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Global Ship Lease Inc (GSL)
NYSE:GSL
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Global Ship Lease
(NYSE:GSL)
Rating:81Outperform
Price Target:
$34.00
â–²(12.92% Upside)
Global Ship Lease (GSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.07B
Dividend Yield6.23%
Average Volume (3M)345.22K
Price to Earnings (P/E)2.8
Beta (1Y)0.81
Revenue Growth4.43%
EPS Growth17.82%
CountryUS
Employees7
SectorIndustrials
Sector Strength84
IndustryMarine Shipping
Share Statistics
EPS (TTM)2.62
Shares Outstanding35,605,440
10 Day Avg. Volume435,448
30 Day Avg. Volume345,217
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.53
Price to Sales (P/S)1.09
P/FCF Ratio4.11
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue1.66
Enterprise Value/Gross Profit3.04
Enterprise Value/Ebitda2.23
Forecast
1Y Price Target
$34.67Price Target Upside15.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Global Ship Lease Business Overview & Revenue Model
Company DescriptionGlobal Ship Lease, Inc. owns and charters containerships of various sizes under fixed-rate charters to container shipping companies. As of March 10, 2022, it owned 65 mid-sized and smaller containerships with an aggregate capacity of 342,348 twenty-foot equivalent units. The company was founded in 2007 and is based in London, the United Kingdom.
How the Company Makes MoneyGlobal Ship Lease generates revenue primarily through long-term charters of its containership fleet to various shipping companies. The company earns money by leasing its vessels, which are often chartered on multi-year contracts, providing predictable and stable cash flows. Key revenue streams include fixed monthly charter rates and additional revenue from service agreements related to vessel management. The company benefits from strategic partnerships with leading shipping lines, which enhance its market presence and allow for consistent utilization of its fleet. Additionally, the demand for container shipping, driven by global trade growth and e-commerce, serves as a significant factor contributing to GSL's earnings.
Global Ship Lease Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: 5.32%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant charter coverage, increased dividends, and robust financial health. However, market uncertainties and softening freight rates pose challenges. The highlights significantly outweigh the lowlights, indicating a positive outlook despite external challenges.Q2-2025 Updates
Positive Updates
Strong Charter Revenue and Coverage
Secured nearly $400 million of additional charter coverage in the first half of 2025, effectively closing out any 2025 market exposure and bringing 2026 coverage to 80%.
Dividend Increase and Shareholder Returns
Increased annualized dividend payment to $2.10 per common share and outperformed the S&P 500 by approximately 4x.
Robust Financial Position
Forward contracted revenues of $1.73 billion with 2.1 years of average remaining contract cover. Cash position of $511 million, of which $80 million is restricted.
Deleveraging and Financial Health
Gross debt has decreased from $950 million at the end of 2022 to under $700 million. Net debt-to-EBITDA now at 0.7x. Weighted average cost of debt reduced to 4.18%.
Successful Asset Sales
Realized a gain of $28.3 million on the sale of 3 older vessels and contracted to sell a fourth vessel for $35.6 million in Q4.
Negative Updates
Market Uncertainty and Geopolitical Tensions
Uncertainty and volatility related to tariffs, trade disruptions, and geopolitical tensions continue to impact the global container shipping industry.
Challenges in Freight Rates
Freight rates are softening, particularly in the transpacific market, although charter rates remain attractive.
