GAIN Stock Analysis: Gladstone Investment | NASDAQ

Senior Debt, Mezzanine Loans, Equity Investments, Buyouts

Total Rating 37

Safety 50

Buy Signal -0.49

Asset Management
Industry Rotation: +2.7

Market Cap: 648M
Avg Turnover: 3.28M

Risk 3d forecast

Volatility15.8%

VaR 5^th Pctl2.73%

VaR vs Median5.18%

Reward TTM

Sharpe Ratio0.96

Rel. Str. IBD57.6

Rel. Str. Peer Group67.5

Character TTM

Beta0.379

Beta Downside0.169

Hurst Exponent0.491

Drawdowns 3y

Max DD14.76%

CAGR/Max DD1.59

CAGR/Mean DD7.22

EPS (Earnings per Share)

EPS CAGR: 26.82%
EPS Trend: 41.9%

Last SUE: 0.03
Qual. Beats: 0

Revenue

Rev. CAGR: 13.03%
Rev. Trend: 56.7%

Last SUE: -0.38
Qual. Beats: 0

Warnings

Earnings Expected To Drop (P/E To P/E Forward)

Below Avwap Earnings

Tailwinds

No distinct edge detected

Seasonality 10.5 years of data

Jan +0.6% 0

Feb +1.0% 0

Mar -1.4% 13

Apr +5.1% 40

May -3.6% 43

Jun -0.9% 41

Jul -0.1% 8

Aug +0.9% 6

Sep -2.1% 23

Oct +2.2% 9

Nov +4.0% 37

Dec -1.1% 9

How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.

Description: GAIN Gladstone Investment

Gladstone Investment Corporation (NASDAQ: GAIN) is a Business Development Company (BDC) that provides debt and equity financing to lower middle market, mature-stage U.S. companies. As a BDC, it operates under the regulatory framework of the Investment Company Act of 1940, which requires it to distribute most of its taxable income as dividends to shareholders and primarily invest in private or thinly-traded companies.

The fund targets small and mid-sized businesses primarily in manufacturing, consumer products, and business/consumer services sectors. It prefers companies with EBITDA between $4 million and $15 million, structuring debt investments typically ranging from $5 million to $30 million and equity investments from $10 million to $40 million.

Its investment vehicles include senior debt instruments (loans, term loans, lines of credit, senior notes), senior subordinated and junior subordinated debt (mezzanine loans), as well as equity instruments such as limited liability company interests, warrants, and options. GAIN avoids early-stage and start-up companies.

The fund generally seeks to influence its portfolio companies at the board level, often taking a majority equity stake, and holds investments for an average of roughly seven years before exiting through a sale, recapitalization, or IPO.

Listed on NASDAQ since its 2005 IPO, GAIN sits within the Financials sector and the Asset Management & Custody Banks sub-industry under GICS classification, reflecting its role as a publicly traded investment vehicle focused on direct private lending and equity participation.

Headlines to Watch Out For

Interest rate cuts pressure net interest margin on loan portfolio
Portfolio non-accruals rise, weighing on net investment income
Lower middle market deal activity drives new originations pace

Piotroski VR-10 (Strict) 2.0

Net Income: 165.1m TTM > 0 and > 6% of Revenue
FCF/TA: -0.08 > 0.02 and ΔFCF/TA -18.64 > 1.0
NWC/Revenue: -57.90% < 20% (prev 5.60%; Δ -63.50% < -1%)
CFO/TA -0.08 > 3% & CFO -101.8m > Net Income 165.1m
Net Debt (559.3m) to EBITDA (118.0m): 4.74 < 3
Current Ratio: 0.26 > 1.5 & < 3
Outstanding Shares: last quarter (39.8m) vs 12m ago 7.89% < -2%
Gross Margin: 63.51% > 18% (prev 73.36%; Δ -9.85% > 0.5%)
Asset Turnover: 8.86% > 50% (prev 10.61%; Δ -1.75% > 0%)
Interest Coverage Ratio: 2.81 > 6 (EBIT TTM 114.2m / Interest Expense TTM 40.6m)

Altman Z'' 1.77

A: -0.05 (Total Current Assets 22.1m - Total Current Liabilities 83.4m) / Total Assets 1.30b
B: 0.12 (Retained Earnings 160.4m / Total Assets 1.30b)
C: 0.10 (EBIT TTM 114.2m / Avg Total Assets 1.20b)
D: 0.99 (Book Value of Equity 646.8m / Total Liabilities 656.2m)
Altman-Z'' = 1.77 = BBB

What is the price of GAIN shares?

