NasdaqGM:GFN

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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. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: GFN's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

7.1%

GFN

0.3%

US Trade Distributors

2.3%

US Market


1 Year Return

-19.7%

GFN

29.4%

US Trade Distributors

23.8%

US Market

Return vs Industry: GFN underperformed the US Trade Distributors industry which returned 29.2% over the past year.

Return vs Market: GFN underperformed the US Market which returned 23.7% over the past year.


Shareholder returns

GFNIndustryMarket
7 Day7.1%0.3%2.3%
30 Day0.8%3.2%4.8%
90 Day23.7%23.9%14.5%
1 Year-19.7%-19.7%32.0%29.4%26.6%23.8%
3 Year22.5%22.5%22.9%17.0%45.0%35.4%
5 Year117.9%117.9%133.1%114.2%126.2%101.0%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFN ($8.76) is trading below our estimate of fair value ($21.47)

Significantly Below Fair Value: GFN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GFN is poor value based on its PE Ratio (109.1x) compared to the US Trade Distributors industry average (25.8x).

PE vs Market: GFN is poor value based on its PE Ratio (109.1x) compared to the US market (21.3x).


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's PB Ratio (1.9x) is in line with the US Trade Distributors industry average.


Next Steps

Future Growth

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

69.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GFN's forecast earnings growth (69.5% per year) is above the savings rate (2%).

Earnings vs Market: GFN's earnings (69.5% per year) are forecast to grow faster than the US market (21.6% per year).

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

Revenue vs Market: GFN's revenue (0.3% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: GFN's revenue (0.3% 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?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFN has a large one-off loss of $19.8M impacting its September 30 2020 financial results.

Growing Profit Margin: GFN's current net profit margins (0.7%) are lower than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: GFN has become profitable over the past 5 years, growing earnings by 19.5% per year.

Accelerating Growth: GFN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GFN had negative earnings growth (-23.2%) over the past year, making it difficult to compare to the Trade Distributors industry average (-12.6%).


Return on Equity

High ROE: GFN's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is General Finance's financial position?


Financial Position Analysis

Short Term Liabilities: GFN's short term assets ($93.4M) exceed its short term liabilities ($76.7M).

Long Term Liabilities: GFN's short term assets ($93.4M) do not cover its long term liabilities ($512.3M).


Debt to Equity History and Analysis

Debt Level: GFN's debt to equity ratio (209.8%) is considered high.

Reducing Debt: GFN's debt to equity ratio has increased from 159.3% to 209.8% over the past 5 years.

Debt Coverage: GFN's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: GFN's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

11.2yrs

Average management tenure


CEO

Jody Miller (52 yo)

3yrs

Tenure

US$1,229,851

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 ($USD1.23M) is about average for companies of similar size in the US market ($USD994.97K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Valenta
Executive Chairman of the Board6.58yrsUS$455.00k15.26%
$ 40.3m
Jody Miller
President3yrsUS$1.23m1.59%
$ 4.2m
Charles Barrantes
Executive VP & CFO14.33yrsUS$842.11k0.62%
$ 1.6m
Theodore Mourouzis
CEO & President of Pac-Van Inc14.42yrsUS$488.95k1.62%
$ 4.3m
Neil Littlewood
Chief Executive Officer of Royal Wolf Trading Australia Pty Limited4.5yrsUS$585.04k0.37%
$ 986.4k
Larry Clark
Sr. Vice Presidentno datano datano data
Christopher Wilson
General Counsel13.08yrsUS$371.00k0.46%
$ 1.2m
Jeffrey Kluckman
Executive Vice President of Global Business Development9.33yrsUS$556.03k0.49%
$ 1.3m

11.2yrs

Average Tenure

59yo

Average Age

Experienced Management: GFN's management team is seasoned and experienced (11.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ronald Valenta
Executive Chairman of the Board6.58yrsUS$455.00k15.26%
$ 40.3m
Jody Miller
President3yrsUS$1.23m1.59%
$ 4.2m
Manuel Marrero
Director15.17yrsUS$120.00k0.57%
$ 1.5m
Douglas Trussler
Independent Director3.08yrsno datano data
William Baribault
Independent Director5.08yrsUS$132.00k0.16%
$ 434.5k
Larry Tashjian
Independent Director6.92yrsUS$138.00k0.86%
$ 2.3m
James Roszak
Lead Independent Director6.58yrsUS$164.00k0.44%
$ 1.2m
Susan Harris
Independent Director12.08yrsUS$142.00k0.23%
$ 599.0k

6.6yrs

Average Tenure

62yo

Average Age

Experienced Board: GFN's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$264.335m
  • Shares outstanding: 30.18m
  • 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 Analysis2021/01/23 23:50
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


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.