NasdaqGM:GFN

Stock Analysis Report

Executive Summary

General Finance Corporation, a specialty rental services company, provides portable storage, modular space, and liquid containment solutions in North America and the Asia-Pacific regions.

Snowflake

Fundamentals

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has General Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GFN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

GFN

-1.6%

US Trade Distributors

-0.2%

US Market


1 Year Return

-24.0%

GFN

14.3%

US Trade Distributors

16.1%

US Market

Return vs Industry: GFN underperformed the US Trade Distributors industry which returned 14.3% over the past year.

Return vs Market: GFN underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

GFNIndustryMarket
7 Day-0.4%-1.6%-0.2%
30 Day7.8%2.4%3.7%
90 Day24.5%18.6%8.5%
1 Year-24.0%-24.0%16.4%14.3%18.7%16.1%
3 Year144.1%144.1%32.3%26.5%46.9%37.4%
5 Year10.0%10.0%31.8%22.7%61.8%44.0%

Price Volatility Vs. Market

How volatile is General Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is General Finance undervalued compared to its fair value and its price relative to the market?

100.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GFN ($10.01) is trading above our estimate of fair value ($9.88)

Significantly Below Fair Value: GFN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GFN is poor value based on its PE Ratio (100.5x) compared to the Trade Distributors industry average (18x).

PE vs Market: GFN is poor value based on its PE Ratio (100.5x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: GFN is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: GFN is overvalued based on its PB Ratio (2.2x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is General Finance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

61.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFN's forecast earnings growth (61.3% per year) is above the savings rate (2.7%).

Earnings vs Market: GFN's earnings (61.3% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GFN's revenue (3.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GFN's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GFN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has General Finance performed over the past 5 years?

-43.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFN has large one-off items impacting its financial results.

Growing Profit Margin: GFN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GFN has become profitable over the past 5 years, growing earnings by -43.9% per year.

Accelerating Growth: GFN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GFN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-6.1%).


Return on Equity

High ROE: GFN's Return on Equity (3.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is General Finance's financial position?


Financial Position Analysis

Short Term Liabilities: GFN's short term assets ($111.4M) exceeds its short term liabilities ($65.8M)

Long Term Liabilities: GFN's short term assets ($111.4M) do not cover its long term liabilities (541.9M)


Debt to Equity History and Analysis

Debt Level: GFN's debt to equity ratio (226.3%) is considered high.

Reducing Debt: GFN's debt to equity ratio has increased from 128.6% to 226.3% over the past 5 years.

Debt Coverage: GFN's debt is not well covered by operating cash flow (15.1%).

Interest Coverage: GFN's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: GFN has a low level of unsold assets or inventory.

Debt Coverage by Assets: GFN's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is General Finance's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GFN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GFN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GFN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GFN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GFN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of General Finance's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Jody Miller (51yo)

1.8yrs

Tenure

US$1,175,368

Compensation

Mr. Jody E. Miller has been the Chief Executive Officer of General Finance Corp. since January 2018 and as its President since January 2017 and a Director since December 2017. Mr. Miller served as an Execu ...


CEO Compensation Analysis

Compensation vs Market: Jody's total compensation ($USD1.18M) is below average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Jody's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.8yrs

Average Tenure

58yo

Average Age

Experienced Management: GFN's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

61yo

Average Age

Experienced Board: GFN's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$651,60008 Jan 19
Ronald Valenta
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares60,000
Max PriceUS$10.86

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.4%.


Management Team

  • Chuck Barrantes (67yo)

    Executive VP & CFO

    • Tenure: 13.2yrs
    • Compensation: US$829.53k
  • Ronald Valenta (60yo)

    Executive Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: US$455.73k
  • Chris Wilson (52yo)

    General Counsel

    • Tenure: 11.9yrs
    • Compensation: US$371.00k
  • Jeff Kluckman (58yo)

    Executive Vice President of Global Business Development

    • Tenure: 8.2yrs
    • Compensation: US$556.03k
  • Jody Miller (51yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$1.18m
  • Ted Mourouzis (55yo)

    CEO & President of Pac-Van Inc

    • Tenure: 2.6yrs
    • Compensation: US$442.53k
  • Larry Clark

    Sr. Vice President

    • Tenure: 0yrs
  • Neil Littlewood (58yo)

    Chief Executive Officer of GFN Asia Pacific Holdings Limited

    • Tenure: 3.3yrs
    • Compensation: US$612.31k

Board Members

  • Manuel Marrero (61yo)

    Director

    • Tenure: 14yrs
    • Compensation: US$124.50k
  • Doug Trussler (48yo)

    Independent Director

    • Tenure: 1.9yrs
  • Ronald Valenta (60yo)

    Executive Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: US$455.73k
  • Bill Baribault (73yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$130.50k
  • Larry Tashjian (66yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$135.00k
  • James Roszak (77yo)

    Lead Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$162.50k
  • Susan Harris (61yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$139.00k
  • Jody Miller (51yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$1.18m

Company Information

General Finance Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: General Finance Corporation
  • Ticker: GFN
  • Exchange: NasdaqGM
  • Founded: 2005
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$306.069m
  • Shares outstanding: 30.58m
  • Website: https://www.generalfinance.com

Number of Employees


Location

  • General Finance Corporation
  • 39 East Union Street
  • Pasadena
  • California
  • 91103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GFNNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 2006
GFNC.PNasdaqGM (Nasdaq Global Market)RED PRP PFD CUSUSDMay 2013

Biography

General Finance Corporation, a specialty rental services company, provides portable storage, modular space, and liquid containment solutions in North America and the Asia-Pacific regions. The company’s por ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/23 00:10
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.