Gladstone Investment (GAIN) AI Stock Analysis

• Market Cap: $481.10M
• Dividend Yield: 7.56%
• Average Volume (3M): 141.20K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.66
• Revenue Growth: -8.68%
• EPS Growth: -3.76%
• Country: US
• Employees: 70
• Sector: Financial
• Sector Strength: 86
• Industry: Asset Management
• EPS (TTM): 1.92
• Shares Outstanding: 36,837,380
• 10 Day Avg. Volume: 182,253
• 30 Day Avg. Volume: 141,199
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.78
• Price to Cash Flow (P/CF): -0.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.75
• Price Target Upside: 3.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Gladstone Investment's strong profitability and attractive valuation are significant strengths, but challenges in revenue consistency and negative cash flows present risks. The company's commitment to shareholder returns through consistent dividend distributions enhances its appeal. Overall, the stock scores moderately well due to these factors.

Gladstone Investment Business Overview & Revenue Model

Company Description

Gladstone Investment Corporation is business development company, specializes in lower middle market, mature stage, buyouts; refinancing existing debt; senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes; senior subordinated debt securities such as senior subordinated loans and senior subordinated notes; junior subordinated debt securities such as subordinated notes and mezzanine loans; limited liability company interests, and warrants or options. The fund does not invest in start-ups. The fund seeks to invest in manufacturing, consumer products and business/consumer services sector. It seeks to invest in small and mid-sized companies based in the United States. The fund prefers to make debt investments between $5 million and $30 million and equity investments between $10 million and $40 million in companies. The fund seeks to invest in companies with revenue between $20 million and $100 million. The fund invests in companies with EBITDA from $3 million to $20 million. It seeks minority equity ownership and prefers to hold a board seat in its portfolio companies. It also prefers to take majority stake in its portfolio companies. The fund typically holds the investments for seven years and exits via sale or recapitalization, initial public offering, or sale to third party.

How the Company Makes Money

Gladstone Investment makes money through a combination of interest income, dividend income, and capital gains. The company primarily invests in debt securities, such as senior secured loans and subordinated debt, which generate interest income. Additionally, GAIN often takes equity positions in the businesses it finances, allowing it to earn dividend income and potentially realize capital gains upon the sale of these equity stakes. Key revenue streams include interest payments from its debt investments, dividends from equity holdings, and proceeds from exiting investments at a profit. Gladstone Investment's earnings are significantly influenced by its ability to identify high-quality investment opportunities and effectively manage its investment portfolio.

Gladstone Investment Financial Statement Overview

Summary

Gladstone Investment exhibits strong profitability with high margins, but faces challenges with inconsistent revenue growth and negative cash flows. The balance sheet shows moderate leverage, but the cash flow issues need to be addressed to ensure long-term financial health.

Income Statement

The company shows a robust TTM net profit margin of 43.37% and a strong EBIT margin of 93.26%, indicating excellent profitability. However, revenue has fluctuated, with a decline in the recent TTM compared to the previous annual period. The revenue growth rate year-over-year is negative, reflecting potential challenges in maintaining consistent revenue streams.

Balance Sheet

The debt-to-equity ratio is 0.93, which is moderate, implying manageable leverage. The equity ratio is stable at 45.06%, indicating a solid equity base. Return on equity is strong at 6.43% in the TTM, but has shown some variability due to fluctuating net income.

Cash Flow

The company has negative free cash flow growth, and both operating and free cash flows are negative in the TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income to cash.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
72.70M	87.31M	32.66M	99.15M	48.73M	8.01M
	Gross Profit
61.72M	87.31M	10.98M	63.37M	29.16M	1.20M
	EBIT
67.82M	48.20M	51.42M	118.56M	44.78M	3.03M
	EBITDA
585.00K	111.73M	51.42M	80.89M	44.78M	3.03M
	Net Income Common Stockholders
70.03M	85.31M	35.55M	102.32M	42.45M	-17.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.22M	3.22M	2.68M	14.19M	2.06M	2.78M
	Total Assets
938.08M	938.08M	765.64M	740.41M	643.73M	576.38M
	Total Debt
398.35M	398.35M	292.61M	261.35M	151.38M	54.30M
	Net Debt
395.13M	395.13M	289.92M	247.16M	149.32M	51.52M
	Total Liabilities
445.37M	445.37M	325.90M	294.58M	261.37M	207.35M
	Stockholders Equity
492.71M	492.71M	439.74M	445.83M	382.36M	369.03M
Cash Flow		Free Cash Flow
-92.56M	-69.94M	-4.50M	36.60M	-29.73M	35.31M
	Operating Cash Flow
-92.56M	-69.94M	-4.50M	36.60M	-29.73M	35.31M
	Investing Cash Flow
1.97M	0.00	-98.22M	-42.72M	-64.22M	-89.18M
	Financing Cash Flow
83.95M	69.91M	-6.74M	-24.50M	28.07M	-34.85M

Gladstone Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAIN, the sentiment is Positive. The current price of 13.25 is above the 20-day moving average (MA) of 13.20, below the 50-day MA of 13.33, and above the 200-day MA of 12.92, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 50.91 is Neutral, neither overbought nor oversold. The STOCH value of 53.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GAIN.

Gladstone Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIN	71 Outperform	$481.10M	6.81	14.74%	7.56%	-8.68%	-3.76%
GLAD	65 Neutral	$529.89M	5.16	22.43%	8.34%	69.53%	60.29%
Sector *	64 Neutral	$13.21B	9.26	9.39%	4.87%	16.14%	-8.87%
CCAP	63 Neutral	$541.47M	7.35	9.93%	11.50%	12.83%	-13.29%
CION	59 Neutral	$474.06M	14.13	3.99%	16.11%	2.30%	-63.97%
PSBD	50 Neutral	$431.78M	9.06	9.54%	12.23%	14.82%	-63.91%
PNNT	49 Neutral	$409.41M	25.11	3.28%	14.99%	―	-66.59%

Gladstone Investment Corporate Events

Gladstone Investment Declares Monthly Cash Distributions

On April 8, 2025, Gladstone Investment Corporation announced that its board of directors declared monthly cash distributions for its common stockholders for April, May, and June 2025, along with a supplemental distribution in June. The company also plans to report its fourth fiscal quarter earnings on May 13, 2025, followed by a conference call on May 14, 2025, to discuss the results. These announcements reflect the company’s ongoing commitment to providing returns to its shareholders and maintaining transparency in its financial operations.

Spark’s Take on GAIN Stock

According to Spark, TipRanks’ AI Analyst, GAIN is a Neutral.

Gladstone Investment shows strong profitability and attractive valuation metrics, such as a low P/E ratio and high dividend yield. However, challenges with inconsistent revenue growth and negative cash flows present risks. Technical indicators suggest stable momentum, supporting a moderate overall score.

To see Spark’s full report on GAIN stock, click here.

Gladstone Investment Announces Monthly Dividends and Earnings Call

On January 14, 2025, Gladstone Investment Corporation announced that its board of directors declared monthly cash distributions of $0.08 per share for January, February, and March 2025. The company will report its third fiscal quarter earnings on February 12, 2025, with a conference call scheduled for February 13, 2025, offering stakeholders insights into the company’s financial performance and strategic direction.