Gladstone Capital (GLAD) AI Stock Analysis

• Market Cap: $472.87M
• Dividend Yield: 10.78%
• Average Volume (3M): 224.35K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.64
• Revenue Growth: 41.12%
• EPS Growth: -40.68%
• Country: US
• Employees: 73
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.52
• Shares Outstanding: 22,593,070
• 10 Day Avg. Volume: 247,808
• 30 Day Avg. Volume: 224,348
• PEG Ratio: -0.21
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 3.38
• P/FCF Ratio: 11.21
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 11.66
• Enterprise Value/Gross Profit: 15.70
• Enterprise Value/Ebitda: 15.57
• 1Y Price Target: $22.40
• Price Target Upside: 5.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.99
• Revenue Forecast (FY): $99.16M

• Rating: 70 Neutral
• Price Target: ―

Gladstone Capital's stock reflects a balanced performance with strong financial fundamentals and attractive valuation. The company's robust income growth and effective cash flow management are key strengths, although technical indicators suggest caution. The positive sentiment from the earnings call adds to its favorable outlook, making GLAD a moderately attractive investment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful investment strategies and effective portfolio management, enhancing long-term business sustainability.

Strong Balance Sheet

A strong balance sheet with manageable leverage provides financial stability and flexibility for future growth opportunities.

Net Investment Income Increase

An increase in net investment income reflects effective cost management and enhances the company's ability to generate shareholder returns.

Negative Factors

Operational Margin Inefficiencies

Operational inefficiencies could strain profitability, requiring strategic adjustments to maintain long-term financial health.

Foreclosure on Investments

Foreclosures and restructuring can disrupt cash flows and indicate potential risks in investment selection and management.

Decline in Portfolio Yield

A declining portfolio yield may impact future income generation, necessitating strategic reassessment to sustain returns.

Gladstone Capital Business Overview & Revenue Model

Company Description

Gladstone Capital Corporation is a business development company specializing in lower middle market, growth capital, add on acquisitions, change of control, buy & build strategies, debt refinancing, debt investments in senior term loans, revolving loans, secured first and second lien term loans, senior subordinated loans, unitranche loans, junior subordinated loans, and mezzanine loans and equity investments in the form of common stock, preferred stock, limited liability company interests, or warrants. It operates as a business development company. The fund also makes private equity investments in acquisitions, buyouts and recapitalizations, and refinancing existing debts. It targets small and medium-sized companies in United States. It is industry agnostic and seeks to invest in companies engaged in the business services, light and specialty manufacturing, niche industrial products and services, specialty consumer products and services, energy services, transportation and logistics, healthcare and education services, specialty chemicals, media and communications and aerospace and defense. The fund seeks to invest between $7 million and $30 million in companies that have between $20 million and $150 million in sales and EBITDA between $3 million and $25 million. It prefers to acquire minority stakes. It seeks to exit its investments through strategic acquisitions by other industry participants or financial buyers, initial public offerings of common stock, or other capital market transactions.

How the Company Makes Money

Gladstone Capital makes money primarily through the interest income generated from its portfolio of debt investments, which includes senior and subordinated loans. These loans are extended to small and medium-sized businesses, and the interest payments received form a significant portion of the company's revenue. In addition to interest income, Gladstone Capital also earns money through capital gains realized from the sale of equity investments and loan prepayments. The company may also charge fees related to the structuring and management of its investment deals. Furthermore, Gladstone Capital benefits from its strategic partnerships and relationships with financial institutions, which can provide additional investment opportunities and funding sources. The company's performance is influenced by factors such as interest rate fluctuations, credit risk management, and the overall economic environment affecting its portfolio companies.

Gladstone Capital Financial Statement Overview

Summary

Gladstone Capital exhibits solid revenue growth and profitability, supported by a strong balance sheet. Despite operational margin inefficiencies, the company maintains a positive cash flow trajectory, underpinned by balanced leverage and a robust equity position.

