NasdaqGS:GOOD

Stock Analysis Report

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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. More Details


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GOOD's weekly volatility has decreased from 10% to 3% over the past year.


Market Performance


7 Day Return

4.6%

GOOD

-0.7%

US REITs

-0.4%

US Market


1 Year Return

0.7%

GOOD

-4.8%

US REITs

36.2%

US Market

Return vs Industry: GOOD exceeded the US REITs industry which returned -4.9% over the past year.

Return vs Market: GOOD underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

GOODIndustryMarket
7 Day4.6%-0.7%-0.4%
30 Day6.1%-1.1%-2.9%
90 Day7.0%1.9%5.0%
1 Year10.7%0.7%-0.4%-4.8%39.1%36.2%
3 Year40.9%10.5%30.2%14.4%48.4%39.0%
5 Year82.2%22.4%41.2%12.7%116.5%92.4%

Long-Term 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

Valuation

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

36.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GOOD ($19.53) is trading below our estimate of fair value ($30.87)

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


Price To Earnings Ratio

PE vs Industry: GOOD is poor value based on its PE Ratio (211.1x) compared to the US REITs industry average (47.7x).

PE vs Market: GOOD is poor value based on its PE Ratio (211.1x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GOOD is overvalued based on its PB Ratio (3.2x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

How is Gladstone Commercial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-80.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOOD's earnings are forecast to decline over the next 3 years (-80.3% per year).

Earnings vs Market: GOOD's earnings are forecast to decline over the next 3 years (-80.3% per year).

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

Revenue vs Market: GOOD's revenue (2.8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: GOOD's revenue (2.8% 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'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?

-11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GOOD has a large one-off gain of $4.5M impacting its December 31 2020 financial results.

Growing Profit Margin: GOOD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GOOD has become profitable over the past 5 years, growing earnings by -11.7% per year.

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

Earnings vs Industry: GOOD has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (-6.1%).


Return on Equity

High ROE: GOOD's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Gladstone Commercial's financial position?


Financial Position Analysis

Short Term Liabilities: GOOD's short term assets ($70.3M) exceed its short term liabilities ($11.0M).

Long Term Liabilities: GOOD's short term assets ($70.3M) do not cover its long term liabilities ($711.6M).


Debt to Equity History and Analysis

Debt Level: GOOD's debt to equity ratio (179%) is considered high.

Reducing Debt: GOOD's debt to equity ratio has reduced from 241% to 179% over the past 5 years.

Debt Coverage: GOOD's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: GOOD's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

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

7.69%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: GOOD's dividend (7.69%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: GOOD's dividend (7.69%) is in the top 25% of dividend payers in the US market (3.64%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116.4%), GOOD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GOOD's dividends in 3 years are forecast to be covered by earnings (92.2% payout ratio).


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

David Gladstone (78 yo)

18.08yrs

Tenure

US$70,898

Compensation

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. He is a F...


Leadership Team

NamePositionTenureCompensationOwnership
David Gladstone
Founder18.08yrsUS$70.90k1.34%
$ 9.5m
Terry Brubaker
Vice Chairman & COO13.67yrsUS$169.24kno data
Robert Cutlip
President8.75yrsno data0.16%
$ 1.2m
Michael Sodo
Chief Financial Officer4.33yrsUS$95.38k0.030%
$ 212.9k
Karin McLaughlin
Investor Relations Specialistno datano datano data
John Dellafiora
Chief Compliance Officer13.5yrsno datano data
Michael LiCalsi
General Counsel & Secretaryno datano data0.010%
$ 71.9k
Arthur Cooper
Executive VP & Head of South Central Regionno datano datano data
Matthew Tucker
Executive VP & Head of Northeast and Midwest Regionsno datano datano data
Brandon Flickinger
Executive VP & Head of Southeast and West Regions3.67yrsno datano data
Jay Beckhorn
Treasurer6.17yrsno datano data
Anthony Mastantuono
Controllerno datano datano data

8.8yrs

Average Tenure

58yo

Average Age

Experienced Management: GOOD's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Gladstone
Founder18.08yrsUS$70.90k1.34%
$ 9.5m
Terry Brubaker
Vice Chairman & COO13.67yrsUS$169.24kno data
Walter Wilkinson
Independent Director6.42yrsUS$37.00k0.025%
$ 177.8k
Michela English
Independent Director17.58yrsUS$37.00k0.0049%
$ 34.9k
Anthony Parker
Independent Director17.58yrsUS$44.50k0.094%
$ 663.9k
Paul Adelgren
Lead Independent Director17.58yrsUS$38.00k0.034%
$ 238.9k
John Outland
Independent Director17.25yrsUS$48.00k0.0074%
$ 52.5k
Caren Merrick
Independent Director6.33yrsUS$37.00k0.0079%
$ 55.8k

17.4yrs

Average Tenure

75yo

Average Age

Experienced Board: GOOD's board of directors are seasoned and experienced ( 17.4 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


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
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: US$707.715m
  • Market Cap: US$697.890m
  • Shares outstanding: 36.24m
  • 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 SR E PFDUSUSDSep 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 throu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 23:22
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.