GLADSTONE LAND CORP (LAND) Stock Fundamental Analysis
NASDAQ:LAND - Nasdaq - US3765491010 - REIT - Currency: USD
We assign a fundamental rating of 2 out of 10 to LAND. LAND was compared to 29 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.
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 4 of the past 5 years.
1.2 Ratios
LAND has a worse Return On Assets (-0.70%) than 82.14% of its industry peers.
LAND's Return On Equity of -1.34% is on the low side compared to the rest of the industry. LAND is outperformed by 71.43% of its industry peers.
LAND has a worse Return On Invested Capital (2.01%) than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LAND is below the industry average of 5.41%.
The last Return On Invested Capital (2.01%) for LAND is above the 3 year average (1.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.7% | ||
| ROE | -1.34% | ||
| ROIC | 2.01% |
ROA(3y)-0.8%
ROA(5y)-0.62%
ROE(3y)-1.64%
ROE(5y)-1.39%
ROIC(3y)1.92%
ROIC(5y)1.94%
1.3 Margins
The Operating Margin of LAND (37.19%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LAND has grown nicely.
LAND's Gross Margin of 85.00% is amongst the best of the industry. LAND outperforms 85.71% of its industry peers.
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 | 37.19% | ||
| PM (TTM) | N/A | ||
| GM | 85% |
OM growth 3Y-8.45%
OM growth 5Y2.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.28%
GM growth 5Y-0.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LAND is destroying value.
LAND has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 0.37, we must say that LAND is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.37, LAND is doing worse than 82.14% of the companies in the same industry.
LAND has a debt to FCF ratio of 20.64. This is a negative value and a sign of low solvency as LAND would need 20.64 years to pay back of all of its debts.
The Debt to FCF ratio of LAND (20.64) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.85 indicates that LAND is somewhat dependend on debt financing.
The Debt to Equity ratio of LAND (0.85) is better than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 20.64 | ||
| Altman-Z | 0.37 |
ROIC/WACC0.28
WACC7.06%
2.3 Liquidity
A Current Ratio of 0.61 indicates that LAND may have some problems paying its short term obligations.
LAND has a Current ratio of 0.61. This is comparable to the rest of the industry: LAND outperforms 53.57% of its industry peers.
LAND has a Quick Ratio of 0.61. This is a bad value and indicates that LAND is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.61, LAND is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.33% over the past year.
EPS 1Y (TTM)83.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%175%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.71%
3.2 Future
The Earnings Per Share is expected to decrease by -90.44% on average over the next years. This is quite bad
Based on estimates for the next years, LAND will show a small growth in Revenue. The Revenue will grow by 6.70% on average per year.
EPS Next Y-863.33%
EPS Next 2Y-90.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.23%
Revenue Next 2Y6.11%
Revenue Next 3Y8.51%
Revenue Next 5Y6.7%
3.3 Evolution
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
Based on the Enterprise Value to EBITDA ratio, LAND is valued a bit cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LAND is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.05 | ||
| EV/EBITDA | 14.47 |
4.3 Compensation for Growth
A cheap valuation may be justified as LAND's earnings are expected to decrease with -90.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-90.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.80%, LAND is a good candidate for dividend investing.
LAND's Dividend Yield is comparable with the industry average which is at 4.52.
LAND's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
The dividend of LAND is nicely growing with an annual growth rate of 18.43%!
LAND has been paying a dividend for at least 10 years, so it has 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)18.43%
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-477.84%
EPS Next 2Y-90.44%
EPS Next 3YN/A
11.105
-0.56 (-4.84%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners48.43%
Inst Owner Change2.76%
Ins Owners6.99%
Ins Owner Change0%
Market Cap401.78M
Analysts76.92
Price Target14.62 (31.65%)
Short Float %2.43%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Yearly Dividend1.27
Dividend Growth(5Y)18.43%
DP-477.84%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-50.99%
Min EPS beat(2)-51.14%
Max EPS beat(2)-50.83%
EPS beat(4)1
Avg EPS beat(4)29.07%
Min EPS beat(4)-81%
Max EPS beat(4)299.25%
EPS beat(8)3
Avg EPS beat(8)16.32%
EPS beat(12)4
Avg EPS beat(12)1.58%
EPS beat(16)5
Avg EPS beat(16)-25.49%
Revenue beat(2)2
Avg Revenue beat(2)3.08%
Min Revenue beat(2)2.47%
Max Revenue beat(2)3.68%
Revenue beat(4)2
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-10.99%
Max Revenue beat(4)3.68%
Revenue beat(8)3
Avg Revenue beat(8)-1.25%
Revenue beat(12)5
Avg Revenue beat(12)-0.12%
Revenue beat(16)8
Avg Revenue beat(16)0.44%
PT rev (1m)-1.71%
PT rev (3m)-5.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-39.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 4.54 | ||
| P/FCF | 14.05 | ||
| P/OCF | 11.35 | ||
| P/B | 0.58 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 14.47 |
EPS(TTM)-0.05
EYN/A
EPS(NY)-0.43
Fwd EYN/A
FCF(TTM)0.79
FCFY7.12%
OCF(TTM)0.98
OCFY8.81%
SpS2.45
BVpS19.1
TBVpS18.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.7% | ||
| ROE | -1.34% | ||
| ROCE | 2.54% | ||
| ROIC | 2.01% | ||
| ROICexc | 2.03% | ||
| ROICexgc | 2.17% | ||
| OM | 37.19% | ||
| PM (TTM) | N/A | ||
| GM | 85% | ||
| FCFM | 32.29% |
ROA(3y)-0.8%
ROA(5y)-0.62%
ROE(3y)-1.64%
ROE(5y)-1.39%
ROIC(3y)1.92%
ROIC(5y)1.94%
ROICexc(3y)1.96%
ROICexc(5y)1.98%
ROICexgc(3y)2.05%
ROICexgc(5y)2.04%
ROCE(3y)2.43%
ROCE(5y)2.46%
ROICexcg growth 3Y-0.7%
ROICexcg growth 5Y2.68%
ROICexc growth 3Y-2.04%
ROICexc growth 5Y2.08%
OM growth 3Y-8.45%
OM growth 5Y2.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.28%
GM growth 5Y-0.17%
F-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 20.64 | ||
| Debt/EBITDA | 8.55 | ||
| Cap/Depr | 18.76% | ||
| Cap/Sales | 7.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.37 |
F-Score6
WACC7.06%
ROIC/WACC0.28
Cap/Depr(3y)448.21%
Cap/Depr(5y)1006.17%
Cap/Sales(3y)165.07%
Cap/Sales(5y)323.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)83.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%175%
EPS Next Y-863.33%
EPS Next 2Y-90.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.71%
Revenue Next Year4.23%
Revenue Next 2Y6.11%
Revenue Next 3Y8.51%
Revenue Next 5Y6.7%
EBIT growth 1Y-4.91%
EBIT growth 3Y6.75%
EBIT growth 5Y22.67%
EBIT Next Year97.12%
EBIT Next 3Y32.6%
EBIT Next 5YN/A
FCF growth 1Y115.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.85%
OCF growth 3Y17.04%
OCF growth 5Y30.95%