GLOBAL NET LEASE INC (GNL) Stock Fundamental Analysis
NYSE:GNL - New York Stock Exchange, Inc. - US3793782018 - REIT - Currency: USD
Overall GNL gets a fundamental rating of 3 out of 10. We evaluated GNL against 130 industry peers in the Diversified REITs industry. While GNL is still in line with the averages on profitability rating, there are concerns on its financial health. GNL does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
GNL had negative earnings in the past year.
GNL had a positive operating cash flow in the past year.
GNL had negative earnings in each of the past 5 years.
In the past 5 years GNL always reported a positive cash flow from operatings.
1.2 Ratios
GNL has a worse Return On Assets (-2.53%) than 75.38% of its industry peers.
The Return On Equity of GNL (-8.05%) is worse than 74.62% of its industry peers.
GNL has a Return On Invested Capital (2.85%) which is in line with its industry peers.
GNL had an Average Return On Invested Capital over the past 3 years of 2.23%. This is in line with the industry average of 3.17%.
The 3 year average ROIC (2.23%) for GNL is below the current ROIC(2.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.53% | ||
| ROE | -8.05% | ||
| ROIC | 2.85% |
ROA(3y)-1.92%
ROA(5y)-1.29%
ROE(3y)-5.97%
ROE(5y)-3.94%
ROIC(3y)2.23%
ROIC(5y)2.23%
1.3 Margins
With a decent Operating Margin value of 30.55%, GNL is doing good in the industry, outperforming 66.15% of the companies in the same industry.
In the last couple of years the Operating Margin of GNL has remained more or less at the same level.
Looking at the Gross Margin, with a value of 82.30%, GNL belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
In the last couple of years the Gross Margin of GNL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.55% | ||
| PM (TTM) | N/A | ||
| GM | 82.3% |
OM growth 3Y-2.29%
OM growth 5Y-1.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.27%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GNL is destroying value.
Compared to 1 year ago, GNL has about the same amount of shares outstanding.
GNL has more shares outstanding than it did 5 years ago.
GNL has a worse debt/assets ratio than last year.
2.2 Solvency
GNL has an Altman-Z score of 0.04. This is a bad value and indicates that GNL is not financially healthy and even has some risk of bankruptcy.
GNL has a Altman-Z score of 0.04. This is in the lower half of the industry: GNL underperforms 74.62% of its industry peers.
The Debt to FCF ratio of GNL is 17.80, which is on the high side as it means it would take GNL, 17.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GNL (17.80) is better than 78.46% of its industry peers.
GNL has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.07, GNL is doing worse than 75.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 17.8 | ||
| Altman-Z | 0.04 |
ROIC/WACC0.41
WACC6.88%
2.3 Liquidity
GNL has a Current Ratio of 1.91. This is a normal value and indicates that GNL is financially healthy and should not expect problems in meeting its short term obligations.
GNL has a better Current ratio (1.91) than 74.62% of its industry peers.
A Quick Ratio of 1.91 indicates that GNL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.91, GNL is in the better half of the industry, outperforming 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
GNL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -122.77%.
GNL shows a strong growth in Revenue. In the last year, the Revenue has grown by 56.30%.
GNL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.33% yearly.
EPS 1Y (TTM)-122.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-125.81%
Revenue 1Y (TTM)56.3%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-3.68%
3.2 Future
The Earnings Per Share is expected to decrease by -75.46% on average over the next years. This is quite bad
GNL is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.31% yearly.
EPS Next Y-121.03%
EPS Next 2Y-68.08%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue Next Year-17.85%
Revenue Next 2Y-13.26%
Revenue Next 3Y-20.88%
Revenue Next 5Y-12.31%
3.3 Evolution
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
The Price/Earnings Ratio is negative for GNL. In the last year negative earnings were reported.
Also next year GNL is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
GNL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GNL is cheaper than 80.00% of the companies in the same industry.
95.38% of the companies in the same industry are more expensive than GNL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 10.19 |
4.3 Compensation for Growth
A cheap valuation may be justified as GNL's earnings are expected to decrease with -75.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-68.08%
EPS Next 3Y-75.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.15%, GNL is a good candidate for dividend investing.
