GLADSTONE INVESTMENT CORP (GAIN) Stock Fundamental Analysis
NASDAQ:GAIN - Nasdaq - US3765461070 - Common Stock - Currency: USD
Taking everything into account, GAIN scores 3 out of 10 in our fundamental rating. GAIN was compared to 225 industry peers in the Capital Markets industry. GAIN has a medium profitability rating, but doesn't score so well on its financial health evaluation. GAIN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
GAIN had positive earnings in the past year.
GAIN had a negative operating cash flow in the past year.
GAIN had positive earnings in 4 of the past 5 years.
In multiple years GAIN reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of GAIN (6.44%) is better than 80.37% of its industry peers.
With a decent Return On Equity value of 14.29%, GAIN is doing good in the industry, outperforming 75.34% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.10%, GAIN is in line with its industry, outperforming 52.97% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GAIN is below the industry average of 6.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 14.29% | ||
| ROIC | 4.1% |
ROA(3y)9.18%
ROA(5y)6.58%
ROE(3y)16.11%
ROE(5y)11.5%
ROIC(3y)4.35%
ROIC(5y)5.63%
1.3 Margins
With an excellent Profit Margin value of 59.64%, GAIN belongs to the best of the industry, outperforming 93.61% of the companies in the same industry.
GAIN's Profit Margin has improved in the last couple of years.
GAIN has a better Operating Margin (45.86%) than 80.82% of its industry peers.
GAIN's Operating Margin has declined in the last couple of years.
GAIN's Gross Margin of 40.85% is on the low side compared to the rest of the industry. GAIN is outperformed by 64.84% of its industry peers.
GAIN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.86% | ||
| PM (TTM) | 59.64% | ||
| GM | 40.85% |
OM growth 3Y0.9%
OM growth 5Y-5.7%
PM growth 3Y5.1%
PM growth 5Y2.66%
GM growth 3Y-9.39%
GM growth 5Y-11.13%
2. Health
2.1 Basic Checks
The number of shares outstanding for GAIN has been increased compared to 1 year ago.
GAIN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GAIN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that GAIN is in the distress zone and has some risk of bankruptcy.
GAIN has a Altman-Z score (0.72) which is in line with its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that GAIN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.12, GAIN is in line with its industry, outperforming 46.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.24 indicates that GAIN may have some problems paying its short term obligations.
GAIN has a worse Current ratio (0.24) than 85.39% of its industry peers.
A Quick Ratio of 0.24 indicates that GAIN may have some problems paying its short term obligations.
With a Quick ratio value of 0.24, GAIN is not doing good in the industry: 85.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The earnings per share for GAIN have decreased by -5.94% in the last year.
Measured over the past years, GAIN shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.90% on average per year.
The Revenue has decreased by -8.68% in the past year.
GAIN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.72% yearly.
EPS 1Y (TTM)-5.94%
EPS 3Y22.39%
EPS 5Y33.9%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-8.68%
Revenue growth 3Y20.02%
Revenue growth 5Y-1.72%
Sales Q2Q%7.3%
3.2 Future
The Earnings Per Share is expected to decrease by -2.01% on average over the next years.
Based on estimates for the next years, GAIN will show a small growth in Revenue. The Revenue will grow by 6.74% on average per year.
EPS Next Y-1.43%
EPS Next 2Y-2.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.98%
Revenue Next 2Y6.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
GAIN is valuated correctly with a Price/Earnings ratio of 14.35.
GAIN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of GAIN to the average of the S&P500 Index (29.63), we can say GAIN is valued rather cheaply.
A Price/Forward Earnings ratio of 14.34 indicates a correct valuation of GAIN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GAIN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GAIN to the average of the S&P500 Index (22.68), we can say GAIN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as GAIN's earnings are expected to decrease with -2.01% in the coming years.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-2.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GAIN has a Yearly Dividend Yield of 6.97%, which is a nice return.
