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Global Ship Lease Inc (GSL)
NYSE:GSL
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Global Ship Lease
(NYSE:GSL)
78Outperform
Global Ship Lease (GSL) vs. S&P 500 (SPY)
Market Cap
$696.85M
Dividend Yield9.45%
Average Volume (3M)491.32K
Price to Earnings (P/E)2.0
Beta (1Y)0.72
Revenue Growth5.37%
EPS Growth16.97%
CountryUS
Employees7
SectorIndustrials
Sector Strength61
IndustryMarine Shipping
Share Statistics
EPS (TTM)9.71
Shares Outstanding35,736,122
10 Day Avg. Volume536,433
30 Day Avg. Volume491,317
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)N/A
Price to Sales (P/S)4.70
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.00Price Target Upside38.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Global Ship Lease Business Overview & Revenue Model
Company DescriptionGlobal Ship Lease (GSL) is a leading independent owner of containerships with a focus on providing chartered vessels to top-tier container shipping companies. Headquartered in London, the company operates in the international shipping industry, specifically targeting the container shipping sector. GSL's fleet consists of a range of mid-sized and smaller containerships, which are chartered under fixed-rate contracts to major operators across the globe.
How the Company Makes MoneyGlobal Ship Lease generates revenue primarily through long-term, fixed-rate time charters of its containerships to major global container shipping companies. These charters typically involve leasing the vessels for extended periods, often several years, providing GSL with predictable and stable income streams. The company strategically acquires containerships at favorable rates and charters them out, capitalizing on the demand for shipping capacity. Additionally, GSL may engage in vessel sales and purchases to optimize its fleet composition and enhance profitability. Partnerships with leading shipping lines contribute to consistent charter opportunities, solidifying GSL's position in the market.
Global Ship Lease Financial Statement Overview
Summary
Global Ship Lease demonstrates robust financial performance with strong revenue growth and high profitability margins. The company has a solid balance sheet with improved leverage ratios and a strong equity position. However, increased capital expenditures have impacted free cash flow growth, indicating a need for attention to liquidity.Income Statement
Global Ship Lease has demonstrated strong revenue growth with a revenue increase from $666.7 million in 2023 to $705.5 million in 2024, resulting in a revenue growth rate of 5.82%. Furthermore, the company maintains high profitability margins, with a gross profit margin of 55.38% and a net profit margin of 50.11% for 2024. The EBIT and EBITDA margins are also robust at 53.74% and 70.06% respectively, reflecting efficient cost management. The consistent upward trend in revenues and margins indicates a solid financial performance.88
Very Positive
Balance Sheet
The company's balance sheet reveals a moderate debt-to-equity ratio of 0.47, suggesting a reasonable level of leverage, which has decreased from 0.69 in 2023. The equity ratio stands at 61.65%, highlighting a strong equity position relative to assets. Return on equity has improved to 24.15%, indicating efficient use of equity to generate profits. However, the total debt has decreased significantly, demonstrating effective debt management. These factors point to a stable financial position with some leverage risks mitigated over time.75
Positive
Cash Flow
Global Ship Lease's cash flow analysis shows an operating cash flow of $430.1 million in 2024, up from $375.0 million in 2023, indicating a healthy operational cash generation. The free cash flow to net income ratio is 0.53, which suggests a balanced conversion of net income to free cash flow, although it has declined from the previous year. The free cash flow growth rate is negative, due to higher capital expenditures, indicating potential pressure on liquidity. Despite this, the operating cash flow to net income ratio of 1.22 reflects strong cash earnings.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 705.53M | 666.72M | 604.49M | 402.52M | 282.81M | Gross Profit |
| 390.75M | 372.19M | 334.59M | 197.56M | 121.85M | EBIT |
| 379.14M | 343.22M | 354.19M | 237.52M | 104.76M | EBITDA |
| 494.30M | 441.50M | 449.47M | 302.34M | 153.40M | Net Income Common Stockholders |
| 353.63M | 304.50M | 292.93M | 171.50M | 41.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 167.53M | 209.44M | 128.68M | 75.18M | 80.76M | Total Assets |
| 2.37B | 2.17B | 2.11B | 1.99B | 1.27B | Total Debt |
| 684.06M | 812.43M | 934.39M | 1.07B | 769.46M | Net Debt |
| 542.68M | 616.99M | 814.26M | 995.27M | 688.70M | Total Liabilities |
| 909.76M | 987.39M | 1.14B | 1.28B | 809.45M | Stockholders Equity |
| 1.46B | 1.18B | 966.49M | 712.55M | 464.74M |
| Cash Flow | Free Cash Flow | |||
| 187.65M | 222.53M | 318.25M | -226.91M | 57.98M | Operating Cash Flow |
| 430.15M | 375.01M | 351.94M | 263.95M | 104.43M | Investing Cash Flow |
| -254.64M | -151.98M | -34.34M | -474.35M | -39.59M | Financing Cash Flow |
| -208.59M | -212.24M | -243.31M | 321.68M | -120.21M |
Global Ship Lease Technical Analysis
Negative
19.50
Price Trends
22.13
Negative
21.85
Negative
23.09
Negative
Market Momentum
0.23
Positive
52.81
Neutral
32.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSL, the sentiment is Negative. The current price of 19.5 is below the 20-day moving average (MA) of 22.27, below the 50-day MA of 22.13, and below the 200-day MA of 23.09, indicating a bearish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 32.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GSL.
