NasdaqGS:GOOD.M

Stock Analysis Report

Executive Summary

Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States.


Snowflake Analysis

Established dividend payer and slightly overvalued.

Share Price & News

How has Gladstone Commercial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GOOD.M has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

GOOD.M

-0.07%

US REITs

-1.1%

US Market


1 Year Return

3.1%

GOOD.M

16.0%

US REITs

17.9%

US Market

Return vs Industry: GOOD.M underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: GOOD.M underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

GOOD.MIndustryMarket
7 Day-0.9%-0.07%-1.1%
30 Day-0.8%3.6%1.4%
90 Day0.3%7.8%6.9%
1 Year10.3%3.1%20.7%16.0%20.3%17.9%
3 Year26.5%3.0%37.9%20.6%47.8%38.3%
5 Yearn/a60.3%27.3%71.9%53.0%

Price Volatility Vs. Market

How volatile is Gladstone Commercial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

45.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GOOD.M ($26.13) is trading below our estimate of fair value ($47.81)

Significantly Below Fair Value: GOOD.M is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GOOD.M is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: GOOD.M is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GOOD.M's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GOOD.M is overvalued based on its PB Ratio (3.4x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Gladstone Commercial forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

39.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOOD.M is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GOOD.M is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GOOD.M is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GOOD.M's revenue (2.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GOOD.M's revenue (2.9% 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 GOOD.M's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gladstone Commercial performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GOOD.M is currently unprofitable.

Growing Profit Margin: GOOD.M is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GOOD.M is unprofitable, and losses have increased over the past 5 years at a rate of -1.4% per year.

Accelerating Growth: Unable to compare GOOD.M's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GOOD.M is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (7.6%).


Return on Equity

High ROE: GOOD.M has a negative Return on Equity (2.63%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gladstone Commercial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GOOD.M has a high level of physical assets or inventory.

Debt Coverage by Assets: GOOD.M's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GOOD.M has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GOOD.M is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 16.7% per year.


Financial Institutions Analysis

Asset Level: GOOD.M's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GOOD.M has a sufficient allowance for bad loans.

Low Risk Liabilities: GOOD.M reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GOOD.M has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GOOD.M has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GOOD.M has an appropriate level of bad loans.


Next Steps

Dividend

What is Gladstone Commercial's current dividend yield, its reliability and sustainability?

6.98%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 23 2020Ex Dividend DateMar 19 2020Dividend Pay DateMar 31 202012 days from Ex DividendBuy in the next 24 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: GOOD.M's dividend (6.98%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GOOD.M's dividend (6.98%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: GOOD.M's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (125.6%), GOOD.M's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GOOD.M's dividends in 3 years are forecast to be thoroughly covered by earnings (2.5% payout ratio).


Next Steps

Management

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

10.0yrs

Average management tenure


CEO

David Gladstone (77yo)

17yrs

Tenure

US$70,898

Compensation

Mr. David John Gladstone is the Founder of The Gladstone Companies and has been its Chief Executive Officer and Chairman since inception in 2003. Mr. Gladstone founded Gladstone Commercial Corporation in 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
David Gladstone
Founder17yrsUS$70.90k1.41% $10.5m
Terry Brubaker
Vice Chairman & COO12.6yrsUS$169.24kno data
Robert Cutlip
President7.7yrsno data0.15% $1.1m
Michael Sodo
Chief Financial Officer3.3yrsUS$95.38k0.018% $131.0k
Karin McLaughlin
Investor Relations Specialist0yrsno datano data
John Dellafiora
Chief Compliance Officer12.4yrsno datano data
Michael LiCalsi
General Counsel & Secretary0yrsno datano data
Arthur Cooper
Senior Managing Director0yrsno datano data
Matthew Tucker
Senior Managing Director0yrsno datano data
Brandon Flickinger
Managing Director2.6yrsno datano data

10.0yrs

Average Tenure

59yo

Average Age

Experienced Management: GOOD.M's management team is seasoned and experienced (10 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Gladstone
Founder17yrsUS$70.90k1.41% $10.5m
Terry Brubaker
Vice Chairman & COO12.6yrsUS$169.24kno data
Walter Wilkinson
Independent Director5.3yrsUS$37.00k0.025% $181.8k
Michela English
Independent Director16.5yrsUS$37.00k0.0062% $46.1k
Anthony Parker
Independent Director16.5yrsUS$44.50k0.098% $722.7k
Paul Adelgren
Lead Independent Director16.5yrsUS$38.00k0.035% $261.9k
John Outland
Independent Director16.2yrsUS$48.00k0.0073% $53.7k
Caren Merrick
Independent Director5.3yrsUS$37.00k0.0083% $61.5k

16.3yrs

Average Tenure

74yo

Average Age

Experienced Board: GOOD.M's board of directors are seasoned and experienced ( 16.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7%.


Top Shareholders

Company Information

Gladstone Commercial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gladstone Commercial Corporation
  • Ticker: GOOD.M
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: US$740.747m
  • Market Cap: US$730.420m
  • Shares outstanding: 34.41m
  • Website: https://www.gladstonecommercial.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GOODNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2003
GLEDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2003
0IVQLSE (London Stock Exchange)YesCommon StockGBUSDAug 2003
GOOD.MNasdaqGS (Nasdaq Global Select)PFD SER DUSUSDMay 2016
GOOD.NNasdaqGS (Nasdaq Global Select)6.625 PFD SER EUSUSDSep 2019

Biography

Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through January 2020, Gladstone Commercial has paid 180 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. The company has paid 46 consecutive monthly cash distributions on its Series D Preferred Stock, and four consecutive monthly cash distributions on its Series E Preferred Stock. Gladstone Commercial has never skipped, reduced or deferred a distribution since its inception in 2003. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:08
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.