General Finance Stock Analysis, Valuation (NASDAQ:GFN)

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$14.25 $0.15 (1.04%) GFN stock closing price Sep 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 2.6/5

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 Q4 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's revenue growth came in at 23.3% in 2018-03.
  • The lower PS ratio 1.1 for GFN stock versus Business Services sector average of 1.6 is a positive for the company.
  • The company has a good Free Cash Flow (FCF) margin of 14.

Should you sell GFN stock?

  • General Finance's Net margins were poor at 0.1% 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 lack of profits renders the PE ratio useless for GFN stock.
  • General Finance has a low return on equity of 0.1 over the last twelve months.

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.