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Global Ship Lease Inc (GSL)
NYSE:GSL
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Global Ship Lease
(NYSE:GSL)
Rating:83Outperform
Price Target:
$31.00
â–²(11.31%Upside)
Global Ship Lease (GSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$991.61M
Dividend Yield7.54%
Average Volume (3M)321.56K
Price to Earnings (P/E)2.6
Beta (1Y)0.81
Revenue Growth3.94%
EPS Growth19.85%
CountryUS
Employees7
SectorIndustrials
Sector Strength89
IndustryMarine Shipping
Share Statistics
EPS (TTM)2.65
Shares Outstanding35,605,440
10 Day Avg. Volume329,297
30 Day Avg. Volume321,555
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.62
Price to Sales (P/S)0.00
P/FCF Ratio7.75
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit3.61
Enterprise Value/Ebitda0.72
Forecast
1Y Price Target
$28.00Price Target Upside0.54% 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 the leasing of its containerships to major shipping companies. These leases are typically long-term and fixed-rate, providing a predictable and stable income stream. GSL's revenue model benefits from the global demand for shipping capacity, particularly in the container shipping segment. By maintaining a fleet of modern, efficient vessels, GSL attracts partnerships with leading shipping lines that prefer reliable and well-maintained ships to optimize their operations. The company's earnings are influenced by the duration and terms of its charter contracts, the size and specifications of its vessels, and the overall demand in the shipping industry.
Global Ship Lease Earnings Call Summary
Earnings Call Date:May 19, 2025
(Q1-2025)
| % Change Since: 13.30%|
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 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 | 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 |
| EBITDA | 494.30M | 441.50M | 449.47M | 302.34M | 153.40M |
| Net Income | 353.63M | 304.50M | 292.93M | 171.50M | 41.56M |
Balance Sheet | |||||
| Total Assets | 2.37B | 2.17B | 2.11B | 1.99B | 1.27B |
| Cash, Cash Equivalents and Short-Term Investments | 167.53M | 209.44M | 128.68M | 75.18M | 80.76M |
| Total Debt | 684.06M | 812.43M | 934.39M | 1.07B | 769.46M |
| 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
Positive
27.85
Price Trends
25.62
Positive
23.49
Positive
22.64
Positive
Market Momentum
0.68
Negative
63.77
Neutral
77.94
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 27.85 is above the 20-day moving average (MA) of 26.89, above the 50-day MA of 25.62, and above the 200-day MA of 22.64, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 63.77 is Neutral, neither overbought nor oversold. The STOCH value of 77.94 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $991.61M | 2.63 | 27.25% | 7.54% | 3.94% | 19.85% | |
75 Outperform | $1.15B | 3.94 | 12.57% | 4.79% | 17.77% | -5.90% | |
74 Outperform | $1.19B | 3.71 | 11.19% | 0.49% | 0.28% | -17.08% | |
74 Outperform | $2.17B | 9.39 | 11.09% | 11.80% | 25.60% | -9.32% | |
69 Neutral | $653.84M | 14.59 | 5.02% | 7.82% | -7.38% | 1295.53% | |
59 Neutral | $185.23M | 23.26 | 2.79% | 6.56% | -8.74% | -70.04% | |
59 Neutral | AU$1.67B | 10.16 | 11.24% | 3.78% | 6.75% | 3.18% |
* Industrials Sector Average
Performance Comparison
GSL
Global Ship Lease
27.85
4.47
19.12%
CMRE
Costamare
9.60
-1.09
-10.20%
DSX
Diana Shipping
1.60
-1.06
-39.85%
GNK
Genco Shipping
15.22
-4.07
-21.10%
NMM
Navios Maritime Partners
40.71
-9.80
-19.40%
SBLK
Star Bulk Carriers
18.56
-4.03
-17.84%
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.