GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis
USA - NASDAQ:GOOD - US3765361080 - REIT
10.95 USD
+0.3 (+2.82%)
10.95 USD
0 (0%)
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. While GOOD is still in line with the averages on profitability rating, there are concerns on its financial health. GOOD is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GOOD was profitable.
GOOD had a positive operating cash flow in the past year.
In multiple years GOOD reported negative net income over the last 5 years.
Each year in the past 5 years GOOD had a positive operating cash flow.
1.2 Ratios
GOOD has a Return On Assets (1.31%) which is comparable to the rest of the industry.
GOOD has a better Return On Equity (4.55%) than 64.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.84%, GOOD is in the better half of the industry, outperforming 73.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GOOD is in line with the industry average of 3.09%.
The last Return On Invested Capital (3.84%) for GOOD is above the 3 year average (3.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 4.55% | ||
| ROIC | 3.84% |
ROA(3y)0.03%
ROA(5y)-0.01%
ROE(3y)0.02%
ROE(5y)-0.07%
ROIC(3y)3.53%
ROIC(5y)3.14%
1.3 Margins
GOOD has a Profit Margin of 10.29%. This is comparable to the rest of the industry: GOOD outperforms 57.48% of its industry peers.
With an excellent Operating Margin value of 37.40%, GOOD belongs to the best of the industry, outperforming 81.10% of the companies in the same industry.
GOOD's Operating Margin has improved in the last couple of years.
GOOD's Gross Margin of 78.03% is fine compared to the rest of the industry. GOOD outperforms 77.95% of its industry peers.
In the last couple of years the Gross Margin of GOOD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.4% | ||
| PM (TTM) | 10.29% | ||
| GM | 78.03% |
OM growth 3Y12.15%
OM growth 5Y2.58%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.16%
GM growth 5Y-1.4%
2. Health
2.1 Basic Checks
GOOD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GOOD has been increased compared to 1 year ago.
The number of shares outstanding for GOOD has been increased compared to 5 years ago.
Compared to 1 year ago, GOOD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.10, we must say that GOOD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.10, GOOD is not doing good in the industry: 76.38% of the companies in the same industry are doing better.
GOOD has a Debt/Equity ratio of 2.30. This is a high value indicating a heavy dependency on external financing.
GOOD has a Debt to Equity ratio of 2.30. This is in the lower half of the industry: GOOD underperforms 74.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.1 |
ROIC/WACC0.58
WACC6.57%
2.3 Liquidity
GOOD has a Current Ratio of 0.54. This is a bad value and indicates that GOOD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.54, GOOD is doing worse than 77.95% of the companies in the same industry.
A Quick Ratio of 0.43 indicates that GOOD may have some problems paying its short term obligations.
GOOD has a worse Quick ratio (0.43) than 79.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for GOOD have decreased strongly by -10.00% in the last year.
GOOD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.22%.
Measured over the past years, GOOD shows a small growth in Revenue. The Revenue has been growing by 5.48% on average per year.
EPS 1Y (TTM)-10%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-90%
Revenue 1Y (TTM)1.22%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.09%
3.2 Future
GOOD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.88% yearly.
GOOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.82% yearly.
EPS Next Y-8.79%
EPS Next 2Y-5.01%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue Next Year5.21%
Revenue Next 2Y5.17%
Revenue Next 3Y3.34%
Revenue Next 5Y2.82%
3.3 Evolution
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
Based on the Price/Earnings ratio of 60.83, the valuation of GOOD can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GOOD is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.06, GOOD is valued quite expensively.
Based on the Price/Forward Earnings ratio of 46.68, the valuation of GOOD can be described as expensive.
GOOD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GOOD to the average of the S&P500 Index (32.73), we can say GOOD is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.83 | ||
| Fwd PE | 46.68 |
4.2 Price Multiples
73.23% of the companies in the same industry are more expensive than GOOD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.93 |
4.3 Compensation for Growth
The decent profitability rating of GOOD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.01%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.49%, GOOD is a good candidate for dividend investing.
GOOD's Dividend Yield is a higher than the industry average which is at 6.31.
GOOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
5.2 History
The dividend of GOOD decreases each year by -4.40%.
GOOD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GOOD decreased recently.
Dividend Growth(5Y)-4.4%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
GOOD pays out 415.95% of its income as dividend. This is not a sustainable payout ratio.
