GLADSTONE CAPITAL CORP (GLAD)

US3765358789 - Common Stock

24.59  +0.36 (+1.49%)

After market: 24.31 -0.28 (-1.14%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to GLAD. GLAD was compared to 212 industry peers in the Capital Markets industry. GLAD has a medium profitability rating, but doesn't score so well on its financial health evaluation. GLAD is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!



5

1. Profitability

1.1 Basic Checks

In the past year GLAD was profitable.
In the past year GLAD has reported a negative cash flow from operations.
GLAD had positive earnings in 4 of the past 5 years.
GLAD had negative operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 8.45%, GLAD is in the better half of the industry, outperforming 79.05% of the companies in the same industry.
The Return On Equity of GLAD (15.87%) is better than 74.76% of its industry peers.
With a Return On Invested Capital value of 4.46%, GLAD perfoms like the industry average, outperforming 55.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GLAD is below the industry average of 8.11%.
The 3 year average ROIC (4.04%) for GLAD is below the current ROIC(4.46%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.45%
ROE 15.87%
ROIC 4.46%
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

GLAD has a Profit Margin of 73.15%. This is amongst the best in the industry. GLAD outperforms 96.19% of its industry peers.
In the last couple of years the Profit Margin of GLAD has grown nicely.
GLAD has a Operating Margin of 48.37%. This is amongst the best in the industry. GLAD outperforms 82.38% of its industry peers.
In the last couple of years the Operating Margin of GLAD has declined.
GLAD has a worse Gross Margin (36.65%) than 71.43% of its industry peers.
GLAD's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 48.37%
PM (TTM) 73.15%
GM 36.65%
OM growth 3Y-3.3%
OM growth 5Y-3.75%
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
The debt/assets ratio for GLAD has been reduced compared to a year ago.

2.2 Solvency

GLAD has an Altman-Z score of 1.04. This is a bad value and indicates that GLAD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.04, GLAD is in line with its industry, outperforming 52.86% of the companies in the same industry.
GLAD has a Debt/Equity ratio of 0.86. This is a neutral value indicating GLAD is somewhat dependend on debt financing.
GLAD has a Debt to Equity ratio (0.86) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF N/A
Altman-Z 1.04
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 1.81 indicates that GLAD should not have too much problems paying its short term obligations.
The Current ratio of GLAD (1.81) is better than 67.14% of its industry peers.
A Quick Ratio of 1.81 indicates that GLAD should not have too much problems paying its short term obligations.
The Quick ratio of GLAD (1.81) is better than 67.62% of its industry peers.
Industry RankSector Rank
Current Ratio 1.81
Quick Ratio 1.81

7

3. Growth

3.1 Past

GLAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 138.71%, which is quite impressive.
The Earnings Per Share has been growing by 14.73% on average over the past years. This is quite good.
GLAD shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.81%.
Measured over the past years, GLAD shows a quite strong growth in Revenue. The Revenue has been growing by 13.65% on average per year.
EPS 1Y (TTM)138.71%
EPS 3Y27.26%
EPS 5Y14.73%
EPS Q2Q%92.31%
Revenue 1Y (TTM)34.81%
Revenue growth 3Y21.69%
Revenue growth 5Y13.65%
Sales Q2Q%8.39%

3.2 Future

GLAD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.26% yearly.
The Revenue is expected to grow by 8.63% on average over the next years. This is quite good.
EPS Next Y27.2%
EPS Next 2Y12.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.98%
Revenue Next 2Y8.63%
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.

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.08, the valuation of GLAD can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of GLAD indicates a somewhat cheap valuation: GLAD is cheaper than 66.19% of the companies listed in the same industry.
GLAD is valuated cheaply when we compare the Price/Earnings ratio to 29.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.55 indicates a reasonable valuation of GLAD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GLAD is on the same level as its industry peers.
GLAD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.65.
Industry RankSector Rank
PE 11.08
Fwd PE 11.55

4.2 Price Multiples

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

4.3 Compensation for Growth

GLAD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GLAD's earnings are expected to grow with 12.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)0.75
EPS Next 2Y12.26%
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

GLAD has a Yearly Dividend Yield of 8.36%, which is a nice return.
Compared to an average industry Dividend Yield of 7.44, GLAD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, GLAD pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.36%

5.2 History

The dividend of GLAD has a limited annual growth rate of 1.64%.
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)1.64%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

GLAD pays out 60.17% 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.
DP60.17%
EPS Next 2Y12.26%
EPS Next 3YN/A

GLADSTONE CAPITAL CORP

NASDAQ:GLAD (7/12/2024, 7:00:01 PM)

After market: 24.31 -0.28 (-1.14%)

24.59

+0.36 (+1.49%)

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 Cap534.83M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 8.36%
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)
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Revenue beat(2)
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Min Revenue beat(2)
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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 11.08
Fwd PE 11.55
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)0.41
PEG (5Y)0.75
Profitability
Industry RankSector Rank
ROA 8.45%
ROE 15.87%
ROCE
ROIC
ROICexc
ROICexgc
OM 48.37%
PM (TTM) 73.15%
GM 36.65%
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 0.86
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.81
Quick Ratio 1.81
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)
High Growth Momentum
Growth
EPS 1Y (TTM)138.71%
EPS 3Y27.26%
EPS 5Y
EPS Q2Q%
EPS Next Y27.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)34.81%
Revenue growth 3Y21.69%
Revenue growth 5Y
Sales 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