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 231 industry peers in the Capital Markets industry. Both the profitability and the financial health of GLAD get a neutral evaluation. Nothing too spectacular is happening here. GLAD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GLAD was profitable.
In the past year GLAD had a positive 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
GLAD has a better Return On Assets (12.44%) than 93.51% of its industry peers.
GLAD has a Return On Equity of 20.69%. This is amongst the best in the industry. GLAD outperforms 88.74% of its industry peers.
GLAD has a Return On Invested Capital of 4.44%. This is in the better half of the industry: GLAD outperforms 60.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GLAD is below the industry average of 7.13%.
The last Return On Invested Capital (4.44%) for GLAD is above the 3 year average (4.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.44% | ||
| ROE | 20.69% | ||
| ROIC | 4.44% |
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
With an excellent Profit Margin value of 106.42%, GLAD belongs to the best of the industry, outperforming 98.70% of the companies in the same industry.
GLAD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 47.56%, GLAD belongs to the best of the industry, outperforming 85.28% of the companies in the same industry.
GLAD's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 36.62%, GLAD is not doing good in the industry: 67.10% of the companies in the same industry are doing better.
GLAD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.56% | ||
| PM (TTM) | 106.42% | ||
| GM | 36.62% |
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
GLAD has more shares outstanding than it did 5 years ago.
GLAD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that GLAD is in the distress zone and has some risk of bankruptcy.
GLAD has a better Altman-Z score (1.34) than 63.20% of its industry peers.
GLAD has a debt to FCF ratio of 5.91. This is a neutral value as GLAD would need 5.91 years to pay back of all of its debts.
GLAD has a better Debt to FCF ratio (5.91) than 62.34% of its industry peers.
GLAD has a Debt/Equity ratio of 0.64. This is a neutral value indicating GLAD is somewhat dependend on debt financing.
GLAD's Debt to Equity ratio of 0.64 is fine compared to the rest of the industry. GLAD outperforms 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.91 | ||
| Altman-Z | 1.34 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
GLAD has a Current Ratio of 1.18. This is a normal value and indicates that GLAD is financially healthy and should not expect problems in meeting its short term obligations.
GLAD has a Current ratio of 1.18. This is comparable to the rest of the industry: GLAD outperforms 54.98% of its industry peers.
GLAD has a Quick Ratio of 1.18. This is a normal value and indicates that GLAD is financially healthy and should not expect problems in meeting its short term obligations.
GLAD has a Quick ratio of 1.18. This is comparable to the rest of the industry: GLAD outperforms 54.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
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.
GLAD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.79%.
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)11.79%
Revenue growth 3Y21.56%
Revenue growth 5Y14.07%
Sales Q2Q%-10.11%
3.2 Future
GLAD is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.27% yearly.
Based on estimates for the next years, GLAD will show a small growth in Revenue. The Revenue will grow by 2.49% on average per year.
EPS Next Y-3%
EPS Next 2Y-1.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.75%
Revenue Next 2Y2.49%
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 12.17 indicates a correct valuation of GLAD.
Based on the Price/Earnings ratio, GLAD is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 23.99. GLAD is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.25, the valuation of GLAD can be described as correct.
GLAD's Price/Forward Earnings ratio is in line with the industry average.
GLAD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
GLAD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GLAD is cheaper than 73.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.54 | ||
| 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)2.61
EPS Next 2Y-1.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.84%, GLAD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.45, GLAD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, GLAD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
5.2 History
The dividend of GLAD has a limited annual growth rate of 3.26%.
GLAD has been paying a dividend for at least 10 years, so it has 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
51.59% of the earnings are spent on dividend by GLAD. This is a bit on the high side, but may be sustainable.
GLAD's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP51.59%
EPS Next 2Y-1.27%
EPS Next 3YN/A
25.2
-0.06 (-0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners9.16%
Inst Owner Change-9.79%
Ins Owners3.55%
Ins Owner Change-1.25%
Market Cap562.72M
Analysts73.85
Price Target26.32 (4.44%)
Short Float %1.13%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
Yearly Dividend1.96
Dividend Growth(5Y)3.26%
DP51.59%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.01%
Min EPS beat(2)-12.52%
Max EPS beat(2)-7.51%
EPS beat(4)1
Avg EPS beat(4)-6.71%
Min EPS beat(4)-12.52%
Max EPS beat(4)4.88%
EPS beat(8)2
Avg EPS beat(8)-3.68%
EPS beat(12)5
Avg EPS beat(12)0.09%
EPS beat(16)7
Avg EPS beat(16)2.05%
Revenue beat(2)0
Avg Revenue beat(2)-7.28%
Min Revenue beat(2)-11.76%
Max Revenue beat(2)-2.8%
Revenue beat(4)1
Avg Revenue beat(4)-3.81%
Min Revenue beat(4)-11.76%
Max Revenue beat(4)1.87%
Revenue beat(8)4
Avg Revenue beat(8)0.28%
Revenue beat(12)6
Avg Revenue beat(12)0.57%
Revenue beat(16)8
Avg Revenue beat(16)0.93%
PT rev (1m)0.19%
PT rev (3m)2.69%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)-6.58%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)-6.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 12.25 | ||
| P/S | 5.9 | ||
| P/FCF | 10.54 | ||
| P/OCF | 10.54 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.07
EY8.21%
EPS(NY)2.06
Fwd EY8.16%
FCF(TTM)2.39
FCFY9.49%
OCF(TTM)2.39
OCFY9.49%
SpS4.27
BVpS21.96
TBVpS21.96
PEG (NY)N/A
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.44% | ||
| ROE | 20.69% | ||
| ROCE | 5.62% | ||
| ROIC | 4.44% | ||
| ROICexc | 4.45% | ||
| ROICexgc | 4.48% | ||
| OM | 47.56% | ||
| PM (TTM) | 106.42% | ||
| GM | 36.62% | ||
| FCFM | 56% |
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-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.91 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.11 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 52.62% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.34 |
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)-6.76%
EPS 3Y9.66%
EPS 5Y4.66%
EPS Q2Q%0%
EPS Next Y-3%
EPS Next 2Y-1.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.79%
Revenue growth 3Y21.56%
Revenue growth 5Y14.07%
Sales Q2Q%-10.11%
Revenue Next Year-4.75%
Revenue Next 2Y2.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.53%
EBIT growth 3Y20.81%
EBIT growth 5Y10.72%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y247.97%
FCF growth 3YN/A
FCF growth 5Y-18.93%
OCF growth 1Y247.97%
OCF growth 3YN/A
OCF growth 5Y-18.93%