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

-2.3%

NasdaqGS:GOOD

-0.5%

US REITs

-1.6%

US Market


1 Year Return

10.3%

NasdaqGS:GOOD

8.6%

US REITs

-3.0%

US Market

GOOD outperformed the REITs industry which returned 8.5% over the past year.

GOOD outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

GOODIndustryMarket
7 Day-2.3%-0.5%-1.6%
30 Day3.8%2.6%-5.7%
90 Day2.2%2.2%0.2%
1 Year18.7%10.3%13.5%8.6%-0.8%-3.0%
3 Year54.6%23.4%24.8%8.5%38.1%29.1%
5 Year80.2%19.9%57.4%24.0%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

43%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Gladstone Commercial's share price is below the future cash flow value, and at a moderate discount (> 20%).

Gladstone Commercial's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Gladstone Commercial is overvalued based on earnings compared to the US REITs industry average.

Gladstone Commercial is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Gladstone Commercial is poor value based on expected growth next year.


Price Based on Value of Assets

Gladstone Commercial is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Gladstone Commercial expected 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 Estimates


Future Annual Growth Analysis

Gladstone Commercial's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Gladstone Commercial's earnings are expected to grow significantly at over 20% yearly.

Gladstone Commercial's revenue growth is expected to exceed the United States of America market average.

Gladstone Commercial's earnings growth is expected to exceed the United States of America market average.

Gladstone Commercial's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Gladstone Commercial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Gladstone Commercial has delivered over 20% year on year earnings growth in the past 5 years.

Gladstone Commercial has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Gladstone Commercial has become profitable in the last year making it difficult to compare the US REITs industry average.


Return on Equity

Gladstone Commercial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Gladstone Commercial used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Gladstone Commercial's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Gladstone Commercial's financial position?


Financial Position Analysis

Gladstone Commercial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Gladstone Commercial's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Gladstone Commercial's level of debt (165.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (273.3% vs 165.3% today).

Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

6.95%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Gladstone Commercial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Gladstone Commercial's dividend is above the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been stable in the past 10 years.

No dividend growth in 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (38x coverage).


Next Steps

Management

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

9.5yrs

Average management tenure


CEO

David Gladstone (77yo)

16.5yrs

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

9.5yrs

Average Tenure

59yo

Average Age

The average tenure for the Gladstone Commercial management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

15.8yrs

Average Tenure

74yo

Average Age

The average tenure for the Gladstone Commercial board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$243,36020 Sep 18
David Gladstone
EntityIndividual
Role
Chief Executive Officer
Founder
Shares13,000
Max PriceUS$18.72

Ownership Breakdown


Management Team

  • David Gladstone (77yo)

    Founder

    • Tenure: 16.5yrs
    • Compensation: US$70.90k
  • Matt Tucker (46yo)

    Senior Managing Director

    • Tenure: 0.0yrs
  • Bob Cutlip (69yo)

    President

    • Tenure: 7.2yrs
  • Terry Brubaker (75yo)

    Vice Chairman & COO

    • Tenure: 12.1yrs
    • Compensation: US$169.24k
  • Buzz Cooper

    Senior Managing Director

    • Tenure: 0.0yrs
  • Jack Dellafiora

    Chief Compliance Officer

    • Tenure: 11.9yrs
  • Michael LiCalsi (49yo)

    General Counsel & Secretary

    • Tenure: 0.0yrs
  • Brandon Flickinger

    Managing Director

    • Tenure: 2.1yrs
  • Mike Sodo (41yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: US$95.38k
  • Karin McLaughlin

    Investor Relations Specialist

    • Tenure: 0.0yrs

Board Members

  • David Gladstone (77yo)

    Founder

    • Tenure: 16.5yrs
    • Compensation: US$70.90k
  • Walter Wilkinson (73yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$37.00k
  • Michela English (69yo)

    Director

    • Tenure: 16.0yrs
    • Compensation: US$37.00k
  • Terry Brubaker (75yo)

    Vice Chairman & COO

    • Tenure: 12.1yrs
    • Compensation: US$169.24k
  • Anthony Parker (74yo)

    Director

    • Tenure: 16.0yrs
    • Compensation: US$44.50k
  • Paul Adelgren (76yo)

    Lead Independent Director

    • Tenure: 16.0yrs
    • Compensation: US$38.00k
  • John Outland (74yo)

    Director

    • Tenure: 15.7yrs
    • Compensation: US$48.00k
  • Caren Merrick (59yo)

    Director

    • Tenure: 4.8yrs
    • 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$679.297m
  • 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

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 Analysis2019/08/24 23:47
End of Day Share Price2019/08/23 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.