GLADSTONE COMMERCIAL CORP (GOOD)
US3765361080 - REIT
Overall GOOD gets a fundamental rating of 3 out of 10. We evaluated GOOD against 127 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
GOOD had negative earnings in the past year.
GOOD had a positive operating cash flow in the past year.
In the past 5 years GOOD reported 4 times negative net income.
Each year in the past 5 years GOOD had a positive operating cash flow.
1.2 Ratios
GOOD's Return On Assets of -0.68% is on the low side compared to the rest of the industry. GOOD is outperformed by 64.80% of its industry peers.
Looking at the Return On Equity, with a value of -2.36%, GOOD is doing worse than 64.80% of the companies in the same industry.
GOOD has a Return On Invested Capital of 3.82%. This is in the better half of the industry: GOOD outperforms 77.60% of its industry peers.
GOOD had an Average Return On Invested Capital over the past 3 years of 3.01%. This is in line with the industry average of 3.01%.
The 3 year average ROIC (3.01%) for GOOD is below the current ROIC(3.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.68% | ||
| ROE | -2.36% | ||
| ROIC | 3.82% |
ROA(3y)-0.44%
ROA(5y)-0.3%
ROE(3y)-1.48%
ROE(5y)-0.99%
ROIC(3y)3.01%
ROIC(5y)2.9%
1.3 Margins
GOOD has a better Operating Margin (35.29%) than 79.20% of its industry peers.
In the last couple of years the Operating Margin of GOOD has remained more or less at the same level.
The Gross Margin of GOOD (78.87%) is better than 78.40% of its industry peers.
GOOD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.29% | ||
| PM (TTM) | N/A | ||
| GM | 78.87% |
OM growth 3Y7.49%
OM growth 5Y0.58%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.77%
GM growth 5Y-1.62%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GOOD is destroying value.
Compared to 1 year ago, GOOD has more shares outstanding
Compared to 5 years ago, GOOD has more shares outstanding
GOOD has a worse debt/assets ratio than last year.
2.2 Solvency
GOOD has an Altman-Z score of 0.01. This is a bad value and indicates that GOOD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.01, GOOD is not doing good in the industry: 81.60% of the companies in the same industry are doing better.
The Debt to FCF ratio of GOOD is 28.87, which is on the high side as it means it would take GOOD, 28.87 years of fcf income to pay off all of its debts.
GOOD has a Debt to FCF ratio of 28.87. This is comparable to the rest of the industry: GOOD outperforms 54.40% of its industry peers.
GOOD has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.22, GOOD is doing worse than 76.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 28.87 | ||
| Altman-Z | 0.01 |
ROIC/WACC0.57
WACC6.74%
2.3 Liquidity
GOOD has a Current Ratio of 0.81. This is a bad value and indicates that GOOD is not financially healthy enough and could expect problems in meeting its short term obligations.
GOOD's Current ratio of 0.81 is on the low side compared to the rest of the industry. GOOD is outperformed by 71.20% of its industry peers.
GOOD has a Quick Ratio of 0.81. This is a bad value and indicates that GOOD is not financially healthy enough and could expect problems in meeting its short term obligations.
GOOD's Quick ratio of 0.29 is on the low side compared to the rest of the industry. GOOD is outperformed by 88.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
GOOD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.73%.
Looking at the last year, GOOD shows a decrease in Revenue. The Revenue has decreased by -2.17% in the last year.
GOOD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.68% yearly.
EPS 1Y (TTM)-72.73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)-2.17%
Revenue growth 3Y3.48%
Revenue growth 5Y6.68%
Sales Q2Q%-2.28%
3.2 Future
Based on estimates for the next years, GOOD will show a very strong growth in Earnings Per Share. The EPS will grow by 44.54% on average per year.
The Revenue is expected to grow by 2.63% on average over the next years.
EPS Next Y118.55%
EPS Next 2Y53.98%
EPS Next 3Y44.54%
EPS Next 5YN/A
Revenue Next Year-3.15%
Revenue Next 2Y-0.51%
Revenue Next 3Y-0.42%
Revenue Next 5Y2.63%
3.3 Evolution
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
GOOD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 184.31, the valuation of GOOD can be described as expensive.
GOOD's Price/Forward Earnings ratio is in line with the industry average.
GOOD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 184.31 |
4.2 Price Multiples
GOOD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOD is cheaper than 68.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GOOD is valued a bit cheaper than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.03 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
GOOD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GOOD's earnings are expected to grow with 44.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y53.98%
EPS Next 3Y44.54%
5. Dividend
5.1 Amount
GOOD has a Yearly Dividend Yield of 8.22%, which is a nice return.
Compared to an average industry Dividend Yield of 5.52, GOOD pays a better dividend. On top of this GOOD pays more dividend than 87.20% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.22% |
5.2 History
The dividend of GOOD decreases each year by -3.92%.
GOOD has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.92%
Div Incr Years0
Div Non Decr Years0
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-811.27%
EPS Next 2Y53.98%
EPS Next 3Y44.54%
GLADSTONE COMMERCIAL CORP
NASDAQ:GOOD (7/26/2024, 7:00:01 PM)
After market: 15.04 0 (0%)15.04
+0.37 (+2.52%)
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 Cap648.52M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.22% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 184.31 | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.68% | ||
| ROE | -2.36% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.29% | ||
| PM (TTM) | N/A | ||
| GM | 78.87% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.29 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-72.73%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y118.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.17%
Revenue growth 3Y3.48%
Revenue growth 5Y
Sales 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