GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis
NASDAQ:GOOD - US3765361080 - REIT
13.32 USD
-0.13 (-0.97%)
13.3 USD
-0.02 (-0.15%)
GOOD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 129 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
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 of 1.31%. This is comparable to the rest of the industry: GOOD outperforms 58.91% of its industry peers.
GOOD's Return On Equity of 4.55% is fine compared to the rest of the industry. GOOD outperforms 65.12% of its industry peers.
GOOD has a Return On Invested Capital of 3.84%. This is in the better half of the industry: GOOD outperforms 74.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GOOD is in line with the industry average of 3.04%.
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 (10.29%) which is comparable to the rest of the industry.
With an excellent Operating Margin value of 37.40%, GOOD belongs to the best of the industry, outperforming 81.40% 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 78.29% 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
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
The number of shares outstanding for GOOD has been increased compared to 5 years ago.
The debt/assets ratio for GOOD has been reduced compared to a year ago.
2.2 Solvency
GOOD has an Altman-Z score of -0.02. This is a bad value and indicates that GOOD is not financially healthy and even has some risk of bankruptcy.
GOOD's Altman-Z score of -0.02 is on the low side compared to the rest of the industry. GOOD is outperformed by 74.42% of its industry peers.
A Debt/Equity ratio of 2.30 is on the high side and indicates that GOOD has dependencies on debt financing.
GOOD's Debt to Equity ratio of 2.30 is on the low side compared to the rest of the industry. GOOD is outperformed by 75.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.02 |
ROIC/WACC0.55
WACC6.94%
2.3 Liquidity
A Current Ratio of 0.54 indicates that GOOD may have some problems paying its short term obligations.
GOOD's Current ratio of 0.54 is on the low side compared to the rest of the industry. GOOD is outperformed by 77.52% of its industry peers.
GOOD has a Quick 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.
The Quick ratio of GOOD (0.43) is worse than 78.29% 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 has grown by an impressive 1000.00% over the past year.
GOOD shows a small growth in Revenue. In the last year, the Revenue has grown by 5.85%.
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)1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%175%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%6.68%
3.2 Future
The Earnings Per Share is expected to grow by 7.88% on average over the next years.
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-18.92%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue Next Year4.93%
Revenue Next 2Y4.66%
Revenue Next 3Y3.34%
Revenue Next 5Y2.82%
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
The Price/Earnings ratio is 37.00, which means the current valuation is very expensive for GOOD.
GOOD's Price/Earnings is on the same level as the industry average.
GOOD's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.90.
GOOD is valuated quite expensively with a Price/Forward Earnings ratio of 43.05.
Based on the Price/Forward Earnings ratio, GOOD is valued a bit cheaper than the industry average as 62.79% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.52. GOOD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37 | ||
| Fwd PE | 43.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOD indicates a somewhat cheap valuation: GOOD is cheaper than 69.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.98 |
4.3 Compensation for Growth
GOOD has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 9.02%, GOOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.14, GOOD pays a better dividend. On top of this GOOD pays more dividend than 84.50% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.02% |
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.
GOOD has decreased its dividend 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 2Y9.09%
EPS Next 3Y7.88%
13.32
-0.13 (-0.97%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners48.46%
Inst Owner Change4.45%
Ins Owners1.21%
Ins Owner Change0.05%
Market Cap660.94M
Analysts78.18
Price Target15.2 (14.11%)
Short Float %4.2%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.02% |
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)-5.7%
PT rev (3m)-11.83%
EPS NQ rev (1m)5.88%
EPS NQ rev (3m)12.51%
EPS NY rev (1m)-13.89%
EPS NY rev (3m)14.82%
Revenue NQ rev (1m)3.47%
Revenue NQ rev (3m)4.53%
Revenue NY rev (1m)2.65%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37 | ||
| Fwd PE | 43.05 | ||
| P/S | 4.3 | ||
| P/FCF | N/A | ||
| P/OCF | 8.07 | ||
| P/B | 1.9 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 12.98 |
EPS(TTM)0.36
EY2.7%
EPS(NY)0.31
Fwd EY2.32%
FCF(TTM)-2.07
FCFYN/A
OCF(TTM)1.65
OCFY12.39%
SpS3.1
BVpS7
TBVpS4.66
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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 | -0.02 |
F-Score5
WACC6.94%
ROIC/WACC0.55
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)1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%175%
EPS Next Y-18.92%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue 1Y (TTM)5.85%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%6.68%
Revenue Next Year4.93%
Revenue Next 2Y4.66%
Revenue Next 3Y3.34%
Revenue Next 5Y2.82%
EBIT growth 1Y12.44%
EBIT growth 3Y15.23%
EBIT growth 5Y8.21%
EBIT Next Year137.16%
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%