GNL's Dividend Yield is rather good when compared to the industry average which is at 16.33. GNL pays more dividend than 85.38% of the companies in the same industry.
GNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.15% |
5.2 History
The dividend of GNL decreases each year by -6.84%.
GNL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-6.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GNL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
GNL's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-179.67%
EPS Next 2Y-68.08%
EPS Next 3Y-75.46%
7.48
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners65.91%
Inst Owner Change-0.54%
Ins Owners1.17%
Ins Owner Change12.53%
Market Cap1.71B
Analysts70
Price Target9.47 (26.6%)
Short Float %5.73%
Short Ratio5.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.15% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.84%
DP-179.67%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-39.82%
Min EPS beat(2)-104.21%
Max EPS beat(2)24.56%
EPS beat(4)3
Avg EPS beat(4)58.6%
Min EPS beat(4)-104.21%
Max EPS beat(4)292.2%
EPS beat(8)6
Avg EPS beat(8)591.67%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.78%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)1.51%
Revenue beat(4)1
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)1.51%
Revenue beat(8)3
Avg Revenue beat(8)14.98%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.22%
PT rev (3m)-2.26%
EPS NQ rev (1m)-6.06%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-17.05%
EPS NY rev (3m)-5133.3%
Revenue NQ rev (1m)-2%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-12.33%
Revenue NY rev (3m)-15.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.13 | ||
| P/FCF | 6.74 | ||
| P/OCF | 5.71 | ||
| P/B | 0.78 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 10.19 |
EPS(TTM)-0.23
EYN/A
EPS(NY)-0.51
Fwd EYN/A
FCF(TTM)1.11
FCFY14.84%
OCF(TTM)1.31
OCFY17.5%
SpS3.52
BVpS9.56
TBVpS9.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.53% | ||
| ROE | -8.05% | ||
| ROCE | 3.61% | ||
| ROIC | 2.85% | ||
| ROICexc | 2.92% | ||
| ROICexgc | 2.99% | ||
| OM | 30.55% | ||
| PM (TTM) | N/A | ||
| GM | 82.3% | ||
| FCFM | 31.53% |
ROA(3y)-1.92%
ROA(5y)-1.29%
ROE(3y)-5.97%
ROE(5y)-3.94%
ROIC(3y)2.23%
ROIC(5y)2.23%
ROICexc(3y)2.28%
ROICexc(5y)2.29%
ROICexgc(3y)2.35%
ROICexgc(5y)2.35%
ROCE(3y)2.83%
ROCE(5y)2.83%
ROICexcg growth 3Y5.4%
ROICexcg growth 5Y4.88%
ROICexc growth 3Y5.19%
ROICexc growth 5Y4.76%
OM growth 3Y-2.29%
OM growth 5Y-1.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.27%
GM growth 5Y0.6%
F-Score7
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 17.8 | ||
| Debt/EBITDA | 7.58 | ||
| Cap/Depr | 13.04% | ||
| Cap/Sales | 5.67% | ||
| Interest Coverage | 0.99 | ||
| Cash Conversion | 50.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | 0.04 |
F-Score7
WACC6.88%
ROIC/WACC0.41
Cap/Depr(3y)45.36%
Cap/Depr(5y)154.62%
Cap/Sales(3y)19.24%
Cap/Sales(5y)64.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-122.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-125.81%
EPS Next Y-121.03%
EPS Next 2Y-68.08%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue 1Y (TTM)56.3%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-3.68%
Revenue Next Year-17.85%
Revenue Next 2Y-13.26%
Revenue Next 3Y-20.88%
Revenue Next 5Y-12.31%
EBIT growth 1Y76.62%
EBIT growth 3Y24.28%
EBIT growth 5Y19.98%
EBIT Next Year181.29%
EBIT Next 3Y26.31%
EBIT Next 5Y11.31%
FCF growth 1Y774.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y108.34%
OCF growth 3Y15.87%
OCF growth 5Y15.45%