GLADSTONE INVESTMENT CORP (GAIN) Stock Fundamental Analysis
NASDAQ:GAIN - Nasdaq - US3765461070 - Common Stock - Currency: USD
Overall GAIN gets a fundamental rating of 4 out of 10. We evaluated GAIN against 232 industry peers in the Capital Markets industry. While GAIN is still in line with the averages on profitability rating, there are concerns on its financial health. GAIN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GAIN had positive earnings in the past year.
In the past year GAIN had a positive cash flow from operations.
GAIN had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: GAIN reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.49%, GAIN is in the better half of the industry, outperforming 78.88% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.09%, GAIN is in the better half of the industry, outperforming 70.26% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.55%, GAIN is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GAIN is in line with the industry average of 7.24%.
The 3 year average ROIC (5.77%) for GAIN is below the current ROIC(7.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 13.09% | ||
| ROIC | 7.55% |
ROA(3y)6.74%
ROA(5y)8.13%
ROE(3y)12.83%
ROE(5y)14.51%
ROIC(3y)5.77%
ROIC(5y)4.86%
1.3 Margins
Looking at the Profit Margin, with a value of 41.65%, GAIN belongs to the top of the industry, outperforming 84.91% of the companies in the same industry.
In the last couple of years the Profit Margin of GAIN has declined.
Looking at the Operating Margin, with a value of 58.20%, GAIN belongs to the top of the industry, outperforming 93.97% of the companies in the same industry.
GAIN's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 54.03%, GAIN is doing good in the industry, outperforming 62.07% of the companies in the same industry.
In the last couple of years the Gross Margin of GAIN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.2% | ||
| PM (TTM) | 41.65% | ||
| GM | 54.03% |
OM growth 3Y19.86%
OM growth 5Y-5.22%
PM growth 3Y-29.25%
PM growth 5YN/A
GM growth 3Y24.26%
GM growth 5Y-8.83%
2. Health
2.1 Basic Checks
The number of shares outstanding for GAIN has been increased compared to 1 year ago.
Compared to 5 years ago, GAIN has more shares outstanding
The debt/assets ratio for GAIN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that GAIN is in the distress zone and has some risk of bankruptcy.
GAIN has a Altman-Z score (1.10) which is in line with its industry peers.
The Debt to FCF ratio of GAIN is 27.94, which is on the high side as it means it would take GAIN, 27.94 years of fcf income to pay off all of its debts.
GAIN has a Debt to FCF ratio of 27.94. This is comparable to the rest of the industry: GAIN outperforms 46.55% of its industry peers.
GAIN has a Debt/Equity ratio of 0.91. This is a neutral value indicating GAIN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.91, GAIN perfoms like the industry average, outperforming 55.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 27.94 | ||
| Altman-Z | 1.1 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.45 indicates that GAIN may have some problems paying its short term obligations.
GAIN has a worse Current ratio (0.45) than 78.02% of its industry peers.
GAIN has a Quick Ratio of 0.45. This is a bad value and indicates that GAIN is not financially healthy enough and could expect problems in meeting its short term obligations.
GAIN has a worse Quick ratio (0.45) than 78.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for GAIN have decreased by -5.05% in the last year.
GAIN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.07% yearly.
GAIN shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.41%.
GAIN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.01% yearly.
EPS 1Y (TTM)-5.05%
EPS 3Y28.28%
EPS 5Y-3.07%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)33.41%
Revenue growth 3Y21.71%
Revenue growth 5Y8.01%
Sales Q2Q%60.44%
3.2 Future
Based on estimates for the next years, GAIN will show a decrease in Earnings Per Share. The EPS will decrease by -3.17% on average per year.
GAIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.11% yearly.
EPS Next Y-5.97%
EPS Next 2Y-3.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.97%
Revenue Next 2Y4.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GAIN is valuated correctly with a Price/Earnings ratio of 16.01.
Compared to the rest of the industry, the Price/Earnings ratio of GAIN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.25. GAIN is valued slightly cheaper when compared to this.
GAIN is valuated correctly with a Price/Forward Earnings ratio of 16.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GAIN is on the same level as its industry peers.
GAIN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 16.85 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as GAIN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of GAIN may justify a higher PE ratio.
A cheap valuation may be justified as GAIN's earnings are expected to decrease with -3.17% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GAIN has a Yearly Dividend Yield of 6.35%, which is a nice return.
