GLOBAL SHIP LEASE INC-CL A (GSL) Stock Fundamental Analysis
NYSE:GSL - New York Stock Exchange, Inc. - MHY271836006 - Common Stock - Currency: USD
Taking everything into account, GSL scores 6 out of 10 in our fundamental rating. GSL was compared to 32 industry peers in the Marine Transportation industry. GSL scores excellent on profitability, but there are some minor concerns on its financial health. GSL may be a bit undervalued, certainly considering the very reasonable score on growth Finally GSL also has an excellent dividend rating. With these ratings, GSL could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year GSL was profitable.
GSL had a positive operating cash flow in the past year.
Each year in the past 5 years GSL has been profitable.
In the past 5 years GSL always reported a positive cash flow from operatings.
1.2 Ratios
GSL has a better Return On Assets (14.50%) than 90.63% of its industry peers.
GSL has a better Return On Equity (23.51%) than 93.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.20%, GSL belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GSL is significantly above the industry average of 8.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.5% | ||
| ROE | 23.51% | ||
| ROIC | 14.2% |
ROA(3y)13.85%
ROA(5y)10.53%
ROE(3y)25.91%
ROE(5y)21.75%
ROIC(3y)14.87%
ROIC(5y)12.54%
1.3 Margins
GSL has a better Profit Margin (48.39%) than 90.63% of its industry peers.
In the last couple of years the Profit Margin of GSL has grown nicely.
With an excellent Operating Margin value of 53.32%, GSL belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
GSL's Operating Margin has improved in the last couple of years.
The Gross Margin of GSL (69.79%) is better than 78.13% of its industry peers.
GSL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.32% | ||
| PM (TTM) | 48.39% | ||
| GM | 69.79% |
OM growth 3Y1.31%
OM growth 5Y4.52%
PM growth 3Y9.93%
PM growth 5Y48.32%
GM growth 3Y0.88%
GM growth 5Y2.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GSL is creating some value.
The number of shares outstanding for GSL has been increased compared to 1 year ago.
Compared to 5 years ago, GSL has more shares outstanding
The debt/assets ratio for GSL has been reduced compared to a year ago.
2.2 Solvency
GSL has an Altman-Z score of 1.91. This is not the best score and indicates that GSL is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.91, GSL is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
GSL has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as GSL would need 3.23 years to pay back of all of its debts.
GSL has a better Debt to FCF ratio (3.23) than 71.88% of its industry peers.
GSL has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GSL (0.37) is better than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.54
WACC9.24%
2.3 Liquidity
GSL has a Current Ratio of 1.14. This is a normal value and indicates that GSL is financially healthy and should not expect problems in meeting its short term obligations.
GSL's Current ratio of 1.14 is on the low side compared to the rest of the industry. GSL is outperformed by 62.50% of its industry peers.
A Quick Ratio of 1.07 indicates that GSL should not have too much problems paying its short term obligations.
GSL has a Quick ratio of 1.07. This is in the lower half of the industry: GSL underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
GSL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.10%.
Measured over the past years, GSL shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.56% on average per year.
The Revenue has been growing slightly by 5.37% in the past year.
The Revenue has been growing by 22.19% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)7.1%
EPS 3Y29.78%
EPS 5Y45.56%
EPS Q2Q%4.74%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y16.65%
Revenue growth 5Y22.19%
Sales Q2Q%6.36%
3.2 Future
GSL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.53% yearly.
GSL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.42% yearly.
EPS Next Y-2.04%
EPS Next 2Y-3.7%
EPS Next 3Y-9.53%
EPS Next 5YN/A
Revenue Next Year1.24%
Revenue Next 2Y-1.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 2.47 indicates a rather cheap valuation of GSL.
Based on the Price/Earnings ratio, GSL is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.03, GSL is valued rather cheaply.
The Price/Forward Earnings ratio is 2.69, which indicates a rather cheap valuation of GSL.
Based on the Price/Forward Earnings ratio, GSL is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GSL to the average of the S&P500 Index (21.94), we can say GSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.47 | ||
| Fwd PE | 2.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSL is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GSL is valued a bit cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.21 | ||
| EV/EBITDA | 2.94 |
4.3 Compensation for Growth
The excellent profitability rating of GSL may justify a higher PE ratio.
GSL's earnings are expected to decrease with -9.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-3.7%
EPS Next 3Y-9.53%
5. Dividend
5.1 Amount
GSL has a Yearly Dividend Yield of 8.18%, which is a nice return.
GSL's Dividend Yield is rather good when compared to the industry average which is at 9.24. GSL pays more dividend than 81.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, GSL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.18% |
5.2 History
The dividend of GSL is nicely growing with an annual growth rate of 53.55%!
