GLADSTONE CAPITAL CORP (GLAD) Stock Fundamental Analysis
NASDAQ:GLAD - Nasdaq - US3765358789 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GLAD. GLAD was compared to 232 industry peers in the Capital Markets industry. GLAD has only an average score on both its financial health and profitability. GLAD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GLAD was profitable.
GLAD had a positive operating cash flow in the past year.
GLAD had positive earnings in 4 of the past 5 years.
In the past 5 years GLAD reported 4 times negative operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.15%, GLAD belongs to the best of the industry, outperforming 90.09% of the companies in the same industry.
With an excellent Return On Equity value of 17.69%, GLAD belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
With a Return On Invested Capital value of 4.70%, GLAD perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
GLAD had an Average Return On Invested Capital over the past 3 years of 4.32%. This is below the industry average of 7.85%.
The 3 year average ROIC (4.32%) for GLAD is below the current ROIC(4.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 17.69% | ||
| ROIC | 4.7% |
ROA(3y)6.86%
ROA(5y)7.01%
ROE(3y)12.16%
ROE(5y)12.43%
ROIC(3y)4.32%
ROIC(5y)4.2%
1.3 Margins
The Profit Margin of GLAD (93.23%) is better than 98.28% of its industry peers.
GLAD's Profit Margin has improved in the last couple of years.
GLAD's Operating Margin of 49.30% is amongst the best of the industry. GLAD outperforms 84.05% of its industry peers.
In the last couple of years the Operating Margin of GLAD has declined.
Looking at the Gross Margin, with a value of 36.10%, GLAD is doing worse than 69.83% of the companies in the same industry.
In the last couple of years the Gross Margin of GLAD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.3% | ||
| PM (TTM) | 93.23% | ||
| GM | 36.1% |
OM growth 3Y-0.61%
OM growth 5Y-2.94%
PM growth 3Y-14.54%
PM growth 5Y19.76%
GM growth 3Y2.59%
GM growth 5Y-1.67%
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 1.57. This is a bad value and indicates that GLAD is not financially healthy and even has some risk of bankruptcy.
GLAD has a better Altman-Z score (1.57) than 65.52% of its industry peers.
The Debt to FCF ratio of GLAD is 2.35, which is a good value as it means it would take GLAD, 2.35 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.35, GLAD belongs to the top of the industry, outperforming 81.47% of the companies in the same industry.
GLAD has a Debt/Equity ratio of 0.57. This is a neutral value indicating GLAD is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.57, GLAD is doing good in the industry, outperforming 64.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 1.57 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
GLAD has a Current Ratio of 1.54. This is a normal value and indicates that GLAD is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.54, GLAD is doing good in the industry, outperforming 61.21% of the companies in the same industry.
A Quick Ratio of 1.54 indicates that GLAD should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.54, GLAD is doing good in the industry, outperforming 61.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The earnings per share for GLAD have decreased by -6.76% in the last year.
The Earnings Per Share has been growing slightly by 4.66% on average over the past years.
Looking at the last year, GLAD shows a decrease in Revenue. The Revenue has decreased by -0.92% in the last year.
The Revenue has been growing by 14.07% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.76%
EPS 3Y9.66%
EPS 5Y4.66%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y21.56%
Revenue growth 5Y14.07%
Sales Q2Q%-10.12%
3.2 Future
GLAD is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.60% yearly.
GLAD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.95% yearly.
EPS Next Y-3.29%
EPS Next 2Y-1.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.09%
Revenue Next 2Y0.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 12.82 indicates a correct valuation of GLAD.
GLAD's Price/Earnings ratio is in line with the industry average.
GLAD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
GLAD is valuated correctly with a Price/Forward Earnings ratio of 12.98.
GLAD's Price/Forward Earnings is on the same level as the industry average.
GLAD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, GLAD is valued cheaply inside the industry as 83.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.97 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of GLAD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.75
EPS Next 2Y-1.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.36%, GLAD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.07, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
5.2 History
The dividend of GLAD has a limited annual growth rate of 3.26%.
