GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis
USA - NASDAQ:GOOD - US3765361080 - REIT
12.95 USD
+0.05 (+0.39%)
12.95 USD
0 (0%)
Taking everything into account, GOOD scores 3 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 has a expensive valuation and it also scores bad on growth.
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.
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
The Return On Assets of GOOD (1.31%) is comparable to the rest of the industry.
GOOD has a better Return On Equity (4.55%) than 65.38% of its industry peers.
GOOD has a better Return On Invested Capital (3.84%) than 73.85% 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 3.05%.
The last Return On Invested Capital (3.84%) for GOOD is above the 3 year average (3.53%), which is a sign of increasing profitability.
| 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
GOOD has a Profit Margin (10.29%) which is comparable to the rest of the industry.
The Operating Margin of GOOD (37.40%) is better than 81.54% of its industry peers.
GOOD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.03%, GOOD is in the better half of the industry, outperforming 78.46% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GOOD 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.
The debt/assets ratio for GOOD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.03, we must say that GOOD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.03, GOOD is not doing good in the industry: 74.62% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.30 is on the high side and indicates that GOOD has dependencies on debt financing.
With a Debt to Equity ratio value of 2.30, GOOD is not doing good in the industry: 74.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.03 |
ROIC/WACC0.56
WACC6.84%
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.
GOOD has a Current ratio of 0.54. This is in the lower half of the industry: GOOD underperforms 77.69% of its industry peers.
A Quick Ratio of 0.43 indicates that GOOD may have some problems paying its short term obligations.
With a Quick ratio value of 0.43, GOOD is not doing good in the industry: 78.46% of the companies in the same industry are doing better.
| 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 1000.00%, which is quite impressive.
Looking at the last year, GOOD shows a small growth in Revenue. The Revenue has grown by 5.85% 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)1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%175%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%6.68%
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-18.92%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue Next Year4.93%
Revenue Next 2Y4.66%
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
With a Price/Earnings ratio of 35.97, GOOD can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as GOOD.
GOOD's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 41.86, the valuation of GOOD can be described as expensive.
64.62% of the companies in the same industry are more expensive than GOOD, based on the Price/Forward Earnings ratio.
GOOD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.97 | ||
| Fwd PE | 41.86 |
4.2 Price Multiples
71.54% of the companies in the same industry are more expensive than GOOD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.8 |
4.3 Compensation for Growth
The decent profitability rating of GOOD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.09%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
GOOD has a Yearly Dividend Yield of 9.16%, which is a nice return.
Compared to an average industry Dividend Yield of 6.66, GOOD pays a better dividend. On top of this GOOD pays more dividend than 86.15% of the companies listed in the same industry.
GOOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.16% |
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
415.95% of the earnings are spent on dividend by GOOD. This is not a sustainable payout ratio.
DP415.95%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
12.95
+0.05 (+0.39%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners48.46%
Inst Owner Change4.45%
Ins Owners1.21%
Ins Owner Change0.05%
Market Cap642.58M
Analysts78.18
Price Target15.2 (17.37%)
Short Float %4.07%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.16% |
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)-5.7%
PT rev (3m)-5.7%
EPS NQ rev (1m)66.67%
EPS NQ rev (3m)76.46%
EPS NY rev (1m)-13.89%
EPS NY rev (3m)14.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.47%
Revenue NY rev (1m)2.65%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.97 | ||
| Fwd PE | 41.86 | ||
| P/S | 4.18 | ||
| P/FCF | N/A | ||
| P/OCF | 7.85 | ||
| P/B | 1.85 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 12.8 |
EPS(TTM)0.36
EY2.78%
EPS(NY)0.31
Fwd EY2.39%
FCF(TTM)-2.07
FCFYN/A
OCF(TTM)1.65
OCFY12.74%
SpS3.1
BVpS7
TBVpS4.66
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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 | -0.03 |
F-Score5
WACC6.84%
ROIC/WACC0.56
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)1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%175%
EPS Next Y-18.92%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue 1Y (TTM)5.85%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%6.68%
Revenue Next Year4.93%
Revenue Next 2Y4.66%
Revenue Next 3Y3.34%
Revenue Next 5Y2.82%
EBIT growth 1Y12.44%
EBIT growth 3Y15.23%
EBIT growth 5Y8.21%
EBIT Next Year137.16%
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%