Gladstone Commercial (NasdaqGS:GOOD) - Share price, News & Analysis

GOOD fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	0/6
Financial Health	3/6
Dividends	5/6

GOOD Stock Overview

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.

Rewards

Trading at 54.6% below our estimate of its fair value

Earnings are forecast to grow 71.62% per year

Risk Analysis

Dividend of 7.55% is not well covered by earnings

Shareholders have been diluted in the past year

Gladstone Commercial Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Gladstone Commercial
Historical stock prices
Current Share Price	US$19.92
52 Week High	US$26.13
52 Week Low	US$18.23
Beta	1.02
1 Month Change	-9.58%
3 Month Change	-4.51%
1 Year Change	-4.78%
3 Year Change	-6.52%
5 Year Change	-2.16%
Change since IPO	32.54%

Recent News & Updates

May 16

Gladstone Commercial: Buy This 7.8% Yielding Trust

Gladstone Commercial is a well-managed trust whose portfolio is currently 97% occupied. The portfolio is well-diversified. The dividend remains covered by FFO.

May 08

Gladstone Commercial: 7.4% Yield, Good Things Come To Those Who Wait

Gladstone Commercial continues to deliver steady results with strong occupancy. Management has made solid progress towards increasing the property allocation to the bustling industrial sector. The recent sell-off has materially pushed up the dividend yield, creating an opportunity for income investors.

Shareholder Returns

	GOOD	US REITs	US Market
7D	1.4%	3.0%	1.0%
1Y	-4.8%	-0.9%	-15.1%

Return vs Industry: GOOD underperformed the US REITs industry which returned -1.3% over the past year.

Return vs Market: GOOD exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is GOOD's price volatile compared to industry and market?
GOOD volatility
GOOD Average Weekly Movement	4.3%
REITs Industry Average Movement	4.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: GOOD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GOOD's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	n/a	David Gladstone	https://www.gladstonecommercial.com

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 September 2020, Gladstone Commercial has paid 189 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions.

Gladstone Commercial Fundamentals Summary

How do Gladstone Commercial's earnings and revenue compare to its market cap?
GOOD fundamental statistics
Market Cap	US$774.90m
Earnings (TTM)	-US$1.28m
Revenue (TTM)	US$138.54m

5.6x

P/S Ratio

-602.9x

P/E Ratio

Is GOOD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GOOD income statement (TTM)
Revenue	US$138.54m
Cost of Revenue	US$33.15m
Gross Profit	US$105.40m
Other Expenses	US$106.67m
Earnings	-US$1.28m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.033
Gross Margin	76.08%
Net Profit Margin	-0.92%
Debt/Equity Ratio	183.4%

How did GOOD perform over the long term?

See historical performance and comparison

Dividends

7.6%

Current Dividend Yield

119%

Payout Ratio

Does GOOD pay a reliable dividends?

See GOOD dividend history and benchmarks

When do you need to buy GOOD by to receive an upcoming dividend?
Gladstone Commercial dividend dates
Ex Dividend Date	Jun 21 2022
Dividend Pay Date	Jun 30 2022
Days until Ex dividend	25 days
Days until Dividend pay date	34 days

Does GOOD pay a reliable dividends?

See GOOD dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GOOD ($19.92) is trading below our estimate of fair value ($43.85)

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

Price To Earnings Ratio

PE vs Industry: GOOD is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US REITs industry average.

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

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: GOOD is overvalued based on its Price-To-Book Ratio (3.6x) compared to the US REITs industry average (1.6x).

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

71.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOOD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: GOOD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GOOD's is expected to become profitable in the next 3 years.

Revenue vs Market: GOOD's revenue (1.8% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: GOOD's revenue (1.8% 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

Past Performance

How has Gladstone Commercial performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GOOD is currently unprofitable.

Growing Profit Margin: GOOD is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: GOOD is unprofitable, but has reduced losses over the past 5 years at a rate of 5.8% per year.

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

Earnings vs Industry: GOOD is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (69.5%).

Return on Equity

High ROE: GOOD has a negative Return on Equity (3.4%), as it is currently unprofitable.

Financial Health

How is Gladstone Commercial's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: GOOD's short term assets ($67.1M) exceed its short term liabilities ($9.7M).

Long Term Liabilities: GOOD's short term assets ($67.1M) do not cover its long term liabilities ($759.8M).

Debt to Equity History and Analysis

Debt Level: GOOD's net debt to equity ratio (179.7%) is considered high.

Reducing Debt: GOOD's debt to equity ratio has increased from 161.3% to 183.4% over the past 5 years.

Balance Sheet

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 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GOOD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 11.5% per year.

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

7.55%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: GOOD's dividend (7.55%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: GOOD's dividend (7.55%) is in the top 25% of dividend payers in the US market (4.06%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (118.6%), GOOD's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (83.1%), GOOD's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

8.6yrs

Average management tenure

CEO

David Gladstone (79 yo)

19.25yrs

Tenure

US$70,898

Compensation

Mr. David John Gladstone has served as Chief Executive Officer, President and Chairman of the Board of Directors at Gladstone Companies, Inc. since its inception in 2009. He has been the Chief Executive Of...

Leadership Team

Experienced Management: GOOD's management team is seasoned and experienced (8.6 years average tenure).

Board Members

Experienced Board: GOOD's board of directors are seasoned and experienced ( 18.8 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 6.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31