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 4 out of 10. We evaluated GNL against 129 industry peers in the Diversified REITs industry. GNL has an average financial health and profitability rating. GNL has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GNL has reported negative net income.
GNL had a positive operating cash flow in the past year.
In the past 5 years GNL always reported negative net income.
GNL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -5.90%, GNL is doing worse than 87.60% of the companies in the same industry.
Looking at the Return On Equity, with a value of -17.84%, GNL is doing worse than 86.82% of the companies in the same industry.
GNL has a Return On Invested Capital of 3.20%. This is in the better half of the industry: GNL outperforms 62.02% 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 3.16%.
The last Return On Invested Capital (3.20%) for GNL is above the 3 year average (2.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.9% | ||
| ROE | -17.84% | ||
| ROIC | 3.2% |
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's Operating Margin of 31.54% is fine compared to the rest of the industry. GNL outperforms 67.44% of its industry peers.
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 83.78%, GNL belongs to the top of the industry, outperforming 85.27% 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 | 31.54% | ||
| PM (TTM) | N/A | ||
| GM | 83.78% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GNL is destroying value.
GNL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, GNL has more shares outstanding
The debt/assets ratio for GNL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.05, we must say that GNL is in the distress zone and has some risk of bankruptcy.
GNL has a Altman-Z score of -0.05. This is in the lower half of the industry: GNL underperforms 77.52% of its industry peers.
GNL has a debt to FCF ratio of 14.76. This is a negative value and a sign of low solvency as GNL would need 14.76 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.76, GNL belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
GNL has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.69, GNL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 14.76 | ||
| Altman-Z | -0.05 |
ROIC/WACC0.47
WACC6.84%
2.3 Liquidity
A Current Ratio of 2.39 indicates that GNL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.39, GNL belongs to the top of the industry, outperforming 84.50% of the companies in the same industry.
A Quick Ratio of 2.39 indicates that GNL has no problem at all paying its short term obligations.
GNL has a Quick ratio of 2.39. This is amongst the best in the industry. GNL outperforms 84.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 |
3. Growth
3.1 Past
The earnings per share for GNL have decreased strongly by -203.26% in the last year.
The Revenue has grown by 16.69% in the past year. This is quite good.
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)-203.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-480%
Revenue 1Y (TTM)16.69%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-35.73%
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 -12.31% on average over the next years. This is quite bad
EPS Next Y-164.94%
EPS Next 2Y-22.79%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue Next Year-32.18%
Revenue Next 2Y-21.01%
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.
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 cheaper than 93.02% of the companies in the same industry.
GNL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GNL is cheaper than 96.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 8.15 |
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-22.79%
EPS Next 3Y-75.46%
5. Dividend
5.1 Amount
GNL has a Yearly Dividend Yield of 10.61%, which is a nice return.
Compared to an average industry Dividend Yield of 6.44, GNL pays a better dividend. On top of this GNL pays more dividend than 90.70% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, GNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.61% |
5.2 History
The dividend of GNL decreases each year by -6.84%.
GNL has paid a dividend for at least 10 years, which is 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.
The Dividend Rate of GNL has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-87.32%
EPS Next 2Y-22.79%
EPS Next 3Y-75.46%
7.15
-0.01 (-0.14%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners66.93%
Inst Owner Change-0.27%
Ins Owners1.28%
Ins Owner Change2.38%
Market Cap1.60B
Analysts70
Price Target9.69 (35.52%)
Short Float %3.83%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.61% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.84%
DP-87.32%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-304.26%
Min EPS beat(2)-633.09%
Max EPS beat(2)24.56%
EPS beat(4)2
Avg EPS beat(4)-105.14%
Min EPS beat(4)-633.09%
Max EPS beat(4)292.2%
EPS beat(8)6
Avg EPS beat(8)537.17%
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)-14.39%
Min Revenue beat(2)-30.3%
Max Revenue beat(2)1.51%
Revenue beat(4)1
Avg Revenue beat(4)-8.64%
Min Revenue beat(4)-30.3%
Max Revenue beat(4)1.51%
Revenue beat(8)3
Avg Revenue beat(8)11.37%
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)2.31%
EPS NQ rev (1m)-2.23%
EPS NQ rev (3m)28.12%
EPS NY rev (1m)-74.88%
EPS NY rev (3m)-19.87%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-15.53%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-17.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.18 | ||
| P/FCF | 7.29 | ||
| P/OCF | 5.99 | ||
| P/B | 0.83 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 8.15 |
EPS(TTM)-0.95
EYN/A
EPS(NY)-0.35
Fwd EYN/A
FCF(TTM)0.98
FCFY13.72%
OCF(TTM)1.19
OCFY16.7%
SpS3.28
BVpS8.58
TBVpS8.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.9% | ||
| ROE | -17.84% | ||
| ROCE | 4.05% | ||
| ROIC | 3.2% | ||
| ROICexc | 3.29% | ||
| ROICexgc | 3.35% | ||
| OM | 31.54% | ||
| PM (TTM) | N/A | ||
| GM | 83.78% | ||
| FCFM | 29.95% |
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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 14.76 | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 13.78% | ||
| Cap/Sales | 6.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 | ||
| Altman-Z | -0.05 |
F-Score7
WACC6.84%
ROIC/WACC0.47
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)-203.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-480%
EPS Next Y-164.94%
EPS Next 2Y-22.79%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue 1Y (TTM)16.69%
Revenue growth 3Y27.19%
Revenue growth 5Y21.33%
Sales Q2Q%-35.73%
Revenue Next Year-32.18%
Revenue Next 2Y-21.01%
Revenue Next 3Y-20.88%
Revenue Next 5Y-12.31%
EBIT growth 1Y38.3%
EBIT growth 3Y24.28%
EBIT growth 5Y19.98%
EBIT Next Year142.95%
EBIT Next 3Y26.31%
EBIT Next 5Y11.31%
FCF growth 1Y580.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y45.6%
OCF growth 3Y15.87%
OCF growth 5Y15.45%