GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis
USA - NASDAQ:GOOD - US3765361080 - REIT
11.26 USD
+0.02 (+0.18%)
11.26 USD
0 (0%)
Overall GOOD gets a fundamental rating of 3 out of 10. We evaluated GOOD against 128 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GOOD was profitable.
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.
Each year in the past 5 years GOOD had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.66%, GOOD perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
GOOD's Return On Equity of 2.35% is in line compared to the rest of the industry. GOOD outperforms 54.69% of its industry peers.
GOOD has a better Return On Invested Capital (3.64%) than 71.88% 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 3.04%.
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
Looking at the Profit Margin, with a value of 5.36%, GOOD is in line with its industry, outperforming 55.47% of the companies in the same industry.
The Operating Margin of GOOD (36.74%) is better than 78.91% of its industry peers.
In the last couple of years the Operating Margin of GOOD has grown nicely.
Looking at the Gross Margin, with a value of 77.68%, GOOD is in the better half of the industry, outperforming 77.34% of the companies in the same industry.
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
GOOD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GOOD has been increased compared to 1 year ago.
GOOD has more shares outstanding than it did 5 years ago.
GOOD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.10, we must say that GOOD is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.10, GOOD is doing worse than 75.78% of the companies in the same industry.
A Debt/Equity ratio of 2.37 is on the high side and indicates that GOOD has dependencies on debt 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.1 |
ROIC/WACC0.55
WACC6.6%
2.3 Liquidity
A Current Ratio of 0.68 indicates that GOOD may have some problems paying its short term obligations.
The Current ratio of GOOD (0.68) is worse than 69.53% of its industry peers.
GOOD has a Quick 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.
The Quick ratio of GOOD (0.68) is worse than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for GOOD have decreased strongly by -10.00% in the last year.
GOOD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.95%.
GOOD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.48% yearly.
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 small growth in Earnings Per Share. The EPS will grow by 7.88% on average per year.
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-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
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
The Price/Earnings ratio is 62.56, which means the current valuation is very expensive for GOOD.
GOOD's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of GOOD to the average of the S&P500 Index (26.34), we can say GOOD is valued expensively.
With a Price/Forward Earnings ratio of 48.00, GOOD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOD is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GOOD to the average of the S&P500 Index (34.43), we can say GOOD is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.56 | ||
| Fwd PE | 48 |
4.2 Price Multiples
GOOD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GOOD is cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.27 |
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
GOOD has a Yearly Dividend Yield of 7.48%, which is a nice return.
Compared to an average industry Dividend Yield of 6.28, GOOD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, GOOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
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
GOOD pays out 803.10% of its income as dividend. This is not a sustainable payout ratio.
DP803.1%
EPS Next 2Y-5.01%
EPS Next 3Y7.88%
11.26
+0.02 (+0.18%)
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 Change1.11%
Ins Owners1.2%
Ins Owner Change0.17%
Market Cap558.72M
Revenue(TTM)155.25M
Net Income(TTM)8.32M
Analysts78.18
Price Target14.38 (27.71%)
Short Float %4.67%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
Yearly Dividend1.48
Dividend Growth(5Y)-4.4%
DP803.1%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-70.47%
Min EPS beat(2)-76.23%
Max EPS beat(2)-64.7%
EPS beat(4)2
Avg EPS beat(4)-26.61%
Min EPS beat(4)-76.23%
Max EPS beat(4)20.66%
EPS beat(8)5
Avg EPS beat(8)-19.31%
EPS beat(12)6
Avg EPS beat(12)-80.1%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)1.15%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-3.67%
Max Revenue beat(4)1.15%
Revenue beat(8)3
Avg Revenue beat(8)-0.84%
Revenue beat(12)4
Avg Revenue beat(12)-1.91%
Revenue beat(16)5
Avg Revenue beat(16)-1.53%
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)-11.71%
EPS NY rev (3m)-3.12%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)3.77%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)2.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.56 | ||
| Fwd PE | 48 | ||
| P/S | 3.6 | ||
| P/FCF | N/A | ||
| P/OCF | 5.87 | ||
| P/B | 1.57 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 12.27 |
EPS(TTM)0.18
EY1.6%
EPS(NY)0.23
Fwd EY2.08%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)1.92
OCFY17.04%
SpS3.13
BVpS7.15
TBVpS4.69
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 2.35% | ||
| ROCE | 4.61% | ||
| ROIC | 3.64% | ||
| ROICexc | 3.7% | ||
| ROICexgc | 4.15% | ||
| OM | 36.74% | ||
| PM (TTM) | 5.36% | ||
| GM | 77.68% | ||
| 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-Score3
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.44 | ||
| Cap/Depr | 418.99% | ||
| Cap/Sales | 150.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | -0.1 |
F-Score3
WACC6.6%
ROIC/WACC0.55
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)-10%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-90%
EPS Next Y-8.79%
EPS Next 2Y-5.01%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue 1Y (TTM)4.95%
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 1Y8.21%
EBIT growth 3Y15.23%
EBIT growth 5Y8.21%
EBIT Next Year142.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-999.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y56.68%
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.