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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
GLAD had positive earnings in the past year.
GLAD had a positive operating cash flow in the past year.
Of the past 5 years GLAD 4 years were profitable.
GLAD had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
GLAD has a Return On Assets of 11.15%. This is amongst the best in the industry. GLAD outperforms 90.09% of its industry peers.
GLAD has a Return On Equity of 17.69%. This is amongst the best in the industry. GLAD outperforms 82.76% of its industry peers.
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
GLAD has a Profit Margin of 93.23%. This is amongst the best in the industry. GLAD outperforms 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.
The Gross Margin of GLAD (36.10%) is worse than 69.83% of its industry peers.
GLAD's Gross Margin has declined in the last couple of years.
| 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
The number of shares outstanding for GLAD has been increased compared to 1 year ago.
The number of shares outstanding for GLAD has been increased compared to 5 years ago.
The debt/assets ratio for GLAD has been reduced compared to a year ago.
2.2 Solvency
GLAD has an Altman-Z score of 1.57. This is a bad value and indicates that GLAD is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GLAD (1.57) is better 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.
With an excellent Debt to FCF ratio value of 2.35, GLAD belongs to the best of the industry, outperforming 81.47% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that GLAD is somewhat dependend on debt financing.
GLAD has a Debt to Equity ratio of 0.57. This is in the better half of the industry: GLAD outperforms 64.66% of its industry peers.
| 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.
GLAD has a better Current ratio (1.54) than 61.21% of its industry peers.
GLAD has a Quick 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.
GLAD has a Quick ratio of 1.54. This is in the better half of the industry: GLAD outperforms 61.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
GLAD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.76%.
GLAD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.66% yearly.
GLAD shows a decrease in Revenue. In the last year, the revenue decreased by -0.92%.
Measured over the past years, GLAD shows a quite strong growth in Revenue. The Revenue has been growing by 14.07% on average per year.
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
The Earnings Per Share is expected to decrease by -1.60% on average over the next years.
Based on estimates for the next years, GLAD will show a small growth in Revenue. The Revenue will grow by 0.95% on average per year.
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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GLAD is valuated correctly with a Price/Earnings ratio of 12.82.
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.
The Price/Forward Earnings ratio is 12.98, which indicates a correct valuation of GLAD.
GLAD's Price/Forward Earnings ratio is in line with the industry average.
GLAD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
83.62% of the companies in the same industry are more expensive than GLAD, based on the Price/Free Cash Flow ratio.
| 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
GLAD has a Yearly Dividend Yield of 7.36%, which is a nice return.
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.
GLAD's earnings are declining while the Dividend Rate has been growing. 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%