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GAIN

Gladstone InvestmentNasdaqGS:GAIN Stock Report

Last Price

US$16.33

Market Cap

US$542.2m

7D

-2.9%

1Y

51.1%

Updated

19 Jan, 2022

Data

Company Financials +
GAIN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health1/6
Dividends4/6

GAIN Stock Overview

Gladstone Investment Corporation 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.

Gladstone Investment Competitors

Ares Capital

NasdaqGS:ARCC

US$9.9b

FS KKR Capital

NYSE:FSK

US$6.3b

Prospect Capital

NasdaqGS:PSEC

US$3.5b

Golub Capital BDC

NasdaqGS:GBDC

US$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for Gladstone Investment
Historical stock prices
Current Share PriceUS$16.33
52 Week HighUS$17.15
52 Week LowUS$10.10
Beta1.55
1 Month Change0.86%
3 Month Change7.79%
1 Year Change51.06%
3 Year Change55.82%
5 Year Change84.73%
Change since IPO8.58%

Recent News & Updates

Nov 23

MAIN And GAIN: Solid Results Reinforce Why These Are Worthy Investments

MAIN and GAIN both delivered their results over the last week; both were solid reports. Both had delivered earnings that more than cover their current monthly dividends. Additionally, both of these names also announced supplemental dividends for payout in December.

Jun 08

Gladstone Investment partners with Aureus Capital for vacation rental deal

krblokhin/iStock via Getty Images On June 3, Gladstone Investment (GAIN) partners with Aureus Capital and members of the executive management team to form a platform called Nocturne Villa Rentals for acquiring and integrating luxury vacation rental management companies. GAIN provided equity and senior secured debt to complete the transaction. Nocturne was founded by Scott Simmons, who will be CEO of Nocturne, and Marshall Calder who will serve as president. Both founders have decades of experience in the luxury hospitality industry. Nocturne

Apr 28

6%-Yielding Gladstone Investment: Not Your Typical BDC

Photo by Guido Mieth/DigitalVision via Getty ImagesInvestors who bought into the BDC sector while the market was fearful have certainly done well for their portfolios. This includes Gladstone Investment (GAIN), which has since recovered to its pre-pandemic levels. In this article, I evaluate the merits of investing in GAIN and

Feb 02

Gladstone Investment EPS beats by $0.04, beats on revenue

Gladstone Investment (GAIN): Q3 GAAP EPS of $0.19 beats by $0.04.Revenue of $17.37M (+8.6% Y/Y) beats by $5.13M.Press Release

Shareholder Returns

GAINUS Capital MarketsUS Market
7D-2.9%-5.5%-4.6%
1Y51.1%24.6%7.7%

Return vs Industry: GAIN exceeded the US Capital Markets industry which returned 25.7% over the past year.

Return vs Market: GAIN exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is GAIN's price volatile compared to industry and market?
GAIN volatility
GAIN Average Weekly Movement2.3%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: GAIN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: GAIN's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005n/aDavid Gladstonehttps://www.gladstoneinvestment.com

Gladstone Investment Corporation 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 services/ distribution sector.

Gladstone Investment Fundamentals Summary

How do Gladstone Investment's earnings and revenue compare to its market cap?
GAIN fundamental statistics
Market CapUS$542.24m
Earnings (TTM)US$111.06m
Revenue (TTM)US$70.64m

4.9x

P/E Ratio

7.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GAIN income statement (TTM)
RevenueUS$70.64m
Cost of RevenueUS$0
Gross ProfitUS$70.64m
Expenses-US$40.41m
EarningsUS$111.06m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 08, 2022

Earnings per share (EPS)3.34
Gross Margin100.00%
Net Profit Margin157.21%
Debt/Equity Ratio61.2%

How did GAIN perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

25%

Payout Ratio

Does GAIN pay a reliable dividends?

See GAIN dividend history and benchmarks
When do you need to buy GAIN by to receive an upcoming dividend?
Gladstone Investment dividend dates
Ex Dividend DateJan 20 2022
Dividend Pay DateJan 31 2022
Days until Ex dividend0 days
Days until Dividend pay date11 days

Does GAIN pay a reliable dividends?

See GAIN dividend history and benchmarks

Valuation

Is Gladstone Investment undervalued compared to its fair value and its price relative to the market?

18.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GAIN ($16.33) is trading below our estimate of fair value ($20.02)

Significantly Below Fair Value: GAIN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GAIN is good value based on its PE Ratio (4.9x) compared to the US Capital Markets industry average (15.5x).

PE vs Market: GAIN is good value based on its PE Ratio (4.9x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: GAIN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GAIN is good value based on its PB Ratio (1.2x) compared to the US Capital Markets industry average (42.2x).

Future Growth

How is Gladstone Investment forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-74.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GAIN's earnings are forecast to decline over the next 3 years (-74.6% per year).

Earnings vs Market: GAIN's earnings are forecast to decline over the next 3 years (-74.6% per year).

High Growth Earnings: GAIN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GAIN's revenue (2.5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: GAIN's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GAIN's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Gladstone Investment performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAIN has a large one-off gain of $103.8M impacting its September 30 2021 financial results.

Growing Profit Margin: GAIN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GAIN's earnings have declined by 6% per year over the past 5 years.

Accelerating Growth: GAIN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GAIN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (86.4%).


Return on Equity

High ROE: GAIN's Return on Equity (25.2%) is considered high.

Financial Health

How is Gladstone Investment's financial position?


Financial Position Analysis

Short Term Liabilities: GAIN's short term assets ($7.6M) do not cover its short term liabilities ($35.3M).

Long Term Liabilities: GAIN's short term assets ($7.6M) do not cover its long term liabilities ($269.9M).


Debt to Equity History and Analysis

Debt Level: GAIN's net debt to equity ratio (60.7%) is considered high.

Reducing Debt: GAIN's debt to equity ratio has reduced from 69.4% to 61.2% over the past 5 years.

Debt Coverage: GAIN's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: GAIN's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Dividend

What is Gladstone Investment current dividend yield, its reliability and sustainability?

6.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GAIN's dividend (6.06%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: GAIN's dividend (6.06%) is in the top 25% of dividend payers in the US market (3.48%)


Stability and Growth of Payments

Stable Dividend: GAIN's dividend payments have been volatile in the past 10 years.

Growing Dividend: GAIN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.1%), GAIN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

How experienced are the management team and are they aligned to shareholders interests?

13.8yrs

Average management tenure


CEO

David Gladstone (79 yo)

16.92yrs

Tenure

Mr. David John Gladstone has been the Chief Executive Officer, President, Chief Investment Officer and Director of Gladstone Acquisition Corporation since January 2021 and serves as its Chairman. Mr. Glads...


Leadership Team

Experienced Management: GAIN's management team is seasoned and experienced (13.8 years average tenure).


Board Members

Experienced Board: GAIN's board of directors are seasoned and experienced ( 16.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GAIN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gladstone Investment Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Gladstone Investment Corporation
  • Ticker: GAIN
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$542.238m
  • Shares outstanding: 33.21m
  • Website: https://www.gladstoneinvestment.com

Location

  • Gladstone Investment Corporation
  • 1521 Westbranch Drive
  • Suite 100
  • McLean
  • Virginia
  • 22102
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:43
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.