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Gladstone Capital (GLAD)
:GLAD
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Gladstone Capital
(NASDAQ:GLAD)
70Neutral
Gladstone Capital (GLAD) vs. S&P 500 (SPY)
Market Cap
$567.18M
Dividend Yield7.8%
Average Volume (3M)116.47K
Price to Earnings (P/E)5.5
Beta (1Y)0.65
Revenue Growth69.53%
EPS Growth60.29%
CountryUS
Employees73
SectorFinancial
Sector Strength88
IndustryAsset Management
Share Statistics
EPS (TTM)4.60
Shares Outstanding22,329,851
10 Day Avg. Volume78,427
30 Day Avg. Volume116,473
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.52
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.95
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.00Price Target Upside2.36% Upside
Rating ConsensusHold
Number of Analyst Covering1
Gladstone Capital Business Overview & Revenue Model
Company DescriptionGladstone 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 MoneyGladstone 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 demonstrates strong revenue growth and a robust balance sheet with manageable leverage. However, operational challenges are indicated by negative EBIT and EBITDA margins, though cash flow remains positive.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.67
Positive
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.72
Positive
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.60
Neutral
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 96.62M | 86.43M | 32.38M | 94.74M | 8.40M | Gross Profit |
| 96.62M | 65.85M | 17.81M | 81.83M | -819.00K | EBIT |
| 94.65M | 64.92M | 32.88M | 84.30M | -1.87M | EBITDA |
| 0.00 | 65.04M | 36.93M | -1.20M | 44.33M | Net Income Common Stockholders |
| 94.72M | 42.67M | 19.91M | 84.30M | -1.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.30M | 1.31M | 2.01M | 671.00K | 2.42M | Total Assets |
| 812.47M | 719.50M | 660.97M | 566.50M | 459.18M | Total Debt |
| 254.01M | 300.91M | 339.41M | 237.11M | 221.53M | Net Debt |
| -2.17M | 299.61M | 337.40M | 236.44M | 219.12M | Total Liabilities |
| 333.73M | 310.80M | 345.48M | 248.06M | 225.43M | Stockholders Equity |
| 478.74M | 408.69M | 315.49M | 318.44M | 233.74M |
| Cash Flow | Free Cash Flow | |||
| 3.24M | -10.86M | -76.40M | -14.06M | -46.09M | Operating Cash Flow |
| 3.24M | -10.86M | -76.40M | -14.06M | -46.09M | Investing Cash Flow |
| 0.00 | 0.00 | -259.05M | -165.99M | -147.14M | Financing Cash Flow |
| -2.34M | 10.15M | 77.66M | 12.44M | 32.81M |
Gladstone Capital Technical Analysis
Positive
25.40
Price Trends
26.23
Negative
27.14
Negative
24.95
Positive
Market Momentum
-0.27
Negative
50.28
Neutral
56.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLAD, the sentiment is Positive. The current price of 25.4 is above the 20-day moving average (MA) of 24.54, below the 50-day MA of 26.23, and above the 200-day MA of 24.95, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 56.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLAD.
Gladstone Capital Risk Analysis
Gladstone Capital disclosed 61 risk factors in its most recent earnings report. Gladstone Capital reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gladstone Capital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $633.74M | 24.59 | 7.53% | <0.01% | ― | ― | |
70 Neutral | $567.18M | 5.52 | 22.43% | 7.80% | 69.53% | 60.29% | |
64 Neutral | $12.64B | 9.74 | 8.05% | 17044.60% | 12.66% | -4.62% | |
61 Neutral | $662.33M | 7.94 | 12.58% | 9.02% | 2.31% | -15.06% | |
61 Neutral | $593.36M | 8.06 | 9.93% | 10.49% | 12.83% | -13.29% | |
58 Neutral | $574.27M | ― | -8.57% | 18.81% | 8.24% | -207.60% | |
58 Neutral | $527.09M | 15.71 | 3.99% | 14.49% | 2.30% | -63.97% |
* Financial Sector Average
Performance Comparison
GLAD
Gladstone Capital
25.40
5.62
28.41%
FDUS
Fidus Investment
19.07
1.28
7.20%
TCPC
BlackRock TCP Capital
6.75
-2.20
-24.58%
CCAP
Crescent Capital BDC
16.01
0.23
1.46%
VINP
Vinci Partners Investments
9.77
-0.51
-4.96%
CION
CION Investment Corp
9.94
-0.22
-2.17%
Gladstone Capital Earnings Call Summary
Earnings Call Date:Feb 11, 2025
(Q1-2025)
| % Change Since: -7.90%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted robust new investments, increased net investment income, realized and unrealized gains, and a strong dividend yield. However, these positives were tempered by declines in investment income and portfolio yield, as well as challenges with nonearning investments and a foreclosure situation. Overall, the positives slightly outweigh the negatives.Q1-2025 Updates
Positive Updates
Strong New Investments
Fundings were robust last quarter, totaling $152 million, including six new portfolio companies.
Net Investment Income Increase
Net investment income rose by $300,000 to $11.2 million, showing a 2.5% increase.
Realized and Unrealized Gains
Net realized gains for the quarter were $58 million, contributing to $15.9 million of net realized and unrealized gains.
Portfolio Appreciation
The company experienced a net profitable portfolio appreciation, with a cumulative portfolio appreciation over the past year of $2.53 per share.
Debt Reduction and Asset Growth
Net assets rose to $480 million, and leverage declined to 70% of net assets.
Dividend Yield
The current distribution run rate is producing a yield of about 7%.
Negative Updates
Investment Income Decline
Investment income for the period declined by $1.8 million to $22 million due to a decrease in SOFR rates.
Foreclosure on EG's QSR
Foreclosed on EG's, a regional QSR, resulting in a restructuring process including new management and closing unprofitable locations.
Nonearning Investments
Nonearning investments increased to $52.7 million at cost or $28.5 million at fair value, representing 4% of assets.
Decline in Weighted Average Portfolio Yield
The weighted average portfolio yield declined to 13.1%, mainly due to a 90 basis point reduction.
Company Guidance
During the Gladstone Capital Corporation's first-quarter earnings call for the fiscal year 2025, strong performance and strategic financial maneuvers were highlighted. The company achieved fundings totaling $152 million, with six new portfolio companies, while exits and prepayments reached $165 million. Despite a decline in investment income to $22 million due to lower SOFR rates, net investment income increased to $11.2 million due to reduced interest and financing costs. The weighted average portfolio yield fell to 13.1%, while the reinvestment of proceeds from ARA boosted senior debt holdings to 73.4% of the portfolio's fair value. Net realized gains were $58 million, contributing to a 22% ROE. The company's net assets rose to $480 million, with NAV per share increasing to $21.51. The company maintained a conservative leverage position at 70% of NAV, offering a robust outlook with continued strong origination activity and promising lower middle-market opportunities.Gladstone Capital Corporate Events
DividendsFinancial Disclosures
Gladstone Capital Declares April 2025 Cash Distributions
Neutral
Apr 8, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.