GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis
USA - NASDAQ:GOOD - US3765361080 - REIT
10.87 USD
+0.17 (+1.59%)
11.04 USD
+0.17 (+1.56%)
GOOD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 127 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.
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.
GOOD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GOOD has a Return On Assets (1.31%) which is in line with its industry peers.
With a decent Return On Equity value of 4.55%, GOOD is doing good in the industry, outperforming 64.57% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.84%, GOOD is doing good in the industry, outperforming 73.23% 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 3.07%.
The 3 year average ROIC (3.53%) for GOOD is below the current ROIC(3.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 4.55% | ||
| ROIC | 3.84% |
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
The Profit Margin of GOOD (10.29%) is comparable to the rest of the industry.
The Operating Margin of GOOD (37.40%) is better than 81.10% of its industry peers.
GOOD's Operating Margin has improved in the last couple of years.
GOOD's Gross Margin of 78.03% is fine compared to the rest of the industry. GOOD outperforms 77.95% of its industry peers.
GOOD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.4% | ||
| PM (TTM) | 10.29% | ||
| GM | 78.03% |
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
GOOD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GOOD has more shares outstanding
The number of shares outstanding for GOOD has been increased compared to 5 years ago.
The debt/assets ratio for GOOD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.11, we must say that GOOD is in the distress zone and has some risk of bankruptcy.
GOOD has a Altman-Z score of -0.11. This is in the lower half of the industry: GOOD underperforms 77.95% of its industry peers.
GOOD has a Debt/Equity ratio of 2.30. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GOOD (2.30) is worse than 74.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.11 |
ROIC/WACC0.58
WACC6.57%
2.3 Liquidity
GOOD has a Current Ratio of 0.54. 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 Current ratio of GOOD (0.54) is worse than 77.95% of its industry peers.
GOOD has a Quick Ratio of 0.54. 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 0.43. This is in the lower half of the industry: GOOD underperforms 79.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
GOOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 155.00%, which is quite impressive.
The Revenue has been growing slightly by 1.22% in the past year.
Measured over the past years, GOOD shows a small growth in Revenue. The Revenue has been growing by 5.48% on average per year.
EPS 1Y (TTM)155%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
Revenue 1Y (TTM)1.22%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.09%
3.2 Future
The Earnings Per Share is expected to grow by 7.88% on average over the next years.
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-8.79%
EPS Next 2Y-5.01%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue Next Year5.21%
Revenue Next 2Y5.17%
Revenue Next 3Y3.34%
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
A Price/Earnings ratio of 21.31 indicates a rather expensive valuation of GOOD.
80.31% of the companies in the same industry are more expensive than GOOD, based on the Price/Earnings ratio.
GOOD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
GOOD is valuated quite expensively with a Price/Forward Earnings ratio of 46.33.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOD is on the same level as its industry peers.
GOOD is valuated expensively when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.31 | ||
| Fwd PE | 46.33 |
4.2 Price Multiples
GOOD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOD is cheaper than 73.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.82 |
4.3 Compensation for Growth
GOOD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.01%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.50%, GOOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.30, GOOD pays a bit more dividend than its industry peers.
GOOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.5% |
5.2 History
The dividend of GOOD decreases each year by -4.40%.
GOOD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GOOD decreased recently.
Dividend Growth(5Y)-4.4%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
GOOD pays out 415.95% of its income as dividend. This is not a sustainable payout ratio.
DP415.95%
EPS Next 2Y-5.01%
EPS Next 3Y7.88%
10.87
+0.17 (+1.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners50.5%
Inst Owner Change0.12%
Ins Owners1.2%
Ins Owner Change0.05%
Market Cap539.37M
Revenue(TTM)149.39M
Net Income(TTM)15.81M
Analysts78.18
Price Target14.38 (32.29%)
Short Float %4.67%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.5% |
Yearly Dividend1.48
Dividend Growth(5Y)-4.4%
DP415.95%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-22.02%
Min EPS beat(2)-64.7%
Max EPS beat(2)20.66%
EPS beat(4)3
Avg EPS beat(4)120.65%
Min EPS beat(4)-64.7%
Max EPS beat(4)512.8%
EPS beat(8)5
Avg EPS beat(8)-16.89%
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)-0.18%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)1.15%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-3.67%
Max Revenue beat(4)4.13%
Revenue beat(8)3
Avg Revenue beat(8)-1.78%
Revenue beat(12)5
Avg Revenue beat(12)-1.38%
Revenue beat(16)5
Avg Revenue beat(16)-1.63%
PT rev (1m)-5.37%
PT rev (3m)-10.76%
EPS NQ rev (1m)-17.5%
EPS NQ rev (3m)45.58%
EPS NY rev (1m)0%
EPS NY rev (3m)9.72%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)3.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.31 | ||
| Fwd PE | 46.33 | ||
| P/S | 3.51 | ||
| P/FCF | N/A | ||
| P/OCF | 6.59 | ||
| P/B | 1.55 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)0.51
EY4.69%
EPS(NY)0.23
Fwd EY2.16%
FCF(TTM)-2.07
FCFYN/A
OCF(TTM)1.65
OCFY15.18%
SpS3.1
BVpS7
TBVpS4.66
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 4.55% | ||
| ROCE | 4.86% | ||
| ROIC | 3.84% | ||
| ROICexc | 3.88% | ||
| ROICexgc | 4.34% | ||
| OM | 37.4% | ||
| PM (TTM) | 10.29% | ||
| GM | 78.03% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y17.8%
ROICexgc 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-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.16 | ||
| Cap/Depr | 341.98% | ||
| Cap/Sales | 120.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | -0.11 |
F-Score5
WACC6.57%
ROIC/WACC0.58
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)155%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
EPS Next Y-8.79%
EPS Next 2Y-5.01%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue 1Y (TTM)1.22%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.09%
Revenue Next Year5.21%
Revenue Next 2Y5.17%
Revenue Next 3Y3.34%
Revenue Next 5Y2.82%
EBIT growth 1Y12.44%
EBIT growth 3Y15.23%
EBIT growth 5Y8.21%
EBIT Next Year142.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-746.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.44%
OCF growth 3Y-6.7%
OCF growth 5Y-1.1%
GLADSTONE COMMERCIAL CORP / GOOD FAQ
What is the ChartMill fundamental rating of GLADSTONE COMMERCIAL CORP (GOOD) stock?
ChartMill assigns a fundamental rating of 3 / 10 to GOOD.
What is the valuation status for GOOD stock?
ChartMill assigns a valuation rating of 2 / 10 to GLADSTONE COMMERCIAL CORP (GOOD). This can be considered as Overvalued.
How profitable is GLADSTONE COMMERCIAL CORP (GOOD) stock?
GLADSTONE COMMERCIAL CORP (GOOD) has a profitability rating of 6 / 10.
How financially healthy is GLADSTONE COMMERCIAL CORP?
The financial health rating of GLADSTONE COMMERCIAL CORP (GOOD) is 0 / 10.
What is the earnings growth outlook for GLADSTONE COMMERCIAL CORP?
The Earnings per Share (EPS) of GLADSTONE COMMERCIAL CORP (GOOD) is expected to decline by -8.79% in the next year.