Gladstone Investment (GAIN) AI Stock Analysis

• Market Cap: $519.11M
• Dividend Yield: 10.67%
• Average Volume (3M): 142.22K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.61
• Revenue Growth: 33.42%
• EPS Growth: -28.30%
• Country: US
• Employees: 70
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 0.20
• Shares Outstanding: 36,921,165
• 10 Day Avg. Volume: 144,448
• 30 Day Avg. Volume: 142,224
• PEG Ratio: -0.08
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.97
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 15.59
• Enterprise Value/Ebitda: 3.95
• 1Y Price Target: $14.00
• Price Target Upside: -0.43% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $15.50 ▲(10.24%Upside)

Gladstone Investment's overall stock score reflects its solid valuation and positive technical indicators, which are bolstered by a strong dividend yield and attractive P/E ratio. While financial performance is generally strong, concerns over revenue volatility and leverage highlight areas for improvement. The positive sentiment from the earnings call further supports the stock's favorable outlook.

Gladstone Investment Business Overview & Revenue Model

Company Description

Gladstone Investment Corporation is business development company, specializes in lower middle market, mature stage, buyouts; refinancing existing debt; senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes; senior subordinated debt securities such as senior subordinated loans and senior subordinated notes; junior subordinated debt securities such as subordinated notes and mezzanine loans; limited liability company interests, and warrants or options. The fund does not invest in start-ups. The fund seeks to invest in manufacturing, consumer products and business/consumer services sector. It seeks to invest in small and mid-sized companies based in the United States. The fund prefers to make debt investments between $5 million and $30 million and equity investments between $10 million and $40 million in companies. The fund seeks to invest in companies with revenue between $20 million and $100 million. The fund invests in companies with EBITDA from $3 million to $20 million. It seeks minority equity ownership and prefers to hold a board seat in its portfolio companies. It also prefers to take majority stake in its portfolio companies. The fund typically holds the investments for seven years and exits via sale or recapitalization, initial public offering, or sale to third party.

How the Company Makes Money

Gladstone Investment Corporation generates revenue through interest income from its debt investments and capital gains from its equity investments. The company primarily invests in secured first lien loans, second lien loans, and equity securities, targeting companies with strong management teams and growth potential. Additionally, GAIN may realize capital gains by exiting its equity investments when market conditions are favorable. The company also benefits from dividend income from its equity holdings. Significant partnerships with portfolio companies contribute to its earnings by enhancing the value of its investments through strategic guidance and operational support. Gladstone Investment's ability to effectively manage and grow its investment portfolio is crucial to maintaining its revenue streams.

Gladstone Investment Financial Statement Overview

Summary

Gladstone Investment shows strong long-term profitability and revenue growth, but recent volatility in revenue and increased leverage pose concerns. Cash flow management needs improvement despite transitioning to positive free cash flow.

Income Statement

Gladstone Investment has shown strong growth with a significant increase in total revenue from 2020 to 2025. The gross profit margin remains solid, reflecting effective cost management. However, the decline in total revenue between 2024 and 2025 suggests potential volatility. The consistent profitability, indicated by positive EBIT and net income, and high net profit margins are strong points. Yet, the revenue growth rate has fluctuated, indicating potential instability in revenue streams.

Balance Sheet

The company's balance sheet reflects a stable equity position with an increasing trend in stockholders' equity over the years. However, the debt-to-equity ratio has increased, highlighting a rise in leverage which could pose risks if not managed carefully. The equity ratio is stable, implying a balanced approach to financing, but the increasing debt levels require monitoring to avoid potential over-leverage.

Cash Flow

Cash flow analysis shows a mixed picture, with fluctuations in operating cash flow and free cash flow over the years. The transition from negative to positive free cash flow in recent years is encouraging, but the inconsistency points to potential cash flow management issues. The operating cash flow to net income ratio indicates that the company is generating sufficient cash, but the variability suggests some operational cash challenges.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	89.88M	103.17M	48.53M	112.23M	53.17M
Gross Profit	61.63M	79.05M	32.66M	99.15M	48.73M
EBITDA	65.32M	85.31M	35.55M	102.32M	42.45M
Net Income	65.32M	85.31M	35.55M	102.32M	42.45M
Balance Sheet
Total Assets	1.01B	938.08M	765.64M	740.41M	643.73M
Cash, Cash Equivalents and Short-Term Investments	15.15M	2.46M	2.68M	14.19M	2.06M
Total Debt	455.71M	398.35M	292.61M	261.35M	151.38M
Total Liabilities	507.32M	445.37M	325.90M	294.58M	261.37M
Stockholders Equity	499.08M	492.71M	439.74M	445.83M	382.36M
Cash Flow
Free Cash Flow	16.31M	-69.94M	-4.50M	36.60M	-29.73M
Operating Cash Flow	16.31M	-69.94M	-4.50M	36.60M	-29.73M
Investing Cash Flow	-145.19M	0.00	-98.22M	-42.72M	-64.22M
Financing Cash Flow	-4.37M	69.91M	-6.74M	-24.50M	28.07M

Gladstone Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAIN, the sentiment is Positive. The current price of 14.06 is below the 20-day moving average (MA) of 14.08, above the 50-day MA of 14.03, and above the 200-day MA of 12.92, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 56.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GAIN.

Gladstone Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIN	72 Outperform	$519.11M	7.99	13.17%	10.67%	33.42%	-28.30%
GLAD	70 Neutral	$638.63M	7.38	18.92%	8.32%	69.53%	60.29%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
CCAP	61 Neutral	$555.92M	11.22	6.70%	13.14%	12.83%	-13.29%
CION	58 Neutral	$535.91M	15.47	-1.88%	15.11%	2.30%	-63.97%
PSBD	53 Neutral	$452.90M	27.79	3.05%	12.58%	1.13%	-86.09%
PNNT	48 Neutral	$481.89M	49.90	1.95%	12.99%	―	-66.59%

Gladstone Investment Corporate Events

Gladstone Investment Declares Monthly Cash Distributions

On July 10, 2025, Gladstone Investment Corporation announced that its board of directors declared monthly cash distributions of $0.08 per share for its common stockholders for July, August, and September 2025. Additionally, the company plans to report its earnings for the first fiscal quarter ended June 30, 2025, on August 12, 2025, followed by a conference call on August 13, 2025, to discuss the results. This announcement highlights the company’s ongoing commitment to providing returns to its shareholders and maintaining transparency with its financial performance.

The most recent analyst rating on (GAIN) stock is a Buy with a $14.50 price target. To see the full list of analyst forecasts on Gladstone Investment stock, see the GAIN Stock Forecast page.

Gladstone Investment Updates Sales Agreements with M&T Securities

On June 2, 2025, Gladstone Investment Corporation announced amendments to its sales agreements with several sales agents, including the addition of M&T Securities, Inc. as a new sales agent. These agreements allow for the issuance of up to $75 million of common stock, with M&T acting as a sales agent under mutually agreed terms and earning a commission of up to 2.0% on sales, while also being indemnified against certain liabilities.

The most recent analyst rating on (GAIN) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Gladstone Investment stock, see the GAIN Stock Forecast page.