General Finance Corporation stock has a rising Twiggs Money Flow on a surge in insider buying in the wake of rebuilding efforts after the hurricane disasters. I have bought General Finance in my personal trading account this morning.
General Finance Corporation is a rental services company that provides portable storage, modular space, and liquid containment solutions in North America and the Asia-Pacific regions. Its portable storage products include storage containers used in classroom equipment storage, construction equipment and tool storage, disaster shelters, landscaping sheds, recreational equipment storage, and retail inventory storage applications; and freight containers used in freight transportation by road and rail.
The companies products will continue to be in high demand as rebuilding efforts pick up pace.
There is a lot of insider buying in General Finance Corporation. Since September 8, 2017, the CEO Ronald Valenta has purchased 36,100 shares, the Director Larry Tashjian has purchased 5,500 shares, and the Director James Roszak has purchased 4,700 shares.
Institutional investors are accumulating the stock as well. The 3 month change in institutional ownership is an incredible 64.4%.
General Finance Corporation Stock
General Finance Corporation stock is breaking above all its moving averages as the moving averages continue to rapidly break higher.
Notice the bullish pocket pivot signal (blue dot) a few days ago. An Effective Volume study shows that the large players volume may have bottomed. The rising Twiggs Money Flow suggests that the stock is under accumulation.
Prices have been consolidating lately. There is little resistance above the current price. There is a support zone below the current price at $5.08, a stop order could be placed below this zone.
General Finance Corporation stock meets many of the criteria in this stock trading lesson on best stocks to buy now.
General Finance Corporation Review
General Finance Corporation's (GFN) Return On Assets of -0.44% is inline with the rest of the industry. The industry average Return On Assets is 0.57%. GFN has a Profit Margin of -1.07%. This is about inline with the industry average of 3.25%. The Piotroski-F score of GFN is 4.00. This is a neutral score and indicates average health and profitability for GFN. GFN has negative profitability ratios and so we won't be analyzing them here.
With a price book ratio of 0.61, General Finance Corporation (GFN) is valuated rather cheaply. When comparing the price book ratio of GFN to the average industry price book ratio of 1.29, GFN is valuated rather cheaply. GFN is also cheaper than 83% of the companies listed in the same industry. GFN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative. Also next year GFN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
The Earnings Per Share has grown by an impressive 28.57% over the past year. The Earnings Per Share is expected to grow by 52.38% on average over the next 2 years. This is a very strong growth. When comparing the growth rate of the last 5 years to the growth rate of the upcoming 2 years, we see that the growth is accelerating. The Revenue has decreased by -3.12% in the past year. Measured over the past 5 years, GFN shows a small growth in Revenue. The Revenue has been growing by 5.46% on average per year.
GFN is better placed than average in its industry to meet its short term obligations. Its Current Ratio is much better than the industry average of 1.12. GFN has a Current Ratio of 1.56. This is a normal value and indicates that GFN is financially healthy and should not expect problems in meeting its short term obligations. A Quick Ratio of 1.05 indicates that GFN should not have too much problems paying its short term obligations. GFN has a Quick Ratio comparable to the industry average, which is at 0.95. The Debt to Equity ratio of GFN is inline with the industry averages. The Piotroski-F score of GFN is 4.00. This is a neutral score and indicates average health and profitability for GFN. GFN has an Altman-Z score of 0.52. This is a bad value and indicates that GFN is not financially healthy and even has some risk of bankruptcy.
When comparing the Altman-Z score of GFN to the average industry Altman-Z score of 0.53, GFN is less financially healthy than its industry peers.
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