GLADSTONE COMMERCIAL CORP (GOOD)
US3765361080 - REIT
GOOD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 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 has a correct valuation and a medium growth rate.
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.
GOOD had negative earnings in 4 of the past 5 years.
Each year in the past 5 years GOOD had a positive operating cash flow.
1.2 Ratios
GOOD has a Return On Assets (0.77%) which is in line with its industry peers.
GOOD has a Return On Equity of 2.50%. This is comparable to the rest of the industry: GOOD outperforms 57.03% of its industry peers.
The Return On Invested Capital of GOOD (3.89%) is better than 77.34% 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 3.08%.
The 3 year average ROIC (3.01%) for GOOD is below the current ROIC(3.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 2.5% | ||
| ROIC | 3.89% |
ROA(3y)-0.44%
ROA(5y)-0.3%
ROE(3y)-1.48%
ROE(5y)-0.99%
ROIC(3y)3.01%
ROIC(5y)2.9%
1.3 Margins
The Profit Margin of GOOD (5.73%) is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 35.64%, GOOD is in the better half of the industry, outperforming 78.91% of the companies in the same industry.
GOOD's Operating Margin has been stable in the last couple of years.
The Gross Margin of GOOD (79.86%) is better than 78.13% of its industry peers.
In the last couple of years the Gross Margin of GOOD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.64% | ||
| PM (TTM) | 5.73% | ||
| GM | 79.86% |
OM growth 3Y7.49%
OM growth 5Y0.58%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.77%
GM growth 5Y-1.62%
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.
Compared to 5 years ago, GOOD has more shares outstanding
Compared to 1 year ago, GOOD has a worse debt to assets ratio.
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 worse Altman-Z score (0.11) than 77.34% of its industry peers.
GOOD has a debt to FCF ratio of 357.22. This is a negative value and a sign of low solvency as GOOD would need 357.22 years to pay back of all of its debts.
GOOD has a Debt to FCF ratio (357.22) which is in line with its industry peers.
A Debt/Equity ratio of 2.04 is on the high side and indicates that GOOD has dependencies on debt financing.
GOOD has a worse Debt to Equity ratio (2.04) than 74.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 357.22 | ||
| Altman-Z | 0.11 |
ROIC/WACC0.61
WACC6.38%
2.3 Liquidity
A Current Ratio of 1.09 indicates that GOOD should not have too much problems paying its short term obligations.
GOOD's Current ratio of 1.09 is in line compared to the rest of the industry. GOOD outperforms 45.31% of its industry peers.
GOOD has a Quick Ratio of 1.09. 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 worse Quick ratio (0.42) than 86.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 164.29% over the past year.
The Revenue has decreased by -0.65% in the past year.
Measured over the past years, GOOD shows a small growth in Revenue. The Revenue has been growing by 6.68% on average per year.
EPS 1Y (TTM)164.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%550%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y3.48%
Revenue growth 5Y6.68%
Sales Q2Q%7.6%
3.2 Future
Based on estimates for the next years, GOOD will show a very strong growth in Earnings Per Share. The EPS will grow by 49.55% on average per year.
The Revenue is expected to grow by 2.63% on average over the next years.
EPS Next Y214.75%
EPS Next 2Y80.01%
EPS Next 3Y49.55%
EPS Next 5YN/A
Revenue Next Year1.06%
Revenue Next 2Y1.45%
Revenue Next 3Y2.3%
Revenue Next 5Y2.63%
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
Based on the Price/Earnings ratio of 89.11, the valuation of GOOD can be described as expensive.
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 (27.73), we can say GOOD is valued expensively.
Based on the Price/Forward Earnings ratio of 58.79, the valuation of GOOD can be described as expensive.
GOOD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, GOOD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.11 | ||
| Fwd PE | 58.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOD is valued a bit cheaper than the industry average as 60.94% of the companies are valued more expensively.
GOOD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 388.63 | ||
| EV/EBITDA | 13.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GOOD's earnings are expected to grow with 49.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y80.01%
EPS Next 3Y49.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.09%, GOOD is a good candidate for dividend investing.
GOOD's Dividend Yield is a higher than the industry average which is at 15.68.
GOOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
5.2 History
The dividend of GOOD decreases each year by -3.92%.