GLAD has paid a dividend for at least 10 years, which is a reliable track record.
GLAD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.26%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
60.76% of the earnings are spent on dividend by GLAD. This is not a sustainable payout ratio.
The Dividend Rate of GLAD has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP60.76%
EPS Next 2Y-1.6%
EPS Next 3YN/A
26.53
-0.37 (-1.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners11.09%
Inst Owner Change16.17%
Ins Owners3.55%
Ins Owner Change-0.02%
Market Cap592.41M
Analysts73.85
Price Target26.93 (1.51%)
Short Float %1.67%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
Yearly Dividend1.96
Dividend Growth(5Y)3.26%
DP60.76%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.88%
Min EPS beat(2)-12.52%
Max EPS beat(2)-3.25%
EPS beat(4)1
Avg EPS beat(4)-4.6%
Min EPS beat(4)-12.52%
Max EPS beat(4)4.88%
EPS beat(8)2
Avg EPS beat(8)-3.73%
EPS beat(12)4
Avg EPS beat(12)-2.14%
EPS beat(16)7
Avg EPS beat(16)1.97%
Revenue beat(2)0
Avg Revenue beat(2)-9.37%
Min Revenue beat(2)-11.76%
Max Revenue beat(2)-6.97%
Revenue beat(4)1
Avg Revenue beat(4)-4.92%
Min Revenue beat(4)-11.76%
Max Revenue beat(4)1.87%
Revenue beat(8)3
Avg Revenue beat(8)-1.66%
Revenue beat(12)5
Avg Revenue beat(12)-1.31%
Revenue beat(16)8
Avg Revenue beat(16)0.64%
PT rev (1m)2.33%
PT rev (3m)2.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-4.49%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)-2.64%
Revenue NQ rev (3m)-6.41%
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)-4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 12.98 | ||
| P/S | 6.37 | ||
| P/FCF | 4.97 | ||
| P/OCF | 4.97 | ||
| P/B | 1.21 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.07
EY7.8%
EPS(NY)2.04
Fwd EY7.7%
FCF(TTM)5.34
FCFY20.13%
OCF(TTM)5.34
OCFY20.13%
SpS4.16
BVpS21.93
TBVpS21.93
PEG (NY)N/A
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 17.69% | ||
| ROCE | 5.95% | ||
| ROIC | 4.7% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 4.74% | ||
| OM | 49.3% | ||
| PM (TTM) | 93.23% | ||
| GM | 36.1% | ||
| FCFM | 128.32% |
ROA(3y)6.86%
ROA(5y)7.01%
ROE(3y)12.16%
ROE(5y)12.43%
ROIC(3y)4.32%
ROIC(5y)4.2%
ROICexc(3y)4.34%
ROICexc(5y)4.21%
ROICexgc(3y)4.35%
ROICexgc(5y)4.23%
ROCE(3y)5.47%
ROCE(5y)5.32%
ROICexcg growth 3Y7.33%
ROICexcg growth 5Y-3.27%
ROICexc growth 3Y7.25%
ROICexc growth 5Y-3.32%
OM growth 3Y-0.61%
OM growth 5Y-2.94%
PM growth 3Y-14.54%
PM growth 5Y19.76%
GM growth 3Y2.59%
GM growth 5Y-1.67%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.19 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 137.64% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 1.57 |
F-Score6
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)-6.76%
EPS 3Y9.66%
EPS 5Y4.66%
EPS Q2Q%0%
EPS Next Y-3.29%
EPS Next 2Y-1.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y21.56%
Revenue growth 5Y14.07%
Sales Q2Q%-10.12%
Revenue Next Year-9.09%
Revenue Next 2Y0.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.98%
EBIT growth 3Y20.81%
EBIT growth 5Y10.72%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y194.36%
FCF growth 3YN/A
FCF growth 5Y-18.93%
OCF growth 1Y194.36%
OCF growth 3YN/A
OCF growth 5Y-18.93%