GLADSTONE INVESTMENT CORP (GAIN)
US3765461070 - Common Stock
Taking everything into account, GAIN scores 3 out of 10 in our fundamental rating. GAIN was compared to 221 industry peers in the Capital Markets industry. While GAIN is still in line with the averages on profitability rating, there are concerns on its financial health. GAIN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GAIN was profitable.
In the past year GAIN has reported a negative cash flow from operations.
Of the past 5 years GAIN 4 years were profitable.
In multiple years GAIN reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.66%, GAIN belongs to the top of the industry, outperforming 82.03% of the companies in the same industry.
GAIN has a better Return On Equity (14.66%) than 75.12% of its industry peers.
With a decent Return On Invested Capital value of 4.96%, GAIN is doing good in the industry, outperforming 62.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GAIN is significantly below the industry average of 17.66%.
The last Return On Invested Capital (4.96%) for GAIN is above the 3 year average (4.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 14.66% | ||
| ROIC | 4.96% |
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
Looking at the Profit Margin, with a value of 59.17%, GAIN belongs to the top of the industry, outperforming 91.71% of the companies in the same industry.
GAIN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 46.37%, GAIN is in the better half of the industry, outperforming 78.80% of the companies in the same industry.
GAIN's Operating Margin has declined in the last couple of years.
GAIN has a worse Gross Margin (40.45%) than 66.82% of its industry peers.
GAIN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.37% | ||
| PM (TTM) | 59.17% | ||
| GM | 40.45% |
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
GAIN has more shares outstanding than it did 1 year ago.
GAIN has more shares outstanding than it did 5 years ago.
GAIN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that GAIN is in the distress zone and has some risk of bankruptcy.
GAIN has a Altman-Z score (0.90) which is in line with its industry peers.
A Debt/Equity ratio of 0.83 indicates that GAIN is somewhat dependend on debt financing.
GAIN has a Debt to Equity ratio of 0.83. This is comparable to the rest of the industry: GAIN outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.27 indicates that GAIN may have some problems paying its short term obligations.
With a Current ratio value of 0.27, GAIN is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
GAIN has a Quick Ratio of 0.27. This is a bad value and indicates that GAIN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.27, GAIN is doing worse than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
GAIN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.78%.
The Earnings Per Share has been growing by 33.90% on average over the past years. This is a very strong growth
Looking at the last year, GAIN shows a very strong growth in Revenue. The Revenue has grown by 31.42%.
GAIN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.72% yearly.
EPS 1Y (TTM)-14.78%
EPS 3Y22.39%
EPS 5Y33.9%
EPS Q2Q%-4%
Revenue 1Y (TTM)31.42%
Revenue growth 3Y20.02%
Revenue growth 5Y-1.72%
Sales Q2Q%9.25%
3.2 Future
The Earnings Per Share is expected to grow by 0.26% 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 3.59% on average per year.
EPS Next Y0.97%
EPS Next 2Y0.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.02%
Revenue Next 2Y3.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GAIN is valuated correctly with a Price/Earnings ratio of 12.77.
The rest of the industry has a similar Price/Earnings ratio as GAIN.
GAIN is valuated cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.57, GAIN is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as GAIN.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.22, GAIN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GAIN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)13.16
PEG (5Y)0.38
EPS Next 2Y0.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.48%, GAIN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.80, GAIN has a dividend in line with its industry peers.
GAIN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
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
103.96% of the earnings are spent on dividend by GAIN. This is not a sustainable payout ratio.
The dividend of GAIN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP103.96%
EPS Next 2Y0.26%
EPS Next 3YN/A
GLADSTONE INVESTMENT CORP
NASDAQ:GAIN (9/6/2024, 8:16:03 PM)
After market: 12.6867 +0.18 (+1.41%)12.51
-0.16 (-1.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap458.99M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
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)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 12.57 | ||
| 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)13.16
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 14.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 46.37% | ||
| PM (TTM) | 59.17% | ||
| GM | 40.45% | ||
| 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 | 0.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| 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)-14.78%
EPS 3Y22.39%
EPS 5Y
EPS Q2Q%
EPS Next Y0.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)31.42%
Revenue growth 3Y20.02%
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