DP415.95%
EPS Next 2Y-5.01%
EPS Next 3Y7.88%
10.95
+0.3 (+2.82%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners50.5%
Inst Owner Change1.11%
Ins Owners1.2%
Ins Owner Change0.17%
Market Cap543.34M
Revenue(TTM)149.39M
Net Income(TTM)15.81M
Analysts78.18
Price Target14.38 (31.32%)
Short Float %4.67%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
Yearly Dividend1.48
Dividend Growth(5Y)-4.4%
DP415.95%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-22.02%
Min EPS beat(2)-64.7%
Max EPS beat(2)20.66%
EPS beat(4)3
Avg EPS beat(4)120.65%
Min EPS beat(4)-64.7%
Max EPS beat(4)512.8%
EPS beat(8)5
Avg EPS beat(8)-16.89%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)1.15%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-3.67%
Max Revenue beat(4)4.13%
Revenue beat(8)3
Avg Revenue beat(8)-1.78%
Revenue beat(12)5
Avg Revenue beat(12)-1.38%
Revenue beat(16)5
Avg Revenue beat(16)-1.63%
PT rev (1m)-5.37%
PT rev (3m)-10.76%
EPS NQ rev (1m)-17.5%
EPS NQ rev (3m)45.58%
EPS NY rev (1m)-11.71%
EPS NY rev (3m)-3.12%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)3.77%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)2.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.83 | ||
| Fwd PE | 46.68 | ||
| P/S | 3.54 | ||
| P/FCF | N/A | ||
| P/OCF | 6.64 | ||
| P/B | 1.56 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 11.93 |
EPS(TTM)0.18
EY1.64%
EPS(NY)0.23
Fwd EY2.14%
FCF(TTM)-2.07
FCFYN/A
OCF(TTM)1.65
OCFY15.07%
SpS3.1
BVpS7
TBVpS4.66
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 4.55% | ||
| ROCE | 4.86% | ||
| ROIC | 3.84% | ||
| ROICexc | 3.88% | ||
| ROICexgc | 4.34% | ||
| OM | 37.4% | ||
| PM (TTM) | 10.29% | ||
| GM | 78.03% | ||
| FCFM | N/A |
ROA(3y)0.03%
ROA(5y)-0.01%
ROE(3y)0.02%
ROE(5y)-0.07%
ROIC(3y)3.53%
ROIC(5y)3.14%
ROICexc(3y)3.56%
ROICexc(5y)3.17%
ROICexgc(3y)4%
ROICexgc(5y)3.56%
ROCE(3y)4.46%
ROCE(5y)3.98%
ROICexgc growth 3Y17.8%
ROICexgc growth 5Y7.28%
ROICexc growth 3Y17.97%
ROICexc growth 5Y7.68%
OM growth 3Y12.15%
OM growth 5Y2.58%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.16%
GM growth 5Y-1.4%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.16 | ||
| Cap/Depr | 341.98% | ||
| Cap/Sales | 120.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | -0.1 |
F-Score5
WACC6.57%
ROIC/WACC0.58
Cap/Depr(3y)109.89%
Cap/Depr(5y)149.38%
Cap/Sales(3y)44.05%
Cap/Sales(5y)61.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-90%
EPS Next Y-8.79%
EPS Next 2Y-5.01%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue 1Y (TTM)1.22%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.09%
Revenue Next Year5.21%
Revenue Next 2Y5.17%
Revenue Next 3Y3.34%
Revenue Next 5Y2.82%
EBIT growth 1Y12.44%
EBIT growth 3Y15.23%
EBIT growth 5Y8.21%
EBIT Next Year142.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-746.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.44%
OCF growth 3Y-6.7%
OCF growth 5Y-1.1%
GLADSTONE COMMERCIAL CORP / GOOD FAQ
What is the ChartMill fundamental rating of GLADSTONE COMMERCIAL CORP (GOOD) stock?
ChartMill assigns a fundamental rating of 3 / 10 to GOOD.
What is the valuation status for GOOD stock?
ChartMill assigns a valuation rating of 2 / 10 to GLADSTONE COMMERCIAL CORP (GOOD). This can be considered as Overvalued.
How profitable is GLADSTONE COMMERCIAL CORP (GOOD) stock?
GLADSTONE COMMERCIAL CORP (GOOD) has a profitability rating of 6 / 10.
How financially healthy is GLADSTONE COMMERCIAL CORP?
The financial health rating of GLADSTONE COMMERCIAL CORP (GOOD) is 0 / 10.
What is the earnings growth outlook for GLADSTONE COMMERCIAL CORP?
The Earnings per Share (EPS) of GLADSTONE COMMERCIAL CORP (GOOD) is expected to decline by -8.79% in the next year.