11.41 USD
-0.08 (-0.7%)
11.41 USD
0 (0%)
GOOD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 125 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- GOOD had positive earnings in the past year.
- In the past year GOOD had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: GOOD reported negative net income in multiple years.
- GOOD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GOOD has a Return On Assets (0.66%) which is in line with its industry peers.
- GOOD has a Return On Equity (2.35%) which is in line with its industry peers.
- With a decent Return On Invested Capital value of 3.64%, GOOD is doing good in the industry, outperforming 68.80% 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(3.64%), indicating increased profibility in the last year.
| 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
- GOOD's Profit Margin of 5.36% is in line compared to the rest of the industry. GOOD outperforms 53.60% of its industry peers.
- GOOD's Operating Margin of 36.74% is fine compared to the rest of the industry. GOOD outperforms 79.20% of its industry peers.
- In the last couple of years the Operating Margin of GOOD has grown nicely.
- With a decent Gross Margin value of 77.68%, GOOD is doing good in the industry, outperforming 77.60% 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 | 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
- 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
- GOOD has an Altman-Z score of -0.08. This is a bad value and indicates that GOOD is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of -0.08, GOOD is doing worse than 77.60% of the companies in the same industry.
- GOOD has a Debt/Equity ratio of 2.37. This is a high value indicating a heavy dependency on external financing.
- GOOD has a Debt to Equity ratio of 2.37. This is in the lower half of the industry: GOOD underperforms 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.08 |
ROIC/WACC0.54
WACC6.7%
2.3 Liquidity
- GOOD has a Current Ratio of 0.68. This is a bad value and indicates that GOOD is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.68, GOOD is doing worse than 68.00% of the companies in the same industry.
- A Quick Ratio of 0.68 indicates that GOOD may have some problems paying its short term obligations.
- The Quick ratio of GOOD (0.68) is worse than 68.00% of its industry peers.
| 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%.
- Looking at the last year, GOOD shows a small growth in Revenue. The Revenue has grown by 4.95% in the last 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)-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.
- The Revenue is expected to grow by 3.16% on average over the next years.
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
- 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
- GOOD is valuated quite expensively with a Price/Earnings ratio of 63.39.
- GOOD's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, GOOD is valued quite expensively.
- A Price/Forward Earnings ratio of 73.35 indicates a quite expensive valuation of GOOD.
- GOOD's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of GOOD to the average of the S&P500 Index (24.26), we can say GOOD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.39 | ||
| Fwd PE | 73.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GOOD is valued a bit cheaper than 71.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.57 |
4.3 Compensation for Growth
- The decent profitability rating of GOOD 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
- With a Yearly Dividend Yield of 7.21%, GOOD is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.59, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.21% |
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 63.39 and the Price/Book (PB) ratio is 1.65.
How financially healthy is GLADSTONE COMMERCIAL CORP?
The financial health rating of GLADSTONE COMMERCIAL CORP (GOOD) is 0 / 10.