GSL has been increased compared to 5 years ago.
- Compared to 1 year ago, GSL has an improved debt to assets ratio.
2.2 Solvency
- GSL has an Altman-Z score of 2.18. 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 2.18, GSL is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- The Debt to FCF ratio of GSL is 4.73, which is a neutral value as it means it would take GSL, 4.73 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.73, GSL is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
- 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.42
WACC9.19%
2.3 Liquidity
- GSL has a Current Ratio of 2.01. This indicates that GSL is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of GSL (2.01) is comparable to the rest of the industry.
- A Quick Ratio of 1.94 indicates that GSL should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.94, GSL is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
- GSL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.64%.
- Measured over the past years, GSL shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.56% on average per year.
- The Revenue has been growing slightly by 5.37% in the past year.
- The Revenue has been growing by 22.19% on average over the past years. This is a very strong growth!
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
- GSL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.71% yearly.
- GSL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.19% yearly.
EPS Next Y2.93%
EPS Next 2Y1.39%
EPS Next 3Y-3.71%
EPS Next 5YN/A
Revenue Next Year6.82%
Revenue Next 2Y2.7%
Revenue Next 3Y-2.19%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 3.46, which indicates a rather cheap valuation of GSL.
- Based on the Price/Earnings ratio, GSL is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, GSL is valued rather cheaply.
- With a Price/Forward Earnings ratio of 3.53, the valuation of GSL can be described as very cheap.
- Based on the Price/Forward Earnings ratio, GSL is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, GSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.46 | ||
| Fwd PE | 3.53 |
4.2 Price Multiples
- 80.00% of the companies in the same industry are more expensive than GSL, based on the Enterprise Value to EBITDA ratio.
- 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 | 8.06 | ||
| EV/EBITDA | 3.22 |
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.
- GSL's earnings are expected to decrease with -3.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.18
PEG (5Y)0.08
EPS Next 2Y1.39%
EPS Next 3Y-3.71%
5. Dividend
5.1 Amount
- GSL has a Yearly Dividend Yield of 6.92%, which is a nice return.
- GSL's Dividend Yield is a higher than the industry average which is at 5.35.
- GSL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
5.2 History
- On average, the dividend of GSL grows each year by 53.55%, 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)53.55%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- GSL pays out 19.92% of its income as dividend. This is a sustainable payout ratio.
DP19.92%
EPS Next 2Y1.39%
EPS Next 3Y-3.71%
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 3.46 and the Price/Book (PB) ratio is 0.79.
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 2.93% in the next year.