GLADSTONE COMMERCIAL CORP (GOOD) Stock Fundamental Analysis
NASDAQ:GOOD - Nasdaq - US3765361080 - REIT - Currency: USD
GOOD gets a fundamental rating of 3 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 expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GOOD was profitable.
In the past year GOOD had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: GOOD reported negative net income in multiple years.
GOOD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GOOD has a Return On Assets (1.10%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 3.61%, GOOD is doing good in the industry, outperforming 64.62% of the companies in the same industry.
GOOD has a Return On Invested Capital of 3.82%. This is in the better half of the industry: GOOD outperforms 73.85% of its industry peers.
GOOD had an Average Return On Invested Capital over the past 3 years of 3.53%. This is in line with the industry average of 3.16%.
The 3 year average ROIC (3.53%) for GOOD is below the current ROIC(3.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 3.61% | ||
| ROIC | 3.82% |
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 (8.43%) which is comparable to the rest of the industry.
GOOD has a Operating Margin of 35.82%. This is in the better half of the industry: GOOD outperforms 77.69% of its industry peers.
In the last couple of years the Operating Margin of GOOD has grown nicely.
GOOD has a Gross Margin of 78.72%. This is in the better half of the industry: GOOD outperforms 78.46% of its industry peers.
GOOD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.82% | ||
| PM (TTM) | 8.43% | ||
| GM | 78.72% |
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.
GOOD has more shares outstanding than it did 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 0.05, we must say that GOOD is in the distress zone and has some risk of bankruptcy.
GOOD has a worse Altman-Z score (0.05) than 75.38% of its industry peers.
GOOD has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external financing.
GOOD has a worse Debt to Equity ratio (2.06) than 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.05 |
ROIC/WACC0.55
WACC6.96%
2.3 Liquidity
GOOD has a Current Ratio of 0.82. 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 (0.82) which is comparable to the rest of the industry.
GOOD has a Quick Ratio of 0.82. 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 0.71, GOOD is not doing good in the industry: 63.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
GOOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 252.63%, which is quite impressive.
The Revenue has been growing slightly by 3.01% 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)252.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)3.01%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.98%
3.2 Future
The Earnings Per Share is expected to grow by 7.88% on average over the next years.
GOOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.82% yearly.
EPS Next Y-5.85%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue Next Year2.22%
Revenue Next 2Y2.53%
Revenue Next 3Y1.54%
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
The Price/Earnings ratio is 50.41, which means the current valuation is very expensive for GOOD.
The rest of the industry has a similar Price/Earnings ratio as GOOD.
GOOD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 47.25, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, GOOD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.41 | ||
| Fwd PE | 47.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GOOD is valued a bit cheaper than 60.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.24 |
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
With a Yearly Dividend Yield of 8.42%, GOOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, GOOD pays a better dividend. On top of this GOOD pays more dividend than 82.31% 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 | 8.42% |
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
503.13% of the earnings are spent on dividend by GOOD. This is not a sustainable payout ratio.
DP503.13%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
14.62
+0.04 (+0.27%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners48.2%
Inst Owner Change5.4%
Ins Owners1.21%
Ins Owner Change0.09%
Market Cap721.35M
Analysts78.18
Price Target16.12 (10.26%)
Short Float %1.74%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.42% |
Yearly Dividend1.48
Dividend Growth(5Y)-4.4%
DP503.13%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.26%
Min EPS beat(2)13.85%
Max EPS beat(2)20.66%
EPS beat(4)3
Avg EPS beat(4)-84.25%
Min EPS beat(4)-884.31%
Max EPS beat(4)512.8%
EPS beat(8)5
Avg EPS beat(8)-89.44%
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)0
Avg Revenue beat(2)-2.59%
Min Revenue beat(2)-3.67%
Max Revenue beat(2)-1.52%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-3.67%
Max Revenue beat(4)4.13%
Revenue beat(8)3
Avg Revenue beat(8)-1.6%
Revenue beat(12)4
Avg Revenue beat(12)-1.58%
Revenue beat(16)4
Avg Revenue beat(16)-2.07%
PT rev (1m)-6.51%
PT rev (3m)-7.6%
EPS NQ rev (1m)78.55%
EPS NQ rev (3m)108.33%
EPS NY rev (1m)33.33%
EPS NY rev (3m)-10.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.41 | ||
| Fwd PE | 47.25 | ||
| P/S | 4.77 | ||
| P/FCF | N/A | ||
| P/OCF | 12.1 | ||
| P/B | 2.04 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 13.24 |
EPS(TTM)0.29
EY1.98%
EPS(NY)0.31
Fwd EY2.12%
FCF(TTM)-1.11
FCFYN/A
OCF(TTM)1.21
OCFY8.26%
SpS3.06
BVpS7.16
TBVpS5.04
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 3.61% | ||
| ROCE | 4.84% | ||
| ROIC | 3.82% | ||
| ROICexc | 3.86% | ||
| ROICexgc | 4.31% | ||
| OM | 35.82% | ||
| PM (TTM) | 8.43% | ||
| GM | 78.72% | ||
| 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-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.61 | ||
| Cap/Depr | 205.16% | ||
| Cap/Sales | 75.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.05 |
F-Score6
WACC6.96%
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)252.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y-5.85%
EPS Next 2Y9.09%
EPS Next 3Y7.88%
EPS Next 5YN/A
Revenue 1Y (TTM)3.01%
Revenue growth 3Y2.75%
Revenue growth 5Y5.48%
Sales Q2Q%4.98%
Revenue Next Year2.22%
Revenue Next 2Y2.53%
Revenue Next 3Y1.54%
Revenue Next 5Y2.82%
EBIT growth 1Y4.57%
EBIT growth 3Y15.23%
EBIT growth 5Y8.21%
EBIT Next Year142.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-35.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.9%
OCF growth 3Y-6.7%
OCF growth 5Y-1.1%