NasdaqGS:GOOD

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

Fundamentals

Reasonable growth potential average dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

GOOD

0.9%

US REITs

0.07%

US Market


1 Year Return

24.1%

GOOD

21.8%

US REITs

8.9%

US Market

Return vs Industry: GOOD exceeded the US REITs industry which returned 21.8% over the past year.

Return vs Market: GOOD exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

GOODIndustryMarket
7 Day-0.8%0.9%0.07%
30 Day-0.04%2.2%-0.3%
90 Day8.0%7.9%-1.6%
1 Year33.4%24.1%27.0%21.8%11.3%8.9%
3 Year57.7%26.3%37.5%20.2%46.3%36.8%
5 Year91.7%28.0%65.5%30.4%62.1%44.3%

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?

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GOOD ($22.99) is trading below our estimate of fair value ($41.73)

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 (1004.7x) compared to the REITs industry average (37.3x).

PE vs Market: GOOD is poor value based on its PE Ratio (1004.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: GOOD is poor value based on its PEG Ratio (10x)


Price to Book Ratio

PB vs Industry: GOOD is overvalued based on its PB Ratio (2.7x) 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 3 analysts?

100.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOOD's forecast earnings growth (100.9% per year) is above the savings rate (2.7%).

Earnings vs Market: GOOD's earnings (100.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GOOD's revenue (7.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: GOOD's revenue (7.7% 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?

36.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GOOD has become profitable over the past 5 years, growing earnings by 36.4% 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 (16.9%).


Return on Equity

High ROE: GOOD's Return on Equity (3.5%) is considered low.


Return on Assets

ROA vs Industry: GOOD's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: GOOD's Return on Capital Employed has declined over the past 3 years.


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 has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

6.52%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Gladstone Commercial before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years6.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GOOD's dividend (6.52%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GOOD's dividend (6.52%) is in the top 25% of dividend payers in the US market (3.68%)

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

Growing Dividend: GOOD's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (120.2%), 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 thoroughly covered by earnings (2.6% payout ratio).


Next Steps

Management

What is the CEO of Gladstone Commercial's salary, the management and board of directors tenure and is there insider trading?

9.7yrs

Average management tenure


CEO

David Gladstone (77yo)

16.7yrs

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 Corp. in 2003 an ...


Management Age and Tenure

9.7yrs

Average Tenure

59yo

Average Age

Experienced Management: GOOD's management team is seasoned and experienced (9.7 years average tenure).


Board Age and Tenure

16.0yrs

Average Tenure

74yo

Average Age

Experienced Board: GOOD's board of directors are seasoned and experienced ( 16 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • David Gladstone (77yo)

    Founder

    • Tenure: 16.7yrs
    • Compensation: US$70.90k
  • Matt Tucker (46yo)

    Senior Managing Director

    • Tenure: 0yrs
  • Bob Cutlip (69yo)

    President

    • Tenure: 7.3yrs
  • Terry Brubaker (75yo)

    Vice Chairman & COO

    • Tenure: 12.3yrs
    • Compensation: US$169.24k
  • Buzz Cooper

    Senior Managing Director

    • Tenure: 0yrs
  • Jack Dellafiora

    Chief Compliance Officer

    • Tenure: 12.1yrs
  • Michael LiCalsi (49yo)

    General Counsel & Secretary

    • Tenure: 0yrs
  • Brandon Flickinger

    Managing Director

    • Tenure: 2.3yrs
  • Mike Sodo (41yo)

    Chief Financial Officer

    • Tenure: 2.9yrs
    • Compensation: US$95.38k
  • Karin McLaughlin

    Investor Relations Specialist

    • Tenure: 0yrs

Board Members

  • David Gladstone (77yo)

    Founder

    • Tenure: 16.7yrs
    • Compensation: US$70.90k
  • Walter Wilkinson (73yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$37.00k
  • Michela English (69yo)

    Independent Director

    • Tenure: 16.2yrs
    • Compensation: US$37.00k
  • Terry Brubaker (75yo)

    Vice Chairman & COO

    • Tenure: 12.3yrs
    • Compensation: US$169.24k
  • Anthony Parker (74yo)

    Independent Director

    • Tenure: 16.2yrs
    • Compensation: US$44.50k
  • Paul Adelgren (76yo)

    Lead Independent Director

    • Tenure: 16.2yrs
    • Compensation: US$38.00k
  • John Outland (74yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$48.00k
  • Caren Merrick (59yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$37.00k

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
  • Market Cap: US$712.781m
  • Shares outstanding: 31.00m
  • 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.PNasdaqGS (Nasdaq Global Select)PFD SER AUSUSDJan 2006
GOOD.ONasdaqGS (Nasdaq Global Select)PFD B 7.50%USUSDOct 2006
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 throu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:46
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.