GLADSTONE INVESTMENT CORP (GAIN) Stock Fundamental Analysis
NASDAQ:GAIN - Nasdaq - US3765461070 - Common Stock - Currency: USD
Overall GAIN gets a fundamental rating of 2 out of 10. We evaluated GAIN against 231 industry peers in the Capital Markets industry. GAIN has a medium profitability rating, but doesn't score so well on its financial health evaluation. GAIN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GAIN was profitable.
GAIN had a negative operating cash flow in the past year.
GAIN had positive earnings in 4 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
GAIN has a Return On Assets of 6.44%. This is in the better half of the industry: GAIN outperforms 77.49% of its industry peers.
GAIN has a Return On Equity of 14.29%. This is in the better half of the industry: GAIN outperforms 73.16% of its industry peers.
GAIN's Return On Invested Capital of 4.10% is in line compared to the rest of the industry. GAIN outperforms 54.98% of its industry peers.
GAIN had an Average Return On Invested Capital over the past 3 years of 4.35%. This is below the industry average of 7.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 14.29% | ||
| ROIC | 4.1% |
ROA(3y)9.18%
ROA(5y)6.58%
ROE(3y)16.11%
ROE(5y)11.5%
ROIC(3y)4.35%
ROIC(5y)5.63%
1.3 Margins
GAIN has a Profit Margin of 59.64%. This is amongst the best in the industry. GAIN outperforms 94.37% of its industry peers.
In the last couple of years the Profit Margin of GAIN has grown nicely.
GAIN has a better Operating Margin (45.86%) than 81.82% of its industry peers.
GAIN's Operating Margin has declined in the last couple of years.
GAIN's Gross Margin of 40.85% is on the low side compared to the rest of the industry. GAIN is outperformed by 61.47% of its industry peers.
In the last couple of years the Gross Margin of GAIN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.86% | ||
| PM (TTM) | 59.64% | ||
| GM | 40.85% |
OM growth 3Y0.9%
OM growth 5Y-5.7%
PM growth 3Y5.1%
PM growth 5Y2.66%
GM growth 3Y-9.39%
GM growth 5Y-11.13%
2. Health
2.1 Basic Checks
GAIN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GAIN has been increased compared to 5 years ago.
GAIN has a worse debt/assets ratio than last year.
2.2 Solvency
GAIN has an Altman-Z score of 0.73. This is a bad value and indicates that GAIN is not financially healthy and even has some risk of bankruptcy.
GAIN has a Altman-Z score of 0.73. This is comparable to the rest of the industry: GAIN outperforms 41.99% of its industry peers.
GAIN has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
GAIN has a Debt to Equity ratio (1.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.24 indicates that GAIN may have some problems paying its short term obligations.
With a Current ratio value of 0.24, GAIN is not doing good in the industry: 83.55% of the companies in the same industry are doing better.
A Quick Ratio of 0.24 indicates that GAIN may have some problems paying its short term obligations.
The Quick ratio of GAIN (0.24) is worse than 83.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The earnings per share for GAIN have decreased by -5.94% in the last year.
Measured over the past years, GAIN shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.90% on average per year.
Looking at the last year, GAIN shows a decrease in Revenue. The Revenue has decreased by -8.68% in the last year.
Measured over the past years, GAIN shows a decrease in Revenue. The Revenue has been decreasing by -1.72% on average per year.
EPS 1Y (TTM)-5.94%
EPS 3Y22.39%
EPS 5Y33.9%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-8.68%
Revenue growth 3Y20.02%
Revenue growth 5Y-1.72%
Sales Q2Q%7.31%
3.2 Future
GAIN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.59% yearly.
Based on estimates for the next years, GAIN will show a quite strong growth in Revenue. The Revenue will grow by 8.47% on average per year.
EPS Next Y-2.81%
EPS Next 2Y-2.43%
EPS Next 3Y-1.59%
EPS Next 5YN/A
Revenue Next Year5.59%
Revenue Next 2Y9%
Revenue Next 3Y8.47%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.45 indicates a correct valuation of GAIN.
The rest of the industry has a similar Price/Earnings ratio as GAIN.
GAIN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.12.
Based on the Price/Forward Earnings ratio of 14.57, the valuation of GAIN can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as GAIN.