GSL has been paying a dividend for over 5 years, so it has already some track record.
GSL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)53.55%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
GSL pays out 19.75% of its income as dividend. This is a sustainable payout ratio.
DP19.75%
EPS Next 2Y-3.7%
EPS Next 3Y-9.53%
24.95
-0.7 (-2.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners55.63%
Inst Owner Change-4.62%
Ins Owners1.14%
Ins Owner ChangeN/A
Market Cap891.71M
Analysts80
Price Target31.28 (25.37%)
Short Float %3.06%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.18% |
Yearly Dividend1.92
Dividend Growth(5Y)53.55%
DP19.75%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.71%
Min EPS beat(2)0.5%
Max EPS beat(2)8.92%
EPS beat(4)4
Avg EPS beat(4)6.58%
Min EPS beat(4)0.5%
Max EPS beat(4)10.56%
EPS beat(8)7
Avg EPS beat(8)5.17%
EPS beat(12)10
Avg EPS beat(12)8.04%
EPS beat(16)13
Avg EPS beat(16)12.97%
Revenue beat(2)1
Avg Revenue beat(2)1.49%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)4.11%
Revenue beat(4)3
Avg Revenue beat(4)2.42%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)5.79%
Revenue beat(8)7
Avg Revenue beat(8)2.94%
Revenue beat(12)11
Avg Revenue beat(12)4.94%
Revenue beat(16)15
Avg Revenue beat(16)7.59%
PT rev (1m)-1.08%
PT rev (3m)-1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.47 | ||
| Fwd PE | 2.69 | ||
| P/S | 1.25 | ||
| P/FCF | 4.21 | ||
| P/OCF | 2.07 | ||
| P/B | 0.61 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 2.94 |
EPS(TTM)10.11
EY40.52%
EPS(NY)9.27
Fwd EY37.14%
FCF(TTM)5.93
FCFY23.75%
OCF(TTM)12.04
OCFY48.24%
SpS19.9
BVpS40.95
TBVpS40.95
PEG (NY)N/A
PEG (5Y)0.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.5% | ||
| ROE | 23.51% | ||
| ROCE | 17.98% | ||
| ROIC | 14.2% | ||
| ROICexc | 15.43% | ||
| ROICexgc | 15.43% | ||
| OM | 53.32% | ||
| PM (TTM) | 48.39% | ||
| GM | 69.79% | ||
| FCFM | 29.79% |
ROA(3y)13.85%
ROA(5y)10.53%
ROE(3y)25.91%
ROE(5y)21.75%
ROIC(3y)14.87%
ROIC(5y)12.54%
ROICexc(3y)16.11%
ROICexc(5y)13.49%
ROICexgc(3y)16.11%
ROICexgc(5y)13.49%
ROCE(3y)18.83%
ROCE(5y)15.88%
ROICexcg growth 3Y12.48%
ROICexcg growth 5Y13.63%
ROICexc growth 3Y12.48%
ROICexc growth 5Y13.66%
OM growth 3Y1.31%
OM growth 5Y4.52%
PM growth 3Y9.93%
PM growth 5Y48.32%
GM growth 3Y0.88%
GM growth 5Y2.09%
F-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 218.36% | ||
| Cap/Sales | 30.71% | ||
| Interest Coverage | 6.84 | ||
| Cash Conversion | 89.78% | ||
| Profit Quality | 61.56% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.91 |
F-Score6
WACC9.24%
ROIC/WACC1.54
Cap/Depr(3y)126.97%
Cap/Depr(5y)239.79%
Cap/Sales(3y)17.58%
Cap/Sales(5y)33.37%
Profit Quality(3y)87.49%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.1%
EPS 3Y29.78%
EPS 5Y45.56%
EPS Q2Q%4.74%
EPS Next Y-2.04%
EPS Next 2Y-3.7%
EPS Next 3Y-9.53%
EPS Next 5YN/A
Revenue 1Y (TTM)5.37%
Revenue growth 3Y16.65%
Revenue growth 5Y22.19%
Sales Q2Q%6.36%
Revenue Next Year1.24%
Revenue Next 2Y-1.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.72%
EBIT growth 3Y18.18%
EBIT growth 5Y27.71%
EBIT Next Year28.55%
EBIT Next 3Y-1.66%
EBIT Next 5YN/A
FCF growth 1Y-8.75%
FCF growth 3YN/A
FCF growth 5Y81.01%
OCF growth 1Y14.7%
OCF growth 3Y17.2%
OCF growth 5Y35.72%