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 only an average score on both its financial health and profitability. GNL is valued expensive and it does not seem to be growing.
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.
In the past 5 years GNL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GNL (-5.90%) is worse than 85.27% of its industry peers.
GNL's Return On Equity of -17.84% is on the low side compared to the rest of the industry. GNL is outperformed by 84.50% of its industry peers.
With a decent Return On Invested Capital value of 3.20%, GNL is doing good in the industry, outperforming 61.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GNL is in line with the industry average of 3.15%.
The 3 year average ROIC (2.23%) for GNL is below the current ROIC(3.20%), indicating increased profibility in the last year.
| 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
Looking at the Operating Margin, with a value of 31.54%, GNL is in the better half of the industry, outperforming 68.22% of the companies in the same industry.
GNL's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 83.78%, GNL belongs to the best 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.
Compared to 1 year ago, GNL has about the same amount of shares outstanding.
The number of shares outstanding for GNL has been increased compared to 5 years ago.
Compared to 1 year ago, GNL has a worse debt to assets ratio.
2.2 Solvency
GNL has an Altman-Z score of -0.03. This is a bad value and indicates that GNL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GNL (-0.03) is worse than 76.74% 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.
GNL has a Debt to FCF ratio of 14.76. This is amongst the best in the industry. GNL outperforms 86.05% of its industry peers.
GNL has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GNL (1.69) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 14.76 | ||
| Altman-Z | -0.03 |
ROIC/WACC0.46
WACC6.96%
2.3 Liquidity
A Current Ratio of 2.39 indicates that GNL has no problem at all paying its short term obligations.
GNL has a better Current ratio (2.39) than 84.50% of its industry peers.
GNL has a Quick Ratio of 2.39. 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 2.39, GNL belongs to the top of the industry, outperforming 84.50% of the companies in the same industry.
| 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.
GNL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.69%.
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
The Earnings Per Share is expected to decrease by -75.46% on average over the next years. This is quite bad
Based on estimates for the next years, GNL will show a very negative growth in Revenue. The Revenue will decrease by -12.31% on average per year.
EPS Next Y-100.54%
EPS Next 2Y-61.42%
EPS Next 3Y-75.46%
EPS Next 5YN/A
Revenue Next Year-31.25%
Revenue Next 2Y-24.46%
Revenue Next 3Y-20.88%
Revenue Next 5Y-12.31%
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.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GNL indicates a rather cheap valuation: GNL is cheaper than 92.25% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GNL indicates a rather cheap valuation: GNL is cheaper than 93.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.07 | ||
| EV/EBITDA | 8.38 |
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-61.42%
EPS Next 3Y-75.46%
5. Dividend
5.1 Amount
GNL has a Yearly Dividend Yield of 9.52%, which is a nice return.
Compared to an average industry Dividend Yield of 6.61, GNL pays a better dividend. On top of this GNL pays more dividend than 85.27% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.52% |
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.
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-61.42%
EPS Next 3Y-75.46%
7.73
+0.17 (+2.25%)
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-4.03%
Ins Owners1.17%
Ins Owner Change12.25%
Market Cap1.77B
Analysts69.23
Price Target9.01 (16.56%)
Short Float %3.4%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.52% |
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)-8.62%
PT rev (3m)-6.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)9.27%
EPS NY rev (3m)-6.2%
Revenue NQ rev (1m)-15.07%
Revenue NQ rev (3m)-28.24%
Revenue NY rev (1m)-18.03%
Revenue NY rev (3m)-29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.42 | ||
| P/FCF | 8.07 | ||
| P/OCF | 6.64 | ||
| P/B | 0.92 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 8.38 |
EPS(TTM)-0.95
EYN/A
EPS(NY)-0.6
Fwd EYN/A
FCF(TTM)0.96
FCFY12.39%
OCF(TTM)1.16
OCFY15.07%
SpS3.2
BVpS8.37
TBVpS8.18
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 | -0.03 |
F-Score7
WACC6.96%
ROIC/WACC0.46
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-100.54%
EPS Next 2Y-61.42%
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-31.25%
Revenue Next 2Y-24.46%
Revenue Next 3Y-20.88%
Revenue Next 5Y-12.31%
EBIT growth 1Y38.3%
EBIT growth 3Y24.28%
EBIT growth 5Y19.98%
EBIT Next Year181.29%
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%