GLOBAL SHIP LEASE INC-CL A (GSL) Stock Fundamental Analysis
NYSE:GSL - MHY271836006 - Common Stock
30.08 USD
+0.24 (+0.8%)
29.9 USD
-0.18 (-0.6%)
We assign a fundamental rating of 7 out of 10 to GSL. GSL was compared to 36 industry peers in the Marine Transportation industry. GSL has an excellent profitability rating, but there are some minor concerns on its financial health. GSL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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
GSL had positive earnings in the past year.
GSL had a positive operating cash flow in the past year.
GSL had positive earnings in each of the past 5 years.
GSL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GSL has a Return On Assets of 14.58%. This is amongst the best in the industry. GSL outperforms 88.89% of its industry peers.
GSL has a better Return On Equity (23.95%) than 91.67% of its industry peers.
GSL has a Return On Invested Capital of 13.07%. This is amongst the best in the industry. GSL outperforms 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GSL is significantly above the industry average of 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.58% | ||
| ROE | 23.95% | ||
| ROIC | 13.07% |
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 Profit Margin of 51.99%. This is amongst the best in the industry. GSL outperforms 91.67% of its industry peers.
GSL's Profit Margin has improved in the last couple of years.
The Operating Margin of GSL (52.89%) is better than 94.44% of its industry peers.
GSL's Operating Margin has improved in the last couple of years.
GSL has a Gross Margin of 69.79%. This is amongst the best in the industry. GSL outperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of GSL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.89% | ||
| PM (TTM) | 51.99% | ||
| 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
GSL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.98 indicates that GSL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GSL (1.98) is better than 72.22% of its industry peers.
The Debt to FCF ratio of GSL is 5.17, which is a neutral value as it means it would take GSL, 5.17 years of fcf income to pay off all of its debts.
GSL's Debt to FCF ratio of 5.17 is fine compared to the rest of the industry. GSL outperforms 72.22% of its industry peers.
GSL has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GSL (0.40) is better than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.38
WACC9.5%
2.3 Liquidity
A Current Ratio of 1.77 indicates that GSL should not have too much problems paying its short term obligations.
GSL has a Current ratio of 1.77. This is in the better half of the industry: GSL outperforms 72.22% of its industry peers.
GSL has a Quick Ratio of 1.71. This is a normal value and indicates that GSL is financially healthy and should not expect problems in meeting its short term obligations.
GSL has a better Quick ratio (1.71) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
GSL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.20%.
GSL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.56% yearly.
The Revenue has been growing slightly by 5.37% in the past year.
GSL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.19% yearly.
EPS 1Y (TTM)5.2%
EPS 3Y29.78%
EPS 5Y45.56%
EPS Q2Q%8.54%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y16.65%
Revenue growth 5Y22.19%
Sales Q2Q%9.64%
3.2 Future
Based on estimates for the next years, GSL will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.21% on average per year.
Based on estimates for the next years, GSL will show a decrease in Revenue. The Revenue will decrease by -6.17% on average per year.
EPS Next Y-6.35%
EPS Next 2Y-3.98%
EPS Next 3Y-10.21%
EPS Next 5YN/A
Revenue Next Year3.53%
Revenue Next 2Y-0.2%
Revenue Next 3Y-6.17%
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
Based on the Price/Earnings ratio of 2.91, the valuation of GSL can be described as very cheap.
Based on the Price/Earnings ratio, GSL is valued cheaper than 88.89% of the companies in the same industry.
GSL is valuated cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
GSL is valuated cheaply with a Price/Forward Earnings ratio of 3.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GSL indicates a rather cheap valuation: GSL is cheaper than 94.44% of the companies listed in the same industry.
GSL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.91 | ||
| Fwd PE | 3.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSL is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GSL is valued a bit cheaper than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 3.07 |
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 -10.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y-3.98%
EPS Next 3Y-10.21%
5. Dividend
5.1 Amount
GSL has a Yearly Dividend Yield of 6.94%, which is a nice return.
