Gladstone Commercial Corporation
Gladstone Commercial Corporation Fundamental Analysis
Gladstone Commercial Corporation (GOODO) shows moderate financial fundamentals with a PE ratio of 28.66, profit margin of 12.75%, and ROE of 9.75%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 8.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GOODO's fundamental strength across five key dimensions:
Efficiency Score
WeakGOODO struggles to generate sufficient returns from assets.
Valuation Score
ModerateGOODO shows balanced valuation metrics.
Growth Score
ExcellentGOODO delivers strong and consistent growth momentum.
Financial Health Score
WeakGOODO carries high financial risk with limited liquidity.
Profitability Score
WeakGOODO struggles to sustain strong margins.
Key Financial Metrics
Is GOODO Expensive or Cheap?
P/E Ratio
GOODO trades at 28.66 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GOODO's PEG of 0.71 indicates potential undervaluation.
Price to Book
The market values Gladstone Commercial Corporation at 3.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -4.71 times EBITDA. This is generally considered low.
How Well Does GOODO Make Money?
Net Profit Margin
For every $100 in sales, Gladstone Commercial Corporation keeps $12.75 as profit after all expenses.
Operating Margin
Core operations generate 38.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.75 in profit for every $100 of shareholder equity.
ROA
Gladstone Commercial Corporation generates $1.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gladstone Commercial Corporation generates strong operating cash flow of $56.11M, reflecting robust business health.
Free Cash Flow
Gladstone Commercial Corporation generates strong free cash flow of $56.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.90 in free cash annually.
FCF Yield
GOODO converts 14.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How GOODO Stacks Against Its Sector Peers
| Metric | GOODO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.66 | 23.28 | Worse (Expensive) |
| ROE | 9.75% | 679.00% | Weak |
| Net Margin | 12.75% | -35377.00% (disorted) | Strong |
| Debt/Equity | 5.16 | -21.26 (disorted) | Distorted |
| Current Ratio | 0.39 | 26.02 | Weak Liquidity |
| ROA | 1.72% | -910.00% (disorted) | Weak |
GOODO outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gladstone Commercial Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-11.26%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-5.41%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-1.42%
Industry Style: Income, Inflation Hedge, REIT
Declining