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)-3.92%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
727.22% of the earnings are spent on dividend by GOOD. This is not a sustainable payout ratio.
DP727.22%
EPS Next 2Y80.01%
EPS Next 3Y49.55%
GLADSTONE COMMERCIAL CORP
NASDAQ:GOOD (12/20/2024, 8:15:17 PM)
After market: 15.95 -0.09 (-0.56%)16.04
+0.03 (+0.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners42.41%
Inst Owner Change10.44%
Ins Owners0.9%
Ins Owner Change0.2%
Market Cap753.56M
Analysts78.18
Price Target17.54 (9.35%)
Short Float %1.5%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
Dividend Growth(5Y)-3.92%
DP727.22%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-206.4%
Min EPS beat(2)-884.31%
Max EPS beat(2)471.52%
EPS beat(4)3
Avg EPS beat(4)-22.34%
Min EPS beat(4)-884.31%
Max EPS beat(4)471.52%
EPS beat(8)4
Avg EPS beat(8)-112%
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)2
Avg Revenue beat(2)2.8%
Min Revenue beat(2)1.46%
Max Revenue beat(2)4.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)4.13%
Revenue beat(8)3
Avg Revenue beat(8)-2.31%
Revenue beat(12)4
Avg Revenue beat(12)-1.67%
Revenue beat(16)5
Avg Revenue beat(16)-1.84%
PT rev (1m)10.08%
PT rev (3m)14.67%
EPS NQ rev (1m)93.75%
EPS NQ rev (3m)287.5%
EPS NY rev (1m)191.18%
EPS NY rev (3m)315.22%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)4.75%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.11 | ||
| Fwd PE | 58.79 | ||
| P/S | 5.09 | ||
| P/FCF | 388.63 | ||
| P/OCF | 16.37 | ||
| P/B | 2.22 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | 13.14 |
EPS(TTM)0.18
EY1.12%
EPS(NY)0.27
Fwd EY1.7%
FCF(TTM)0.04
FCFY0.26%
OCF(TTM)0.98
OCFY6.11%
SpS3.15
BVpS7.21
TBVpS5.09
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 2.5% | ||
| ROCE | 4.92% | ||
| ROIC | 3.89% | ||
| ROICexc | 3.93% | ||
| ROICexgc | 4.39% | ||
| OM | 35.64% | ||
| PM (TTM) | 5.73% | ||
| GM | 79.86% | ||
| FCFM | 1.31% |
ROA(3y)-0.44%
ROA(5y)-0.3%
ROE(3y)-1.48%
ROE(5y)-0.99%
ROIC(3y)3.01%
ROIC(5y)2.9%
ROICexc(3y)3.04%
ROICexc(5y)2.92%
ROICexgc(3y)3.41%
ROICexgc(5y)3.29%
ROCE(3y)3.81%
ROCE(5y)3.67%
ROICexcg growth 3Y10.89%
ROICexcg growth 5Y3.72%
ROICexc growth 3Y11.18%
ROICexc growth 5Y4.16%
OM growth 3Y7.49%
OM growth 5Y0.58%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.77%
GM growth 5Y-1.62%
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 357.22 | ||
| Debt/EBITDA | 6.33 | ||
| Cap/Depr | 78.19% | ||
| Cap/Sales | 29.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 42.19% | ||
| Profit Quality | 22.86% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 0.11 |
F-Score7
WACC6.38%
ROIC/WACC0.61
Cap/Depr(3y)144.21%
Cap/Depr(5y)187.98%
Cap/Sales(3y)60.62%
Cap/Sales(5y)80.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)164.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%550%
EPS Next Y214.75%
EPS Next 2Y80.01%
EPS Next 3Y49.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y3.48%
Revenue growth 5Y6.68%
Sales Q2Q%7.6%
Revenue Next Year1.06%
Revenue Next 2Y1.45%
Revenue Next 3Y2.3%
Revenue Next 5Y2.63%
EBIT growth 1Y10.58%
EBIT growth 3Y11.23%
EBIT growth 5Y7.3%
EBIT Next Year207.41%
EBIT Next 3Y46.77%
EBIT Next 5YN/A
FCF growth 1Y102.43%
FCF growth 3YN/A
FCF growth 5Y21.56%
OCF growth 1Y-37.22%
OCF growth 3Y-2.68%
OCF growth 5Y1.66%