GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis
NASDAQ:GOOD - Nasdaq - US3765361080 - REIT
We assign a fundamental rating of 3 out of 10 to GOOD. GOOD was compared to 129 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GOOD was profitable.
GOOD had a positive operating cash flow in the past year.
GOOD had negative earnings in 4 of the past 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 (0.77%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.50%, GOOD is in line with its industry, outperforming 57.94% of the companies in the same industry.
GOOD's Return On Invested Capital of 3.89% is fine compared to the rest of the industry. GOOD outperforms 76.98% of its industry peers.
GOOD had an Average Return On Invested Capital over the past 3 years of 3.01%. This is in line with the industry average of 3.11%.
The last Return On Invested Capital (3.89%) for GOOD is above the 3 year average (3.01%), which is a sign of increasing profitability.
| 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
GOOD has a Profit Margin of 5.73%. This is comparable to the rest of the industry: GOOD outperforms 53.17% of its industry peers.
GOOD has a better Operating Margin (35.64%) than 78.57% of its industry peers.
In the last couple of years the Operating Margin of GOOD has remained more or less at the same level.
Looking at the Gross Margin, with a value of 79.86%, GOOD is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
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.
GOOD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GOOD has more shares outstanding
GOOD has a worse debt/assets ratio than last year.
2.2 Solvency
GOOD has an Altman-Z score of 0.12. This is a bad value and indicates that GOOD is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GOOD (0.12) is worse than 77.78% 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's Debt to FCF ratio of 357.22 is in line compared to the rest of the industry. GOOD outperforms 44.44% of its industry peers.
A Debt/Equity ratio of 2.04 is on the high side and indicates that GOOD has dependencies on debt financing.
With a Debt to Equity ratio value of 2.04, GOOD is not doing good in the industry: 74.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 357.22 | ||
| Altman-Z | 0.12 |
ROIC/WACC0.6
WACC6.43%
2.3 Liquidity
A Current Ratio of 1.09 indicates that GOOD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.09, GOOD perfoms like the industry average, outperforming 45.24% of the companies in the same industry.
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 Quick ratio of 0.42. This is amonst the worse of the industry: GOOD underperforms 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
GOOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 164.29%, which is quite impressive.
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
The Price/Earnings ratio is 91.06, which means the current valuation is very expensive for GOOD.
Compared to the rest of the industry, the Price/Earnings ratio of GOOD is on the same level as its industry peers.
When comparing the Price/Earnings ratio of GOOD to the average of the S&P500 Index (28.29), we can say GOOD is valued expensively.
GOOD is valuated quite expensively with a Price/Forward Earnings ratio of 60.07.
GOOD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, GOOD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.06 | ||
| Fwd PE | 60.07 |
4.2 Price Multiples
GOOD's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 397.11 | ||
| EV/EBITDA | 13.31 |
4.3 Compensation for Growth
GOOD's 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)0.42
PEG (5Y)N/A
EPS Next 2Y80.01%
EPS Next 3Y49.55%
5. Dividend
5.1 Amount
GOOD has a Yearly Dividend Yield of 7.32%, which is a nice return.
GOOD's Dividend Yield is a higher than the industry average which is at 18.51.
GOOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.32% |
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 (1/21/2025, 8:04:00 PM)
Premarket: 16.6 +0.21 (+1.28%)16.39
+0.08 (+0.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners43.05%
Inst Owner Change-0.18%
Ins Owners1.36%
Ins Owner Change0.2%
Market Cap770.00M
Analysts78.18
Price Target17.54 (7.02%)
Short Float %2.12%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.32% |
Yearly Dividend1.5
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)0%
PT rev (3m)14.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)287.5%
EPS NY rev (1m)0%
EPS NY rev (3m)315.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.06 | ||
| Fwd PE | 60.07 | ||
| P/S | 5.21 | ||
| P/FCF | 397.11 | ||
| P/OCF | 16.72 | ||
| P/B | 2.27 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 13.31 |
EPS(TTM)0.18
EY1.1%
EPS(NY)0.27
Fwd EY1.66%
FCF(TTM)0.04
FCFY0.25%
OCF(TTM)0.98
OCFY5.98%
SpS3.15
BVpS7.21
TBVpS5.09
PEG (NY)0.42
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 | 0.12 |
F-Score7
WACC6.43%
ROIC/WACC0.6
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 Year207.3%
EBIT Next 3Y49.61%
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%