GLADSTONE INVESTMENT CORP (GAIN) Stock Fundamental Analysis
NASDAQ:GAIN - Nasdaq - US3765461070 - Common Stock - Currency: USD
Taking everything into account, GAIN scores 4 out of 10 in our fundamental rating. GAIN was compared to 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. While showing a medium growth rate, GAIN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
GAIN had positive earnings in the past year.
GAIN had a positive operating cash flow in the past year.
In the past 5 years GAIN has always been profitable.
In multiple years GAIN reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of GAIN (6.49%) is better than 80.17% of its industry peers.
GAIN has a better Return On Equity (13.09%) than 71.98% of its industry peers.
The Return On Invested Capital of GAIN (7.55%) is better than 79.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GAIN is below the industry average of 7.85%.
The last Return On Invested Capital (7.55%) for GAIN is above the 3 year average (5.77%), which is a sign of increasing profitability.
| 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
GAIN's Profit Margin of 41.65% is amongst the best of the industry. GAIN outperforms 85.78% of its industry peers.
In the last couple of years the Profit Margin of GAIN has declined.
With an excellent Operating Margin value of 58.20%, GAIN belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
In the last couple of years the Operating Margin of GAIN has declined.
With a decent Gross Margin value of 54.03%, GAIN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
GAIN's Gross Margin has declined in the last couple of years.
| 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
Compared to 1 year ago, GAIN has more shares outstanding
GAIN has more shares outstanding than it did 5 years ago.
GAIN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that GAIN is in the distress zone and has some risk of bankruptcy.
GAIN has a Altman-Z score (1.05) 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.
Looking at the Debt to FCF ratio, with a value of 27.94, GAIN is in line with its industry, outperforming 46.98% of the companies in the same industry.
GAIN has a Debt/Equity ratio of 0.91. This is a neutral value indicating GAIN is somewhat dependend on debt financing.
The Debt to Equity ratio of GAIN (0.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 27.94 | ||
| Altman-Z | 1.05 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
GAIN has a Current 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 Current ratio of 0.45. This is in the lower half of the industry: GAIN underperforms 78.45% of its industry peers.
A Quick Ratio of 0.45 indicates that GAIN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.45, GAIN is doing worse than 78.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
GAIN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.05%.
Measured over the past years, GAIN shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.07% on average per year.
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 -2.77% on average per year.
GAIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.26% yearly.
EPS Next Y-4.55%
EPS Next 2Y-2.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.61%
Revenue Next 2Y5.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GAIN is valuated correctly with a Price/Earnings ratio of 14.84.
Compared to the rest of the industry, the Price/Earnings ratio of GAIN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of GAIN to the average of the S&P500 Index (26.92), we can say GAIN is valued slightly cheaper.
GAIN is valuated correctly with a Price/Forward Earnings ratio of 15.38.
GAIN's Price/Forward Earnings is on the same level as the industry average.
GAIN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 15.38 |
4.2 Price Multiples
GAIN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.51 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
GAIN has a very decent profitability rating, which may justify a higher PE ratio.
GAIN's earnings are expected to decrease with -2.77% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GAIN has a Yearly Dividend Yield of 6.83%, which is a nice return.
Compared to an average industry Dividend Yield of 8.07, GAIN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, GAIN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
5.2 History
On average, the dividend of GAIN grows each year by 9.97%, which is quite nice.
GAIN has been paying a dividend for at least 10 years, so it has 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.
The Dividend Rate of GAIN has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP93.31%
EPS Next 2Y-2.77%
EPS Next 3YN/A
NASDAQ:GAIN (6/24/2025, 8:00:00 PM)
13.95
-0.04 (-0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners15.24%
Inst Owner Change2.99%
Ins Owners1.89%
Ins Owner Change0%
Market Cap513.92M
Analysts76.67
Price Target14.18 (1.65%)
Short Float %8.64%
Short Ratio19.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
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)-0.12%
PT rev (3m)0.72%
EPS NQ rev (1m)2.73%
EPS NQ rev (3m)-2%
EPS NY rev (1m)1.51%
EPS NY rev (3m)-4.61%
Revenue NQ rev (1m)-4.4%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-10.63%
Revenue NY rev (3m)-2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 15.38 | ||
| P/S | 3.28 | ||
| P/FCF | 31.51 | ||
| P/OCF | 31.51 | ||
| P/B | 1.03 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.94
EY6.74%
EPS(NY)0.91
Fwd EY6.5%
FCF(TTM)0.44
FCFY3.17%
OCF(TTM)0.44
OCFY3.17%
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 | 1.05 |
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-4.55%
EPS Next 2Y-2.77%
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 Year6.61%
Revenue Next 2Y5.26%
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%