9.75 USD
-0.03 (-0.31%)
9.88 USD
+0.13 (+1.33%)
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 is valued expensive and it does not seem to be growing. LAND also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- LAND had negative earnings in the past year.
- LAND had a positive operating cash flow in the past year.
- LAND had negative earnings in each of the past 5 years.
- 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.
- LAND has a Return On Equity of -2.14%. This is in the lower half of the industry: LAND underperforms 63.33% of its industry peers.
- With a Return On Invested Capital value of 1.01%, LAND is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
- LAND had an Average Return On Invested Capital over the past 3 years of 1.93%. This 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
- With a Operating Margin value of 22.88%, LAND perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LAND is destroying value.
- LAND has more shares outstanding than it did 1 year ago.
- LAND has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for LAND has been reduced compared to a year ago.
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.
- 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.
- LAND has a Debt/Equity ratio of 0.82. This is a neutral value indicating LAND is somewhat dependend on debt financing.
- The Debt to Equity ratio of LAND (0.82) is better than 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%
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.
- The Current ratio of LAND (0.89) is better than 66.67% of its industry peers.
- 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
- The earnings per share for LAND have decreased strongly by -52.16% in the last year.
- LAND shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.25%.
- 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
- LAND is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.64% yearly.
- LAND is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.70% yearly.
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
- 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
- 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LAND indicates a slightly more expensive valuation: LAND is more expensive than 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 550.58 | ||
| EV/EBITDA | 18.09 |
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.
- LAND's Dividend Yield is a higher than the industry average which is at 5.51.
- LAND's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
5.2 History
- On average, the dividend of LAND grows each year by 11.11%, which is quite nice.
- 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)11.11%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- LAND has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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 7 / 10 and the dividend payout ratio is -312.9%.