GLOBAL NET LEASE INC (GNL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GNL - US3793782018 - REIT
8.05 USD
+0.07 (+0.88%)
8.05 USD
0 (0%)
Taking everything into account, GNL scores 4 out of 10 in our fundamental rating. GNL was compared to 128 industry peers in the Diversified REITs industry. Both the profitability and the financial health of GNL get a neutral evaluation. Nothing too spectacular is happening here. GNL does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year GNL has reported negative net income.
In the past year GNL had a positive cash flow from operations.
GNL had negative earnings in each of the past 5 years.
GNL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GNL has a worse Return On Assets (-6.84%) than 85.16% of its industry peers.
GNL has a worse Return On Equity (-19.15%) than 80.47% of its industry peers.
With a decent Return On Invested Capital value of 3.52%, GNL is doing good in the industry, outperforming 65.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GNL is in line with the industry average of 3.06%.
The 3 year average ROIC (2.23%) for GNL is below the current ROIC(3.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.84% | ||
| ROE | -19.15% | ||
| ROIC | 3.52% |
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
GNL has a better Operating Margin (36.03%) than 76.56% of its industry peers.
GNL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 87.14%, GNL belongs to the top of the industry, outperforming 88.28% of the companies in the same industry.
GNL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.03% | ||
| PM (TTM) | N/A | ||
| GM | 87.14% |
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.
GNL has about the same amout of shares outstanding than it did 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
GNL has an Altman-Z score of -0.12. This is a bad value and indicates that GNL is not financially healthy and even has some risk of bankruptcy.
GNL's Altman-Z score of -0.12 is on the low side compared to the rest of the industry. GNL is outperformed by 76.56% of its industry peers.
The Debt to FCF ratio of GNL is 14.31, which is on the high side as it means it would take GNL, 14.31 years of fcf income to pay off all of its debts.
GNL has a Debt to FCF ratio of 14.31. This is amongst the best in the industry. GNL outperforms 83.59% of its industry peers.
GNL has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.70, GNL is doing worse than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 14.31 | ||
| Altman-Z | -0.12 |
ROIC/WACC0.54
WACC6.49%
2.3 Liquidity
A Current Ratio of 2.53 indicates that GNL has no problem at all paying its short term obligations.
GNL has a better Current ratio (2.53) than 87.50% of its industry peers.
GNL has a Quick Ratio of 2.53. This indicates that GNL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.53, GNL belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
GNL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -993.75%.
GNL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.94%.
Measured over the past years, GNL shows a very strong growth in Revenue. The Revenue has been growing by 21.33% on average per year.
EPS 1Y (TTM)-993.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3.03%
Revenue 1Y (TTM)-28.94%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-38.44%
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 -75.46% yearly.
The Revenue is expected to decrease by -8.79% on average over the next years.
EPS Next Y-298.15%
EPS Next 2Y-19.77%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue Next Year-33.86%
Revenue Next 2Y-20.81%
Revenue Next 3Y-20.88%
Revenue Next 5Y-8.79%
3.3 Evolution
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
The Price/Earnings Ratio is negative for GNL. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for GNL. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GNL is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GNL is valued cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.8 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
GNL's earnings are expected to decrease with -75.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.77%
EPS Next 3Y-75.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.76%, GNL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.59, GNL pays a better dividend. On top of this GNL pays more dividend than 86.72% of the companies listed 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 | 9.76% |
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
The earnings of GNL are negative and hence is the payout ratio. GNL will probably not be able to sustain this dividend level.
GNL's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-79.07%
EPS Next 2Y-19.77%
EPS Next 3Y-75.46%
8.05
+0.07 (+0.88%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners70.37%
Inst Owner Change2.23%
Ins Owners1.3%
Ins Owner Change-2.44%
Market Cap1.78B
Revenue(TTM)577.45M
Net Income(TTM)-325.74M
Analysts73.33
Price Target9.54 (18.51%)
Short Float %3.59%
Short Ratio5.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.76% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.84%
DP-79.07%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-193.42%
Min EPS beat(2)-280.21%
Max EPS beat(2)-106.62%
EPS beat(4)1
Avg EPS beat(4)-248.84%
Min EPS beat(4)-633.09%
Max EPS beat(4)24.56%
EPS beat(8)4
Avg EPS beat(8)67.77%
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)0
Avg Revenue beat(2)-7.61%
Min Revenue beat(2)-10.83%
Max Revenue beat(2)-4.4%
Revenue beat(4)1
Avg Revenue beat(4)-11%
Min Revenue beat(4)-30.3%
Max Revenue beat(4)1.51%
Revenue beat(8)2
Avg Revenue beat(8)7.02%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.08 | ||
| P/FCF | 8.8 | ||
| P/OCF | 7.37 | ||
| P/B | 1.05 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)-1.43
EYN/A
EPS(NY)-0.33
Fwd EYN/A
FCF(TTM)0.91
FCFY11.36%
OCF(TTM)1.09
OCFY13.56%
SpS2.61
BVpS7.7
TBVpS7.49
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.84% | ||
| ROE | -19.15% | ||
| ROCE | 4.46% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.65% | ||
| ROICexgc | 3.75% | ||
| OM | 36.03% | ||
| PM (TTM) | N/A | ||
| GM | 87.14% | ||
| FCFM | 34.99% |
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%
ROICexgc growth 3Y5.4%
ROICexgc 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 | 1.7 | ||
| Debt/FCF | 14.31 | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 15.09% | ||
| Cap/Sales | 6.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | -0.12 |
F-Score7
WACC6.49%
ROIC/WACC0.54
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)-993.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3.03%
EPS Next Y-298.15%
EPS Next 2Y-19.77%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-28.94%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-38.44%
Revenue Next Year-33.86%
Revenue Next 2Y-20.81%
Revenue Next 3Y-20.88%
Revenue Next 5Y-8.79%
EBIT growth 1Y-10.18%
EBIT growth 3Y24.28%
EBIT growth 5Y19.98%
EBIT Next Year142.45%
EBIT Next 3Y26.31%
EBIT Next 5Y18.26%
FCF growth 1Y1856.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y118.9%
OCF growth 3Y15.87%
OCF growth 5Y15.45%
GLOBAL NET LEASE INC / GNL FAQ
Can you provide the ChartMill fundamental rating for GLOBAL NET LEASE INC?
ChartMill assigns a fundamental rating of 4 / 10 to GNL.
Can you provide the valuation status for GLOBAL NET LEASE INC?
ChartMill assigns a valuation rating of 2 / 10 to GLOBAL NET LEASE INC (GNL). This can be considered as Overvalued.
Can you provide the profitability details for GLOBAL NET LEASE INC?
GLOBAL NET LEASE INC (GNL) has a profitability rating of 4 / 10.
What is the earnings growth outlook for GLOBAL NET LEASE INC?
The Earnings per Share (EPS) of GLOBAL NET LEASE INC (GNL) is expected to decline by -298.15% in the next year.
How sustainable is the dividend of GLOBAL NET LEASE INC (GNL) stock?
The dividend rating of GLOBAL NET LEASE INC (GNL) is 5 / 10 and the dividend payout ratio is -79.07%.