Company Guidance
During the Global Ship Lease Q2 2025 Earnings Conference Call, the company provided guidance reflecting their strategic positioning in the container shipping market amidst ongoing geopolitical and economic uncertainties. They reported securing nearly $400 million in additional charter coverage in the first half of 2025, effectively mitigating 2025 market exposure and achieving 80% coverage for 2026. The company highlighted a strong forward contracted revenue of $1.73 billion with an average remaining contract cover of 2.1 years. They have also enhanced their financial resilience with a cash position of $511 million and a reduced net debt-to-EBITDA ratio of 0.7x. The company continues to focus on shareholder returns, increasing their annualized dividend to $2.10 per common share and maintaining a $33 million buyback authorization. Their disciplined capital allocation policy and opportunistic ship sales, including a recent contract to sell a vessel for $35.6 million, underscore their approach to managing risk and capitalizing on market opportunities.Global Ship Lease Financial Statement Overview
Summary
Global Ship Lease shows strong financial performance with consistent revenue growth and robust profitability metrics. The company maintains a healthy leverage level and demonstrates strong operational efficiency. Despite a decline in free cash flow, their operating cash flow generation supports investment and financing needs.Income Statement
Global Ship Lease demonstrates strong financial performance with consistent revenue growth, evidenced by a 1.6% increase in TTM revenue compared to the previous year. The company maintains robust profitability metrics, with a gross profit margin of 54.84% and a net profit margin of 53.74% in the TTM period. The EBIT and EBITDA margins are also impressive at 57.30% and 74.05%, respectively, highlighting operational efficiency. These metrics indicate a well-managed cost structure and effective revenue generation.90
Very Positive
Balance Sheet
The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.49 in the TTM period, showcasing a manageable level of leverage. The company has significantly improved its equity base, with a return on equity of 24.56%, indicating efficient use of shareholders' funds. The equity ratio of 60.85% suggests strong asset financing through equity, enhancing financial stability. Overall, the balance sheet portrays financial resilience and growth potential.85
Very Positive
Cash Flow
The cash flow statement reveals sound cash management, with a healthy operating cash flow to net income ratio of 1.12 and a free cash flow to net income ratio of 0.33 in the TTM period. Although there was a decline in free cash flow, the operating cash flow remains robust. The company demonstrates the ability to generate sufficient cash to support investments and finance activities, despite fluctuations in capital expenditures. This indicates a stable cash flow position with room for improvement in free cash flow growth.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 733.60M | 705.53M | 666.72M | 604.49M | 402.52M | 282.81M |
| Gross Profit | 401.05M | 390.75M | 372.19M | 334.59M | 197.56M | 121.85M |
| EBITDA | 547.75M | 494.30M | 441.50M | 449.47M | 302.34M | 153.40M |
| Net Income | 392.54M | 353.63M | 304.50M | 292.93M | 171.50M | 41.56M |
Balance Sheet | ||||||
| Total Assets | 2.64B | 2.37B | 2.17B | 2.11B | 1.99B | 1.27B |
| Cash, Cash Equivalents and Short-Term Investments | 464.59M | 167.53M | 209.44M | 128.68M | 75.18M | 80.76M |
| Total Debt | 761.52M | 684.06M | 812.43M | 934.39M | 1.07B | 769.46M |
| Total Liabilities | 1.00B | 909.76M | 987.39M | 1.14B | 1.28B | 809.45M |
| Stockholders Equity | 1.64B | 1.46B | 1.18B | 966.49M | 712.55M | 464.74M |
Cash Flow | ||||||
| Free Cash Flow | 141.97M | 187.65M | 222.53M | 318.25M | -226.91M | 57.98M |
| Operating Cash Flow | 445.92M | 430.15M | 375.01M | 351.94M | 263.95M | 104.43M |
| Investing Cash Flow | -212.47M | -254.64M | -151.98M | -34.34M | -474.35M | -39.59M |
| Financing Cash Flow | -34.84M | -208.59M | -212.24M | -243.31M | 321.68M | -120.21M |
Global Ship Lease Technical Analysis
Positive
30.11
Price Trends
27.24
Positive
24.58
Positive
23.06
Positive
Market Momentum
0.81
Negative
68.73
Neutral
70.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSL, the sentiment is Positive. The current price of 30.11 is above the 20-day moving average (MA) of 28.77, above the 50-day MA of 27.24, and above the 200-day MA of 23.06, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 68.73 is Neutral, neither overbought nor oversold. The STOCH value of 70.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.28B | 4.50 | 14.61% | 4.32% | -7.24% | -16.39% | |
81 Outperform | $1.07B | 2.80 | 26.40% | 6.23% | 4.43% | 17.82% | |
76 Outperform | $2.21B | 17.82 | 5.11% | 7.78% | 2.95% | -61.74% | |
74 Outperform | $1.29B | 4.03 | 11.19% | 0.45% | 0.28% | -17.08% | |
68 Neutral | $694.22M | 46.32 | 1.70% | 7.36% | -17.15% | 2.40% | |
61 Neutral | C$7.21B | -0.65 | -4.20% | 2.36% | 10.97% | -26.89% | |
56 Neutral | $179.45M | 11.89 | 4.23% | 6.77% | -4.90% | 21.09% |
* Industrials Sector Average
Performance Comparison
GSL
Global Ship Lease
30.11
5.10
20.39%
CMRE
Costamare
10.64
0.63
6.29%
DSX
Diana Shipping
1.55
-0.93
-37.50%
GNK
Genco Shipping
16.16
-0.32
-1.94%
NMM
Navios Maritime Partners
43.58
-1.68
-3.71%
SBLK
Star Bulk Carriers
18.52
-1.45
-7.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.