Income Statement

Gladstone Capital's TTM revenue growth is strong, with a notable increase from previous periods. The gross profit margin remains high, reflecting efficient cost management. However, the negative EBIT and EBITDA margins in TTM indicate operational challenges, despite a positive net profit margin enhanced by other income sources.

Balance Sheet

The company maintains a solid equity base, as evidenced by a high stockholders' equity to total assets ratio. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity is strong, driven by robust net income performance. Overall, the balance sheet is stable with controlled liabilities.

Cash Flow

Free cash flow growth is evident, showing improvement in operational cash generation. The operating cash flow to net income ratio suggests efficient cash conversion, though historical volatility in cash flows poses potential risks. The free cash flow to net income ratio supports a positive cash flow position in the TTM period.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	77.63M	144.76M	120.26M	65.83M	33.03M	97.55M
Gross Profit	57.64M	126.33M	98.55M	44.98M	20.06M	86.04M
EBITDA	58.11M	122.28M	94.72M	42.67M	19.91M	84.30M
Net Income	58.11M	58.11M	94.72M	42.67M	19.91M	84.30M
Balance Sheet
Total Assets	907.60M	907.60M	812.47M	719.50M	660.97M	566.50M
Cash, Cash Equivalents and Short-Term Investments	32.37M	32.37M	2.17M	1.31M	2.01M	671.00K
Total Debt	397.86M	397.86M	324.61M	300.91M	339.41M	237.11M
Total Liabilities	425.56M	425.56M	333.73M	310.80M	345.48M	248.06M
Stockholders Equity	482.04M	482.04M	478.74M	408.69M	315.49M	318.44M
Cash Flow
Free Cash Flow	-13.75M	43.63M	3.24M	-10.86M	-76.40M	-14.06M
Operating Cash Flow	-13.75M	43.63M	3.24M	-10.86M	-76.40M	-14.06M
Investing Cash Flow	8.26M	-49.12M	0.00	0.00	-259.05M	-165.99M
Financing Cash Flow	35.55M	35.55M	-2.34M	10.15M	77.66M	12.44M

Gladstone Capital Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLAD, the sentiment is Neutral. The current price of 21.2 is above the 20-day moving average (MA) of 20.03, above the 50-day MA of 20.11, and below the 200-day MA of 24.22, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 64.07 is Neutral, neither overbought nor oversold. The STOCH value of 79.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GLAD.

Gladstone Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLAD	70 Neutral	$472.87M	8.29	11.86%	10.78%	41.12%	-40.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GAIN	67 Neutral	$550.69M	5.58	18.68%	10.76%	-45.46%	134.73%
CCAP	66 Neutral	$525.29M	14.62	4.92%	13.61%	-20.18%	-61.90%
TCPC	58 Neutral	$509.05M	―	-1.15%	22.98%	-91.81%	78.46%
CION	58 Neutral	$498.62M	19.07	3.22%	15.11%	-11.01%	-65.56%
PNNT	54 Neutral	$376.76M	11.51	6.83%	16.72%	-3.09%	200.66%

Gladstone Capital Corporate Events

Gladstone Capital Declares April 2025 Cash Distributions

On April 8, 2025, Gladstone Capital Corporation announced that its board of directors declared monthly cash distributions for its common stock and 6.25% Series A Cumulative Redeemable Preferred Stock for April, May, and June 2025. Additionally, the company plans to report its second fiscal quarter earnings on May 6, 2025, with a conference call scheduled for May 7, 2025, to discuss the results, potentially impacting investor relations and market perceptions.

Spark’s Take on GLAD Stock

According to Spark, TipRanks’ AI Analyst, GLAD is a Neutral.

Gladstone Capital demonstrates strong revenue growth and a solid balance sheet, although operational inefficiencies are noted. Technical indicators suggest a cautious outlook with no strong momentum. The stock’s valuation is attractive with a low P/E ratio and high dividend yield. The earnings call was positive overall, highlighting new investments and income growth, though tempered by reduced portfolio yields.

To see Spark’s full report on GLAD stock, click here.