GLOBAL SHIP LEASE INC-CL A (GSL) Stock Fundamental Analysis
NYSE:GSL - New York Stock Exchange, Inc. - MHY271836006 - Common Stock - Currency: USD
GSL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Marine Transportation industry. While GSL belongs to the best of the industry regarding profitability, 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. Finally GSL also has an excellent dividend rating.
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.
In the past 5 years GSL has always been profitable.
In the past 5 years GSL always reported a positive cash flow from operatings.
1.2 Ratios
GSL's Return On Assets of 14.50% is amongst the best of the industry. GSL outperforms 90.00% of its industry peers.
GSL has a Return On Equity of 23.51%. This is amongst the best in the industry. GSL outperforms 93.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.20%, GSL belongs to the top of the industry, outperforming 90.00% 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 9.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.5% | ||
| ROE | 23.51% | ||
| ROIC | 14.2% |
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 (48.39%) than 86.67% of its industry peers.
In the last couple of years the Profit Margin of GSL has grown nicely.
With an excellent Operating Margin value of 53.32%, GSL belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
GSL's Operating Margin has improved in the last couple of years.
GSL's Gross Margin of 69.79% is fine compared to the rest of the industry. GSL outperforms 76.67% of its industry peers.
GSL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.32% | ||
| PM (TTM) | 48.39% | ||
| GM | 69.79% |
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
GSL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GSL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GSL has more shares outstanding
Compared to 1 year ago, GSL has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that GSL is in the distress zone and has some risk of bankruptcy.
GSL has a better Altman-Z score (1.79) than 70.00% of its industry peers.
The Debt to FCF ratio of GSL is 3.23, which is a good value as it means it would take GSL, 3.23 years of fcf income to pay off all of its debts.
GSL has a better Debt to FCF ratio (3.23) than 73.33% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that GSL is not too dependend on debt financing.
GSL has a better Debt to Equity ratio (0.37) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.53
WACC9.29%
2.3 Liquidity
A Current Ratio of 1.14 indicates that GSL should not have too much problems paying its short term obligations.
GSL has a worse Current ratio (1.14) than 60.00% of its industry peers.
GSL has a Quick Ratio of 1.07. This is a normal value and indicates that GSL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, GSL is doing worse than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
GSL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.63%, which is quite good.
Measured over the past years, GSL shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.78% on average per year.
Looking at the last year, GSL shows a small growth in Revenue. The Revenue has grown by 5.37% in the last 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)10.63%
EPS 3Y29.78%
EPS 5Y45.78%
EPS Q2Q%2.41%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y16.65%
Revenue growth 5Y22.19%
Sales Q2Q%1.98%
3.2 Future
GSL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.17% yearly.
Based on estimates for the next years, GSL will show a decrease in Revenue. The Revenue will decrease by -1.42% on average per year.
EPS Next Y-2.04%
EPS Next 2Y-3.62%
EPS Next 3Y-9.17%
EPS Next 5YN/A
Revenue Next Year1.24%
Revenue Next 2Y-1.42%
Revenue Next 3YN/A
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
Based on the Price/Earnings ratio of 2.06, the valuation of GSL can be described as very cheap.
Based on the Price/Earnings ratio, GSL is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. GSL is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 2.10, the valuation of GSL can be described as very cheap.
96.67% of the companies in the same industry are more expensive than GSL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GSL to the average of the S&P500 Index (21.08), we can say GSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.06 | ||
| Fwd PE | 2.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSL is valued a bit cheaper than 80.00% of the companies in the same industry.
GSL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GSL is cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.47 | ||
| EV/EBITDA | 2.56 |
4.3 Compensation for Growth
The excellent profitability rating of GSL may justify a higher PE ratio.
GSL's earnings are expected to decrease with -9.17% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.04
EPS Next 2Y-3.62%
EPS Next 3Y-9.17%
5. Dividend
5.1 Amount
GSL has a Yearly Dividend Yield of 9.51%, which is a nice return.
GSL's Dividend Yield is a higher than the industry average which is at 48.54.
GSL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.51% |
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
19.75% of the earnings are spent on dividend by GSL. This is a low number and sustainable payout ratio.
