9.62 USD
-0.2 (-2.04%)
9.62 USD
0 (0%)
We assign a fundamental rating of 2 out of 10 to LAND. LAND was compared to 30 industry peers in the Specialized REITs industry. LAND may be in some trouble as it scores bad on both profitability and health. LAND does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year LAND has reported negative net income.
- LAND had a positive operating cash flow in the past year.
- In the past 5 years LAND always reported negative net income.
- LAND had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of LAND (-1.15%) is worse than 70.00% of its industry peers.
- With a Return On Equity value of -2.14%, LAND is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
- LAND's Return On Invested Capital of 1.01% is on the low side compared to the rest of the industry. LAND is outperformed by 73.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LAND is below the industry average of 4.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.15% | ||
| ROE | -2.14% | ||
| ROIC | 1.01% |
ROA(3y)-0.85%
ROA(5y)-0.72%
ROE(3y)-1.65%
ROE(5y)-1.52%
ROIC(3y)1.93%
ROIC(5y)1.95%
1.3 Margins
- LAND's Operating Margin of 22.88% is in line compared to the rest of the industry. LAND outperforms 46.67% of its industry peers.
- LAND's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 79.97%, LAND belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- In the last couple of years the Gross Margin of LAND has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.88% | ||
| PM (TTM) | N/A | ||
| GM | 79.97% |
OM growth 3Y-4.35%
OM growth 5Y-4.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.65%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
- LAND has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, LAND has more shares outstanding
- Compared to 5 years ago, LAND has more shares outstanding
- LAND has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.26, we must say that LAND is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.26, LAND is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
- The Debt to FCF ratio of LAND is 819.08, which is on the high side as it means it would take LAND, 819.08 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of LAND (819.08) is worse than 60.00% of its industry peers.
- LAND has a Debt/Equity ratio of 0.82. This is a neutral value indicating LAND is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.82, LAND is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 819.08 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.14
WACC7.02%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that LAND may have some problems paying its short term obligations.
- The Current ratio of LAND (0.89) is better than 66.67% of its industry peers.
- LAND has a Quick Ratio of 0.89. This is a bad value and indicates that LAND is not financially healthy enough and could expect problems in meeting its short term obligations.
- LAND has a better Quick ratio (0.89) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- LAND shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.16%.
- The Revenue for LAND has decreased by -23.25% in the past year. This is quite bad
- The Revenue has been growing by 15.93% on average over the past years. This is quite good.
EPS 1Y (TTM)-52.16%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%31.25%
Revenue 1Y (TTM)-23.25%
Revenue growth 3Y4.2%
Revenue growth 5Y15.93%
Sales Q2Q%-21.2%
3.2 Future
- Based on estimates for the next years, LAND will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.64% on average per year.
- The Revenue is expected to grow by 6.70% on average over the next years.
EPS Next Y80.91%
EPS Next 2Y-20.64%
EPS Next 3Y-13.64%
EPS Next 5YN/A
Revenue Next Year-6.12%
Revenue Next 2Y-0.55%
Revenue Next 3Y0.17%
Revenue Next 5Y6.7%
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- LAND reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for LAND. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- LAND's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, LAND is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 543.24 | ||
| EV/EBITDA | 18.12 |
4.3 Compensation for Growth
- A cheap valuation may be justified as LAND's earnings are expected to decrease with -13.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.64%
EPS Next 3Y-13.64%
5. Dividend
5.1 Amount
- LAND has a Yearly Dividend Yield of 5.70%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.65, LAND has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, LAND pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
5.2 History
- The dividend of LAND is nicely growing with an annual growth rate of 11.11%!
- LAND has paid a dividend for at least 10 years, which is a reliable track record.
- LAND has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.11%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- The earnings of LAND are negative and hence is the payout ratio. LAND will probably not be able to sustain this dividend level.
DP-312.9%
EPS Next 2Y-20.64%
EPS Next 3Y-13.64%
GLADSTONE LAND CORP / LAND FAQ
What is the fundamental rating for LAND stock?
ChartMill assigns a fundamental rating of 2 / 10 to LAND.
What is the valuation status for LAND stock?
ChartMill assigns a valuation rating of 0 / 10 to GLADSTONE LAND CORP (LAND). This can be considered as Overvalued.
What is the profitability of LAND stock?
GLADSTONE LAND CORP (LAND) has a profitability rating of 2 / 10.
Is the dividend of GLADSTONE LAND CORP sustainable?
The dividend rating of GLADSTONE LAND CORP (LAND) is 6 / 10 and the dividend payout ratio is -312.9%.