Global Ship Lease (GSL) AI Stock Analysis

Compare

828 Followers

Top Page

Global Ship Lease

(NYSE:GSL)

Rating:76Outperform

Price Target:

$30.00

▲(16.64%Upside)

Global Ship Lease scores well overall, driven by strong financial performance, attractive valuation, and strategic achievements highlighted in the earnings call. However, technical indicators suggest caution, and macroeconomic uncertainties pose potential risks. The company's robust management and strategic focus position it well, but investors should be mindful of external market pressures.

Global Ship Lease (GSL) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$915.77M

Dividend Yield7.29%

Average Volume (3M)382.41K

Price to Earnings (P/E)2.4

Beta (1Y)0.79

Revenue Growth3.94%

EPS Growth19.85%

CountryUS

Employees7

SectorIndustrials

Sector Strength92

IndustryMarine Shipping

Share Statistics

EPS (TTM)2.65

Shares Outstanding35,605,440

10 Day Avg. Volume301,800

30 Day Avg. Volume382,408

Financial Highlights & Ratios

PEG Ratio0.29

Price to Book (P/B)0.56

Price to Sales (P/S)0.00

P/FCF Ratio4.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$28.00

Price Target Upside8.86% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

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, 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 Earnings Call Summary

Earnings Call Date:May 19, 2025

(Q1-2025)

% Change Since: 4.64%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call presented a balanced view with significant achievements in contracted revenues, dividend increases, and financial leverage reduction. However, these were counterbalanced by substantial macroeconomic and geopolitical uncertainties, including trade tensions and freight rate volatility.

Q1-2025 Updates

Positive Updates

Record Contracted Revenues

Global Ship Lease added $352 million of contracted revenues in Q1 2025, bringing the 2025 contract cover to 93% and 2026 cover to 75%.

Increased Dividend

Annualized dividend increased to $2.10 per share, up 40% from the previous year.

Strong Cash Position

The cash position is $428 million, with $95 million restricted, allowing for flexibility in investment and risk management.

Reduced Financial Leverage

Net debt to EBITDA ratio reduced to under 1, down from 8.4 times at the end of 2018.

Strategic Fleet Management

Opportunistically monetized older ships at attractive prices to build dry powder for future investments.

Negative Updates

Macro and Geopolitical Uncertainty

The containership charter market faces unprecedented macro uncertainty, impacting freight rates and trade flows.

Trade Tensions Impact

U.S.-China tariffs and proposed U.S. port fees on Chinese ships have created supply chain disruptions and uncertainty.

Freight Rate Volatility

Freight rates experienced pressure in April due to macroeconomic factors, leading to uncertainty in the charter market.

Company Guidance

During the Global Ship Lease Q1 2025 earnings call, key guidance metrics were shared, indicating a strong contractual position and robust financial health. The company added $352 million in contracted revenues in Q1, increasing their 2025 contract cover to 93% and 2026 cover to 75%. They reported $1.9 billion in total contracted revenues with an average remaining contract cover of 2.3 years. Their balance sheet remains strong with a cash position of $428 million, including $95 million in restricted cash, and a gross debt of just under $778 million. Additionally, the company has increased its annualized dividend to $2.10 per share, reflecting a 40% increase from the previous year. The company has also managed to reduce its net debt to EBITDA to under 1, significantly down from 8.4 times at the end of 2018, and maintains a weighted cost of debt below 4%. These metrics highlight the company's strategic focus on financial resilience and optionality amidst market uncertainties.

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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price25.72

Price Trends

50DMA

22.18

Positive

100DMA

21.91

Positive

200DMA

22.16

Positive

Market Momentum

MACD

0.93

Positive

RSI

71.58

Negative

STOCH

83.80

Negative

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 25.72 is above the 20-day moving average (MA) of 24.62, above the 50-day MA of 22.18, and above the 200-day MA of 22.16, indicating a bullish trend. The MACD of 0.93 indicates Positive momentum. The RSI at 71.58 is Negative, neither overbought nor oversold. The STOCH value of 83.80 is Negative, 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 3 New Risks

We may not achieve the intended benefits of having forum selection provisions if they are found to be unenforceable. Q4, 2023

Our Fourth Amended and Restated Bylaws include forum selection provisions for certain disputes between us and our shareholders, which could limit our shareholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or other employees. Q4, 2023

European mandatory non-financial reporting regulations. Q4, 2023

Global Ship Lease Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSL	76 Outperform	$915.77M	2.43	27.25%	7.29%	3.94%	19.85%
SBLK	76 Outperform	$1.95B	8.44	11.09%	12.82%	25.60%	-9.32%
CMRE	75 Outperform	$1.10B	3.76	12.57%	5.02%	17.77%	-5.90%
NMM	74 Outperform	$1.16B	3.57	11.19%	0.51%	0.28%	-17.08%
GNK	70 Neutral	$579.09M	12.92	5.02%	8.83%	-7.38%	1295.53%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
DSX	59 Neutral	$179.45M	22.53	2.79%	10.97%	-8.74%	-70.04%

* Industrials Sector Average

Performance Comparison

GSL

Global Ship Lease

25.72

-1.29

-4.78%

CMRE

Costamare

9.17

-2.02

-18.05%

DSX

Diana Shipping

1.55

-1.26

-44.84%

GNK

Genco Shipping

13.48

-6.72

-33.27%

NMM

Navios Maritime Partners

39.24

-11.94

-23.33%

SBLK

Star Bulk Carriers

16.69

-6.61

-28.37%

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.