GICS Sector : Industrials
Global 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.
Global Ship Lease reported a strong financial performance in the first nine months of 2025, with earnings and cash flow up compared to the same period in 2024. The company's earnings per share (EPS) came in at $2.62, beating analyst estimates of $2.27. The company's revenue growth was driven by the addition of $778 million in contracted revenues through the first nine months of 2025, with a significant $380 million added in the third quarter. The company's cash position stands at $562 million, and its weighted average maturity is 4.7 years, with a blended cost of debt of 4.34%.
Publication Date: Nov -18
Global Ship Lease has secured stability and certainty with full contract coverage for 2025, 96% coverage for 2026, and 74% coverage for 2027. This has enabled the company to achieve strong credit ratings, including an investment-grade rating on U.S. private placement notes. The company's diversified charter portfolio has over $1.9 billion in forward contracted revenues, with 2.5 years of remaining contract cover. As Thomas Lister, CEO, noted, the market has been active overall this year, with charter rates remaining attractive due to sustained demand for midsize and smaller container ships.
Global Ship Lease's valuation metrics appear reasonable, with a Price-to-Earnings (P/E) Ratio of 3.15 and a Dividend Yield of 5.62%. The company's Return on Equity (ROE) stands at 25.9%, indicating strong profitability. The company's decision to increase its supplemental dividend, bringing the annualized dividend to $2.5 per share, a 19% increase, is also a positive development for shareholders. With a Net Debt / EBITDA ratio of 0.55, the company's balance sheet appears healthy.
The dynamics remain supportive for midsize and smaller ships, which is the segment that Global Ship Lease operates in. The company's focus on optionality due to ongoing geopolitical and trade policy uncertainty is prudent, and its strong financials and charter coverage position it well for success in a challenging environment. With a significant slice of 2027 already covered, the company is well-positioned to continue to deliver strong financial performance in the coming years.
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Dec -01
Global Ship Lease Announces Agreement to Acquire Three 8,600 TEU Containerships
Dec -01
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Nov -28
Envestnet Asset Management Inc. Reduces Stock Position in Global Ship Lease, Inc. $GSL
Nov -26
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Nov -20
Global Ship Lease: The $1.92bn Backlog Provides Margin Of Safety
Nov -13
Global Ship Lease, Inc. (GSL) Q3 2025 Earnings Call Transcript
Nov -10
Strong demand for container shipping, driven by e-commerce growth and supply chain disruptions, has led to increased charter rates and utilization for Global Ship Lease's fleet. Additionally, the company's diversified customer base, long-term contracts, and modern fleet have contributed to its 4% growth in Time Charters.
Global Ship Lease, Inc. offers a fleet of containerships that provide transportation services to major liner companies, carrying a wide range of goods including electronics, clothing, and food products.
The company provides time charter services, where vessels are leased to customers for a fixed period, offering flexibility and reliability in cargo transportation.
Global Ship Lease, Inc. offers bareboat charter services, where vessels are leased to customers without crew or operational support, providing cost-effective solutions.
The company provides technical and commercial management services, including vessel maintenance, repair, and operation, ensuring optimal performance and efficiency.
The threat of substitutes for Global Ship Lease, Inc. is medium due to the availability of alternative transportation methods, such as air freight and trucking, but the high cost and limited capacity of these alternatives reduce the threat.
The bargaining power of customers for Global Ship Lease, Inc. is low due to the company's strong relationships with its customers and the lack of concentration in the customer base.
The bargaining power of suppliers for Global Ship Lease, Inc. is medium due to the company's dependence on a few large suppliers, but the availability of alternative suppliers reduces the bargaining power.
The threat of new entrants for Global Ship Lease, Inc. is low due to the high barriers to entry, including the need for significant capital investment and regulatory approvals.
The intensity of rivalry for Global Ship Lease, Inc. is high due to the competitive nature of the shipping industry, with many players competing for market share.
| Value | |
|---|---|
| Debt Weight | 40.69% |
| Debt Cost | 5.53% |
| Equity Weight | 59.31% |
| Equity Cost | 11.28% |
| WACC | 8.94% |
| Leverage | 68.59% |
Value: 8.3
Growth: 6.0
Quality: 7.5
Yield: 10.0
Momentum: 7.5
Volatility: 6.3
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Value: 8.4
Growth: 9.6
Quality: 8.8
Yield: 3.1
Momentum: 5.5
Volatility: 2.0
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Value: 8.6
Growth: 6.9
Quality: 7.8
Yield: 10.0
Momentum: 1.5
Volatility: 2.3
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Value: 6.3
Growth: 9.7
Quality: 7.9
Yield: 5.0
Momentum: 4.0
Volatility: 2.3
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Value: 7.8
Growth: 7.9
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Yield: 9.4
Momentum: 0.5
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Value: 8.4
Growth: 2.0
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Yield: 10.0
Momentum: 1.0
Volatility: 2.0
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