GLOBAL SHIP LEASE INC-CL A (GSL) Stock Fundamental Analysis
NYSE:GSL - New York Stock Exchange, Inc. - MHY271836006 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to GSL. GSL was compared to 34 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
In the past year GSL was profitable.
In the past year GSL had a positive cash flow from operations.
Each year in the past 5 years GSL has been profitable.
GSL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 14.58%, GSL belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
The Return On Equity of GSL (23.95%) is better than 94.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.07%, GSL belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
GSL had an Average Return On Invested Capital over the past 3 years of 14.87%. This is significantly above the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.58% | ||
| ROE | 23.95% | ||
| ROIC | 13.07% |
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 51.99% is amongst the best of the industry. GSL outperforms 94.12% of its industry peers.
GSL's Profit Margin has improved in the last couple of years.
GSL has a Operating Margin of 52.89%. This is amongst the best in the industry. GSL outperforms 97.06% of its industry peers.
In the last couple of years the Operating Margin of GSL has grown nicely.
With a decent Gross Margin value of 69.79%, GSL is doing good in the industry, outperforming 79.41% of the companies in the same industry.
GSL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.89% | ||
| PM (TTM) | 51.99% | ||
| 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
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.
Compared to 5 years ago, GSL has more shares outstanding
GSL has a better debt/assets ratio than last year.
2.2 Solvency
GSL has an Altman-Z score of 1.93. 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 1.93, GSL is doing good in the industry, outperforming 73.53% of the companies in the same industry.
GSL has a debt to FCF ratio of 5.17. This is a neutral value as GSL would need 5.17 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.17, GSL is doing good in the industry, outperforming 70.59% of the companies in the same industry.
GSL has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, GSL is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 1.93 |
ROIC/WACC1.41
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.77 indicates that GSL should not have too much problems paying its short term obligations.
GSL's Current ratio of 1.77 is fine compared to the rest of the industry. GSL outperforms 67.65% of its industry peers.
GSL has a Quick Ratio of 1.71. This is a normal value and indicates that GSL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of GSL (1.71) is better than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
GSL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.10%.
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 3.94% in the past year.
Measured over the past years, GSL shows a very strong growth in Revenue. The Revenue has been growing by 22.19% on average per year.
EPS 1Y (TTM)7.1%
EPS 3Y29.78%
EPS 5Y45.56%
EPS Q2Q%4.74%
Revenue 1Y (TTM)3.94%
Revenue growth 3Y16.65%
Revenue growth 5Y22.19%
Sales Q2Q%6.26%
3.2 Future
GSL is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.21% yearly.
Based on estimates for the next years, GSL will show a decrease in Revenue. The Revenue will decrease by -6.17% on average per year.
EPS Next Y-6.35%
EPS Next 2Y-3.98%
EPS Next 3Y-10.21%
EPS Next 5YN/A
Revenue Next Year2.61%
Revenue Next 2Y-0.2%
Revenue Next 3Y-6.17%
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
Based on the Price/Earnings ratio of 2.76, the valuation of GSL can be described as very cheap.
Based on the Price/Earnings ratio, GSL is valued cheaper than 85.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of GSL to the average of the S&P500 Index (27.30), we can say GSL is valued rather cheaply.
A Price/Forward Earnings ratio of 3.03 indicates a rather cheap valuation of GSL.
Based on the Price/Forward Earnings ratio, GSL is valued cheaply inside the industry as 91.18% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. GSL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.76 | ||
| Fwd PE | 3.03 |
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 76.47% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GSL is valued a bit cheaper than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.67 | ||
| EV/EBITDA | 2.89 |
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 -10.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y-3.98%
EPS Next 3Y-10.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.86%, GSL is a good candidate for dividend investing.
GSL's Dividend Yield is rather good when compared to the industry average which is at 7.55. GSL pays more dividend than 85.29% of the companies in the same industry.
GSL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.86% |
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
GSL pays out 18.85% of its income as dividend. This is a sustainable payout ratio.
DP18.85%
EPS Next 2Y-3.98%
EPS Next 3Y-10.21%
27.89
+0.27 (+0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners51.06%
Inst Owner Change0%
Ins Owners1.89%
Ins Owner ChangeN/A
Market Cap993.16M
Analysts77.5
Price Target32.98 (18.25%)
Short Float %2.89%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.86% |
Yearly Dividend1.92
Dividend Growth(5Y)53.55%
DP18.85%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.18%
Min EPS beat(2)8.92%
Max EPS beat(2)13.44%
EPS beat(4)4
Avg EPS beat(4)7.3%
Min EPS beat(4)0.5%
Max EPS beat(4)13.44%
EPS beat(8)7
Avg EPS beat(8)6.45%
EPS beat(12)11
Avg EPS beat(12)9.22%
EPS beat(16)14
Avg EPS beat(16)15.53%
Revenue beat(2)2
Avg Revenue beat(2)5.96%
Min Revenue beat(2)4.11%
Max Revenue beat(2)7.81%
Revenue beat(4)3
Avg Revenue beat(4)2.92%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)7.81%
Revenue beat(8)7
Avg Revenue beat(8)3.36%
Revenue beat(12)11
Avg Revenue beat(12)5.38%
Revenue beat(16)15
Avg Revenue beat(16)7.94%
PT rev (1m)5.43%
PT rev (3m)4.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.91%
EPS NY rev (1m)-4.4%
EPS NY rev (3m)-4.4%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.76 | ||
| Fwd PE | 3.03 | ||
| P/S | 1.37 | ||
| P/FCF | 6.67 | ||
| P/OCF | 2.3 | ||
| P/B | 0.63 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 2.89 |
EPS(TTM)10.11
EY36.25%
EPS(NY)9.21
Fwd EY33.03%
FCF(TTM)4.18
FCFY15%
OCF(TTM)12.14
OCFY43.53%
SpS20.29
BVpS44.04
TBVpS44.04
PEG (NY)N/A
PEG (5Y)0.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.58% | ||
| ROE | 23.95% | ||
| ROCE | 16.54% | ||
| ROIC | 13.07% | ||
| ROICexc | 15.27% | ||
| ROICexgc | 15.27% | ||
| OM | 52.89% | ||
| PM (TTM) | 51.99% | ||
| GM | 69.79% | ||
| FCFM | 20.62% |
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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 5.17 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 268.58% | ||
| Cap/Sales | 39.22% | ||
| Interest Coverage | 7.53 | ||
| Cash Conversion | 88.67% | ||
| Profit Quality | 39.66% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 1.93 |
F-Score6
WACC9.28%
ROIC/WACC1.41
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)7.1%
EPS 3Y29.78%
EPS 5Y45.56%
EPS Q2Q%4.74%
EPS Next Y-6.35%
EPS Next 2Y-3.98%
EPS Next 3Y-10.21%
EPS Next 5YN/A
Revenue 1Y (TTM)3.94%
Revenue growth 3Y16.65%
Revenue growth 5Y22.19%
Sales Q2Q%6.26%
Revenue Next Year2.61%
Revenue Next 2Y-0.2%
Revenue Next 3Y-6.17%
Revenue Next 5YN/A
EBIT growth 1Y2.15%
EBIT growth 3Y18.18%
EBIT growth 5Y27.71%
EBIT Next Year31.4%
EBIT Next 3Y-0.85%
EBIT Next 5YN/A
FCF growth 1Y-61.21%
FCF growth 3YN/A
FCF growth 5Y81.01%
OCF growth 1Y11.23%
OCF growth 3Y17.2%
OCF growth 5Y35.72%