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GLADSTONE CAPITAL CORP (GLAD)

US3765351008 - Common Stock

10.2278  +0.04 (+0.37%)

Fundamental Rating

4

Taking everything into account, GLAD scores 4 out of 10 in our fundamental rating. GLAD was compared to 207 industry peers in the Capital Markets industry. There are concerns on the financial health of GLAD while its profitability can be described as average. GLAD is not valued too expensively and it also shows a decent growth rate.



5

1. Profitability

1.1 Basic Checks

GLAD had positive earnings in the past year.
GLAD had a negative operating cash flow in the past year.
Of the past 5 years GLAD 4 years were profitable.
In the past 5 years GLAD reported 4 times negative operating cash flow.

1.2 Ratios

GLAD has a Return On Assets of 5.93%. This is in the better half of the industry: GLAD outperforms 74.51% of its industry peers.
GLAD has a Return On Equity of 10.44%. This is in the better half of the industry: GLAD outperforms 63.24% of its industry peers.
GLAD has a Return On Invested Capital (4.56%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for GLAD is significantly below the industry average of 9.53%.
The last Return On Invested Capital (4.56%) for GLAD is above the 3 year average (4.04%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.93%
ROE 10.44%
ROIC 4.56%
ROA(3y)7.94%
ROA(5y)5.62%
ROE(3y)14.41%
ROE(5y)9.81%
ROIC(3y)4.04%
ROIC(5y)4.33%

1.3 Margins

The Profit Margin of GLAD (49.37%) is better than 87.75% of its industry peers.
GLAD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 47.47%, GLAD belongs to the best of the industry, outperforming 81.37% of the companies in the same industry.
GLAD's Operating Margin has declined in the last couple of years.
GLAD has a worse Gross Margin (35.92%) than 70.10% of its industry peers.
In the last couple of years the Gross Margin of GLAD has declined.
Industry RankSector Rank
OM 47.47%
PM (TTM) 49.37%
GM 35.92%
OM growth 3Y-3.3%
OM growth 5Y-3.76%
PM growth 3YN/A
PM growth 5Y3.83%
GM growth 3Y3.51%
GM growth 5Y-3.09%

3

2. Health

2.1 Basic Checks

Compared to 1 year ago, GLAD has more shares outstanding
Compared to 5 years ago, GLAD has more shares outstanding
GLAD has a better debt/assets ratio than last year.

2.2 Solvency

GLAD has an Altman-Z score of 1.05. This is a bad value and indicates that GLAD is not financially healthy and even has some risk of bankruptcy.
GLAD's Altman-Z score of 1.05 is in line compared to the rest of the industry. GLAD outperforms 53.92% of its industry peers.
GLAD has a Debt/Equity ratio of 0.74. This is a neutral value indicating GLAD is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.74, GLAD is doing good in the industry, outperforming 60.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF N/A
Altman-Z 1.05
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 1.23 indicates that GLAD should not have too much problems paying its short term obligations.
GLAD has a Current ratio (1.23) which is comparable to the rest of the industry.
GLAD has a Quick Ratio of 1.23. This is a normal value and indicates that GLAD is financially healthy and should not expect problems in meeting its short term obligations.
GLAD's Quick ratio of 1.23 is in line compared to the rest of the industry. GLAD outperforms 50.49% of its industry peers.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 1.23

5

3. Growth

3.1 Past

GLAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.02%, which is quite good.
Measured over the past 5 years, GLAD shows a small growth in Earnings Per Share. The EPS has been growing by 5.29% on average per year.
Looking at the last year, GLAD shows a very strong growth in Revenue. The Revenue has grown by 36.86%.
GLAD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.65% yearly.
EPS 1Y (TTM)17.02%
EPS 3Y10.29%
EPS 5Y5.29%
EPS growth Q2Q27.27%
Revenue 1Y (TTM)36.86%
Revenue growth 3Y21.69%
Revenue growth 5Y13.65%
Revenue growth Q2Q49.06%

3.2 Future

Based on estimates for the next years, GLAD will show a small growth in Earnings Per Share. The EPS will grow by 5.49% on average per year.
The Revenue is expected to grow by 5.93% on average over the next years.
EPS Next Y8.68%
EPS Next 2Y5.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.57%
Revenue Next 2Y5.93%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.30, which indicates a very decent valuation of GLAD.
71.08% of the companies in the same industry are more expensive than GLAD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.81, GLAD is valued rather cheaply.
A Price/Forward Earnings ratio of 8.56 indicates a reasonable valuation of GLAD.
72.06% of the companies in the same industry are more expensive than GLAD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GLAD to the average of the S&P500 Index (19.91), we can say GLAD is valued rather cheaply.
Industry RankSector Rank
PE 9.3
Fwd PE 8.56

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.07
PEG (5Y)1.76
EPS Next 2Y5.49%
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 9.73%, GLAD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.08, GLAD pays a bit more dividend than its industry peers.
GLAD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.59.
Industry RankSector Rank
Dividend Yield 9.73%

5.2 History

The dividend of GLAD has a limited annual growth rate of 1.67%.
GLAD has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of GLAD decreased in the last 3 years.
Dividend Growth(5Y)1.67%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

GLAD pays out 82.99% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GLAD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP82.99%
EPS Next 2Y5.49%
EPS Next 3YN/A

GLADSTONE CAPITAL CORP

NASDAQ:GLAD (12/6/2023, 10:37:07 AM)

10.2278

+0.04 (+0.37%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap445.01M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 9.73%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 9.3
Fwd PE 8.56
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.07
PEG (5Y)1.76
Profitability
Industry RankSector Rank
ROA 5.93%
ROE 10.44%
ROCE
ROIC
ROICexc
ROICexgc
OM 47.47%
PM (TTM) 49.37%
GM 35.92%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.23
Quick Ratio 1.23
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)17.02%
EPS 3Y10.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)36.86%
Revenue growth 3Y21.69%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y