Compared to an average industry Dividend Yield of 8.14, GAIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, GAIN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
5.2 History
On average, the dividend of GAIN grows each year by 9.97%, which is quite nice.
GAIN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
93.31% of the earnings are spent on dividend by GAIN. This is not a sustainable payout ratio.
GAIN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP93.31%
EPS Next 2Y-3.17%
EPS Next 3YN/A
15.05
-0.07 (-0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners14.46%
Inst Owner Change2.99%
Ins Owners2.3%
Ins Owner Change0%
Market Cap554.44M
Analysts80
Price Target14.2 (-5.65%)
Short Float %8.46%
Short Ratio23.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
Yearly Dividend1.66
Dividend Growth(5Y)9.97%
DP93.31%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.22%
Min EPS beat(2)-3.64%
Max EPS beat(2)-2.81%
EPS beat(4)0
Avg EPS beat(4)-4.73%
Min EPS beat(4)-7.36%
Max EPS beat(4)-2.81%
EPS beat(8)0
Avg EPS beat(8)-6.56%
EPS beat(12)3
Avg EPS beat(12)0.47%
EPS beat(16)4
Avg EPS beat(16)-12.66%
Revenue beat(2)1
Avg Revenue beat(2)19.08%
Min Revenue beat(2)-8.43%
Max Revenue beat(2)46.58%
Revenue beat(4)1
Avg Revenue beat(4)6.49%
Min Revenue beat(4)-9.57%
Max Revenue beat(4)46.58%
Revenue beat(8)2
Avg Revenue beat(8)-0.62%
Revenue beat(12)5
Avg Revenue beat(12)4.67%
Revenue beat(16)8
Avg Revenue beat(16)9.63%
PT rev (1m)0%
PT rev (3m)0.85%
EPS NQ rev (1m)-4.61%
EPS NQ rev (3m)-3.26%
EPS NY rev (1m)-5.22%
EPS NY rev (3m)-6.03%
Revenue NQ rev (1m)1.68%
Revenue NQ rev (3m)8.07%
Revenue NY rev (1m)6.03%
Revenue NY rev (3m)10.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 16.85 | ||
| P/S | 3.53 | ||
| P/FCF | 34 | ||
| P/OCF | 34 | ||
| P/B | 1.11 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.94
EY6.25%
EPS(NY)0.89
Fwd EY5.94%
FCF(TTM)0.44
FCFY2.94%
OCF(TTM)0.44
OCFY2.94%
SpS4.26
BVpS13.55
TBVpS13.55
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 13.09% | ||
| ROCE | 9.55% | ||
| ROIC | 7.55% | ||
| ROICexc | 7.66% | ||
| ROICexgc | 7.68% | ||
| OM | 58.2% | ||
| PM (TTM) | 41.65% | ||
| GM | 54.03% | ||
| FCFM | 10.4% |
ROA(3y)6.74%
ROA(5y)8.13%
ROE(3y)12.83%
ROE(5y)14.51%
ROIC(3y)5.77%
ROIC(5y)4.86%
ROICexc(3y)5.82%
ROICexc(5y)4.9%
ROICexgc(3y)5.83%
ROICexgc(5y)4.91%
ROCE(3y)7.3%
ROCE(5y)6.15%
ROICexcg growth 3Y31.76%
ROICexcg growth 5Y-7.75%
ROICexc growth 3Y31.74%
ROICexc growth 5Y-7.75%
OM growth 3Y19.86%
OM growth 5Y-5.22%
PM growth 3Y-29.25%
PM growth 5YN/A
GM growth 3Y24.26%
GM growth 5Y-8.83%
F-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 27.94 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 3.59 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 24.97% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.1 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.05%
EPS 3Y28.28%
EPS 5Y-3.07%
EPS Q2Q%-4.17%
EPS Next Y-5.97%
EPS Next 2Y-3.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)33.41%
Revenue growth 3Y21.71%
Revenue growth 5Y8.01%
Sales Q2Q%60.44%
Revenue Next Year6.97%
Revenue Next 2Y4.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y75.41%
EBIT growth 3Y45.88%
EBIT growth 5Y2.37%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y123.32%
FCF growth 3Y-23.62%
FCF growth 5Y-14.32%
OCF growth 1Y123.32%
OCF growth 3Y-23.62%
OCF growth 5Y-14.32%