DP19.75%
EPS Next 2Y-3.62%
EPS Next 3Y-9.17%
20.54
+0.37 (+1.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners55.63%
Inst Owner Change0%
Ins Owners1.14%
Ins Owner ChangeN/A
Market Cap734.10M
Analysts80
Price Target31.62 (53.94%)
Short Float %2.71%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.51% |
Yearly Dividend1.92
Dividend Growth(5Y)53.55%
DP19.75%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.71%
Min EPS beat(2)0.5%
Max EPS beat(2)8.92%
EPS beat(4)4
Avg EPS beat(4)6.58%
Min EPS beat(4)0.5%
Max EPS beat(4)10.56%
EPS beat(8)7
Avg EPS beat(8)5.17%
EPS beat(12)10
Avg EPS beat(12)8.04%
EPS beat(16)13
Avg EPS beat(16)12.97%
Revenue beat(2)1
Avg Revenue beat(2)1.49%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)4.11%
Revenue beat(4)3
Avg Revenue beat(4)2.42%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)5.79%
Revenue beat(8)7
Avg Revenue beat(8)2.94%
Revenue beat(12)11
Avg Revenue beat(12)4.94%
Revenue beat(16)15
Avg Revenue beat(16)7.59%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.91%
EPS NY rev (1m)0.81%
EPS NY rev (3m)4.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)4.41%
Revenue NY rev (3m)4.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.06 | ||
| Fwd PE | 2.1 | ||
| P/S | 1.03 | ||
| P/FCF | 3.47 | ||
| P/OCF | 1.71 | ||
| P/B | 0.5 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 2.56 |
EPS(TTM)9.99
EY48.64%
EPS(NY)9.79
Fwd EY47.65%
FCF(TTM)5.93
FCFY28.85%
OCF(TTM)12.04
OCFY58.59%
SpS19.9
BVpS40.95
TBVpS40.95
PEG (NY)N/A
PEG (5Y)0.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.5% | ||
| ROE | 23.51% | ||
| ROCE | 17.98% | ||
| ROIC | 14.2% | ||
| ROICexc | 15.43% | ||
| ROICexgc | 15.43% | ||
| OM | 53.32% | ||
| PM (TTM) | 48.39% | ||
| GM | 69.79% | ||
| FCFM | 29.79% |
ROA(3y)13.85%
ROA(5y)10.53%
ROE(3y)25.91%
ROE(5y)21.75%
ROIC(3y)14.87%
ROIC(5y)12.54%
ROICexc(3y)16.11%
ROICexc(5y)13.49%
ROICexgc(3y)16.11%
ROICexgc(5y)13.49%
ROCE(3y)18.83%
ROCE(5y)15.88%
ROICexcg growth 3Y12.48%
ROICexcg growth 5Y13.63%
ROICexc growth 3Y12.48%
ROICexc growth 5Y13.66%
OM growth 3Y1.31%
OM growth 5Y4.52%
PM growth 3Y9.93%
PM growth 5Y48.32%
GM growth 3Y0.88%
GM growth 5Y2.09%
F-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 218.36% | ||
| Cap/Sales | 30.71% | ||
| Interest Coverage | 6.84 | ||
| Cash Conversion | 89.78% | ||
| Profit Quality | 61.56% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.79 |
F-Score6
WACC9.29%
ROIC/WACC1.53
Cap/Depr(3y)126.97%
Cap/Depr(5y)239.79%
Cap/Sales(3y)17.58%
Cap/Sales(5y)33.37%
Profit Quality(3y)87.49%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.63%
EPS 3Y29.78%
EPS 5Y45.78%
EPS Q2Q%2.41%
EPS Next Y-2.04%
EPS Next 2Y-3.62%
EPS Next 3Y-9.17%
EPS Next 5YN/A
Revenue 1Y (TTM)5.37%
Revenue growth 3Y16.65%
Revenue growth 5Y22.19%
Sales Q2Q%1.98%
Revenue Next Year1.24%
Revenue Next 2Y-1.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.72%
EBIT growth 3Y18.18%
EBIT growth 5Y27.71%
EBIT Next Year28.55%
EBIT Next 3Y-1.66%
EBIT Next 5YN/A
FCF growth 1Y-8.75%
FCF growth 3YN/A
FCF growth 5Y81.01%
OCF growth 1Y14.7%
OCF growth 3Y17.2%
OCF growth 5Y35.72%