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Gladstone Capital Corp (GLAD)
NASDAQ:GLAD
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Gladstone Capital
(NASDAQ:GLAD)
67Neutral
Gladstone Capital (GLAD) vs. S&P 500 (SPY)
Market Cap
$610.05M
Dividend Yield7.25%
Average Volume (3M)108.84K
Price to Earnings (P/E)6.0
Beta (1Y)0.72
Revenue Growth69.53%
EPS Growth60.29%
CountryUS
Employees73
SectorFinancial
Sector Strength77
IndustryAsset Management Services
Share Statistics
EPS (TTM)4.60
Shares Outstanding22,329,851
10 Day Avg. Volume102,766
30 Day Avg. Volume108,840
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)N/A
Price to Sales (P/S)5.62
Price to Cash Flow (P/CF)6.50
P/FCF Ratio5.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.00Price Target Upside-14.05% Downside
Rating ConsensusHold
Number of Analyst Covering0
Gladstone Capital Business Overview & Revenue Model
Company DescriptionGladstone Capital Corporation (GLAD) is a publicly traded business development company that specializes in providing debt and equity capital to small and medium-sized businesses in the United States. The company primarily focuses on investments in the form of senior and subordinated loans, as well as equity positions in companies operating across a diverse range of industries. Gladstone Capital aims to generate income and capital appreciation for its shareholders by managing a well-diversified portfolio of investments.
How the Company Makes MoneyGladstone Capital makes money primarily through the interest income generated from its portfolio of debt investments, which includes senior and subordinated loans. These loans are extended to small and medium-sized businesses, and the interest payments received form a significant portion of the company's revenue. In addition to interest income, Gladstone Capital also earns money through capital gains realized from the sale of equity investments and loan prepayments. The company may also charge fees related to the structuring and management of its investment deals. Furthermore, Gladstone Capital benefits from its strategic partnerships and relationships with financial institutions, which can provide additional investment opportunities and funding sources. The company's performance is influenced by factors such as interest rate fluctuations, credit risk management, and the overall economic environment affecting its portfolio companies.
Gladstone Capital Financial Statement Overview
Summary
Gladstone Capital shows promising revenue growth and profitability, supported by a strong balance sheet. While operational margins indicate some inefficiencies, the company maintains a positive cash flow trajectory. The financial stability is underpinned by balanced leverage and a robust equity position.Income Statement
Gladstone Capital's TTM revenue growth is strong, with a notable increase from previous periods. The gross profit margin remains high, reflecting efficient cost management. However, the negative EBIT and EBITDA margins in TTM indicate operational challenges, despite a positive net profit margin enhanced by other income sources.67
Positive
Balance Sheet
The company maintains a solid equity base, as evidenced by a high stockholders' equity to total assets ratio. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity is strong, driven by robust net income performance. Overall, the balance sheet is stable with controlled liabilities.72
Positive
Cash Flow
Free cash flow growth is evident, showing improvement in operational cash generation. The operating cash flow to net income ratio suggests efficient cash conversion, though historical volatility in cash flows poses potential risks. The free cash flow to net income ratio supports a positive cash flow position in the TTM period.60
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 105.52M | 96.62M | 86.43M | 32.38M | 94.74M | 8.40M | Gross Profit |
| 99.39M | 96.62M | 65.85M | 17.81M | 81.83M | -819.00K | EBIT |
| -35.78M | 94.65M | 64.92M | 32.88M | 84.30M | -1.87M | EBITDA |
| -38.58M | 0.00 | 65.04M | 36.93M | -1.20M | 44.33M | Net Income Common Stockholders |
| 101.87M | 94.72M | 42.67M | 19.91M | 84.30M | -1.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.88M | 2.30M | 1.31M | 2.01M | 671.00K | 2.42M | Total Assets |
| 815.63M | 812.47M | 719.50M | 660.97M | 566.50M | 459.18M | Total Debt |
| 254.26M | 254.01M | 300.91M | 339.41M | 237.11M | 221.53M | Net Debt |
| 252.38M | -2.17M | 299.61M | 337.40M | 236.44M | 219.12M | Total Liabilities |
| 325.21M | 333.73M | 310.80M | 345.48M | 248.06M | 225.43M | Stockholders Equity |
| 490.41M | 478.74M | 408.69M | 315.49M | 318.44M | 233.74M |
| Cash Flow | Free Cash Flow | ||||
| 41.96M | 3.24M | -10.86M | -76.40M | -14.06M | -46.09M | Operating Cash Flow |
| 41.96M | 3.24M | -10.86M | -76.40M | -14.06M | -46.09M | Investing Cash Flow |
| -29.03M | 0.00 | 0.00 | -259.05M | -165.99M | -147.14M | Financing Cash Flow |
| -53.12M | -2.34M | 10.15M | 77.66M | 12.44M | 32.81M |
Gladstone Capital Technical Analysis
Negative
26.76
Price Trends
28.64
Negative
26.97
Negative
24.42
Positive
Market Momentum
-0.39
Positive
35.02
Neutral
21.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLAD, the sentiment is Negative. The current price of 26.76 is below the 20-day moving average (MA) of 28.24, below the 50-day MA of 28.64, and above the 200-day MA of 24.42, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 35.02 is Neutral, neither overbought nor oversold. The STOCH value of 21.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLAD.
