GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis
USA - NASDAQ:GOOD - US3765361080 - REIT
11.49 USD
+0.03 (+0.26%)
11.6436 USD
+0.15 (+1.34%)
GOOD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. GOOD has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
Looking at the Return On Assets, with a value of 1.31%, GOOD is in line with its industry, outperforming 58.27% of the companies in the same industry.
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.
The Return On Invested Capital of GOOD (3.84%) is better than 74.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GOOD is in line with the industry average of 3.04%.
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.
With an excellent Operating Margin value of 37.40%, GOOD belongs to the best of the industry, outperforming 81.10% of the companies in the same industry.
In the last couple of years the Operating Margin of GOOD has grown nicely.
With a decent Gross Margin value of 78.03%, GOOD is doing good in the industry, outperforming 77.95% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GOOD is destroying value.
GOOD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GOOD has more shares outstanding
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 78.74% of the companies in the same industry.
GOOD has a Debt/Equity ratio of 2.30. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.30, GOOD is doing worse than 74.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.08 |
ROIC/WACC0.59
WACC6.53%
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 77.17% 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.
With a Quick ratio value of 0.43, GOOD is not doing good in the industry: 77.95% 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
The Earnings Per Share has grown by an impressive 1000.00% over the past year.
The Revenue has been growing slightly by 5.85% 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)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
The Earnings Per Share is expected to grow by 7.88% on average over the next years.
The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y3.31%
EPS Next 2Y2.92%
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
GOOD is valuated quite expensively with a Price/Earnings ratio of 31.92.
61.42% of the companies in the same industry are more expensive than GOOD, based on the Price/Earnings ratio.
GOOD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.57.
Based on the Price/Forward Earnings ratio of 41.72, the valuation of GOOD can be described as expensive.
Based on the Price/Forward Earnings ratio, GOOD is valued a bit cheaper than the industry average as 62.20% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GOOD to the average of the S&P500 Index (23.09), we can say GOOD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.92 | ||
| Fwd PE | 41.72 |
4.2 Price Multiples
74.02% 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 | 12.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GOOD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.65
PEG (5Y)N/A
EPS Next 2Y2.92%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.46%, GOOD is a good candidate for dividend investing.
GOOD's Dividend Yield is rather good when compared to the industry average which is at 6.21. GOOD pays more dividend than 91.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, GOOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.46% |
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.
GOOD has decreased its dividend 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 2Y2.92%
EPS Next 3Y7.88%
11.49
+0.03 (+0.26%)
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 Change0.17%
Ins Owners1.2%
Ins Owner Change0.05%
Market Cap570.13M
Revenue(TTM)153.64M
Net Income(TTM)15.81M
Analysts78.18
Price Target15.2 (32.29%)
Short Float %3.84%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.46% |
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)0%
PT rev (3m)-5.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)76.46%
EPS NY rev (1m)27.42%
EPS NY rev (3m)9.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.92 | ||
| Fwd PE | 41.72 | ||
| P/S | 3.71 | ||
| P/FCF | N/A | ||
| P/OCF | 6.96 | ||
| P/B | 1.64 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 12.17 |
EPS(TTM)0.36
EY3.13%
EPS(NY)0.28
Fwd EY2.4%
FCF(TTM)-2.07
FCFYN/A
OCF(TTM)1.65
OCFY14.36%
SpS3.1
BVpS7
TBVpS4.66
PEG (NY)9.65
PEG (5Y)N/A
Graham Number7.53
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 | -0.08 |
F-Score5
WACC6.53%
ROIC/WACC0.59
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 Y3.31%
EPS Next 2Y2.92%
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 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%