GLOBAL NET LEASE INC (GNL)
US3793782018 - REIT
We assign a fundamental rating of 3 out of 10 to GNL. GNL was compared to 126 industry peers in the Diversified REITs industry. Both the profitability and financial health of GNL have multiple concerns. GNL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GNL was profitable.
GNL had a positive operating cash flow in the past year.
GNL had negative earnings in 4 of the past 5 years.
Each year in the past 5 years GNL had a positive operating cash flow.
1.2 Ratios
GNL has a Return On Assets of -3.00%. This is amonst the worse of the industry: GNL underperforms 80.49% of its industry peers.
GNL's Return On Equity of -9.22% is on the low side compared to the rest of the industry. GNL is outperformed by 83.74% of its industry peers.
GNL has a Return On Invested Capital of 1.39%. This is in the lower half of the industry: GNL underperforms 74.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GNL is in line with the industry average of 2.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3% | ||
| ROE | -9.22% | ||
| ROIC | 1.39% |
ROA(3y)-1.24%
ROA(5y)-0.6%
ROE(3y)-3.7%
ROE(5y)-1.93%
ROIC(3y)2.1%
ROIC(5y)2.09%
1.3 Margins
GNL has a better Operating Margin (27.03%) than 62.60% of its industry peers.
GNL's Operating Margin has declined in the last couple of years.
GNL's Gross Margin of 81.35% is fine compared to the rest of the industry. GNL outperforms 79.67% of its industry peers.
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 | 27.03% | ||
| PM (TTM) | N/A | ||
| GM | 81.35% |
OM growth 3Y-3.74%
OM growth 5Y-3.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.83%
GM growth 5Y0.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GNL is destroying value.
The number of shares outstanding for GNL has been increased compared to 1 year ago.
GNL has more shares outstanding than it did 5 years ago.
GNL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.01, we must say that GNL is in the distress zone and has some risk of bankruptcy.
GNL's Altman-Z score of 0.01 is on the low side compared to the rest of the industry. GNL is outperformed by 78.86% of its industry peers.
GNL has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
GNL has a worse Debt to Equity ratio (1.95) than 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.01 |
ROIC/WACC0.22
WACC6.33%
2.3 Liquidity
GNL has a Current Ratio of 1.30. 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 Current ratio (1.30) which is in line with its industry peers.
GNL has a Quick Ratio of 1.30. 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 Quick ratio (1.30) than 60.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
GNL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.09%, which is quite good.
GNL shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.96%.
Measured over the past years, GNL shows a quite strong growth in Revenue. The Revenue has been growing by 12.79% on average per year.
EPS 1Y (TTM)16.09%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-24.39%
Revenue 1Y (TTM)35.96%
Revenue growth 3Y15.99%
Revenue growth 5Y12.79%
Revenue growth Q2Q120.16%
3.2 Future
GNL is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -35.18% yearly.
The Revenue is expected to grow by 17.10% on average over the next years. This is quite good.
EPS Next Y-163%
EPS Next 2Y-58.43%
EPS Next 3Y-35.18%
EPS Next 5YN/A
Revenue Next Year63.32%
Revenue Next 2Y27.61%
Revenue Next 3Y17.1%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GNL is valuated cheaply with a Price/Earnings ratio of 6.95.
GNL's Price/Earnings ratio is rather cheap when compared to the industry. GNL is cheaper than 97.56% of the companies in the same industry.
GNL is valuated cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
GNL is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNL indicates a slightly more expensive valuation: GNL is more expensive than 78.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.31 |
4.3 Compensation for Growth
GNL's earnings are expected to decrease with -35.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-58.43%
EPS Next 3Y-35.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.90%, GNL is a good candidate for dividend investing.
The stock price of GNL dropped by -22.10% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
GNL's Dividend Yield is rather good when compared to the industry average which is at 6.03. GNL pays more dividend than 100.00% of the companies in the same industry.
GNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.9% |
5.2 History
The dividend of GNL decreases each year by -8.69%.
GNL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8.69%
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-95.88%
EPS Next 2Y-58.43%
EPS Next 3Y-35.18%
GLOBAL NET LEASE INC
NYSE:GNL (4/29/2024, 11:09:58 AM)
7.02
+0.11 (+1.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3% | ||
| ROE | -9.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.03% | ||
| PM (TTM) | N/A | ||
| GM | 81.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)16.09%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-163%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)35.96%
Revenue growth 3Y15.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y