Gladstone Capital Risk Analysis
Gladstone Capital disclosed 61 risk factors in its most recent earnings report. Gladstone Capital reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gladstone Capital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.11B | 10.02 | 19.26% | 5.15% | 51.80% | 12.05% | |
76 Outperform | $15.07B | 9.43 | 12.40% | 8.34% | 19.95% | -10.57% | |
70 Outperform | $494.73M | 7.04 | 14.74% | 7.15% | -8.68% | -3.76% | |
67 Neutral | $610.05M | 6.03 | 22.43% | 7.25% | 69.53% | 60.29% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
58 Neutral | $702.74M | ― | -8.57% | 16.46% | 8.24% | -207.60% | |
53 Neutral | $468.17M | 28.87 | 3.28% | 12.69% | ― | -66.59% |
* Financial Sector Average
Performance Comparison
GLAD
Gladstone Capital
26.76
7.71
40.47%
GAIN
Gladstone Investment
13.08
0.54
4.31%
MAIN
Main Street Capital
55.76
13.17
30.92%
PNNT
Pennantpark Investment
6.99
1.01
16.89%
ARCC
Ares Capital
21.86
2.95
15.60%
TCPC
BlackRock TCP Capital
8.04
-1.22
-13.17%
Gladstone Capital Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -4.19% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlighted robust new investments, increased net investment income, realized and unrealized gains, and a strong dividend yield. However, these positives were tempered by declines in investment income and portfolio yield, as well as challenges with nonearning investments and a foreclosure situation. Overall, the positives slightly outweigh the negatives.Highlights
Strong New Investments
Fundings were robust last quarter, totaling $152 million, including six new portfolio companies.
Net Investment Income Increase
Net investment income rose by $300,000 to $11.2 million, showing a 2.5% increase.
Realized and Unrealized Gains
Net realized gains for the quarter were $58 million, contributing to $15.9 million of net realized and unrealized gains.
Portfolio Appreciation
The company experienced a net profitable portfolio appreciation, with a cumulative portfolio appreciation over the past year of $2.53 per share.
Debt Reduction and Asset Growth
Net assets rose to $480 million, and leverage declined to 70% of net assets.
Dividend Yield
The current distribution run rate is producing a yield of about 7%.
Lowlights
Investment Income Decline
Investment income for the period declined by $1.8 million to $22 million due to a decrease in SOFR rates.
Foreclosure on EG's QSR
Foreclosed on EG's, a regional QSR, resulting in a restructuring process including new management and closing unprofitable locations.
Nonearning Investments
Nonearning investments increased to $52.7 million at cost or $28.5 million at fair value, representing 4% of assets.
Decline in Weighted Average Portfolio Yield
The weighted average portfolio yield declined to 13.1%, mainly due to a 90 basis point reduction.
Company Guidance
During the Gladstone Capital Corporation's first-quarter earnings call for the fiscal year 2025, strong performance and strategic financial maneuvers were highlighted. The company achieved fundings totaling $152 million, with six new portfolio companies, while exits and prepayments reached $165 million. Despite a decline in investment income to $22 million due to lower SOFR rates, net investment income increased to $11.2 million due to reduced interest and financing costs. The weighted average portfolio yield fell to 13.1%, while the reinvestment of proceeds from ARA boosted senior debt holdings to 73.4% of the portfolio's fair value. Net realized gains were $58 million, contributing to a 22% ROE. The company's net assets rose to $480 million, with NAV per share increasing to $21.51. The company maintained a conservative leverage position at 70% of NAV, offering a robust outlook with continued strong origination activity and promising lower middle-market opportunities.Gladstone Capital Corporate Events
DividendsFinancial Disclosures
Gladstone Capital Announces Q1 2025 Distributions and Earnings
Positive
Jan 14, 2025
On January 14, 2025, Gladstone Capital Corporation announced the declaration of monthly cash distributions for its common and Series A preferred stock for January, February, and March 2025, alongside plans to report earnings for its fiscal quarter ended December 31, 2024. The declared cash distributions signify a continued commitment to shareholder returns, which may strengthen the company’s market position and appeal to investors, while the forthcoming earnings report could provide insights into its financial health and operational performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.