GLADSTONE COMMERCIAL CORP(NASDAQ:GOOD) stock Fundamental Analysis

Fundamental Rating

GOOD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 129 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 valued expensive and it does not seem to be growing.

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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.

GOOD had negative earnings in 4 of the past 5 years.

Of the past 5 years GOOD 4 years had a positive operating cash flow.

1.2 Ratios

GOOD's Return On Assets of 0.77% is in line compared to the rest of the industry. GOOD outperforms 51.59% of its industry peers.

GOOD has a Return On Equity (2.50%) which is in line with its industry peers.

The Return On Invested Capital of GOOD (3.89%) is better than 76.98% 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 3.11%.

The 3 year average ROIC (3.01%) for GOOD is below the current ROIC(3.89%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	0.77%
ROE	2.5%
ROIC	3.89%

ROA(3y)-0.44%

ROA(5y)-0.3%

ROE(3y)-1.48%

ROE(5y)-0.99%

ROIC(3y)3.01%

ROIC(5y)2.9%

1.3 Margins

Looking at the Profit Margin, with a value of 5.73%, GOOD is in line with its industry, outperforming 53.17% of the companies in the same industry.

GOOD has a better Operating Margin (35.64%) than 78.57% of its industry peers.

In the last couple of years the Operating Margin of GOOD has remained more or less at the same level.

GOOD has a Gross Margin of 79.86%. This is in the better half of the industry: GOOD outperforms 77.78% of its industry peers.

In the last couple of years the Gross Margin of GOOD has declined.

		Industry Rank	Sector Rank
OM	35.64%
PM (TTM)	5.73%
GM	79.86%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

GOOD has an Altman-Z score of 0.10. This is a bad value and indicates that GOOD is not financially healthy and even has some risk of bankruptcy.

With a Altman-Z score value of 0.10, GOOD is not doing good in the industry: 77.78% of the companies in the same industry are doing better.

The Debt to FCF ratio of GOOD is 357.22, which is on the high side as it means it would take GOOD, 357.22 years of fcf income to pay off all of its debts.

GOOD has a Debt to FCF ratio (357.22) which is comparable to the rest of the industry.

A Debt/Equity ratio of 2.04 is on the high side and indicates that GOOD has dependencies on debt financing.

Looking at the Debt to Equity ratio, with a value of 2.04, GOOD is doing worse than 73.02% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	2.04
Debt/FCF	357.22
Altman-Z	0.1

ROIC/WACC0.57

WACC6.8%

2.3 Liquidity

A Current Ratio of 1.09 indicates that GOOD should not have too much problems paying its short term obligations.

GOOD's Current ratio of 1.09 is in line compared to the rest of the industry. GOOD outperforms 48.41% of its industry peers.

GOOD has a Quick Ratio of 1.09. 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 has a Quick ratio of 0.42. This is amonst the worse of the industry: GOOD underperforms 83.33% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.09
Quick Ratio	0.42

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

GOOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 327.27%, which is quite impressive.

EPS 1Y (TTM)327.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%1066.67%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%4.1%

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 -23.08% on average per year.

GOOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.82% yearly.

EPS Next Y-45.43%

EPS Next 2Y-23.08%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year1.84%

Revenue Next 2Y2.93%

Revenue Next 3Y3.39%

Revenue Next 5Y2.82%

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 31.44 indicates a quite expensive valuation of GOOD.

Compared to the rest of the industry, the Price/Earnings ratio of GOOD is on the same level as its industry peers.

When comparing the Price/Earnings ratio of GOOD to the average of the S&P500 Index (29.63), we can say GOOD is valued inline with the index average.

With a Price/Forward Earnings ratio of 57.61, GOOD can be considered very expensive at the moment.

GOOD's Price/Forward Earnings ratio is in line with the industry average.

The average S&P500 Price/Forward Earnings ratio is at 22.68. GOOD is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	31.44
Fwd PE	57.61

4.2 Price Multiples

GOOD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOD is cheaper than 61.11% of the companies in the same industry.

GOOD's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	380.88
EV/EBITDA	13.06

4.3 Compensation for Growth

A cheap valuation may be justified as GOOD's earnings are expected to decrease with -23.08% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-23.08%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

GOOD has a Yearly Dividend Yield of 7.59%, which is a nice return.

GOOD's Dividend Yield is rather good when compared to the industry average which is at 18.48. GOOD pays more dividend than 81.75% of the companies in the same industry.

GOOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.

		Industry Rank	Sector Rank
Dividend Yield	7.59%

5.2 History

The dividend of GOOD decreases each year by -3.92%.

GOOD has been paying a dividend for at least 10 years, so it has a reliable track record.

GOOD has decreased its dividend recently.

Dividend Growth(5Y)-3.92%

Div Incr Years0

Div Non Decr Years1

5.3 Sustainability

GOOD pays out 727.22% of its income as dividend. 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.

