NEW YORK ( TheStreet) -- Global Ship Lease (NYSE: GSL) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, weak operating cash flow and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Marine industry. The net income increased by 785.1% when compared to the same quarter one year prior, rising from $1.23 million to $10.86 million.
- The gross profit margin for GLOBAL SHIP LEASE INC is currently very high, coming in at 71.10%. Regardless of GSL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GSL's net profit margin of 27.30% significantly outperformed against the industry.
- The debt-to-equity ratio of 1.27 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, GSL has a quick ratio of 0.62, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Net operating cash flow has decreased to $11.06 million or 48.62% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet RatingsStaff