Compared to an average industry Dividend Yield of 9.98, GAIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, GAIN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.97% |
5.2 History
On average, the dividend of GAIN grows each year by 18.35%, which is quite nice.
GAIN has paid a dividend for at least 10 years, which is a reliable track record.
GAIN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)18.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
86.81% of the earnings are spent on dividend by GAIN. This is not a sustainable payout ratio.
GAIN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP86.81%
EPS Next 2Y-2.01%
EPS Next 3YN/A
13.63
-0.14 (-1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners14.46%
Inst Owner Change-83.59%
Ins Owners2.3%
Ins Owner Change0%
Market Cap500.08M
Analysts76.36
Price Target14.08 (3.3%)
Short Float %7.89%
Short Ratio23.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.97% |
Yearly Dividend2.16
Dividend Growth(5Y)18.35%
DP86.81%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.96%
Min EPS beat(2)-5.12%
Max EPS beat(2)-2.81%
EPS beat(4)0
Avg EPS beat(4)-6.54%
Min EPS beat(4)-10.87%
Max EPS beat(4)-2.81%
EPS beat(8)0
Avg EPS beat(8)-6.35%
EPS beat(12)3
Avg EPS beat(12)-0.45%
EPS beat(16)4
Avg EPS beat(16)-15.66%
Revenue beat(2)0
Avg Revenue beat(2)-4.83%
Min Revenue beat(2)-7.04%
Max Revenue beat(2)-2.61%
Revenue beat(4)1
Avg Revenue beat(4)-4.77%
Min Revenue beat(4)-9.57%
Max Revenue beat(4)0.14%
Revenue beat(8)1
Avg Revenue beat(8)-9.71%
Revenue beat(12)4
Avg Revenue beat(12)-2.82%
Revenue beat(16)8
Avg Revenue beat(16)8.22%
PT rev (1m)2.22%
PT rev (3m)-0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.7%
EPS NY rev (1m)10.38%
EPS NY rev (3m)-3.69%
Revenue NQ rev (1m)2.65%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 14.34 | ||
| P/S | 4.26 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.95
EY6.97%
EPS(NY)0.95
Fwd EY6.97%
FCF(TTM)-2.47
FCFYN/A
OCF(TTM)-2.47
OCFYN/A
SpS3.2
BVpS13.36
TBVpS13.36
PEG (NY)N/A
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 14.29% | ||
| ROCE | 5.19% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 4.12% | ||
| OM | 45.86% | ||
| PM (TTM) | 59.64% | ||
| GM | 40.85% | ||
| FCFM | N/A |
ROA(3y)9.18%
ROA(5y)6.58%
ROE(3y)16.11%
ROE(5y)11.5%
ROIC(3y)4.35%
ROIC(5y)5.63%
ROICexc(3y)4.38%
ROICexc(5y)5.66%
ROICexgc(3y)4.39%
ROICexgc(5y)5.68%
ROCE(3y)5.5%
ROCE(5y)7.13%
ROICexcg growth 3Y7.59%
ROICexcg growth 5Y-14.13%
ROICexc growth 3Y7.61%
ROICexc growth 5Y-14.12%
OM growth 3Y0.9%
OM growth 5Y-5.7%
PM growth 3Y5.1%
PM growth 5Y2.66%
GM growth 3Y-9.39%
GM growth 5Y-11.13%
F-Score1
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 0.72 |
F-Score1
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.94%
EPS 3Y22.39%
EPS 5Y33.9%
EPS Q2Q%-11.54%
EPS Next Y-1.43%
EPS Next 2Y-2.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-8.68%
Revenue growth 3Y20.02%
Revenue growth 5Y-1.72%
Sales Q2Q%7.3%
Revenue Next Year4.98%
Revenue Next 2Y6.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-24.34%
EBIT growth 3Y21.1%
EBIT growth 5Y-7.32%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-462.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-462.69%
OCF growth 3YN/A
OCF growth 5YN/A