NYSE:GSL appears to be flying under the radar despite its strong fundamentals.

Discover GLOBAL SHIP LEASE INC-CL A (NYSE:GSL), an undervalued stock highlighted by our stock screener. NYSE:GSL showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

A Closer Look at Valuation for NYSE:GSL

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:GSL has received a 8 out of 10:

• GSL is valuated cheaply with a Price/Earnings ratio of 2.22.
• Based on the Price/Earnings ratio, GSL is valued cheaper than 82.76% of the companies in the same industry.
• GSL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.19.
• The Price/Forward Earnings ratio is 2.28, which 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 96.55% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of GSL to the average of the S&P500 Index (22.59), we can say GSL is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GSL indicates a rather cheap valuation: GSL is cheaper than 82.76% of the companies listed in the same industry.
• 89.66% of the companies in the same industry are more expensive than GSL, based on the Price/Free Cash Flow ratio.
• The excellent profitability rating of GSL may justify a higher PE ratio.

Evaluating Profitability: NYSE:GSL

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:GSL has achieved a 9:

• GSL's Return On Assets of 13.58% is amongst the best of the industry. GSL outperforms 82.76% of its industry peers.
• GSL has a better Return On Equity (24.90%) than 82.76% of its industry peers.
• GSL has a better Return On Invested Capital (15.12%) than 96.55% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for GSL is significantly above the industry average of 6.94%.
• The last Return On Invested Capital (15.12%) for GSL is above the 3 year average (13.60%), which is a sign of increasing profitability.
• GSL has a better Profit Margin (43.71%) than 82.76% of its industry peers.
• In the last couple of years the Profit Margin of GSL has grown nicely.
• GSL has a Operating Margin of 53.65%. This is amongst the best in the industry. GSL outperforms 89.66% of its industry peers.
• GSL's Operating Margin has improved in the last couple of years.
• GSL has a better Gross Margin (69.95%) than 82.76% of its industry peers.

Health Assessment of NYSE:GSL

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:GSL, the assigned 5 for health provides valuable insights:

• Looking at the Altman-Z score, with a value of 1.61, GSL is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
• The Debt to FCF ratio of GSL is 3.50, which is a good value as it means it would take GSL, 3.50 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.50, GSL belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.

ChartMill's Evaluation of Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:GSL boasts a 4 out of 10:

• GSL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.06%, 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 71.19% on average per year.
• GSL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.84% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of GSL contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.