General Finance Stock Analysis, Valuation (NASDAQ:GFN)

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$13.75 $0.25 (1.85%) GFN stock closing price Jul 18, 2018 (Closing)

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?

  • General Finance sales grew by 23.3% year on year in 2018-03.
  • 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 1.1 as against the Business Services sector 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 LTM Net margins were poor at 0.1%.
  • General Finance is debt laden and has a high debt/equity ratio of 2.87.
  • The company does not have profits. Hence the PE ratio is meaningless for GFN stock.
  • General Finance has a low Return On Equity (ROE) of 0.1.

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.