11.31 USD
-0.1 (-0.88%)
11.4 USD
+0.09 (+0.8%)
Taking everything into account, GOOD scores 3 out of 10 in our fundamental rating. GOOD was compared to 124 industry peers in the Diversified REITs industry. There are concerns on the financial health of GOOD while its profitability can be described as average. GOOD has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year GOOD was profitable.
- In the past year GOOD had a positive cash flow from operations.
- In multiple years GOOD reported negative net income over the last 5 years.
- In the past 5 years GOOD always reported a positive cash flow from operatings.
1.2 Ratios
- GOOD has a Return On Assets (0.66%) which is comparable to the rest of the industry.
- With a Return On Equity value of 2.35%, GOOD perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.64%, GOOD is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
- GOOD had an Average Return On Invested Capital over the past 3 years of 3.53%. This is in line with the industry average of 3.05%.
- The last Return On Invested Capital (3.64%) for GOOD is above the 3 year average (3.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 2.35% | ||
| ROIC | 3.64% |
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
- With a Profit Margin value of 5.36%, GOOD perfoms like the industry average, outperforming 54.03% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 36.74%, GOOD is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
- In the last couple of years the Operating Margin of GOOD has grown nicely.
- The Gross Margin of GOOD (77.68%) is better than 77.42% 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 | 36.74% | ||
| PM (TTM) | 5.36% | ||
| GM | 77.68% |
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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GOOD is destroying value.
- The number of shares outstanding for GOOD has been increased compared to 1 year ago.
- Compared to 5 years ago, GOOD has more shares outstanding
- Compared to 1 year ago, GOOD has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -0.08, we must say that GOOD is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of -0.08, GOOD is not doing good in the industry: 78.23% of the companies in the same industry are doing better.
- GOOD has a Debt/Equity ratio of 2.37. This is a high value indicating a heavy dependency on external financing.
- GOOD's Debt to Equity ratio of 2.37 is on the low side compared to the rest of the industry. GOOD is outperformed by 73.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.08 |
ROIC/WACC0.54
WACC6.68%
2.3 Liquidity
- A Current Ratio of 0.68 indicates that GOOD may have some problems paying its short term obligations.
- GOOD's Current ratio of 0.68 is on the low side compared to the rest of the industry. GOOD is outperformed by 67.74% of its industry peers.
- A Quick Ratio of 0.68 indicates that GOOD may have some problems paying its short term obligations.
- With a Quick ratio value of 0.68, GOOD is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- GOOD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.00%.
- GOOD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.95%.
- The Revenue has been growing slightly by 5.48% on average over the past years.
EPS 1Y (TTM)-10%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-90%
Revenue 1Y (TTM)4.95%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.09%
3.2 Future
- Based on estimates for the next years, GOOD will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.38% on average per year.
- GOOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.16% yearly.
EPS Next Y-54.23%
EPS Next 2Y-22.65%
EPS Next 3Y-14.38%
EPS Next 5YN/A
Revenue Next Year6.02%
Revenue Next 2Y6.15%
Revenue Next 3Y5.74%
Revenue Next 5Y3.16%
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 62.83, the valuation of GOOD can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of GOOD is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, GOOD is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 72.71, the valuation of GOOD can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as GOOD.
- When comparing the Price/Forward Earnings ratio of GOOD to the average of the S&P500 Index (25.98), we can say GOOD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.83 | ||
| Fwd PE | 72.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GOOD is valued a bit cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
- GOOD has a very decent profitability rating, which may justify a higher PE ratio.
- GOOD's earnings are expected to decrease with -14.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.65%
EPS Next 3Y-14.38%
5. Dividend
5.1 Amount
- GOOD has a Yearly Dividend Yield of 10.44%, which is a nice return.
- GOOD's Dividend Yield is rather good when compared to the industry average which is at 6.82. GOOD pays more dividend than 91.13% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GOOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.44% |
5.2 History
- The dividend of GOOD decreases each year by -4.40%.
- GOOD has paid a dividend for at least 10 years, which is 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
- 803.10% of the earnings are spent on dividend by GOOD. This is not a sustainable payout ratio.
- The Dividend Rate of GOOD has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP803.1%
EPS Next 2Y-22.65%
EPS Next 3Y-14.38%
GLADSTONE COMMERCIAL CORP / GOOD FAQ
What is the fundamental rating for GOOD stock?
ChartMill assigns a fundamental rating of 3 / 10 to GOOD.
What is the valuation status of GLADSTONE COMMERCIAL CORP (GOOD) stock?
ChartMill assigns a valuation rating of 2 / 10 to GLADSTONE COMMERCIAL CORP (GOOD). This can be considered as Overvalued.
What is the profitability of GOOD stock?
GLADSTONE COMMERCIAL CORP (GOOD) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for GOOD stock?
The Price/Earnings (PE) ratio for GLADSTONE COMMERCIAL CORP (GOOD) is 62.83 and the Price/Book (PB) ratio is 1.64.
How financially healthy is GLADSTONE COMMERCIAL CORP?
The financial health rating of GLADSTONE COMMERCIAL CORP (GOOD) is 0 / 10.