GLADSTONE COMMERCIAL CORP (GOOD)

US3765361080 - REIT

13.84  +0.27 (+1.99%)

After market: 13.9992 +0.16 (+1.15%)

Fundamental Rating

3

Taking everything into account, GOOD scores 3 out of 10 in our fundamental rating. GOOD was compared to 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.



4

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.
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

With a Return On Assets value of -0.68%, GOOD is not doing good in the industry: 68.55% of the companies in the same industry are doing better.
With a Return On Equity value of -2.40%, GOOD is not doing good in the industry: 68.55% of the companies in the same industry are doing better.
GOOD's Return On Invested Capital of 3.61% is fine compared to the rest of the industry. GOOD outperforms 75.81% 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 2.93%.
The 3 year average ROIC (2.98%) for GOOD is below the current ROIC(3.61%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.68%
ROE -2.4%
ROIC 3.61%
ROA(3y)-0.44%
ROA(5y)-0.3%
ROE(3y)-1.48%
ROE(5y)-0.99%
ROIC(3y)2.98%
ROIC(5y)2.88%

1.3 Margins

GOOD's Operating Margin of 34.40% is fine compared to the rest of the industry. GOOD outperforms 77.42% 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 (78.37%) is better than 77.42% of its industry peers.
In the last couple of years the Gross Margin of GOOD has declined.
Industry RankSector Rank
OM 34.4%
PM (TTM) N/A
GM 78.37%
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%

1

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.
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.
GOOD has a Altman-Z score of 0.01. This is in the lower half of the industry: GOOD underperforms 79.03% of its industry peers.
GOOD has a debt to FCF ratio of 31.21. This is a negative value and a sign of low solvency as GOOD would need 31.21 years to pay back of all of its debts.
The Debt to FCF ratio of GOOD (31.21) is comparable to the rest of the industry.
GOOD has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.29, GOOD is not doing good in the industry: 78.23% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.29
Debt/FCF 31.21
Altman-Z 0.01
ROIC/WACC0.52
WACC6.98%

2.3 Liquidity

GOOD has a Current Ratio of 1.92. This is a normal value and indicates that GOOD is financially healthy and should not expect problems in meeting its short term obligations.
GOOD has a better Current ratio (1.92) than 78.23% of its industry peers.
GOOD has a Quick Ratio of 1.92. 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 (0.56) is worse than 76.61% of its industry peers.
Industry RankSector Rank
Current Ratio 1.92
Quick Ratio 0.56

3

3. Growth

3.1 Past

The earnings per share for GOOD have decreased strongly by -175.00% in the last year.
GOOD shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
Measured over the past years, GOOD shows a small growth in Revenue. The Revenue has been growing by 6.68% on average per year.
EPS 1Y (TTM)-175%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q200%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y3.48%
Revenue growth 5Y6.68%
Revenue growth Q2Q-3.52%

3.2 Future

GOOD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.66% yearly.
Based on estimates for the next years, GOOD will show a small growth in Revenue. The Revenue will grow by 2.63% on average per year.
EPS Next Y104.64%
EPS Next 2Y44.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.24%
Revenue Next 2Y0.72%
Revenue Next 3Y3.08%
Revenue Next 5Y2.63%

3.3 Evolution

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

3

4. Valuation

4.1 Price/Earnings Ratio

GOOD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 1356.86 indicates a quite expensive valuation of GOOD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOD is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, GOOD is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 1356.86

4.2 Price Multiples

GOOD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOD is cheaper than 75.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOD indicates a somewhat cheap valuation: GOOD is cheaper than 66.13% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 24.79
EV/EBITDA 12.09

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GOOD's earnings are expected to grow with 44.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.66%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

GOOD has a Yearly Dividend Yield of 8.82%, which is a nice return.
GOOD's Dividend Yield is rather good when compared to the industry average which is at 5.72. GOOD pays more dividend than 86.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GOOD pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.82%

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-782.7%
EPS Next 2Y44.66%
EPS Next 3YN/A

GLADSTONE COMMERCIAL CORP

NASDAQ:GOOD (3/28/2024, 8:13:54 PM)

After market: 13.9992 +0.16 (+1.15%)

13.84

+0.27 (+1.99%)

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 Cap586.82M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 8.82%
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)
Max EPS beat(2)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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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 1356.86
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 -0.68%
ROE -2.4%
ROCE
ROIC
ROICexc
ROICexgc
OM 34.4%
PM (TTM) N/A
GM 78.37%
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 2.29
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.92
Quick Ratio 0.56
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)-175%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y104.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y3.48%
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