Compared to an average industry Dividend Yield of 7.05, GSL pays a better dividend. On top of this GSL pays more dividend than 83.33% of the companies listed in the same industry.
GSL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.94% |
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
18.85% of the earnings are spent on dividend by GSL. This is a low number and sustainable payout ratio.
DP18.85%
EPS Next 2Y-3.98%
EPS Next 3Y-10.21%
30.08
+0.24 (+0.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners50.97%
Inst Owner Change15.43%
Ins Owners1.89%
Ins Owner ChangeN/A
Market Cap1.07B
Analysts77.5
Price Target34 (13.03%)
Short Float %2.54%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.94% |
Yearly Dividend1.92
Dividend Growth(5Y)53.55%
DP18.85%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.18%
Min EPS beat(2)8.92%
Max EPS beat(2)13.44%
EPS beat(4)4
Avg EPS beat(4)7.3%
Min EPS beat(4)0.5%
Max EPS beat(4)13.44%
EPS beat(8)7
Avg EPS beat(8)6.45%
EPS beat(12)11
Avg EPS beat(12)9.22%
EPS beat(16)14
Avg EPS beat(16)15.53%
Revenue beat(2)2
Avg Revenue beat(2)5.96%
Min Revenue beat(2)4.11%
Max Revenue beat(2)7.81%
Revenue beat(4)3
Avg Revenue beat(4)2.92%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)7.81%
Revenue beat(8)7
Avg Revenue beat(8)3.36%
Revenue beat(12)11
Avg Revenue beat(12)5.38%
Revenue beat(16)15
Avg Revenue beat(16)7.94%
PT rev (1m)3.09%
PT rev (3m)8.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.91%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.91 | ||
| Fwd PE | 3.27 | ||
| P/S | 1.48 | ||
| P/FCF | 7.19 | ||
| P/OCF | 2.48 | ||
| P/B | 0.68 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 3.07 |
EPS(TTM)10.32
EY34.31%
EPS(NY)9.21
Fwd EY30.62%
FCF(TTM)4.18
FCFY13.91%
OCF(TTM)12.14
OCFY40.36%
SpS20.29
BVpS44.04
TBVpS44.04
PEG (NY)N/A
PEG (5Y)0.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.58% | ||
| ROE | 23.95% | ||
| ROCE | 16.54% | ||
| ROIC | 13.07% | ||
| ROICexc | 15.27% | ||
| ROICexgc | 15.27% | ||
| OM | 52.89% | ||
| PM (TTM) | 51.99% | ||
| GM | 69.79% | ||
| FCFM | 20.62% |
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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 5.17 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 268.58% | ||
| Cap/Sales | 39.22% | ||
| Interest Coverage | 7.53 | ||
| Cash Conversion | 88.67% | ||
| Profit Quality | 39.66% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 1.98 |
F-Score6
WACC9.5%
ROIC/WACC1.38
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)5.2%
EPS 3Y29.78%
EPS 5Y45.56%
EPS Q2Q%8.54%
EPS Next Y-6.35%
EPS Next 2Y-3.98%
EPS Next 3Y-10.21%
EPS Next 5YN/A
Revenue 1Y (TTM)5.37%
Revenue growth 3Y16.65%
Revenue growth 5Y22.19%
Sales Q2Q%9.64%
Revenue Next Year3.53%
Revenue Next 2Y-0.2%
Revenue Next 3Y-6.17%
Revenue Next 5YN/A
EBIT growth 1Y2.15%
EBIT growth 3Y18.18%
EBIT growth 5Y27.71%
EBIT Next Year31.4%
EBIT Next 3Y-0.85%
EBIT Next 5YN/A
FCF growth 1Y-61.21%
FCF growth 3YN/A
FCF growth 5Y81.01%
OCF growth 1Y11.23%
OCF growth 3Y17.2%
OCF growth 5Y35.72%