Gladstone Commercial (GOOD) AI Stock Analysis

• Market Cap: $622.03M
• Dividend Yield: 8.99%
• Average Volume (3M): 428.68K
• Price to Earnings (P/E): 46.2
• Beta (1Y): 0.63
• Revenue Growth: 3.01%
• EPS Growth: N/A
• Country: US
• Employees: 69
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Diversified
• EPS (TTM): 0.04
• Shares Outstanding: 46,282,864
• 10 Day Avg. Volume: 443,619
• 30 Day Avg. Volume: 428,680
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.00
• Price Target Upside: 17.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $15.50 ▲(13.97%Upside)

Gladstone Commercial's strong financial performance and positive earnings call drive the overall score. While the valuation presents concerns with a high P/E ratio, the company's robust dividend yield and strategic focus on industrial assets help bolster its attractiveness.

Positive Factors

Dividend and Price Target

Shares of Gladstone Commercial have been assigned a $16.00 Price Target, implying a 12-month price-only return of 13.64%, bringing the total return to 22.16% including the current 8.52% dividend yield.

Portfolio Expansion

The company completed the acquisition of six properties comprising 355.8K sqft, fully occupied, for a total cost of $73.7 million, at a weighted average cap rate of 8.39%.

Rental Income

The company successfully collected 100% of cash rents for the first quarter of 2025, with occupancy standing at 98.4%.

Negative Factors

Debt Level

The company does have a slightly higher than average level of debt and preferred totaling ~53% to total capitalization.

Gladstone Commercial Business Overview & Revenue Model

Company Description

Gladstone Commercial Corporation (GOOD) is a real estate investment trust (REIT) focused on acquiring, owning, and operating net leased industrial and office properties across the United States. The company primarily invests in properties that are leased to tenants under long-term leases, providing steady and predictable income. Gladstone Commercial targets a diverse range of tenants across multiple industries, reducing risk and enhancing portfolio stability.

How the Company Makes Money

Gladstone Commercial makes money through rental income generated from its portfolio of net leased properties. The company enters into long-term lease agreements with tenants, ensuring a consistent revenue stream. Rent payments are typically structured to include fixed base amounts, and some leases may contain escalation clauses that increase rent over time, providing additional revenue growth. Additionally, Gladstone Commercial strategically acquires properties that have the potential for appreciation in value, which can contribute to its earnings through property sales or refinancing. The company's focus on maintaining a diversified tenant base across various sectors helps mitigate sector-specific risks and enhances revenue stability.

Gladstone Commercial Financial Statement Overview

Summary

Gladstone Commercial shows solid financial health with consistent revenue and profit growth, strong operational efficiency, and robust cash flow management. However, high leverage poses a risk in volatile markets.

Income Statement

Gladstone Commercial shows a solid upward trajectory in revenue with a TTM increase to $151.17M from $149.39M the previous year. Gross Profit Margin remains robust at 78.4%, while Net Profit Margin improved significantly, reflecting a positive shift to 16.9% from the prior year's 16.1%. The EBIT and EBITDA margins are stable at 34.8% and 78.3% respectively, indicating strong operational efficiency and cash flow generation.

Balance Sheet

The balance sheet shows moderate leverage with a Debt-to-Equity ratio of 4.08, reflecting substantial reliance on debt financing. However, Return on Equity increased to 14.0%, suggesting improved profitability. The Equity Ratio stands at 15.8%, indicating a relatively small equity base compared to total assets, which poses a risk if market conditions worsen.

Cash Flow

Operating Cash Flow to Net Income Ratio is favorable at 2.33, indicating strong cash earnings. Free Cash Flow showed a steady increase, with no capital expenditures reported, but Free Cash Flow to Net Income Ratio is high at 2.33, suggesting robust cash flow compared to net income. However, fluctuations in investing cash flows suggest some volatility in capital allocation.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Gladstone Commercial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOOD, the sentiment is Negative. The current price of 13.6 is below the 20-day moving average (MA) of 13.91, below the 50-day MA of 14.06, and below the 200-day MA of 14.81, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 33.12 is Neutral, neither overbought nor oversold. The STOCH value of 9.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOOD.

Gladstone Commercial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLP	74 Outperform	$500.56M	17.13	9.57%	7.89%	1.82%	-1.03%
GOOD	69 Neutral	$622.03M	46.16	7.51%	8.99%	3.01%	―
AHH	68 Neutral	$713.48M	123.51	3.05%	9.93%	-12.13%	-14.54%
Sector *	64 Neutral	$6.77B	15.25	-1.98%	7.08%	4.47%	-23.75%
CTO	61 Neutral	$581.30M	36.87	-1.05%	8.61%	17.48%	-172.41%
BRSP	57 Neutral	$640.57M	―	-6.29%	12.88%	-14.92%	-3.27%
PKST	56 Neutral	$507.10M	―	-6.09%	6.41%	-8.41%	88.62%

Gladstone Commercial Corporate Events

Gladstone Commercial Secures $20 Million Term Loan

On May 30, 2025, Gladstone Commercial Limited Partnership entered into a $20 million Term Loan Agreement with KeyBank and other lenders, scheduled to mature on May 30, 2027. The unsecured loan imposes customary financial covenants and restrictions, but does not alter the company’s existing Credit Facility, potentially impacting its financial strategy and operational flexibility.

The most recent analyst rating on (GOOD) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Gladstone Commercial stock, see the GOOD Stock Forecast page.