General Finance Stock Analysis, Valuation (NASDAQ:GFN)

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$11.2 $0.25 (2.28%) GFN stock closing price May 25, 2018 (Closing)
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General Finance
Updated on : May 25, 2018
previous close
GFN 11.2 (0%)
S&P 500 2721.3 (0%)
Closing Price On: May 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2018-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
11.1%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
439.4M
Debt/Equity Ratio:
 2.87
Compared to the industry
Cash Flow
Operating cash flow:
$18.3M
Net Income:
-$0.6M
PROS      CONS
Recent Growth
Operating Margins
FCF Margin
PS Valuation
Net Margins
High Debt Burden
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
GFN PS :
0.9
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
3.7%
Return on Equity:
0.6%
Free Cash Flow Margin:
14%
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General Finance Stock Analysis

5 2

Watch the robo advisor video of General Finance stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for GFN stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

General Finance Corporation Stock Rating 2.5/5

Amigobulls GFN stock analysis takes into account various financial ratios like relative valuation, General Finance revenue, growth and return on equity based on latest quarter 2018 Q3 financial statements. We also check General Finance dividend performance. General Finance valuation forms a crucial part of our stock analysis. General Finance stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy GFN stock?

  • The Year Over Year (YoY) revenue growth for General Finance was 23.3% in 2018 Q3.
  • General Finance had a healthy average operating margin of 11.1% over the last 4 quarters.
  • GFN stock is trading at a favorable price to sales multiple of 0.9 as against the Business Services industry average multiple of 1.6.
  • General Finance has a healthy FCF (Free Cash Flow) margin of 14%.

Should you sell GFN stock?

  • General Finance's Net margins were poor at 0.4% in the last twelve months.
  • General Finance has a debt/equity ratio of  2.87, which is worse than the average in the Business Services sector.
  • The company does not have profits. Hence the PE ratio is meaningless for GFN stock.
  • The TTM ROE (Return On Equity) for General Finance is not so attractive at 0.6%.

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Comments on this video and General Finance stock

Investors can use Amigobulls General Finance stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, General Finance revenue growth and profit or net income are two main metrics which help in identifying whether GFN stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.