GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis
NASDAQ:GOOD - Nasdaq - US3765361080 - REIT - Currency: USD
Taking everything into account, GOOD scores 3 out of 10 in our fundamental rating. GOOD was compared to 130 industry peers in the Diversified REITs industry. GOOD has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year GOOD had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: GOOD reported negative net income in multiple years.
GOOD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GOOD has a Return On Assets (1.10%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 3.61%, GOOD is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
GOOD's Return On Invested Capital of 3.82% is fine compared to the rest of the industry. GOOD outperforms 73.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOD is in line with the industry average of 3.16%.
The last Return On Invested Capital (3.82%) for GOOD is above the 3 year average (3.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 3.61% | ||
| ROIC | 3.82% |
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
Looking at the Profit Margin, with a value of 8.43%, GOOD is in line with its industry, outperforming 60.00% of the companies in the same industry.
GOOD's Operating Margin of 35.82% is fine compared to the rest of the industry. GOOD outperforms 77.69% of its industry peers.
GOOD's Operating Margin has improved in the last couple of years.
GOOD's Gross Margin of 78.72% is fine compared to the rest of the industry. GOOD outperforms 78.46% 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 | 35.82% | ||
| PM (TTM) | 8.43% | ||
| GM | 78.72% |
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.
Compared to 1 year ago, GOOD has more shares outstanding
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 0.01, we must say that GOOD is in the distress zone and has some risk of bankruptcy.
GOOD has a Altman-Z score of 0.01. This is in the lower half of the industry: GOOD underperforms 76.15% of its industry peers.
A Debt/Equity ratio of 2.06 is on the high side and indicates that GOOD has dependencies on debt financing.
GOOD's Debt to Equity ratio of 2.06 is on the low side compared to the rest of the industry. GOOD is outperformed by 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.01 |
ROIC/WACC0.54
WACC7.04%
2.3 Liquidity
A Current Ratio of 0.82 indicates that GOOD may have some problems paying its short term obligations.
The Current ratio of GOOD (0.82) is comparable to the rest of the industry.
A Quick Ratio of 0.71 indicates that GOOD may have some problems paying its short term obligations.
GOOD has a Quick ratio of 0.71. This is in the lower half of the industry: GOOD underperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 252.63% over the past year.
The Revenue has been growing slightly by 3.01% in the past year.
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)252.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)3.01%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.98%
3.2 Future
Based on estimates for the next years, GOOD will show a small growth in Earnings Per Share. The EPS will grow by 7.88% on average per year.
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-5.85%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue Next Year2.22%
Revenue Next 2Y2.53%
Revenue Next 3Y1.54%
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
GOOD is valuated quite expensively with a Price/Earnings ratio of 47.07.
The rest of the industry has a similar Price/Earnings ratio as GOOD.
Compared to an average S&P500 Price/Earnings ratio of 27.50, GOOD is valued quite expensively.
The Price/Forward Earnings ratio is 44.12, which means the current valuation is very expensive for GOOD.
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 (36.44), we can say GOOD is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.07 | ||
| Fwd PE | 44.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOD is valued a bit cheaper than the industry average as 66.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.85 |
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 2Y9.09%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
GOOD has a Yearly Dividend Yield of 8.52%, which is a nice return.
Compared to an average industry Dividend Yield of 6.42, GOOD pays a better dividend. On top of this GOOD pays more dividend than 82.31% of the companies listed in the same industry.
GOOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.52% |
5.2 History
The dividend of GOOD decreases each year by -4.40%.
GOOD has paid a dividend for at least 10 years, which is 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
503.13% of the earnings are spent on dividend by GOOD. This is not a sustainable payout ratio.
DP503.13%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
13.65
-0.1 (-0.73%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners48.2%
Inst Owner Change0%
Ins Owners1.21%
Ins Owner Change0.09%
Market Cap673.49M
Analysts78.18
Price Target16.12 (18.1%)
Short Float %2.94%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.52% |
Yearly Dividend1.48
Dividend Growth(5Y)-4.4%
DP503.13%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.26%
Min EPS beat(2)13.85%
Max EPS beat(2)20.66%
EPS beat(4)3
Avg EPS beat(4)-84.25%
Min EPS beat(4)-884.31%
Max EPS beat(4)512.8%
EPS beat(8)5
Avg EPS beat(8)-89.44%
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)0
Avg Revenue beat(2)-2.59%
Min Revenue beat(2)-3.67%
Max Revenue beat(2)-1.52%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-3.67%
Max Revenue beat(4)4.13%
Revenue beat(8)3
Avg Revenue beat(8)-1.6%
Revenue beat(12)4
Avg Revenue beat(12)-1.58%
Revenue beat(16)4
Avg Revenue beat(16)-2.07%
PT rev (1m)0%
PT rev (3m)-6.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)108.33%
EPS NY rev (1m)33.33%
EPS NY rev (3m)35.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.07 | ||
| Fwd PE | 44.12 | ||
| P/S | 4.46 | ||
| P/FCF | N/A | ||
| P/OCF | 11.3 | ||
| P/B | 1.91 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 12.85 |
EPS(TTM)0.29
EY2.12%
EPS(NY)0.31
Fwd EY2.27%
FCF(TTM)-1.11
FCFYN/A
OCF(TTM)1.21
OCFY8.85%
SpS3.06
BVpS7.16
TBVpS5.04
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 3.61% | ||
| ROCE | 4.84% | ||
| ROIC | 3.82% | ||
| ROICexc | 3.86% | ||
| ROICexgc | 4.31% | ||
| OM | 35.82% | ||
| PM (TTM) | 8.43% | ||
| GM | 78.72% | ||
| 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%
ROICexcg growth 3Y17.8%
ROICexcg 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-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.61 | ||
| Cap/Depr | 205.16% | ||
| Cap/Sales | 75.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.01 |
F-Score6
WACC7.04%
ROIC/WACC0.54
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)252.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y-5.85%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue 1Y (TTM)3.01%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.98%
Revenue Next Year2.22%
Revenue Next 2Y2.53%
Revenue Next 3Y1.54%
Revenue Next 5Y2.82%
EBIT growth 1Y4.57%
EBIT growth 3Y15.23%
EBIT growth 5Y8.21%
EBIT Next Year142.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-35.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.9%
OCF growth 3Y-6.7%
OCF growth 5Y-1.1%