DP727.22%

EPS Next 2Y-23.08%

EPS Next 3YN/A

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GLADSTONE COMMERCIAL CORP

NASDAQ:GOOD (2/21/2025, 8:24:16 PM)

After market: 15.72 0 (0%)

15.72

-0.1 (-0.63%)

Chartmill FA Rating

GICS SectorReal Estate

GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)

GICS IndustryDiversified REITs

Earnings (Last)02-18 2025-02-18/amc

Earnings (Next)05-05 2025-05-05/amc

Inst Owners43.05%

Inst Owner Change5.42%

Ins Owners1.36%

Ins Owner Change0.04%

Market Cap738.53M

Analysts78.18

Price Target17.54 (11.58%)

Short Float %1.45%

Short Ratio2.77

Dividend

		Industry Rank	Sector Rank
Dividend Yield	7.59%

Yearly Dividend1.5

Dividend Growth(5Y)-3.92%

DP727.22%

Div Incr Years0

Div Non Decr Years1

Ex-Date03-19 2025-03-19 (0.1)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)-206.4%

Min EPS beat(2)-884.31%

Max EPS beat(2)471.52%

EPS beat(4)3

Avg EPS beat(4)-22.34%

Min EPS beat(4)-884.31%

Max EPS beat(4)471.52%

EPS beat(8)4

Avg EPS beat(8)-112%

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)2

Avg Revenue beat(2)2.8%

Min Revenue beat(2)1.46%

Max Revenue beat(2)4.13%

Revenue beat(4)2

Avg Revenue beat(4)-0.56%

Min Revenue beat(4)-4.33%

Max Revenue beat(4)4.13%

Revenue beat(8)3

Avg Revenue beat(8)-2.31%

Revenue beat(12)4

Avg Revenue beat(12)-1.67%

Revenue beat(16)5

Avg Revenue beat(16)-1.84%

PT rev (1m)0%

PT rev (3m)10.08%

EPS NQ rev (1m)0%

EPS NQ rev (3m)93.75%

EPS NY rev (1m)0%

EPS NY rev (3m)191.18%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0.31%

Revenue NY rev (1m)0%

Revenue NY rev (3m)0.42%

Valuation

		Industry Rank	Sector Rank
PE	31.44
Fwd PE	57.61
P/S	4.99
P/FCF	380.88
P/OCF	16.04
P/B	2.18
P/tB	3.09
EV/EBITDA	13.06

EPS(TTM)0.5

EY3.18%

EPS(NY)0.27

Fwd EY1.74%

FCF(TTM)0.04

FCFY0.26%

OCF(TTM)0.98

OCFY6.23%

SpS3.15

BVpS7.21

TBVpS5.09

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	0.77%
ROE	2.5%
ROCE	4.92%
ROIC	3.89%
ROICexc	3.93%
ROICexgc	4.39%
OM	35.64%
PM (TTM)	5.73%
GM	79.86%
FCFM	1.31%

ROA(3y)-0.44%

ROA(5y)-0.3%

ROE(3y)-1.48%

ROE(5y)-0.99%

ROIC(3y)3.01%

ROIC(5y)2.9%

ROICexc(3y)3.04%

ROICexc(5y)2.92%

ROICexgc(3y)3.41%

ROICexgc(5y)3.29%

ROCE(3y)3.81%

ROCE(5y)3.67%

ROICexcg growth 3Y10.89%

ROICexcg growth 5Y3.72%

ROICexc growth 3Y11.18%

ROICexc growth 5Y4.16%

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%

F-Score7

Asset Turnover0.13

Health

		Industry Rank	Sector Rank
Debt/Equity	2.04
Debt/FCF	357.22
Debt/EBITDA	6.33
Cap/Depr	78.19%
Cap/Sales	29.82%
Interest Coverage	250
Cash Conversion	42.19%
Profit Quality	22.86%
Current Ratio	1.09
Quick Ratio	0.42
Altman-Z	0.1

F-Score7

WACC6.8%

ROIC/WACC0.57

Cap/Depr(3y)144.21%

Cap/Depr(5y)187.98%

Cap/Sales(3y)60.62%

Cap/Sales(5y)80.64%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)327.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%1066.67%

EPS Next Y-45.43%

EPS Next 2Y-23.08%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%4.1%

Revenue Next Year1.84%

Revenue Next 2Y2.93%

Revenue Next 3Y3.39%

Revenue Next 5Y2.82%

EBIT growth 1Y10.58%

EBIT growth 3Y11.23%

EBIT growth 5Y7.3%

EBIT Next Year207.3%

EBIT Next 3Y49.61%

EBIT Next 5YN/A

FCF growth 1Y102.43%

FCF growth 3YN/A

FCF growth 5Y21.56%

OCF growth 1Y-37.22%

OCF growth 3Y-2.68%

OCF growth 5Y1.66%

GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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