Discover more from Closingbell Gems
Global Ship Lease | #02
This Week's Most Undervalued Stock with Momentum is Global Ship Lease, Inc.
Firstly, thank YOU for being here as we build the Closingbell community. If you’d like to learn more, we put together a very short video to give thanks and explain our objective. You can watch it here.
As promised, shout to @KetGray for posting about Mattel, Inc. Great insight.
We use our own Closingbell Valuation Index to paper trade a: (a) Sustainability Value Portfolio and (b) All Industries Value Portfolio. This is how they’ve performed since inception:
Sustainability Value Fund: +27% TR (outperformed the S&P/ASX 200 ESG Index by +14% since January 2020)
Flagship Closingbell Value Fund: +135% TR (outperformed the S&P/ASX200 by +74% since January 2017)
👀 How did we find this week’s stock
Here is the exact search we ran across 6500+ US companies in Closingbell Pro. It produced 6 results. Global Ship Lease, Inc was a standout across our Valuation Index, 3 Year CAGR, and Momentum metrics.
Now, onto the data for Global Ship Lease, Inc👇
Global Ship Lease, Inc.
Global Ship Lease, Inc has a Closingbell Valuation Index of 23% making it relatively undervalued against its peers.
Global Ship Lease peers are considered the constituents of the Transport Services GICS group.
📈 Latest Chart
The 4 analysts offering 12-month price forecasts for Global Ship Lease Inc have a median target of 35.00, with a high estimate of 38.00 and a low estimate of 16.00. The median estimate represents a +42.45% increase from the last price of 24.57.
📰 Recent Headlines
Global Ship Lease Inc operates in the container shipping industry. The company owns and charters out containerships under long-term, fixed- charters to container liner companies.
The majority of the company's revenues are derived from charters to CMA CGM. Its fleet consisted of more than 40 containerships.
Global Ship Lease is a leading independent owner of containerships with a diversified fleet of mid-sized and smaller containerships.
Incorporated in the Marshall Islands, Global Ship Lease commenced operations in December 2007 with a business of owning and chartering out containerships under fixed-rate charters to top tier container liner companies.
On November 15, 2018, it completed a strategic combination with Poseidon Containers.
About the CEO: Ian J. Webber
Mr. Webber has been our Chief Executive Officer since August 2008. From 1979 to 1996, Mr. Webber worked for PriceWaterhouse, the last five years of which he was a partner. From 1996 to 2006, Mr. Webber served as the Chief Financial Officer and a director of CP Ships Limited, a subsidiary of Canadian Pacific Limited until 2001 and thereafter a public company listed on the New York and Toronto stock exchanges until its acquisition by TUI A.G. in 2005. Mr. Webber is a graduate of Cambridge University.
✅ GSL beat both: (a) the Transport Industry and (b) NYSE Co’s across all key fundamental metrics (with the exclusion of Price to Revenue).
✅ GSL beat both: (a) the Transport Industry and (b) NYSE Co’s in Trailing Dividend Yield and P/E Ratio.
❌ GSL has a higher Leverage Ratio than the Industry.
❌ GSL is more volatile than the Market
❌ GSL has a lower Interest Cover Ratio than both the Transport Industry and Market.
If you’d like to learn more, we’ve included an Appendix with definitions of each of these metrics.
You should weigh-in 🥊
Head over to Closingbell to Discuss GSL:
Post a comment with your opinion about GSL 🧠 Is it a buy, sell or hold? Why do you think that?
Other Fun Stuff (From the CEO)
If you made it all the way down here - thanks for reading. Here are some things we’re working on:
New Closingbell Design 🤫 . If you’d love to help us make the Closingbell experience WAY better. Please reply back to this email or hit me directly here email@example.com. We need your help :)
Beta *Closingbell Pro* Launch. We’re looking for early adopters to help us work on Closingbell Pro. Early adopters get access for USD15 per month. If you would consider yourself a ‘Baby Buffet’ investor, Closingbell Pro is for you. Signup here: pro.closingbell.co and we’ll be in touch.
Thanks for your time! We really do appreciate it.
For behind the scenes action, follow along here: twitter.com/lucamonk
Appendix: Metric Definitions
👉 Earnings Yield: A percentage measure of the return the company is making, based on its after-tax earnings and the current share price. Calculated as earnings per share divided by the price per share. Higher earnings yields can be interpreted as representing higher returns for an investment at the current share price.
👉 Trailing Dividend Yield: Your annual income from your investment in the company. Indicated yield represents trailing total annual dividends divided by current stock price.
👉 Price to Book Ratio: This ratio describes the relationship between the share price and the company's contributed accounting equity (plus retained earnings). Calculated as the price per share divided by the book value of equity per share. Other factors being equal, a lower price to book ratio can indicate a more attractive investment, according to some investors.
👉 Price to EBITDA Ratio: This ratio describes the relationship between the share price and the company's contributed accounting equity (plus retained earnings). Calculated as the price per share divided by the book value of equity per share. Other factors being equal, a lower price to book ratio can indicate a more attractive investment, according to some investors.
👉 Return on Assets: A measure of how productive the company's assets are in producing its earnings. Calculated as the earnings divided by the book value of assets of the company. A higher return on assets is often thought by investors to indicate a more efficient and profitable company.
👉 Price to Cashflow: A measure of the current share price as a percentage of the cash flow per share generated by the company. Calculated as cash flow per share divided by the current market price per share. A lower ratio is often thought to represent a more attractive investment by some investors.
👉 Return on Equity: A measure of how productive the company's contributed equity is in producing its profit. Calculated as earnings divided by the book value of equity of the company. A higher return on equity is often thought by investors to indicate a more profitable company.
👉 Price to Revenue: A measure of the price per share of the company as a percentage of its revenue per share. Calculated as share price divided by revenue. A lower ratio is often thought to represent a more attractive investment by some investors.
👉 Enterprise Value to EBIDTA: This ratio expresses the Enterprise Value of a company, which is the market value of equity plus total debt minus cash, divided by the pre-tax earnings before adjustments for interest, depreciation, and amortization. It represents the total value if the business as a multiple of its EBITDA, and a higher ratio is often thought to offer a relatively more attractive investment by some investors.
👉 P/E Ratio: Current stock price divided by trailing annual earnings per share. If a stock sells for $25.50 per share and has earned $2.55 per share this year, then it has a trailing P/E ratio of 10 ($25.50 / $2.55 = 10). This means the stock is currently selling for ten times its earnings. Other factors being equal, investors may regard companies with lower P/Es to be relatively less expensive.
👉 Leverage Ratio: A measure of the amount of debt the company has divided by the market value of its equity plus its debt (less cash), or enterprise value. Other factors being equal, lower leverage in a company's capital structure can mean lower financial risk for investors.
👉 Volatility: Investors may often use this as a measure of an asset's absolute investment risk. Calculated as the annual standard deviation of the percentage daily price changes. The higher the volatility, the more the share price moves up and down, and the more uncertain (riskier) returns may be.
👉 Interest Cover Ratio: A measure of the company's earnings relative to the cost of its debt. Calculated as the cash operating earnings before interest and tax divided by the annual interest expense. A higher number can indicate the company is in a better position to service its debt under different scenarios.
Disclaimer: The information that Closingbell provides is general in nature as it has been prepared without taking account of your objectives, financial situation or needs. It does not constitute a recommendation to buy or sell any stock. This email is not intended as legal, financial or investment advice and should not be construed or relied on as such. Closingbell is not responsible for any damages. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Closingbell has no position in any stocks mentioned.