As of August 23, 2026, the stock is trading at USD 16.36 with a total of 105,178 shares traded. Over the past week, the price has changed by +0.80%, over one month by -0.10%, over three months by +1.05% and over the past year by +24.15%.

Current recommended Stop Loss: 15.70 (which is 4% or 1.8 ATR below the current price).

Is GAIN a buy, sell or hold?

Gladstone Investment has received a consensus analysts rating of 4.20. Therefore, it is recommended to buy GAIN.

StrongBuy: 3
Buy: 0
Hold: 2
Sell: 0
StrongSell: 0

What are the forecasts/targets for the GAIN price?

Analysts Target Price	17	3.9%

Gladstone Investment (GAIN) - Fundamental Data Overview as of 21 August 2026

Market Cap USD = 648.3m (648.3m USD * 1.0 USD.USD)
P/E Trailing = 3.8192
P/E Forward = 42.5532
P/S = 4.0384
P/B = 0.9968
P/EG = 5.4094
Revenue TTM = 105.9m USD
EBIT TTM = 114.2m USD
EBITDA TTM = 118.0m USD
Long Term Debt = 157.6m USD (estimated: total debt 570.8m - short term 413.2m)
Short Term Debt = 413.2m USD (from shortTermDebt, last quarter)
Debt = 570.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 559.3m USD (calculated: Debt 570.8m - CCE 11.6m)
Enterprise Value = 1.21b USD (648.3m + Debt 570.8m - CCE 11.6m)
Interest Coverage Ratio = 2.81 (Ebit TTM 114.2m / Interest Expense TTM 40.6m)
EV/FCF = -11.86x (Enterprise Value 1.21b / FCF TTM -101.8m)
FCF Yield = -8.43% (FCF TTM -101.8m / Enterprise Value 1.21b)
FCF Margin = -96.18% (FCF TTM -101.8m / Revenue TTM 105.9m)
Net Margin = 155.9% (Net Income TTM 165.1m / Revenue TTM 105.9m)
Gross Margin = 63.51% ((Revenue TTM 105.9m - Cost of Revenue TTM 38.6m) / Revenue TTM)
Gross Margin QoQ = none% (prev 4.25%)
Tobins Q-Ratio = 0.93 (Enterprise Value 1.21b / Total Assets 1.30b)
Interest Expense / Debt = 7.11% (Interest Expense 40.6m / Debt 570.8m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 90.2m (EBIT 114.2m * (1 - 21.00%))
Current Ratio = 0.26 (Total Current Assets 22.1m / Total Current Liabilities 83.4m)
Debt / Equity = 0.88 (Debt 570.8m / totalStockholderEquity, last quarter 646.8m)
Debt / EBITDA = 4.74 (Net Debt 559.3m / EBITDA 118.0m)
Debt / FCF = -5.49 (negative FCF - burning cash) (Net Debt 559.3m / FCF TTM -101.8m)
Total Stockholder Equity = 611.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 13.81% (Net Income 165.1m / Total Assets 1.30b)
RoE = 27.00% (Net Income TTM 165.1m / Total Stockholder Equity 611.6m)
RoCE = 14.84% (EBIT 114.2m / Capital Employed (Equity 611.6m + L.T.Debt 157.6m))
RoIC = 5.54% (NOPAT 90.2m / Invested Capital 1.63b)
WACC = 6.52% (E(648.3m)/V(1.22b) * Re(7.32%) + D(570.8m)/V(1.22b) * Rd(7.11%) * (1-Tc(0.21)))
Discount Rate = 7.32% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 93.26 | Cagr: 5.14%
[DCF] Fair Price = unknown (Cash Flow -101.8m)
EPS Correlation: 41.88 | EPS CAGR: 26.82% | SUE: 0.03 | # QB: 0
Revenue Correlation: 56.69 | Revenue CAGR: 13.03% | SUE: -0.38 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.20 | Chg30d=-4.65% | Revisions=+25% | Analysts=4
EPS next Quarter (2026-12-31): EPS=0.21 | Chg30d=-2.30% | Revisions=+25% | Analysts=4
EPS current Year (2027-03-31): EPS=1.01 | Chg30d=+16.09% | Revisions=+25% | GrowthEPS=+0.0% | GrowthRev=+0.0%
EPS next Year (2028-03-31): EPS=1.01 | Chg30d=+9.43% | Revisions=+0% | GrowthEPS=+0.5% | GrowthRev=+6.2%
[Analyst] Revisions Ratio: +50% (up=3, down=0)