9.725 USD
-0.1 (-0.97%)
Overall LAND gets a fundamental rating of 2 out of 10. We evaluated LAND against 30 industry peers in the Specialized REITs industry. Both the profitability and financial health of LAND have multiple concerns. 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.
- In the past year LAND had a positive cash flow from operations.
- 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
- LAND has a worse Return On Assets (-1.15%) 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.
- Looking at the Return On Invested Capital, with a value of 1.01%, LAND is doing worse than 73.33% of the companies in the same industry.
- 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 has a Operating Margin (22.88%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of LAND has declined.
- LAND has a Gross Margin of 79.97%. This is amongst the best in the industry. LAND outperforms 83.33% of its industry peers.
- LAND's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for LAND has been increased compared to 1 year ago.
- LAND has more shares outstanding than it did 5 years ago.
- 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.
- LAND's Altman-Z score of 0.26 is on the low side compared to the rest of the industry. LAND is outperformed by 80.00% of its industry peers.
- LAND has a debt to FCF ratio of 819.08. This is a negative value and a sign of low solvency as LAND would need 819.08 years to pay back of all of its debts.
- LAND's Debt to FCF ratio of 819.08 is on the low side compared to the rest of the industry. LAND is outperformed by 60.00% of its industry peers.
- A Debt/Equity ratio of 0.82 indicates that LAND is somewhat dependend on debt financing.
- LAND's Debt to Equity ratio of 0.82 is fine compared to the rest of the industry. LAND outperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 819.08 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.14
WACC7.04%
2.3 Liquidity
- LAND has a Current 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.
- With a decent Current ratio value of 0.89, LAND is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- A Quick Ratio of 0.89 indicates that LAND may have some problems paying 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
- LAND shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.93% yearly.
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 ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, LAND is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 549.17 | ||
| 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 5.61%, 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 | 5.61% |
5.2 History
- The dividend of LAND is nicely growing with an annual growth rate of 11.11%!
- LAND has been paying a dividend for at least 10 years, so it has a reliable track record.
- LAND has not decreased their dividend for at least 10 years, which is a reliable track record.
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%.