Global Ship Lease Risk Analysis
Global Ship Lease disclosed 75 risk factors in its most recent earnings report. Global Ship Lease reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Global Ship Lease Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.29B | 2.65 | 15.68% | 4.79% | 6.00% | -9.89% | |
78 Outperform | $696.85M | 2.02 | 26.71% | 9.45% | 5.37% | 16.97% | |
77 Outperform | $198.25M | 1.74 | 35.83% | 8.84% | 12.43% | -1.63% | |
75 Outperform | $924.43M | 2.62 | 12.46% | 0.64% | 2.08% | -14.91% | |
72 Outperform | $1.58B | 4.83 | 14.71% | 16.90% | 33.31% | 62.94% | |
64 Neutral | $1.09B | 3.74 | 13.07% | 5.50% | 37.10% | -17.36% | |
62 Neutral | $7.67B | 13.25 | 3.04% | 3.47% | 3.63% | -13.99% |
* Industrials Sector Average
Performance Comparison
GSL
Global Ship Lease
19.50
-0.65
-3.23%
CMRE
Costamare
9.12
-1.85
-16.86%
DAC
Danaos
71.88
1.02
1.44%
ESEA
Euroseas
29.46
2.20
8.07%
NMM
Navios Maritime Partners
31.30
-11.91
-27.56%
SBLK
Star Bulk Carriers
13.53
-7.65
-36.12%
Global Ship Lease Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -8.54% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant financial achievements, strategic fleet management, and a strong market position. Despite geopolitical uncertainties and concerns about the aging fleet, the company's proactive measures in debt management, dividend increases, and fleet renewal indicate a robust and positive outlook.Highlights
Strong Financial Performance
Generated $9.74 earnings per share, rising to just below $10 EPS on a normalized basis for 2024. Added $714 million of contracted revenues in 2024, with $118 million added in Q4 and another $171 million added in early 2025.
Debt Management and Dividend Increase
Lowered outstanding debt and cost of debt to 3.85%. Increased dividend by 17% to $2.10 per share annualized, representing a 40% increase since the introduction of the supplemental dividend.
Fleet Renewal Strategy
Purchased four high-specification, high-earning eco 9,000 TEU ships at a 30% discount to charter-free market value. Rotated out three of the oldest ships on attractive terms.
Charter Portfolio and Market Position
As of December 31, 2024, close to $1.9 billion in contracted revenues, amounting to 2.3 years of average remaining contract cover. Added 50 charters for approximately $885 million of contracted revenues.
Low Breakeven Rates
Achieved breakeven rates just above $9,200 per day, supporting financial stability and optionality.
Lowlights
Geopolitical Uncertainty
Geopolitical uncertainty and disruptions around the Red Sea persisted, making the situation unpredictable and affecting shipping routes.
Aging Fleet Concerns
Acknowledgement of aging fleet with plans to lower outstanding debt to around half a billion by the end of 2026.
Company Guidance
In the Global Ship Lease, Inc. 2024 Q4 earnings call, the company reported a robust financial performance for the year, achieving $9.74 earnings per share, which adjusted to nearly $10 EPS on a normalized basis. The company added $714 million in contracted revenues in 2024, including $118 million in Q4, with an additional $171 million secured in early 2025. The cost of debt was reduced to 3.85%, and the average debt maturity extended to 4.2 years. They announced an annualized dividend increase to $2.10 per share, a 17% rise, reflecting a 40% increase since introducing a supplemental dividend. The company has $1.9 billion in contracted revenues, ensuring 2.3 years of coverage, and has made strategic fleet adjustments, acquiring four eco-friendly vessels and divesting three older ships, enhancing their asset base while maintaining financial flexibility.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.