When comparing the Price/Forward Earnings ratio of GAIN to the average of the S&P500 Index (20.42), we can say GAIN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-2.43%
EPS Next 3Y-1.59%
5. Dividend
5.1 Amount
GAIN has a Yearly Dividend Yield of 7.05%, which is a nice return.
GAIN's Dividend Yield is comparable with the industry average which is at 8.46.
GAIN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
5.2 History
The dividend of GAIN is nicely growing with an annual growth rate of 18.35%!
GAIN has been paying a dividend for at least 10 years, so it has a reliable track record.
GAIN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)18.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
86.81% 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.
DP86.81%
EPS Next 2Y-2.43%
EPS Next 3Y-1.59%
13.73
-0.04 (-0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners14.46%
Inst Owner Change0.11%
Ins Owners2.3%
Ins Owner Change0%
Market Cap505.81M
Analysts80
Price Target14.2 (3.42%)
Short Float %8.5%
Short Ratio22.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
Yearly Dividend2.16
Dividend Growth(5Y)18.35%
DP86.81%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.96%
Min EPS beat(2)-5.12%
Max EPS beat(2)-2.81%
EPS beat(4)0
Avg EPS beat(4)-6.54%
Min EPS beat(4)-10.87%
Max EPS beat(4)-2.81%
EPS beat(8)0
Avg EPS beat(8)-6.35%
EPS beat(12)3
Avg EPS beat(12)-0.45%
EPS beat(16)4
Avg EPS beat(16)-15.66%
Revenue beat(2)0
Avg Revenue beat(2)-5.52%
Min Revenue beat(2)-8.43%
Max Revenue beat(2)-2.61%
Revenue beat(4)1
Avg Revenue beat(4)-5.12%
Min Revenue beat(4)-9.57%
Max Revenue beat(4)0.14%
Revenue beat(8)1
Avg Revenue beat(8)-9.89%
Revenue beat(12)4
Avg Revenue beat(12)-2.93%
Revenue beat(16)8
Avg Revenue beat(16)8.14%
PT rev (1m)0.85%
PT rev (3m)4.05%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)8.85%
Revenue NQ rev (1m)3.39%
Revenue NQ rev (3m)10.76%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 14.57 | ||
| P/S | 4.31 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.03 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.95
EY6.92%
EPS(NY)0.94
Fwd EY6.86%
FCF(TTM)-2.46
FCFYN/A
OCF(TTM)-2.46
OCFYN/A
SpS3.19
BVpS13.3
TBVpS13.3
PEG (NY)N/A
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 14.29% | ||
| ROCE | 5.19% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 4.12% | ||
| OM | 45.86% | ||
| PM (TTM) | 59.64% | ||
| GM | 40.85% | ||
| FCFM | N/A |
ROA(3y)9.18%
ROA(5y)6.58%
ROE(3y)16.11%
ROE(5y)11.5%
ROIC(3y)4.35%
ROIC(5y)5.63%
ROICexc(3y)4.38%
ROICexc(5y)5.66%
ROICexgc(3y)4.39%
ROICexgc(5y)5.68%
ROCE(3y)5.5%
ROCE(5y)7.13%
ROICexcg growth 3Y7.59%
ROICexcg growth 5Y-14.13%
ROICexc growth 3Y7.61%
ROICexc growth 5Y-14.12%
OM growth 3Y0.9%
OM growth 5Y-5.7%
PM growth 3Y5.1%
PM growth 5Y2.66%
GM growth 3Y-9.39%
GM growth 5Y-11.13%
F-Score1
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 0.73 |
F-Score1
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)-5.94%
EPS 3Y22.39%
EPS 5Y33.9%
EPS Q2Q%-11.54%
EPS Next Y-2.81%
EPS Next 2Y-2.43%
EPS Next 3Y-1.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.68%
Revenue growth 3Y20.02%
Revenue growth 5Y-1.72%
Sales Q2Q%7.31%
Revenue Next Year5.59%
Revenue Next 2Y9%
Revenue Next 3Y8.47%
Revenue Next 5YN/A
EBIT growth 1Y-24.34%
EBIT growth 3Y21.1%
EBIT growth 5Y-7.32%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-462.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-462.69%
OCF growth 3YN/A
OCF growth 5YN/A