GLADSTONE COMMERCIAL CORP (GOOD)

US3765361080 - REIT

12.52  0 (0%)

After market: 12.511 -0.01 (-0.07%)

Fundamental Rating

3

Taking everything into account, GOOD scores 3 out of 10 in our fundamental rating. GOOD was compared to 128 industry peers in the Diversified REITs industry. Both the profitability and financial health of GOOD have multiple concerns. GOOD is valied quite expensively at the moment, while it does show a decent growth rate.



3

1. Profitability

1.1 Basic Checks

GOOD had negative earnings in the past year.
In the past year GOOD had a positive cash flow from operations.
GOOD had negative earnings in 4 of the past 5 years.
GOOD had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

GOOD has a Return On Assets of -0.89%. This is in the lower half of the industry: GOOD underperforms 70.97% of its industry peers.
GOOD's Return On Equity of -2.99% is on the low side compared to the rest of the industry. GOOD is outperformed by 72.58% of its industry peers.
GOOD has a better Return On Invested Capital (3.29%) than 68.55% of its industry peers.
GOOD had an Average Return On Invested Capital over the past 3 years of 2.67%. This is in line with the industry average of 2.99%.
The 3 year average ROIC (2.67%) for GOOD is below the current ROIC(3.29%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.89%
ROE -2.99%
ROIC 3.29%
ROA(3y)-0.12%
ROA(5y)-0.14%
ROE(3y)-0.4%
ROE(5y)-0.45%
ROIC(3y)2.67%
ROIC(5y)2.76%

1.3 Margins

GOOD's Operating Margin of 32.02% is fine compared to the rest of the industry. GOOD outperforms 69.35% of its industry peers.
In the last couple of years the Operating Margin of GOOD has declined.
GOOD has a better Gross Margin (77.84%) than 76.61% of its industry peers.
GOOD's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 32.02%
PM (TTM) N/A
GM 77.84%
OM growth 3Y-2.62%
OM growth 5Y-3.72%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.78%
GM growth 5Y-2.22%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GOOD is destroying value.
GOOD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

Based on the Altman-Z score of -0.01, we must say that GOOD is in the distress zone and has some risk of bankruptcy.
GOOD has a worse Altman-Z score (-0.01) than 80.65% of its industry peers.
The Debt to FCF ratio of GOOD is 48.51, which is on the high side as it means it would take GOOD, 48.51 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 48.51, GOOD perfoms like the industry average, outperforming 50.81% of the companies in the same industry.
GOOD has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
GOOD's Debt to Equity ratio of 2.17 is on the low side compared to the rest of the industry. GOOD is outperformed by 78.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.17
Debt/FCF 48.51
Altman-Z -0.01
ROIC/WACC0.49
WACC6.74%

2.3 Liquidity

A Current Ratio of 2.24 indicates that GOOD has no problem at all paying its short term obligations.
The Current ratio of GOOD (2.24) is better than 83.87% of its industry peers.
A Quick Ratio of 0.86 indicates that GOOD may have some problems paying its short term obligations.
GOOD's Quick ratio of 0.86 is on the low side compared to the rest of the industry. GOOD is outperformed by 67.74% of its industry peers.
Industry RankSector Rank
Current Ratio 2.24
Quick Ratio 0.86

4

3. Growth

3.1 Past

GOOD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -460.00%.
The Revenue has been growing slightly by 1.24% in the past year.
GOOD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.47% yearly.
EPS 1Y (TTM)-460%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-100%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y9.21%
Revenue growth 5Y9.47%
Revenue growth Q2Q-8.46%

3.2 Future

GOOD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.50% yearly.
The Revenue is expected to grow by 1.93% on average over the next years.
EPS Next Y-193.25%
EPS Next 2Y59.76%
EPS Next 3Y48.5%
EPS Next 5YN/A
Revenue Next Year-1.48%
Revenue Next 2Y-0.08%
Revenue Next 3Y1.08%
Revenue Next 5Y1.93%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

GOOD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 283.28, which means the current valuation is very expensive for GOOD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOD is on the same level as its industry peers.
GOOD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.62.
Industry RankSector Rank
PE N/A
Fwd PE 283.28

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GOOD is valued a bit cheaper than 74.19% of the companies in the same industry.
GOOD's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 34.34
EV/EBITDA 11.7

4.3 Compensation for Growth

A more expensive valuation may be justified as GOOD's earnings are expected to grow with 48.50% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.76%
EPS Next 3Y48.5%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 9.58%, GOOD is a good candidate for dividend investing.
GOOD's Dividend Yield is rather good when compared to the industry average which is at 5.83. GOOD pays more dividend than 91.94% of the companies in the same industry.
GOOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 9.58%

5.2 History

The dividend of GOOD decreases each year by -0.15%.
GOOD has been paying a dividend for at least 10 years, so it has a reliable track record.
GOOD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.15%
Div Incr Years3
Div Non Decr Years19

5.3 Sustainability

The earnings of GOOD are negative and hence is the payout ratio. GOOD will probably not be able to sustain this dividend level.
DP-614.91%
EPS Next 2Y59.76%
EPS Next 3Y48.5%

GLADSTONE COMMERCIAL CORP

NASDAQ:GOOD (2/23/2024, 7:00:01 PM)

After market: 12.511 -0.01 (-0.07%)

12.52

0 (0%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap530.22M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 9.58%
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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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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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 N/A
Fwd PE 283.28
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)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.89%
ROE -2.99%
ROCE
ROIC
ROICexc
ROICexgc
OM 32.02%
PM (TTM) N/A
GM 77.84%
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 Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 2.17
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.24
Quick Ratio 0.86
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)-460%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-193.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.24%
Revenue growth 3Y9.21%
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