GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis
NASDAQ:GOOD - Nasdaq - US3765361080 - REIT - Currency: USD
Taking everything into account, GOOD scores 4 out of 10 in our fundamental rating. GOOD was compared to 130 industry peers in the Diversified REITs industry. While GOOD is still in line with the averages on profitability rating, there are concerns on its financial health. GOOD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GOOD had positive earnings in the past year.
GOOD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: GOOD reported negative net income in multiple years.
In the past 5 years GOOD always reported a positive cash flow from operatings.
1.2 Ratios
GOOD has a Return On Assets (1.02%) which is comparable to the rest of the industry.
GOOD's Return On Equity of 3.26% is fine compared to the rest of the industry. GOOD outperforms 62.31% of its industry peers.
GOOD has a Return On Invested Capital of 4.00%. This is in the better half of the industry: GOOD outperforms 76.15% 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 3.19%.
The 3 year average ROIC (3.53%) for GOOD is below the current ROIC(4.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.02% | ||
| ROE | 3.26% | ||
| ROIC | 4% |
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
Looking at the Profit Margin, with a value of 7.45%, GOOD is in line with its industry, outperforming 58.46% of the companies in the same industry.
With a decent Operating Margin value of 35.75%, GOOD is doing good in the industry, outperforming 78.46% of the companies in the same industry.
GOOD's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 79.16%, GOOD is doing good in the industry, outperforming 79.23% of the companies in the same industry.
GOOD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.75% | ||
| PM (TTM) | 7.45% | ||
| GM | 79.16% |
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.
GOOD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GOOD has more shares outstanding
The debt/assets ratio for GOOD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.04, we must say that GOOD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GOOD (0.04) is worse than 73.85% of its industry peers.
The Debt to FCF ratio of GOOD is 41.28, which is on the high side as it means it would take GOOD, 41.28 years of fcf income to pay off all of its debts.
GOOD has a Debt to FCF ratio of 41.28. This is comparable to the rest of the industry: GOOD outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.97 is on the high side and indicates that GOOD has dependencies on debt financing.
With a Debt to Equity ratio value of 1.97, GOOD is not doing good in the industry: 71.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 41.28 | ||
| Altman-Z | 0.04 |
ROIC/WACC0.57
WACC7.01%
2.3 Liquidity
GOOD has a Current Ratio of 0.85. This is a bad value and indicates that GOOD is not financially healthy enough and could expect problems in meeting its short term obligations.
GOOD's Current ratio of 0.85 is in line compared to the rest of the industry. GOOD outperforms 48.46% of its industry peers.
GOOD has a Quick Ratio of 0.85. 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 (0.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
GOOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 218.18%, which is quite impressive.
Looking at the last year, GOOD shows a small growth in Revenue. The Revenue has grown by 1.23% in the last year.
GOOD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.48% yearly.
EPS 1Y (TTM)218.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.08%
3.2 Future
The Earnings Per Share is expected to grow by 17.17% on average over the next years. This is quite good.
Based on estimates for the next years, GOOD will show a small growth in Revenue. The Revenue will grow by 2.82% on average per year.
EPS Next Y-30.37%
EPS Next 2Y-6.57%
EPS Next 3Y17.17%
EPS Next 5YN/A
Revenue Next Year0.97%
Revenue Next 2Y1.78%
Revenue Next 3Y1.67%
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
With a Price/Earnings ratio of 54.27, GOOD can be considered very expensive at the moment.
GOOD's Price/Earnings ratio is in line with the industry average.
GOOD is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 77.93, GOOD can be considered very expensive at the moment.
GOOD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, GOOD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.27 | ||
| Fwd PE | 77.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOD is valued a bit cheaper than 63.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GOOD is valued a bit cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.01 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
The decent profitability rating of GOOD may justify a higher PE ratio.
GOOD's earnings are expected to grow with 17.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.57%
EPS Next 3Y17.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.47%, GOOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 16.87, GOOD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, GOOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.47% |
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
564.23% of the earnings are spent on dividend by GOOD. This is not a sustainable payout ratio.
DP564.23%
EPS Next 2Y-6.57%
EPS Next 3Y17.17%
14.11
-0.06 (-0.42%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners47.99%
Inst Owner Change0.35%
Ins Owners1.27%
Ins Owner Change0.08%
Market Cap688.85M
Analysts78.18
Price Target17.24 (22.18%)
Short Float %1.97%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.47% |
Yearly Dividend1.48
Dividend Growth(5Y)-4.4%
DP564.23%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)263.32%
Min EPS beat(2)13.85%
Max EPS beat(2)512.8%
EPS beat(4)3
Avg EPS beat(4)-27.67%
Min EPS beat(4)-884.31%
Max EPS beat(4)512.8%
EPS beat(8)5
Avg EPS beat(8)-90.03%
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)0.23%
Min Revenue beat(2)-3.67%
Max Revenue beat(2)4.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-3.67%
Max Revenue beat(4)4.13%
Revenue beat(8)3
Avg Revenue beat(8)-1.97%
Revenue beat(12)4
Avg Revenue beat(12)-1.76%
Revenue beat(16)5
Avg Revenue beat(16)-1.89%
PT rev (1m)-1.17%
PT rev (3m)-1.74%
EPS NQ rev (1m)8.33%
EPS NQ rev (3m)-38.1%
EPS NY rev (1m)-33.64%
EPS NY rev (3m)-33.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.27 | ||
| Fwd PE | 77.93 | ||
| P/S | 4.61 | ||
| P/FCF | 41.01 | ||
| P/OCF | 12.1 | ||
| P/B | 2.02 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 12.59 |
EPS(TTM)0.26
EY1.84%
EPS(NY)0.18
Fwd EY1.28%
FCF(TTM)0.34
FCFY2.44%
OCF(TTM)1.17
OCFY8.27%
SpS3.06
BVpS6.99
TBVpS5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.02% | ||
| ROE | 3.26% | ||
| ROCE | 5.06% | ||
| ROIC | 4% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 4.53% | ||
| OM | 35.75% | ||
| PM (TTM) | 7.45% | ||
| GM | 79.16% | ||
| FCFM | 11.25% |
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-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 41.28 | ||
| Debt/EBITDA | 6.17 | ||
| Cap/Depr | 71.98% | ||
| Cap/Sales | 26.88% | ||
| Interest Coverage | 1.5 | ||
| Cash Conversion | 52.16% | ||
| Profit Quality | 150.96% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.04 |
F-Score7
WACC7.01%
ROIC/WACC0.57
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)218.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y-30.37%
EPS Next 2Y-6.57%
EPS Next 3Y17.17%
EPS Next 5YN/A
Revenue 1Y (TTM)1.23%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.08%
Revenue Next Year0.97%
Revenue Next 2Y1.78%
Revenue Next 3Y1.67%
Revenue Next 5Y2.82%
EBIT growth 1Y5.19%
EBIT growth 3Y15.23%
EBIT growth 5Y8.21%
EBIT Next Year133.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-29.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.66%
OCF growth 3Y-6.7%
OCF growth 5Y-1.1%