Gladstone Land (NasdaqGM:LAND) - Share price, News & Analysis

LAND fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	0/6
Financial Health	4/6
Dividends	2/6

LAND Stock Overview

Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S.

Rewards

Trading at 23.4% below our estimate of its fair value

Revenue is forecast to grow 15.65% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Dividend of 2.38% is not well covered by earnings

Shareholders have been diluted in the past year

Gladstone Land Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Gladstone Land
Historical stock prices
Current Share Price	US$22.93
52 Week High	US$42.10
52 Week Low	US$21.23
Beta	0.63
1 Month Change	-9.44%
3 Month Change	-36.57%
1 Year Change	-8.72%
3 Year Change	98.87%
5 Year Change	96.49%
Change since IPO	52.87%

Recent News & Updates

Jun 02

Gladstone Land: Current Valuation Is A Downside Risk

Farmland has proven to be a hedge against inflation over the last years, where returns have been better than those on Wall Street. Gladstone Land's portfolio is of great quality and, in the long term, value will emerge. Current valuation combined with excessive debt and constant dilution make the LAND stock a risky bet.

Shareholder Returns

	LAND	US REITs	US Market
7D	6.1%	6.5%	6.6%
1Y	-8.7%	-8.6%	-18.4%

Return vs Industry: LAND matched the US REITs industry which returned -8.6% over the past year.

Return vs Market: LAND exceeded the US Market which returned -18.5% over the past year.

Price Volatility

Is LAND's price volatile compared to industry and market?
LAND volatility
LAND Average Weekly Movement	7.9%
REITs Industry Average Movement	4.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: LAND is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LAND's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	n/a	David Gladstone	https://www.gladstonefarms.com

Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The Company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 127 farms, comprised of approximately 94,000 acres in 13 different states, valued at approximately $1.0 billion. Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually.

Gladstone Land Fundamentals Summary

How do Gladstone Land's earnings and revenue compare to its market cap?
LAND fundamental statistics
Market Cap	US$789.13m
Earnings (TTM)	-US$9.29m
Revenue (TTM)	US$79.15m

9.9x

P/S Ratio

-84.5x

P/E Ratio

Is LAND overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAND income statement (TTM)
Revenue	US$79.15m
Cost of Revenue	US$9.81m
Gross Profit	US$69.34m
Other Expenses	US$78.63m
Earnings	-US$9.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.27
Gross Margin	87.61%
Net Profit Margin	-11.74%
Debt/Equity Ratio	113.8%

How did LAND perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

135%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is LAND undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LAND?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LAND. This is calculated by dividing LAND's market cap by their current preferred multiple.
What is LAND's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$789.13m

LAND key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	18.4x
Enterprise Value/EBITDA	23.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does LAND's PS Ratio compare to its peers?

LAND PS Ratio vs Peers

The above table shows the PS ratio for LAND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	9.1x

Forward PS

Price-To-Sales vs Peers: LAND is expensive based on its Price-To-Sales Ratio (9.9x) compared to the peer average (9.1x).

Price to Earnings Ratio vs Industry

How does LAND's PE Ratio compare vs other companies in the U.S. REITs Industry?

Price-To-Sales vs Industry: LAND is expensive based on its Price-To-Sales Ratio (9.9x) compared to the US REITs industry average (5.9x)

Price to Sales Ratio vs Fair Ratio

What is LAND's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LAND PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	9.9x
Fair PS Ratio	10.9x

Price-To-Sales vs Fair Ratio: LAND is good value based on its Price-To-Sales Ratio (9.9x) compared to the estimated Fair Price-To-Sales Ratio (10.9x).

Share Price vs Fair Value

What is the Fair Price of LAND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LAND ($22.93) is trading below our estimate of fair value ($29.93)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

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

22.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: LAND's revenue (15.7% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: LAND's revenue (15.7% 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 LAND's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Gladstone Land 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

-61.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LAND is currently unprofitable.

Growing Profit Margin: LAND is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: LAND is unprofitable, and losses have increased over the past 5 years at a rate of 61.4% per year.

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

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

Return on Equity

High ROE: LAND has a negative Return on Equity (0.66%), as it is currently unprofitable.

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Financial Health

How is Gladstone Land's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: LAND's short term assets ($53.1M) exceed its short term liabilities ($16.7M).

Long Term Liabilities: LAND's short term assets ($53.1M) do not cover its long term liabilities ($737.1M).

Debt to Equity History and Analysis

Debt Level: LAND's net debt to equity ratio (105.4%) is considered high.

Reducing Debt: LAND's debt to equity ratio has reduced from 253.8% to 113.8% 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 LAND has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LAND is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 30.5% per year.

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

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

2.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LAND's dividend (2.38%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: LAND's dividend (2.38%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: LAND has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LAND's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (135.4%), LAND's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (56.3%), LAND's dividend payments are covered by cash flows.

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Management

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

9.2yrs

Average management tenure

CEO

David Gladstone (79 yo)

25.42yrs

Tenure

US$57,750

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: LAND's management team is seasoned and experienced (9.2 years average tenure).

Board Members

Experienced Board: LAND's board of directors are considered experienced (9.4 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.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31